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.”
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(Hong Kong－5 December 2022) A leading technology, brand, and manufacturing solutions specialist focusing on smart and sustainable living – Computime Group Limited (“Computime” or the “Company”, together with its subsidiaries the “Group”, stock code: 320.HK) is pleased to announce that, two of its subsidiaries, Computime Control Devices Manufacturing (Shenzhen) Co. Ltd. and Computime Electronics (Shenzhen) Co. Ltd., have received the “Certified” Label and “Sliver” Label respectively from World Wide Fund for nature (“WWF”) respectively, regarding their participation and satisfactory performance in the Low Carbon Manufacturing Programme (“LCMP”).
WWF, an international non-governmental organization that works in the field of wilderness preservation and the reduction of human impact on the environment, organizes the LCMP, aimed to cut carbon emissions generated by manufacturing facilities and developing environmental social governance for manufacturers. By providing manufacturers with a carbon accounting and labeling system, LCMP helps to measure their effectiveness in reducing carbon emissions, as well as to equip them with best practices in greenhouse gas management. The two subsidiaries from Computime were honored to receive the designation, with WWF highlighting their respective contribution in both energy-and-cost-saving in manufacturing.
Mr. AUYANG Pak Hong Bernard, Chairman, Chief Executive Officer and Executive Director of Computime Group Limited, commented: “We are honored to be recognized by WWF, the world-renowned organization focusing on sustainable development. As a smart and sustainable living enabler, we see the growing importance of low-carbon manufacturing practices, whether it is from the consumer end, or from the view of our branded partners. We believe the certification will further highlight our competitive advantage, as we strive to offer sustainable practices and cost-competitive solutions. Looking ahead, we will remain committed to driving the green transformation of the industry, and charging towards a greener and more sustainable future.”
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Resilient Business Performance amid Macro Uncertainties
Revenue Increased by 13.8% YoY to HK$2,090.5 million
Gross Profit Increased by 4.6% YoY to HK$ 267.5 million
Financial Highlights
For the six months ended 30 September FY2022
HK$ million FY2021
HK$ million Change
Revenue 2,090.5 1,836.2 +13.8%
Gross profit 267.5 255.8 +4.6%
Gross profit margin(%) 12.8% 13.9% -1.1p.p.
Profit attributable to owners of the Company 30.2 34.2 -11.6%
EBITDA 138.7 118.0 +17.5%
Basic earnings per ordinary share (HK cent(s)) 3.58 4.06 -11.8%
(23 November 2022 – 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 2022 (the “Period”).
Results Overview
Despite the prevailing conservatism among industry players and end consumers, the Group was able to leverage its technological capability and customer stickiness, in securing a steady increase in orders across both operating segments during the Period. Hence, total revenue increased 13.8% year-on-year (“YoY”) to HK$2,090.5 million (1HFY21/22: HK$1,836.2 million). As a result of the increase in revenue, gross profit also increased 4.6% YoY to HK$267.5 million (1HFY21/22: HK$255.8 million), yet gross profit margin suffered a drop of 1.1 percentage point to 12.8% (1H FY21/22: 13.9%), mainly due to the depreciation of European currencies as well as the spike in raw material and logistics costs. Coupled with the sharp increase in interest rate, as well as the increase in interest-bearing bank borrowings in support of various corporate projects, profit attributable to owners of the Company decreased 11.6% YoY to HK$30.2 million (1H FY21/22: HK$34.2 million). On the other hand, EBITDA for the Period increased from HK$118.0 million last year, to HK$138.7 million this year.
The Group also remained its prudent approach in managing its financial. As at 30 September 2022, cash and cash equivalents increased 16.9% to HK$406.4 million (as at 31 March 2022: HK$347.7 million), with trade receivables greatly improved as it decreased from HK$499.2 million, to HK$365.2 million, despite an increase in total revenue. Trade and bills payables also increased from HK$807.0 million to HK$943.1 million, whereas inventories increased 19.5% to HK$1,118.1 million (as at 31 March 2022: HK$935.9 million), largely due to the integration of Braeburn Systems LLC’s (“Braeburn”) inventories as well as the advanced preparation of materials amid global unpredictability. Gearing ratio maintains at a healthy level at 44.0%, slightly above last fiscal year end at 40.8% as at 31 March 2022.
