[Hong Kong, 3 October 2024] – Computime Group Limited (the “Company”), together with its subsidiaries (the “Group”) is excited to announce that our Shenzhen factories have been awarded the prestigious Gold Label in the Low Carbon Manufacturing Programme (“LCMP”) by the World Wide Fund for Nature (“WWF”). This milestone reflects our dedication to fostering an environmentally responsible approach within our operations and sets a benchmark for excellence in sustainable manufacturing practices across the global.
The LCMP, an initiative by WWF, provides manufacturers with a carbon accounting and labeling system. The program measures the effectiveness of manufacturers in reducing carbon emissions. Our Shenzhen factories — Computime Electronics (Shenzhen) Co. Ltd. and Computime Control Devices Manufacturing (Shenzhen) Co. Ltd. — have been recognized for our exceptional contributions to energy conservation and greenhouse gas reduction during the manufacturing processes.
Mr. AUYANG Pak Hong Bernard, Chairman, Chief Executive Officer, and Executive Director of Computime Group remarked: “We are honored to receive the Gold Label from WWF. As an enabler of smart and sustainable living, we recognize the importance of implementing low-carbon manufacturing practices. This recognition highlights our commitment to sustainability and emphasizes our leadership in driving the green transformation of our industry as we strive towards a net-zero future.”
[Hong Kong, 3 Sep 2024] Computime Group Limited (the “Company”), together with its subsidiaries (the “Group”) is pleased to announce that we have been recognized as one of the Top 50 EMS Companies for 2023 by Manufacturing Market Insider (“MMI”). We are also honored to rank 3rd among Hong Kong listed companies in this category.
MMI, a division of New Venture Research Corp., is a renowned monthly newsletter that provides specialized coverage of the EMS industry. Established in 1988, New Venture Research Corp. delivers advanced business research services for the high technology electronics sector. Each year, MMI conducts a survey involving over 100 of the largest EMS companies worldwide. The rankings are based on a variety of metrics, including sales figures, sales growth, the number of employees and so on.
The ranking emphasizes our strong position and deep expertise in the EMS sector. This recognition reflects our core values and validates our 50 years of success, achieved through sustained collaborations with major customers. It highlights our commitment to excellence and our capacity to meet industry demands.
As an innovator and enabler of smart and sustainable living, we are dedicated to strategically exploring opportunities through technologies product and advanced manufacturing solutions. Our strategic initiatives are aimed at enhancing our financial performance, thereby delivering increased value to our stakeholders.
[Read more]
New Venture Research: https://newventureresearch.com/the-mmi-top-50-for-2023/
[Hong Kong, 6 August 2024] – Computime Group Limited (the “Company”), together with its subsidiaries (the “Group”), is excited to announce the signing of a Memorandum of Understanding (the “MOU”) with the Standard Chartered Bank (Hong Kong) Limited (the “Standard Chartered Bank”). This MOU marks the beginning of a collaboration aimed at driving our business expansion and development in Vietnam.
The MOU, signed on 2 August 2024, signifies a strengthened relationship between the Group and the Standard Chartered Bank, with a shared vision of seizing business opportunities in the dynamic Hong Kong-Vietnam corridor. The Group aims to enhance its business operations and to establish new manufacturing plants in the region by leveraging the Standard Chartered Bank’s extensive network and capabilities in Vietnam.
Mr. AUYANG Pak Hong Bernard, Chairman, Executive Director, and Chief Executive Officer of Computime Group, expressed his excitement about the strategic partnership, “We strongly believe that the collaboration with the Standard Chartered Bank will open up remarkable opportunities for our Group. The close trade relationship and trade investment partnership between Hong Kong and Vietnam unleash enormous development potential for our Group. We are confident that this strategic partnership will accelerate our business expansion and significantly enhance our operational capabilities in the region. The strategic partnership aligns with our global footprint strategies and highlights our dedication to maximizing shareholders’ value.”
This strategic partnership is a testament to the Group’s ongoing efforts to diversify our revenue streams and enhance our profitability. The Group firmly believes that this MOU will drive our business growth, thereby increasing long-term value for the Group and our stakeholders.
