Market Recovery, Growing Efficiency and Effective Cost Control to Drive Rebound
Revenue Increased by 22.3% YoY to HK$1,836.2 Million
Net Profit Increased by 15.2 Times to HK$34.2 Million
Financial Highlights
For the six months ended 30 September
2021/22
HK$ million
2020/21
HK$ million
Change
Revenue
1,836.2
1,501.9
+22.3%
Gross profit
255.8
172.2
+48.5%
Gross profit margin (%)
11.5%
13.9%
+2.4 % pt.
Profit attributable to owners of the Company
34.2
2.1
+1,521.8%
Basic earnings per ordinary share
(HK cent(s))
4.06
0.25
+1,524.0%
(30 November 2021 – Hong Kong) Computime Group Limited (the “Company” or “Computime”, together with its subsidiaries, collectively the “Group”; stock code: 320.HK), a specialist in design, manufacturing and Internet of Things (“IoT”) solutions in the electronics manufacturing services space, is pleased to announce its interim results for the six months ended 30 September 2021 (the “Period”).
Results Overview
Despite the significant headwinds from COVID-19 and supply chain disruptions, the Group was able to achieve notable milestones in its operations and financial performance during the Period. Specifically, revenue recorded an increase of 22.3% year-on-year (“YoY”) to approximately HK$1,836.2 million (1H FY20/21: HK$1,501.9 million), driven by the rebound in consumer confidence and orders, as well as growing sales contribution from new customers and strategic business partnerships. Gross profit increased by 48.5% YoY to HK$255.8 million (1H FY20/21: HK$172.2 million), with gross profit margin slightly improved by 2.4 percentage points to 13.9% (1H FY20/21: 11.5%), mainly attributable to better sales mix as well as economies of scale in leveraging factory overhead costs. Together with successfully cost base re-engineering, net profit attributable to owners of the Company amounted to HK$34.2 million, as compared with HK$2.1 million of same period last year, representing a YoY growth of 15.2 times.
Segment Review
The Group remained committed to becoming a premium provider of innovative technology solutions. Its two operating segments, Smart Solutions (“SS”) and Contract Manufacturing Services (“CMS”), continued to leverage Computime’s vast technological know-how to deliver value-added products and services to its international customers.
For the SS segment, segment revenue for the Period is approximately HK$561.0 million (1H FY20/21: HK$483.5 million), representing a YoY increase of approximately 16.0%, mainly due to the recovery in America and Europe after COVID-19 disruption.
For the CMS segment, segment revenue for the Period is approximately HK$1,275.2 million, or an increase of approximately 25.2% YoY (1H FY20/21: HK$1,018.4 million), attributable to stronger demand on home usage of appliances, power tools, fireplace and gardening devices. The improvement from the CMS segment also helped the Group to maintain a steady revenue level during this challenging period.
Operational Highlights
The Group underwent necessary transformation during the Period to tackle market challenges including global raw material shortage, as well as disruption to global logistics and manufacturing operations.
The Group continued its efforts in product and technological research and development (“R&D”), especially in the area of IoT cloud platform and robotic artificial intelligence (“AI”) solutions, and has successfully transformed itself to a total solutions provider covering hardware, software (PaaS) and cloud technologies. The Group also developed respective platforms for its heating, ventilation, and air-conditioning (“HVAC”), robotics and AI and machine learning solutions, and tapped into new market segments including smart home, smart building, sustainable green technologies, AI robotic markets, and irrigation and gardening.
On production, Computime has evolved from a China-based manufacturing company, to one with global manufacturing footprint. This includes the progressive ramp up of its production base in Malaysia, coupled with the initial setup in Vietnam and Mexico, in the form of capital investment or virtual manufacturing, as well as the Eastern Europe option under evaluation. The extensive coverage allows the Group to provide flexible, cost-competitive, and agile manufacturing solutions to its customers, helping them to tap into regional markets at a shorter lead time and more competitive prices, without sacrificing product quality.
During the Period, the Group also enjoyed notable success from its business development strategy, as it dedicated more effort on focused industries, and has since recorded a growing number of orders from existing customers while landing new projects from new customers. The Group also successfully transformed the branded business – SALUS, turning its European operation into a fast-growing and profitable business, with a much clearer future direction.
