Computime's FY23/24 Interim Results Highlight Resilient Performance, Reinforces the Commitment to be a Leader in Smart and Sustainable Living

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Nov 27, 2023, 04:01 ET

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 %

HONG KONG, Nov. 27, 2023 /PRNewswire/ -- 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 50^th 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."

SOURCE Computime Group Limited