Overall, the Company was able to report an improvement in its cash conversion cycle to 46 days during the Period (1H FY21/22: 53 days), and that should provide enough agility for the Company to navigate the fluctuating market.
Segment Review
The Group continues to advance smart and sustainable living through its two key operating segments, with Control Solutions focusing on the design, engineering, technology and manufacturing solutions of heating, ventilation, and air conditioning, home appliance and industrial controls for international branded customers, whereas its Branded Business offers smart home, energy efficient, and environmental control products to professional installers, property developers, and wholesalers under its house brand Salus.
During the Period, revenue of Control Solutions reached HK$1,863.6 million (1H FY21/22: HK$1,656.0 million), representing a YoY growth of 12.5%, thanks to the increase in order volume during the Period. However, despite the Group’s best effort in cost control and price adjustment, segment profit margin decreased 1.2 percentage point to 6.6% (1H FY21/22: 7.8%), as a result of the surge in material and the depreciation of European currencies.
Benefitted from the contribution of the top-up investment in Braeburn, revenue of Branded Business increased 25.9% YoY from HK$180.2 million last year, to HK$226.9 million this year. Yet, it was partially offset by the depreciation of European currencies, resulting in a narrowing loss, from HK$27.1 million last year to HK$17.8 million this year. Nonetheless, Braeburn’s integration has been ongoing. Through its extensive sales network, it is expected that the Group can improve segment performance in the future, by raising the Group’s penetration and contributions from the North American market.
Business Review and Outlook
During the Period, the Group continued to enhance its capability by streamlining its operations, investing in new technologies, refining its global manufacturing footprint, and maintaining a solid financial position in case of the unexpected. The Group has invested in its technological infrastructure to develop its Platform-as-a-Service (“PaaS”) business, on applications such as smart irrigation, robotics, and smart home construction. To support the PaaS development, the Group has further invested in its research and development (“R&D”), particularly on artificial intelligence (“AI”), machine-learning (“ML”), cloud computing, robotics, professional security solutions and electrical vehicle (“EV”) chargers, so that it can create better products for its future servicing business. The Group has also tapped into new product categories and industries through its robotic investment, allowing it to acquire new customers from the medical and hospitality sectors.
On its production footprint, while the development of new sites in Mexico and Romania remains on track, the Group has greatly strengthened its control and enhanced the efficiency of the Malaysian plant during the Period. This should also lay a solid foundation for future performance, as the improved in efficiency should become a competitive advantage for existing and new customers.
Regarding outlook and strategies, Chairman and Chief Executive Officer of Computime Group Limited, Mr. AUYANG Pak Hong Bernard, commented, “In order to counter the headwinds ahead, the Group will continue to focus on cost control and efficiency enhancement, allowing us to have the maximum resources and margins available to respond to the market. Specifically, the Group will continue to boost the efficiency of its Malaysian plant, as well as to reduce the operating cost of its other plants through its level-loading strategy so that it can enjoy a higher margin. The Group will also preserve cash to efficiently respond to market shocks, and will continue to diversify its manufacturing footprint in order to gain competitive advantage in new regional markets.”
Mr. AUYANG continued, “The Group remains cautiously optimistic over the future, and the successful integration of Braeburn should offer the Group a new business dimension. The Group is looking forward to leveraging its solid distribution network in North America to quickly expand its Branded Business. The Group has started offering a true end-to-end solution through its PaaS to its customers. The platform will also be expanded to cover other new product categories that the Group will tap into in the future. While the Group continues to invest in R&D, focusing on AI, ML, robotics, cloud computing, professional security solutions and EV chargers, the subsequent new product development should also lay a solid foundation for future ecosystem and service revenue, allowing the Group to offer more and better products and solutions to drive smart and sustainable living.”
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(Hong Kong－ 3 November 2022) 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, it has received “Operational Excellence Awards – Direct Material” from Electrolux, one of its major customers and business partners, for its excellence in value creation, supply chain flexibility, and service quality.