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[More press releases]
HKTDC: Hong Kong delegation concludes ASEAN mission in Vietnam 50+ MoUs signed over the last week
SCB: Standard Chartered Hong Kong signs MOUs with clients to jointly explore business opportunities in Hong Kong-Vietnam corridor
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”)
(28 June 2024 – Hong Kong) 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 50th 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 50th 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
Computime Group, a leading innovator in manufacturing, branded products and technology solutions, is proud to announce the upcoming launch of one of the first true Matter thermostats. This milestone highlights our commitment to pioneering smart home technology and providing our OEM and ODM customers with state-of-the-art solutions.
Matter is set to revolutionize the Internet of Things (IoT) landscape as the next-generation standard for connected devices. Developed by the Connectivity Standards Alliance, Matter offers an open, universal protocol that is not bound to any single ecosystem, providing consumers with unparalleled freedom and flexibility. It ensures privacy-sensitive, secure, and reliable local controls without the need for cloud dependency, addressing the growing demand for enhanced privacy and security in smart home devices.
The key principles driving Matter’s development include simplicity, reliability, interoperability, and security. By ensuring that all Matter-certified devices work seamlessly together, Matter eliminates the complexities often associated with smart home technology. This leads to greater compatibility, easier setup, and more robust user experiences across various device types, including thermostats.
Computime’s Matter thermostat represents a significant advancement in smart home technology, providing our customers with cutting-edge solutions and a short lead time to market, to meet the growing demand for interconnected and efficient home environments. We invite our customers to explore the capabilities of our new thermostat solutions. Computime’s extensive expertise in developing and manufacturing smart home devices ensures that our customers receive high-quality, reliable products with a short lead-time that stand out in the competitive market.
(Hong Kong, 7 May 2024) – A technology, brand and manufacturing solutions provider, Computime Group Limited (“Computime” or the “Company”, together with its subsidiaries, the “Group”, stock code: 320.HK), is pleased to announce a significant milestone in entering the electric vehicle (“EV”) charger market through collaboration with key charge point operators (“CPOs”) among Hong Kong EV charging service industry. This move signifies our first stride into the fast-growing Hong Kong EV charger market and is a significant step forward for our Group.
These CPOs hold a commanding lead in Hong Kong’s market share, primarily serving key public facilities, shopping malls and residential estates. We will tailor and customise EV chargers to meet diverse needs and applications. In the initial phase over 100 units will be deployed within public facilities on the Hong Kong Island. For the next phase, our target is to supply more than 2,000 EV chargers. The collaboration with key CPOs has made our EV chargers accessible to the Hong Kong market, also marks the official launch of our EV chargers’ commercial use.
The EV chargers to be supplied are based on the VERDI EV Charger model, which was honored with the prestigious Red Dot Design Award for Product Design in 2023. The chargers, offering personalised connection options, provide flexibility for various use-case scenarios, meeting the demanding needs for fast-charging solutions among local users in Hong Kong.
Mr. AUYANG Pak Hong Bernard, Chairman, Chief Executive Officer and Executive Director of Computime Group, said, “As a company rooted in Hong Kong, we are eager to deliver an excellent charging experience to local users. Our partnership with Hong Kong’s key CPOs enables direct engagement with users and the delivery of smart and advanced solutions, showcasing our dedication to promoting smart and sustainable living. We are looking forward to strengthening these collaborations, driving innovation in eco-friendly products tailored for our customers in Hong Kong. Hong Kong marks the beginning of our journey, and our sights are set on a broader horizon. We aim to expand into overseas markets in the next quarter. As we look to the future, we plan to seize the opportunities presented by globalisation to introduce our products to a wider market and contribute to global advancements in green technology.”
Reinforces the Commitment to be a Leader in Smart and Sustainable Living
Highlights
1H FY23/24 1H FY22/23 Changes
Revenue (HK$ million) 2,046.8 2,090.5 -2.1%
Gross profit (HK$ million) 307.4 267.5 14.9%
Gross profit margin (%) 15.0 12.8 17.2%
EBITDA (HK$ million) 165.6 138.7 19.4%
Profit after tax (HK$ million) 37.7 30.3 24.4%
Earnings per share attribute to owners of the company – Basic (HK cents) 4.48 3.58 25.1%
(27 November 2023 – Hong Kong) A leading technology, brand and manufacturing solutions specialist focusing on 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 interim results for the six months ended 30 September 2023 (“1H FY23/24” or the “Period”).