Outlook
Looking ahead, the Group expects the market to be continuously unpredictable and challenging, due to the spread of new COVID-19 variants, shortage of electronic raw materials, and slow recovery of the global economy. Nonetheless, supported by its recovering order book and growing competitiveness, the Group remains cautiously optimistic over its prospect, and will look to further expand its product and manufacturing capability to prepare for the unexpected.
Mr. AUYANG Pak Hong Bernard – Executive Director & Chief Executive Officer of Computime Group Limited, said, “We are delighted to see significant improvements in operational and financial performance despite market headwinds. The strong growth has not only demonstrated the resilience of the Group’s business model, but is also proof of success of our proactive initiatives and efficient management. Stepping into the second half and beyond, the Group will continue to expand its R&D capability, introduce new smart elements and products, further diversify its global manufacturing footprint, and actively explore merger and acquisition opportunities to fast-track growth in strategic areas.”
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(Hong Kong－ 11 January 2021) 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 participate in the CES 2021 Virtual Exhibition with its latest HVAC product platform and IoT platform solutions, showcasing its improving capability to deliver connected and comprehensive solutions to customers.
Computime’s latest HVAC product platform is a full line of control products and field devices with the latest Zigbee 3.0 technology – an open global standard for wireless communication between devices. This integration allows full interconnectivity between products including smart room thermostats, radiator valve controllers, pump controllers, environmental sensors and more. Its high inclusivity also facilitates its application to different system types, aiding customers in building their customised smart heating and cooling solutions. As for the Company’s IoT platform, new features have been introduced, including an IoT gateway for cloud connectivity, cloud backend solutions, application interfaces for customer app and other cloud-to-cloud integrations.
The CES itself is widely recognized as the largest technology trade show in the US. Organised by the Consumer Technology Association (the “CTA”), this annual event attracts the participation of over 4,400 companies worldwide. Due to the pandemic, CES 2021 is hosted virtually this year. Nevertheless, the 4-day event (11 January to 14 January) remains a valuable opportunity for companies to showcase their latest products, listen to new ideas from thought leaders, and engage with global brands and start-ups.
Mr. AUYANG Pak Hong Bernard, Chief Executive Officer and Executive Director of Computime Group Limited, commented: “We are grateful to the CTA for providing this platform to showcase our innovative capabilities on a global stage. This year, with the COVID-19 pandemic, people are spending more time at home, which in turn, has led to an increase in demand for smart and sustainable home comfort technologies including Smart HVAC systems and IoT solutions. Our latest HVAC product platform and IoT solution being showcased during CES 2021 reflects our innovative steps in Smart Home technologies and the Company’s commitment in bringing new and integrated solutions to customers. Looking forward, supported by our team of 200 engineers, 4,000 workers and 5 manufacturing sites, our team will continue to push the boundaries of home technology, committing to the mission of enabling smart and sustainable living globally.”
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(Hong Kong－ 27 March 2020) The board of directors (the “Board”) of Computime Group Limited (“Computime” or the “Company”, together with its subsidiaries the “Group”, stock code: 320.HK) announces that Mr. AUYANG Pak Hong Bernard (“Mr. Bernard AUYANG”), a Non-executive Director of the Company, has been re-designated as an Executive Director and the Chief Executive Officer, succeeding Dr. OWYANG King with effect from 1st April 2020. This announcement represents the Group’s ongoing and thoughtful planning in management organization, which ensures a smooth transition for Computime as the Company continues to deliver specialized and innovated solutions in the electronics manufacturing and Internet of Things service space. Dr. OWYANG King will remain as an Executive Director as a result of the transition, and will allow the Company to continue to benefit from his expertise in research and development.
Mr. Bernard AUYANG, aged 52, has over 28 years of experience in general management and the corporate industry. He was in his latest position as an Executive Director and the Chief Executive Officer with the Company between October 2006, the time of successful listing, and October 2009, later deciding to pursue other ventures. After, he has been the Chairman of Vida Nova Ventures, a Hong Kong based investment firm, since 2009, and the Chief Executive Officer of Altis Zenus Group, a brand and technology company focusing on innovative communication and outdoor products since 2016. Mr. Bernard AUYANG was also a recipient of the Young Industrialist Awards of Hong Kong in 1999, and was named the Hong Kong Young Industrial Ambassador in 2002. He remains as part of several prestigious academic bodies including the court member of the Hong Kong University of Science and Technology, and a member of the committee of Overseers of Wu Yee Sun College of The Chinese University of Hong Kong.
