Computime Announces FY23/24 Annual Results

Profit After Tax Recorded a 5-year-high at HK$83.9 Million

EBITDA Increased by 41.9% to HK$340.9 Million

The Board Proposes a Final Dividend of HK$0.05 

Financial Highlights

For the year ended 31 March		FY2024 HK$ million		FY2023 HK$ million		Year-on-Year ("YoY") Change
Revenue		4,037.8		4,204.8		(4.0 %)
Gross profit		631.1		508.8		24.0 %
EBITDA(Note1)		340.9		240.2		41.9 %
Profit after tax		83.9		23.5		257.0 %
Proposed final dividend		HK$0.050		HK$0.021		138.1 %

Note 1: Earnings before interest, taxes, depreciation and amortisation ("EBITDA")

HONG KONG, June 28, 2024 /PRNewswire/ -- A leading technology, brand, and manufacturing company and an enabler of smart and sustainable living, Computime Group Limited (the "Company" or "Computime", together with its subsidiaries, collectively the "Group"; stock code: 320.HK) is pleased to announce its annual results for the year ended 31 March 2024 (the "Year" or "FY23/24" or "FY2024"). As the Group marks its 50^th anniversary, we continue to demonstrate resilience and strategic foresight in the complex global landscape.

Results overview

The Group reported the revenue of HK$4,037.8 million for FY2024, a decrease of 4.0% from HK$4,204.8 million for the Year ended 31 March 2023 ("FY2023"), due to soft demand in the housing-related market and recession concerns in the Europe and North America. Despite the revenue decline, the gross profit margin improved to 15.6% in FY2024 from 13.4%^[1] in FY2023, driven by enhanced operational efficiency, effective material management and favorable exchange rate environment.

The profit before tax increased by 242.7% to HK$107.6 million from HK$31.4 million in FY2023, while the profit after tax is reaching HK$83.9 million, representing 3 times of the profit after tax for FY2023 at HK$23.5 million. Additionally, the adjusted EBITDA^[2] was recorded at HK$333.9 million, reflecting a 13.2% growth from HK$295.0 million in FY2023.

The Group's cash and bank balances were HK$226.7 million as at 31 March 2024, while the net cash improved to HK$90.3 million as at 31 March 2024 from HK$84.3 as at 31 March 2023. The inventory balance decreased by 15.0% to HK$824.0 million, indicating better operational efficiency and material management.

Segment Review

The Control Solutions segment saw a revenue drop from HK$3,665.7 million in FY2023 to HK$3,601.0 million, a 1.8% YoY decrease due to weakened market demand and reduced consumer confidence. Despite the drop in revenue, profit margins improved significantly, driven by stable demand from long-term customer partnerships and integrated technology and manufacturing collaborations. Moving forward, the Group will implement a globalization strategy with a "region-to-region" approach, collaborating with customers to launch innovative product platforms. These efforts to foster strong customer relationships, expand our global footprint, and enhance operational productivity position the Control Solutions segment well to navigate market fluctuations and sustain profitability.

The Branded Business segment reported a revenue of HK$436.8 million for FY2024, a 19.0% decrease from FY2023, due to challenging market conditions and customer destocking. Despite these challenges, the Branded Business segment is poised for growth through strategic initiatives. We are expanding into Eastern Europe with a dedicated sales team and launching new platforms including Electric Vehicle chargers ("EVCs"), home battery storage solutions, Artificial Intelligence ("AI")-driven climate control systems, Matter-compatible thermostats, and ultra-quiet Thermostatic Radiator Valves ("TRVs"). A major focus is the Salus Protect security service, targeting the security industry and enhancing our smart home offerings in the European market. Partnering with Securitas, it includes security hardware, smart home devices, and monitoring services under the brands Immunity and Merlin. Additionally, a new centralized warehouse in Poland will boost logistics and distribution efficiency, supporting regional growth.

Research and development ("R&D")

Computime's global R&D team of 200 engineers drives innovation across the Centers of Excellence in Mainland China, Hong Kong, the United States ("US"), Romania, and the United Kingdom ("UK"). Our commitment to technological advancement is reinforced through strategic partnerships and ownership in engineering firms, focusing on cloud technology. Collaboration among engineers in Hong Kong, Mainland China, and India enhances scalability and interoperability, leveraging diverse expertise to maintain our competitive edge in intelligent product development.

Outlook

Computime is leveraging AI and sustainability to drive a new era of expansion. With a global R&D team of 200 engineers and over 200 patents, we focus on energy and water management, using AI for significant efficiency gains. Amid the COVID-19 pandemic, Computime adopted a region-to-region model, establishing manufacturing hubs in Malaysia, Vietnam, Mexico and Romania to enhance supply chain resilience and meet rising demand in the US and European markets. The Group's Branded Business segment anticipates increasing demand in 2024, with plans to expand our Salus smart home product line. Financial strategies include tighter expense control, a headcount freeze, and improved material efficiency, aiming to boost profitability and cash reserves. Computime remains dedicated to leading in smart and sustainable living technologies, adhering to Matter standards for enhanced interoperability and user experience.

Mr. Bernard AUYANG, Chairman, Executive Director and Chief Executive Officer of Computime Group, commented, "As Computime celebrates its 50^th anniversary, we reflect on our journey marked by innovation, resilience, and significant achievements. Our evolution from humble beginnings to a global leader in smart and sustainable living is a testament to our entrepreneurial spirit and unwavering determination. Looking ahead, we are committed to driving positive change through cutting-edge technologies and sustainable practices. Our vision is to democratize smart living, empowering communities worldwide to lead more connected, efficient, and environmentally conscious lives. With a steadfast commitment to excellence, integrity, and social responsibility, we are ready to shape the future for generations to come."

[1] Excluding the specific inventory provision for Malaysia

[2] Excluding one-off gain on valuation of HK$7.0 million in the current year and the additional inventory provision for the Group's Malaysia operation of HK$54.9 million in last year

Cision

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SOURCE Computime Group Limited