Resilient Business Performance amid Volatile Uncertainties
Despite macroeconomic challenges such as slow global economic recovery, inflationary pressures, and geopolitical tensions, the Group demonstrated resilience and adaptability, resulting in stable performance.
Total revenue reached approximately HK$2,046.8 million, reflecting a slight decrease of approximately 2.1% compared to HK$2,090.5 million from the six months ended 30 September 2022 (“1H FY22/23”). On the upside, the Group achieved a gross profit of HK$307.4 million, a notable year-on-year (“YoY”) increase of 14.9% from HK$267.5 million reported in 1H FY22/23. The gross profit margin recorded a YoY growth of 17.2%, from 12.8% in 1H FY22/23 to 15.0% in 1H FY23/24. The significant YoY growth in gross profit and gross profit margin reflects strong pricing power, better cost management, and enhanced operational efficiency.
Profit after tax for 1H FY 23/24 demonstrated a significant increase of 24.4%, reaching HK$37.7 million, compared to HK$30.3 million achieved in 1H FY22/23. The EBITDA for 1H FY23/24 stood at HK$165.6 million, reflecting a substantial growth of 19.4% compared to the HK$138.7 million recorded in 1H FY22/23. These results are attributed to the Group’s enhanced operational efficiency and the favorable exchange rate environment.
Robust Research and Development and Global Footprint
The Group is committed to becoming a global technology leader in smart and sustainable living by investing in research and development (“R&D”) initiatives. Key areas of focus include Artificial Intelligence (“AI”), Machine Learning (“ML”), Human-Machine Interface (“HMI”), Internet of Things (“IoT”), Connectivity, and Cloud/Platform-as-a-Service (“PaaS”), robotic and automation. The Group’s product platforms include energy management solutions such as EV chargers, power control systems, and battery storage products, as well as water management solutions like irrigation controls, sensor technologies, robotic lawnmowers, and long-range LoRa protocol irrigation system controls. The investment in R&D places the Group at the forefront of technological innovation, promoting environmental sustainability and enhancing the quality of life for its customers.
During this Period, the Group made significant strides in broadening its global presence, particularly in Southeast Asia and North America, by establishing new manufacturing facilities in Vietnam and Mexico. This approach has facilitated proximity to key markets and aligned us more closely with customer requirements. It reinforces our commitment to providing tailored solutions and exceptional service to our global clientele.
Promoting Smart and Sustainable Living in a Rapidly Evolving World
Beyond the current opportunities and risks, the Group has successfully transformed itself from a traditional engineering and manufacturing company to a technology, brand and manufacturing company. We have formulated four growth themes to fuel our expansion in the Group’s ambition to become a leader in smart and sustainable living.
Targeted growth. The Group is strategically positioned to capture the opportunities in green and smart markets by introducing innovative product platforms. Our R&D investment in energy and water management platforms utilizing AI underscores our commitment to developing the world’s leading sustainable solutions. By adhering to the new MATTER standards, we ensure that our products align with the latest benchmarks in the smart home and IoT sectors. These initiatives emphasise our dedication to leading the industry, addressing evolving consumer needs, and fueling our growth in these thriving markets.
Globalisation rewired. In response to COVID-19-induced shifts, the Group has adopted a region-to-region strategy, establishing manufacturing facilities in key locations. These strategic investments has enhanced our ability to meet the changing demands of our global customer base, and bolster our resilience in a rapidly transforming world, emphasising our determination to adapt and thrive in a rewired era of globalisation.
1 to N technologies. Computime invests heavily in green technologies, owning over 500 engineers and over 200 patents. Our R&D focuses on energy and water management. We’ve developed an AI model that saves up to 25% on energy bills. Embracing a 1 to N approach, we actively respond to market demands and anticipate future technological landscapes. Our dedication to pioneering energy and water management solutions stands as a testament to industry-leading and sustainable practices.
Operation remastered. To sustain growth and operational excellence, the Group plans to implement three strategic models: “Region-to-Region”, “Hub and Spoke” and “Flexible Hybrid Operations”. These strategies aim to meet customer demands, streamline communication, promote resource efficiency, and foster cross-regional synergies, thereby optimising resource allocation and enhancing overall efficiency across the global organisation.