“I am very proud of the accomplishments made by Computime, and leading it as its Chief Executive Officer has been an honour and privilege.” said Dr. OWYANG King, “Bernard is a highly-dedicated and talented leader, with a wealth of experience in the consumer electronics sector regarding branding and product enhancement. I am very confident that the Company is in good hands and I look forward to working with him closely in my new position as Bernard leads Computime to even greater heights.”
Mr. Bernard AUYANG said, “I am deeply honoured and humbled to have been selected as the next Chief Executive Officer of Computime and I look forward to working closely with Dr. King, the Board, and the Company’s truly-exceptional staff to continue on bringing Computime to the global stage. I hope my expertise would help in identifying the latest market trends and tapping into new geographical markets through our growing and diversifying product portfolio, eventually delivering sustainable values to our shareholders. I am grateful for Dr. King’s contributions to the Company and I have no doubt that he will continue to leverage his expertise in technology and product development as part of the Group’s mission to deliver quality manufacturing and design solutions to our customers.”
After the re-designation, Mr. Bernard AUYANG would be responsible for corporate strategy planning, business development, corporate decision making, and general management of the Group. Meanwhile, Dr. OWYANG King will continue to dedicate his resources and time, focusing on the research and development of future technologies. The Group and the Board would like to take this opportunity to welcome Mr. Bernard AUYANG on board, and to express their sincere gratitude to Dr. OWYANG King for his valuable efforts and contributions to the Group during his tenure of service as the Chief Executive Officer.
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(Hong Kong－ 3rd February 2020) A specialist in design, manufacturing and Internet of Things (“IoT”) solutions in the electronics manufacturing services industry – Computime Group Limited (“Computime” or the “Company”, together with its subsidiaries the “Group”, stock code: 320.HK) is pleased to announce that the Company has been selected as an Honoree in the CES 2020 Innovation Awards (the “Awards”) hosted by the Consumer Technology Association (“CTA”), the largest technology trade association in North America, in recognition of the integrated home solution and state-of-art design offered by its Wireless Gateway Thermostat.
The Awards program is an annual competition that honors outstanding design and engineering in the field of consumer technologies, with each application being evaluated by a panel of highly respected experts, including consumer technology designers, engineers and members of the media, based on criteria such as engineering qualities, global impact, and smart energy sustainability. Honorees of the Innovation Awards would be featured in the CTA’s flagship magazine – It Is Innovation (i3), a publication with a reader base of over 58,000 people. Additionally, Honorees of the Awards have the opportunity to showcase their award-winning product at the annual Consumer Electronics Show in Las Vegas, an event which attracts over 4,400 companies worldwide. To receive such an award is a testament to a firm’s capabilities in product design and technological innovation.
Having undergone a rigorous selection process against other applicants, Computime’s Wireless Gateway Thermostat stood out from the crowd as it represents the world’s first smart thermostat gateway that integrated thermostat and gateway function with home Internet of Things (“IoT”) console and ZigBee gateway. With its IoT cloud connectivity along with the built-in Alexa Voice Service that enables users with a simple and instant control over all home IoT devices, the thermostat is able to offer total home IoT solutions with intelligent monitoring and control, all under the smart, modern, energy efficient design.
Dr. King Owyang, Executive Director and Chief Executive Officer of Computime, commented, “It is Computime’s great honor to receive such recognition from the jury, and we are grateful to the CTA for acknowledging our continuous drive and contributions in consumer technologies. Our winning product, Wireless Gateway Thermostat, is a further proof of our capability in offering total IoT solutions, which integrates Zigbee, thermostat, voice control, IoT Home, smart console control and energy saving elements into one. Meanwhile, its smart and one-touch control, together with the modern metallic design and private data security, also offers great convenience and comfort to users. As technologies such as cloud computing, artificial intelligence and 5G become increasingly prevailing, we believe consumer technology would be the next blue ocean market. Looking forward, we will continue our efforts in R&D, and will look to bring new, integrated and cost-efficient solutions to users.”