Electrolux recognized the outstanding performance of its top suppliers from around the world at its 10th Supplier Awards ceremony on November 3, 2022. Several awards were presented in the ceremony, including Supplier of the Year, Operational Excellence Awards, Consumer Experience Awards, and Sustainability Award. The Group was awarded the “Operational Excellence Awards – Direct Material”, with Electrolux highlighting Computime’s effort in minimizing the impact of the global semiconductor shortage, as well as its capability and initiative in proposing alternative component solutions, while being fully transparent over the last year.
Mr. AUYANG Pak Hong Bernard, Chairman, Chief Executive Officer and Executive Director of Computime Group Limited, commented: “We are honored to be recognized and awarded by our valued brand customer. With the ongoing supply chain and geopolitical disruptions, we certainly understand the need of reliable and quality services available at different locations and at competitive prices. We look forward to our transformation into a true global manufacturing solution provider. Last but not least, we are grateful with the opportunity from Electrolux and thank for its business, support and recognition for the past, and many years to come.”
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Resilient Business Performance amid Macro Uncertainties
Revenue Increased by 16.4% YoY to HK$4,184.8 million
Net Profit Increased by 3.5% YoY to HK$84.2 million
Financial Highlights
For the year ended 31 March FY2022 HK$ million FY2021 HK$ million Change
Revenue 4,184.8 3,596.7 +16.4%
Gross profit 537.3 465.8 +15.4%
Profit attributable to owners of the Company 84.2 81.4 +3.5%
Basic earnings per ordinary share (HK cent(s)) 10.01 9.69 +3.3%
(5 July 2022 – 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 2022 (the “Year”).
Results Overview
The Group performed admirably despite severe supply chain disruption as well as the surge in commodities prices as a result of COVID-19 resurgence and geopolitical hostilities. Benefiting from the resilient business performance and sales growth across both of the Group’s operating segments, revenue for the Year increased by 16.4% year-on-year (“YoY”) to approximately HK$4,184.8 million (FY2021: HK$3,596.7 million). The Group also took active measures to manage its rising raw material price and production cost, with gross profit margin maintained at 12.8% (FY2021: 13.0%), and gross profit increased to approximately HK$537.3 million (FY2021: HK$465.8 million). Along with stringent cost control measures, profit for the year attributable to owners of the Company recorded a steady increase of approximately 3.5% YoY, from approximately HK$81.4 million last year to HK$84.2 million this year. As an appreciation for shareholders’ support, the Group also proposed a final dividend of HK4.75 cents per ordinary share (FY2021: HK$5.95 cents).
Overall, the Group responded swiftly to market changes and managed to alleviate the worst of the impacts. The satisfactory financial performance during the Year has reflected its operational resilience, increasing market share, and expanding client portfolio and order book in a highly complicated market.
Segment Review
During the Year, the Group continued its commitment to advancing smart and sustainable living through its two key operating segments, namely the Smart Solutions (“SS”) segment and Contract Manufacturing Services (“CMS”) segment, providing premium products and value-added solutions to its international customers.
Revenue for the SS segment was approximately HK$1,281.4 million (FY2021: HK$1,092.3 million), representing an increase of 17.3% YoY, mainly due to the increase of orders attributable to the growing awareness of household energy-saving among consumers. As for the CMS segment, the Group recorded a segment revenue of approximately HK$2,903.5 million (FY2021: HK$2,504.4 million), a YoY increase of 15.9%, attributable to the strong order demand from customers across the entire Year.
Its branded business, Salus Controls, also delivered a strong performance in the Year despite intensifying market competition.
Operational Highlights
FY2022 marked a landmark Year in Computime’s transformation to universalize smart and sustainable living through technologies, products, and manufacturing solutions.
In particular, the Group has taken a significant step towards sustainability by purchasing an additional 62.9998% interest in Braeburn Systems LLC (“Braeburn”), an American branded technology and product company focusing on energy-saving technologies and smart HVAC controls, at a consideration of US$10.3 million. Upon closing, the Group had an accumulated total of 90% of membership interests in Braeburn. Given its unique positioning and capability, the investment is expected to broaden the Group’s client reach and product portfolio, increase its regional market penetration, drive economies of scale, and, most importantly, strengthen its Software-as-a-service (“SaaS”) and Platform-as-a-service (“PaaS”) capability so that it can provide customers with better solutions and user experience. These, in turn, should boost margins and provide business visibility and sustainability in the long run.