Outlook
Looking ahead, the global economy is expected to remain volatile. Mr. Bernard AUYANG, Chairman and Chief Executive Officer of Computime Group, commented, “Given the macro-level changes, we have been actively capitalising on the opportunities that present in the green technology and smart home markets, and we constantly practising financial prudence. By adopting this dual approach, we are well-prepared to navigate risks and excel in the changing business environment. ”
Mr. AUYANG continued, “As we stand on the brink of our 50th anniversary next year, we celebrate our evolution from a humble clock manufacturer to a leading technology, brand and manufacturing leader in smart and sustainable living. We look forward to another 50 years of transformation, supported by ambitious objectives, an employee incentive system, and a robust five-year development roadmap. With these milestones and strategies in place, we are poised for continued success and growth in these fast-growing markets. Our imminent goal is to drive our valuation and profitability beyond pre-pandemic yardstick, while persistently unlocking the potential values for our shareholders.”
Computime Group Limited (“Computime”), a leading global technology, brand, and manufacturing company at the forefront of smart and sustainable living, is enhancing its competitive advantages and business efficiency with SAP solutions.
The partnership between Computime and SAP has expanded over the years, with Computime recently going live with SAP S/4HANA and SAP SuccessFactors. These solutions would support Computime to optimize its various operations and strengthen data-driven decision-making. Since 1974, Computime has established itself as a global leading technology, brand, and manufacturing company with 16 offices and manufacturing facilities across Asia, North America, and Europe. The company advances smart and sustainable living through its two key operating segments: Control Solutions and Branded Business. As a specialist in Artificial Intelligence (“AI”), human-machine interface (“HMI”), Internet of Things (“IoT”), wireless connectivity, and cloud technology, Computime’s Control Solutions provide OEM and ODM solutions for critical environmental control systems such as appliance controls, heat ventilation and air conditioning (“HVAC”), home and industrial controls, as well as medical and wellness products for the commercial, industrial, and consumer sectors worldwide. Branded Business offers smart home, energy efficient, and net-zero home solutions for professional installers, property developers, utility companies, and wholesalers under SALUS and Braeburn house brands. In addition, Computime Brands, the company’s business-to-customer arm, provides smart home solutions, nursery products, and security devices for retail customers.
Bernard Auyang, Chairman and Chief Executive Officer of Computime Group, said, “Computime is dedicated to enabling smart and sustainable living, a commitment mirrored in our efforts to digitalize our internal processes. The strategic integration with SAP’s best-in-class system has streamlined our workflows and improved operational efficiency, accelerating our decision-making processes. The partnership with SAP will contribute to our business efficiency, furthering our dedication to technology and innovation.”
Esmond Tong, Managing Director SAP Hong Kong, said, “Today’s business world is full of challenge and change. By driving its growth as an intelligent enterprise with SAP solutions, Computime is building on its current advantages – the strengths of its people, processes, and data – to maximize its innovation, agility, and reach and position itself to stay ahead of the game in the future.”
(Hong Kong, 10 July 2023) A technology, product, and manufacturing solutions specialist – Computime Group Limited (“Computime” or the “Company”, together with its subsidiaries the “Group”, stock code: 320.HK) is pleased to announce that, Computime has been awarded the Red Dot Award: Product Design 2023 for its Verdi EV Charger (“VERDI”). The Red Dot Award is one of the world’s most sought-after design awards, recognizing outstanding design quality and innovation. This award recognizes Computime’s ability in designing innovative products that embodying modern aesthetics preferences.
Dedicated to delivering a delightful EV charging experience, the VERDI is designed for both commercial and residential use, combining aesthetics and functionality. Its modern design and durable casing make it a versatile solution for both indoor and outdoor parking environments, optimizing the use of garage and commercial parking space. The VERDI series offers a practical and efficient charging solution up to 22kW charging power with both Tethered and Socket connection options. The tethered cable connection is ideal for home or private garages where users can conveniently connects the charging station with their vehicles, while the socket connection is more practical for public parking lots. The VERDI series could also communicates with Charging Station Management System and charging station network through Open Charge Point Protocol (“OCPP”), to achieve energy usage management and smart charging. The Y-shaped metal wall mount design ensures effortless installation and stable mounting, while the innovative Cable and Connector Holder adds to the unit’s aesthetics while tidying up cables for a more organized storage solution.