The CES Innovation Awards are based upon descriptive materials submitted to the judges. CTA did not verify the accuracy of any submission or of any claims made and did not test the item to which the award was given.
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(Hong Kong－ 20 December 2019) A specialist in design, manufacturing and Internet of Things (“IoT”) solutions in the electronics manufacturing services industry – Computime Group Limited (“Computime” or the “Company”, together with its subsidiaries the “Group”, stock code: 320.HK) is pleased to announce that on 20 December 2019, a wholly-owned subsidiary of the Company (the “Purchaser”) has entered into an agreement with Rubicon Sapphire Technology (Malaysia) Sdn. Bhd. (the “Vendor”), to acquire the manufacturing facilities in Malaysia (the “Manufacturing Facilities”) at the purchase price of RM20,750,000.00 (equivalent to approximately HK$39,010,000.00).
The Manufacturing Facilities to be acquired include a parcel of 60 year leasehold land of 12,383 m2 in Pulau Pinang, Malaysia with an unexpired term of about 51 years expiring on 15 March 2071, together with all the buildings erected thereon, which include, inter alia, factory premises with a total gross area of approximately 6967.67 m2. Upon completion of the agreement, Computime will indirectly hold the Manufacturing Facilities.
Dr. King Owyang, Executive Director and Chief Executive Officer of Computime, stated, “After completing the acquisition, the Group intends to utilise the Manufacturing Facilities for the development of its own manufacturing and supply chain capabilities in Malaysia. Going forward, diversification of manufacturing site is part of the strategic direction of the Group because it further enhances the competitiveness of the Group. This arrangement provides the flexibility for more customization and optimization that will benefit both the up-coming needs of our customers and Computime. ASEAN countries like Malaysia have many advantages to offer, and Penang is especially attractive to Computime. Penang was chosen because it has a long electronics manufacturing history, a good technical foundation, an availability in human resources, a close proximity to Hong Kong, and appropriate language skills that are important criteria which match the needs of Computime, including speed to bring up operations and production of the factory and a long term sustainability of future growth of the Penang site.
The Company looks forward to the contribution of this recent important acquisition to support its aggressive growth plan. We plan to have the factory be ready for operations in relatively short time in order to meet the urgent market customers’ demand.”
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Computime is going “Smart”
Smart solutions and Internet of Things (“IoT”) are redefining our world and reshaping our life. This is the trend the world is moving towards to and it is also the key to Computime’s future development. Through years of research and development, Computime has successfully developed solutions in smart home heating based on IoT and voice recognition technologies. These solutions have been deployed as products and launched by our own brand Salus in Europe and now in North America, as well as successfully adopted by one of the largest European utility companies, serving over hundred and thousands of consumers. Leveraging on years of experience and solid research and development capabilities, Computime has established as a leading player in the smart home solution arena.
The market of smart solutions and IoT is growing rapidly. Hong Kong, with its unique geographical location and resources, is well-positioned to be a smart city and a platform for smart solution companies to go global. Dr. King Owyang, the Chief Executive Officer and Executive Director of Computime says, “As a creative engineering and electronic control system developer and manufacturer based in Hong Kong, Computime has the favourable advantages to capture the opportunities from the Hong Kong Government to further enrich our technology portfolio, and also the business development from the Greater Bay Area in the near future. On top of the geographical expansion, Computime has the favourable advantages to capture the opportunities from the Greater Bay Area, the countries under the Belt and Road Initiative, as well as other overseas markets. In terms of business segments diversification, Computime is also actively exploring opportunities to apply the self-developed smart solutions in hospitality, e-healthcare, food and diet industries. We are aiming to be one of the top players in the global smart home solution and IoT industry.”
Recently, The Hong Kong Trade and Development Council (“HKTDC”) had a pleasant interview with Dr. King Owyang in light of the visions going forward. To know more, please feel free to view the video below.
(HONG KONG, 3 July 2019) – Computime Group Limited (“Computi ..