To satisfy the growing order demand while supporting its servicing and geographical development, the Group has also put significant effort into diversifying and expanding its global manufacturing footprint. In addition to its China presence, the Group has steadily grown to the Asia Pacific with sites in Malaysia and Vietnam. During the Year, the Group also established its first manufacturing plant in Mexico and laid the foundation for the development of a Center of Excellence (an engineering center) in Romania.
Mr. AUYANG Pak Hong Bernard – Chairman and Chief Executive Officer of Computime Group Limited, said, “Despite market headwinds, we are delighted to see Computime moving assuredly towards a technology, brand, and manufacturing company as well as a smart and sustainable living enabler. Looking ahead, the Group will continue to invest in new technologies and platforms, including Artificial Intelligence, Machine Learning, AIoT, robotics, cloud computing, and more, in order to develop smarter, more environmental-friendly, and interconnected solutions for our branded partners and end customers. We will also maintain our sharp focus on our core, surrounding our business, people, mindset, and innovation, so that we can create greater and sustainable values for our stakeholders.”
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(Hong Kong－ 30 May 2022) 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, Centrica Hive Limited (“Centrica Hive”), a valued ODM customer and business partner of the Group, has won the prestigious Red Dot Design Award 2022 and iF Design Award 2022 with its innovative Hive Mini thermostat. The Group would like to extend its sincere congratulations to Centrica Hive, and reaffirm its commitment to supporting its ODM clients on product innovation and future business success.
The Red Dot Design Award and iF Product Design Award are well-recognised design awards in the world with over 60 years of history. Receiving more than thousands of entries yearly from design professionals, companies and organisations from over 70 countries, both the Red Dot Award and the iF Design Award are the most prestigious global design competitions.
For Centrica Hive’s Mini Thermostat, it comes with a connected mobile Hive app which allows a remote, single interface control of temperature and other settings. Compatible with Amazon Alexa and Google Assistant, it provides users with convenient temperature management of the household. Integrated with geolocation technology and smart sensors, it can automatically turn off unneeded heating to reduce energy consumption and lower carbon footprint. Supported by its built-in frost protection, it can also prevent damage and depreciation of water pipe systems during the cold months when indoor heating is most crucial.
Mr. AUYANG Pak Hong Bernard, Chairman and Chief Executive Officer of Computime Group Limited, commented: “Riding on our product design capability and engineering know-how, we are proud to be contributing to the success of Hive Mini thermostat. With its many functions dedicated to user convenience, we believe the recognition is well-deserved. In the future, we look forward to driving our collaboration with Centrica Hive to the next level, by exploring Smart Home technologies together, while pushing boundaries and driving innovation in the industry to enable smart and sustainable living at large.”
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Hong Kong－ 13 April 2022) The board of directors (the “Board”) of Computime Group Limited (“Computime” or the “Company”, together with its subsidiaries the “Group”, stock code: 320.HK) announced that Mr. AUYANG Ho has retired as Chairman of the Board, an Executive Director, the Chairman of the Executive Committee and the Nomination Committee, and a Member of the Remuneration Committee (Full Announcement). In honor and recognition of Mr. AUYANG’s significant contributions to the Group, he will now serve as the Chairman Emeritus. The Board is also pleased to announce that Mr. AUYANG Pak Hong Bernard (Mr. Bernard AUYANG) has been appointed as the Chairman of the Board, Chairman of each of the Executive Committee and the Nomination Committee, and a Member of the Remuneration Committee today.
For almost 50 years, Mr. AUYANG has given his life to serve Computime. From 1974, as a humble clock manufacturer, to crafting a first-class technology company, Mr. AUYANG’s leadership and vision has enabled the Group to not only survive but also thrive throughout various tumultuous world events. We are indebted to Mr. AUYANG’s oversight in Computime’s transformation in redefining what it means to be an OEM/ODM manufacturer with unparalleled customer loyalty to one of the leading smart home and IoT solutions providers.
The Group, the Board, and all the employees are all grateful to Mr. AUYANG for his perseverance and utmost dedication to evolving Computime into the success it is today.
We are looking forward to welcoming Mr. Bernard AUYANG to his new position and are excited to see what the next 50+ years of Computime will bring all of us. We welcome everyone to join and follow us on this new chapter!
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