The Red Dot Award has a 60-year history and is considered one of the world’s most prestigious design awards. It receives thousands of entries each year from over 70 countries and regions, with a jury panel of 50 international experts conducting an evaluation process. Winning the Red Dot Award is a significant recognition of outstanding design quality and innovative product development.
The VERDI has captured the attention from one of the fastest-growing full-service EV charging providers and Charge Point Operators (“CPO”) in Hong Kong. With the roots in Hong Kong, Computime is committed to enhancing the charging experience for local users. The VERDI’s ambition is to serve a global customer base, delivering excellent charging experiences for both residential and commercial users, and solidifying the position in the rapidly evolving EV charging market.
Mr. AUYANG Pak Hong Bernard, Chairman, Chief Executive Officer and Executive Director of Computime Group Limited, said, “It is an honor for us to be awarded the Red Dot Award for our EV Charger product. We believe that it will revolutionize the charging experience for electric vehicle users and contribute to a more sustainable future. Moving forward, our commitment remains to develop smart and sustainable products that cater to the evolving needs of our customers.”
Resilient Business Performance amid Volatile Uncertainties
Revenue Increased by 0.5% YoY to HK$4,204.8 million
Adjusted EBITDA Increased by 21.0% YoY to HK$295.0 million
Financial Highlights
For the year ended 31 March FY2023
HK$ million FY2022
HK$ million Change
Revenue 4,204.8 4,184.8 0.5%
Gross profit 508.8 537.3 (5.3%)
EBITDA(Note1) 240.2 263.1 (8.7%)
Profit after tax 23.5 83.7 (71.9%)
Adjusted EBITDA (Note2) 295.0 243.8 21.0%
Adjusted Profit after tax(Note2) 78.4 64.3 21.9%
Note 1: Earnings before interest, taxes, depreciation and amortisation (“EBITDA”)
Note 2: Adjusted EBITDA and Adjusted Profit after tax excluded the additional inventory provision for the Group’s Malaysia operation of HK$54.9 million in the current year and one-off gain on remeasurement of an existing interest in an associate upon a business combination of HK$19.4 million in last year.
(29 June 2023 – Hong Kong) A leading technology, brand, and manufacturing company and an enabler of smart and sustainable living, Computime Group Limited (the “Company” or “Computime”, together with its subsidiaries, collectively the “Group”; stock code: 320.HK) is pleased to announce its annual results for the year ended 31 March 2023 (the “Year” or “FY2023”).
Results Overview
Despite the challenging environment, the Group continued to invest in technological innovations and expand the global footprint. This strategy allowed the Group to retain existing customers and ensure order volume. Revenue increased to HK$ 4,204.8 million in FY2023, compared to HK$4,184.8 million for the Year ended 31 March 2022 (“FY2022”). Due to the Group’s relentless effort to control costs and minimize the negative impact of uncertainties, the gross profit excluded the additional inventory provision for the Group’s Malaysia operation of HK$54.9 million in FY2023 increase to 13.4% to HK$563.7 million (FY2022: HK$537.3 million) compared to last year. The overall gross profit margin, including the additional inventory provision, remained at 12.1% (FY2022: 12.8%), showcasing the Group’s resilience in a volatile market.
In response to severe global material shortages, the Group strategically increased inventory holdings of essential components, ensuring timely order fulfillment and delivery, including inventories in Malaysia. The Group made additional inventory provisions for Malaysian operations as inventory movement was slower than anticipated. Additionally, a one-time gain from remeasuring of existing interests in Braeburn’s business occurred in FY2022. The Group’s profit for the Year decreased by 71.9% YoY to HK$23.5 million (FY2022: HK$83.7 million) and EBITDA saw an 8.7% YoY decrease to HK$240.2 million (FY2022: HK$263.1 million). Excluding additional inventory provisions and the remeasurement gains from the Braeburn acquisition, Adjusted Profit after tax1 rose by 21.9% to HK$78.4 million, and Adjusted EBITDA1 grew by 21.0% to HK$295.0 million.
The Group maintained financial stability to manage macro environment risks and enhance debt management capabilities. The Group’s gearing ratio2 remained at an optimal level of 46.8% (FY2022: 40.8%). Net cash improved significantly by 36.4% compared to the previous year (FY2023: HK$84.3 million; FY2022: HK$61.8 million). This increase in net cash supports the Group’s future expansion.