HONG KONG, 16 April 2019 – Computime Group Limited (“Computime” or the “Company”; stock code: 0320) announced today that its reliability lab has been listed in the TÜV SÜD Product Service Group Listing as Recognized Laboratories and is qualified in compliance with the TÜV SÜD External Test Laboratory program for the mutually agreed product categories and standards. Computime’s Reliability Laboratory in Shenzhen is the first and the only accredited laboratory by TÜV SÜD for the standard EN/IEC 60730-1 and EN/IEC 60730-2-9 in Guangdong province, the People’s Republic of China. The qualification allows Computime to internally conduct thermostat testing according to TÜV SÜD standards, validating the Company’s excellent quality control and professional testing capabilities.
Headquartered in Munich, Germany, TÜV SÜD is one of the world’s leading technical service providers of testing and product certification, inspection, auditing and system certifications. Previously, Computime’s self-developed thermostats were sent to the laboratory of TÜV SÜD Certification and Testing (China) Co., Ltd. Guangzhou Branch for testing and product certification. With the recent accreditation, the test results of Computime’s Reliability Laboratory in Shenzhen can now be used as a basis for TÜV SÜD certification for thermostats, as far as the testing facilities meet the requirements of TÜV SÜD and the tests are conducted under supervision and witness of the engineer(s) of TÜV SÜD China Guangzhou Branch. Accordingly, Computime’s product development cycle will be shortened, enabling quicker time-to-market for customers. To obtain the accreditation, Computime must comply with stringent standards set out by TÜV SÜD on laboratory operation procedures according to ISO17025 international standard, as well as facility specifications including power supply, consumable materials and calibration of equipment.
Dr. King Owyang, Executive Director and Chief Executive Officer of Computime, said: “It is a great honor to be endorsed by TÜV SÜD as one of their recognized laboratories. We at Computime place great emphasis on quality control, and have equipped our Shenzhen-based reliability lab with a comprehensive range of quality assurance tests in order to offer world-class products and services to our customers. The certification from TÜV SÜD acknowledges our relentless effort in quality control. At the same time, the shortened turnaround time-to-market improves our competitiveness for our services and products and brings extra benefits to our customers.”
“Our reliability lab is also included in the prestigious UL Witnessed Test Data Program by UL LLC, a global company with expertise in safety testing. With both TÜV SÜD and UL certifications, our reliability lab adequately covers testing of products sold in our two major markets – Europe and North America. As a technology-driven company, we will continue to strengthen our quality control and R&D capabilities, producing technologically advanced and safe products that enhance consumers’ quality of life.” Dr. Owyang added.
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HONG KONG, 9 January 2019 – Computime Group Limited (“Computime” or the “Company”; stock code: 0320) has made its debut at the 2019 Consumer Electronics Show (“CES”) in Las Vegas on 8-11 January 2019. The Company is unveiling its latest Internet-of-Things (“IoT”) solutions, designed to enhance the smart lifestyle of homeowners and to provide them with peace of mind.
Foreseeing the high growth potential of IoT and smart living solutions, Computime has been investing heavily in R&D initiatives over the years, developing core competencies in wireless technologies and IoT knowhow. With these expertise, the Company has emerged as a market leader in the design, manufacturing and commercialization of both off-the-shelf and customized intelligent solutions for the home. At the 2019 CES, Computime presents its comprehensive range of smart home solutions featuring the following essential aspects of a smart living lifestyle:
Enhanced Security – Computime understands that it is of utmost importance to ensure the home is a safe place. No matter where homeowners are, Computime’s solutions can help protect their homes, assets and families by detecting anomalous events and providing real-time notifications that require attention. Devices offering peace of mind include video doorbells, IP cameras, motion sensors, window/door sensors, water leakage sensors and water shutoff valves.
Energy Saving – Energy consumption is the largest expenditure of the home. With its award-winning heating control technology, coupled with other smart devices such as programmable thermostats, smart plugs and window/door sensors, Computime’s solutions allow for the optimization of energy consumption at the home by automatically adjusting the optimal indoor temperature and intelligently connecting various home devices.
Additional Comfort – The voice-enabled automation and personalization features of Computime’s solutions can minimize hassles for customers and improve their quality of life. With the option to select the right devices from Computime’s comprehensive smart home product portfolio, homeowners can control their homes to suit their lifestyles with their fingertips or by saying just a few words.
What is more, all of the above benefits will be delivered to customers at an affordable price. The Company believes that offering economical solutions is essential to driving the adoption of smart technologies and helping more people increase savings while improving their lifestyles. With this philosophy in mind, the Company plans to extend its core competence in IoT knowhow beyond the smart home to the car, bringing the same benefits – security, energy saving and comfort – to both drivers and passengers. Computime’s connected car offerings, currently in development, will enable automakers and auto suppliers to deploy and manage connected car services in a reliable and economical way.
Dr. King Owyang, Executive Director and Chief Executive Officer of Computime, said, “We are excited about our first presence at the CES, which not only elevates our global footprint but also demonstrates a step further in our transformation journey. The solutions we showcase at the CES are perfectly aligned with our commitment to connected living and to enhance user experience at an affordable price. We will continue to innovate in order to accelerate IoT adoption, and to make people’s lives easier.”
Visit Computime at LVCC, South Plaza #60921, CES to learn more about its new solutions and technologies or for a product demonstration.
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HONG KONG, 12 December 2018 – Computime Group Limited (“Computime” or the “Company”; stock code: 0320) has garnered the 2018 Hong Kong Awards for Industries (“HKAI”): Technological Achievement Award for its ground-breaking advanced heating control technology. A total of 84 companies, chosen from among 259 entries, were honored in the seven categories of 2018 HKAI. Computime was recognized for its significant contribution to Hong Kong’s vibrant intellectual property ecosystem.
Computime’s focus has been to apply self-developed technology on traditional heating systems from all over the world to enhance system performance and to optimize energy consumption, without sacrificing comfort. Enhanced controllability, ease of installation, and reliable operation are all at the heart of Computime’s drive to innovate in the heating controls market. Below are just a few of the recently developed innovations – with a lot more to come:
A variable flow control – the system learns through its past performance and delivers just enough energy to maintain the set temperature, which reduces energy usage and improves user comfort through the much smoother temperature output;
A cloud-based system with unlimited number of time schedules gives users a high level of flexibility to adjust the heating pattern according to their living patterns;
A rules-based system responds to the environment which facilitates home automation.
With these innovations, Computime’s technology in heating control systems is able to reduce energy consumption by up to 20-25% relative to traditional approaches, while maintaining a comfortable, consistent temperature.
Dr. King Owyang, Executive Director and Chief Executive Officer of Computime, said, “We are honored to receive the prestigious HKAI award. Computime is the first provider of a comprehensive intelligent connected system for hydronic heating controls, and this has made us a market leader in the HVAC industry. The award recognizes our commitment in delivering world-class innovative solutions to our customers, spanning from Europe to North America. As a Hong Kong-based company, we are proud to be able to introduce locally-developed technologies that are behind many internationally recognized ground-breaking products. The next step in our development roadmap is to utilize data coming from connected heating systems to identify anomalies in system performance and alert users to these faults. Through these efforts, we expect the system to become more efficient and increase savings for customers in the future.”
Dr. Wai Leung Ha, Executive Vice President of Technologies of Computime, said, “R&D is an integral part of our business development process. Our R&D team always take a holistic approach in understanding the system needs and customer expectation to develop innovative solutions using the latest advancement in technology such as machine learning, data mining and senor knowhow. Our intent is to create product differentiation that offers value and performance for our customers. Our R&D culture is to have an open-minded attitude, to encourage creativity and out-of-the-box thinking, and to learn from past mistakes. It was in this spirit that this advanced hydronic heating control system was developed, and it is rewarding to witness the success we are receiving from the marketplace.”
Championed by the Hong Kong SAR Government, the HKAI aims to recognize the outstanding performance and achievements of Hong Kong enterprises. The Technological Achievement Award was granted to Computime’s advanced hydronic control technology based on criteria including technology merits, intellectual property, impact on industry, market recognition of the technology, and the technology culture of the company.
PHOTO CAPTION
Dr King Receives Award 1024x706
Computime Group Limited Executive Director and CEO Dr. King Owyang
receives the 2018 Hong Kong Awards for Industries: Technological Achievement Award
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