Overall, the Group maintained stable operations, secured consistent order volumes and retained customers, thereby demonstrating our business resilience. The Group anticipates improvements as supply chain stability is achieved and inventory turnover accelerates. The Group plans to revamp material and order management processes, adopt the Lean Manufacturing Model and reduce overhead costs to enhance efficiency.
1. Adjusted EBITDA and Adjusted Profit after tax excluded the additional inventory provision for the Group’s Malaysia operation of HK$54.9 million in the current year and one-off gain on remeasurement of an existing interest in an associate upon a business combination of HK$19.4 million in last year.
2. Calculated based on the net debt divided by the equity attributable to owners of the Company plus net debt. Net debt is the sum of interest-bearing bank borrowings, trade and bills payables, and other payables and accrued liabilities, minus cash and bank balances and time deposits with an original maturity of three months or less when acquired.
Segment Review
The Group has two segments: Control Solutions Business and Branded Business.
The Control Solutions Business specializes in providing design, engineering, technology, and manufacturing services, including Original Equipment Manufacturer (“OEM”) and Original Design Manufacturer (“ODM”), to international branded customers. The Control Solutions Business provides a wide range of commercial and industrial applications, including home appliance controls, ventilation and air-conditioning controls (“HVAC“), smart home controls, industrial controls, and medical devices. During the Year, the Control Solutions Business managed to secure stable order volume and maintain revenue levels in the volatile environment, reaching HK$3,665.7 million (FY2022: HK$3,773.6 million) during the Year. The strong new business pipeline support secured many new projects, support the segment’s future growth.
The Branded Business segment includes the Salus and Braeburn house brands, which offer smart home, energy management, and net-zero home solutions to professional installers, property developers, utility companies, and wholesalers. Salus primarily focuses on the European market. Salus offers scalable and customizable eco-friendly smart home solutions to meet the growing demand for net-zero homes. Its product portfolio covers climate controls, EV chargers, backup batteries, solar panels, heat pumps, home security systems, and integrated software management tools that enable customers to optimize their energy usage at home.
Braeburn, acquired by the Group in December 2021, is one of North America’s most rapidly growing control solution brands. Braeburn’s sales network is primarily focused on the professional installer and wholesaler markets, and its product portfolio emphasizes energy-saving and smart HVAC solutions.
Combined with Salus, the Branded Business now covers Europe and North America, making the Group a global brand in energy management and smart home markets. The segment has recorded impressive growth, with revenue increasing by 31.1% YoY to reach HK$539.1 million. (FY2022: HK$411.2 million)
Business Review and Outlook
The Group has prioritized product development and technological innovation during the Year, focusing on smart and sustainable living solutions. Investments in research and development made across IoT/sensors, cloud infrastructure, connectivity, human-machine interface, artificial intelligence, and machine learning. Leveraging our core technological advantages, the Group developed a versatile product platform covering Electric Vehicle (“EV“) chargers, smart irrigation, robotics, professional security, AI climate control, and new form factor thermostats.
The Group dedicated to enhancing quality and efficiency by embracing innovative technologies and product development. With a strong in-house engineering team comprising over 500 members, the Group is well-positioned for technological innovation and product realization. The Group has also diversified its manufacturing base, with facilities strategically located in China, Malaysia, Vietnam, Mexico, and Romania, mitigating growing geopolitical risks and providing flexible manufacturing solutions.
Regarding outlook, Chairman and Chief Executive Officer of Computime Group Limited, Mr. AUYANG Pak Hong Bernard, commented, “Despite the challenging environment, we have positioned ourselves as a technology, manufacturing and brand leader in the smart and sustainable living markets. As a result, we are less affected by short-term economic factors and we maintain a cautiously optimistic position in our future outlook.”
Mr. AUYANG continued, “Our Control Solutions business segment will leverage our technological and manufacturing expertise to provide flexible solutions across the global markets, and dedicate resources to grow China market. The Branded Business segment will launch new Salus and Braeburn climate control products, aiming to broaden our customer base. We will enhance our net-zero home offerings and focus on business improvement, cost control, and resource optimization. Our technology and product roadmap focuses on expanding our HVAC market position and increasing AI use in smart products. Our ultimate goal is to improve society’s quality of living and move towards a more environmentally-conscious future.”
– End –