Staying on the right transformation trajectory to become a technology-driven company
Targeted action plan to drive performance enhancement
Results Highlights
Sales momentum slowdown amid increased volatility of the global macro-economic environment, US tariff uncertainties and rising component costs, yet gradually accelerated in the later part of 1H FY18/19
Gross profit margin maintained at last year’s level through targeted initiatives
In the course of transformation, the Company realigned into two segments – Smart Solutions and Contract Manufacturing Services with sharper deployment of resources and core competencies to best leverage the opportunities of specific markets
Our own brand SALUS enjoyed a 36% sales growth year-on-year
HONG KONG, 22 November 2018 – Computime Group Limited (“Computime” or the “Company”; stock code: 0320) today announces its consolidated results for the six months ended 30 September 2018 (“1H FY18/19”, or the “Period”).
With increasing volatility of the global macro-economic environment; US tariff uncertainties, combined with escalating component costs in the early part of the year, sales momentum slowed down in 1H FY18/19. During the Period, revenue landed at HK$1,532.4 million, a 19.8% decline compared to same period last year. Similar to last year’s level, gross profit margin managed to keep at 14.6% in 1H FY18/19. Proactive rationalization of trading terms; enhancement in productivity as well as favorable product mix have mitigated the negative impact from escalated component costs. Total operating expenses have been driven down by 10.7% year-on-year to HK$185.6 million in 1H FY18/19, yet cost ratio (as a % of revenue) is less favorable due to lower economy of scale in leveraging fixed costs at lower revenue level. Profit attributable to owners of the Company amounted to HK$24.9 million in 1H FY18/19, a decline of 53.5%.
As a result of a targeted action plan formulated to drive performance during the Period, coupled with stabilization of the component market, sales momentum and profitability have gradually accelerated in the later part of 1H FY18/19.
Business Review
In the course of Computime transforming itself into a technology-driven company, the Company has reorganized its business into two segments – Smart Solutions (“SS”) and Contract Manufacturing Services (“CMS”), reflecting the different nature of these segments.
The SS segment focuses on products and total system solutions within the growing Internet-of-Things space. It includes both SALUS branded products and Connected Solutions, which covers Heating, Ventilation and Air Conditioning solutions (mainly consisting of the previous “Building and Home Controls” segment) as well as new business initiatives. During the Period, SS segment revenue fell 25.0% to HK$561.6 million year-on-year. A key customer has revised its inventory build in response to business slowdown, while a few other key customers have taken a prudent approach in view of the uncertainties over the newly imposed US tariffs, leading to slowdown in sales momentum.
The SALUS business, which is included in the SS segment, started to gain traction and recorded across-the-board growth in all European and North American regions during the Period, driven by successful business strategies to expand sales channels and new product launches. Overall, the SALUS revenue grew 36% in 1H FY18/19 as compared with same period last year.
The CMS segment focuses on manufacturing services (mainly a combination of the previous “Appliance Controls” and “Commercial and Industrial Controls” segments), aiming to drive profitability by developing an optimal manufacturing business model for the Company. CMS segment revenue fell 16.5% to HK$970.8 million year-on-year. During the Period, customers in the home appliance sector suffered from industry downturn and reduced orders. On the other hand, sales from the commercial and industrial sector remained nearly flat, as loss in orders from a couple of key customers were compensated by increased orders from other existing accounts.
Outlook
The SS segment has been heavily impacted by the ongoing trade dispute between the US and China, yet management has been actively rolling out initiatives to mitigate this impact. Despite the setback in 1H FY18/19, the SS segment has successfully won some strategic accounts recently. Meanwhile, benefiting from innovative product launches, rising market recognition and business strategies to expand sales channels, the strong growth momentum of SALUS is expected to continue into the second half of FY18/19. As for the CMS segment, the Company has been continuously strengthening its sourcing strategies, and has recently been able to recover partial sales from a couple of major customers.
Dr. King Owyang, Executive Director and Chief Executive Officer of Computime, said, “We remain in the midst of a major transformation. Despite the short term volatility we faced thus far this financial year, our strategic focus stays clear, which is expected to drive Computime into a technology-driven company. Following the business reorganization, we are able to align resources and core competencies to meet customer needs while staying competitive in the marketplace. Our company’s fundamentals remain strong. With four decades of operating history and a solid track record of performance enhancement, we are confident in navigating through the current volatility and leverage the huge business potentials mapped out.”
Mr. George Poon, Chief Financial Officer of Computime, said, “With the Company marching toward the realization of huge market potentials and business opportunities, FY18/19 is the year to deepen our transformation in respect of manufacturing capabilities and efficiency, sourcing strategies, and supply chain management to further strengthen the Company’s fundamentals to best drive shareholder’s value enhancement.”
– End –
Continuing Growth in Top Line Revenue
Net Profit Increased by Over 10% When Excluding Non-core Business
Financial Highlights
– Revenue increased by 5.0% to HK$3,867.5 million, driven by new key customers as well as growth of certain existing customers
– Consolidated net profit remained flat at HK$126.4 million, while net profit excluding non-core brand distribution business rose by 10.3%
– Basic earnings per share of 15.1 HK cents
– Final dividend of 7.5 HK cents, translating to a full year payout ratio of 49.8%
– Gross profit margin fell slightly from 14.7% to 14.5%, while operating expenses as a percentage of revenue improved from 10.6% to 10.2%
HONG KONG, 27 June 2018 – Computime Group Limited (“Computime” or the “Company”; stock code: 0320) today announces its audited consolidated results for the year ended 31 March 2018 (“FY2018”, or the “Year”).
During FY2018, Computime recorded revenue of HK$3,867.5 million, a year-on-year increase of 5.0%, driven by new key customers as well as growth of certain existing customers. Gross profit for the Year amounted to HK$562.7 million, an increase of 4.2% compared to FY2017, while gross profit margin fell slightly from 14.7% in FY2017 to 14.5% in FY2018 as benefits of sales and operational improvement were offset by a significant rise in the prices of certain raw material commodities. Total operating expenses rose by 1.7% to HK$395.4 million, mainly attributable to office expansion, marketing and sales initiatives, and research and development (“R&D”) related to the Company’s own line of branded products, SALUS, in Europe and North America. Total operating expenses as a percentage of total revenue improved from 10.6% to 10.2%.
Net profit of the Company was largely in line with FY2017 at HK$126.4 million, with basic earnings per share of 15.1 HK cents. However, excluding the non-core brand distribution business, net profit increased by 10.3% in FY2018, continuing the growth momentum experienced in the past five fiscal years. As announced earlier in the Year, the Company has begun deemphasizing its non-core business in brand distribution to better focus its attention and resources in the highly lucrative Internet-of-Things (“IoT”) and smart devices sectors. The Board has proposed a final dividend of 7.5 HK cents per share, equivalent to a payout ratio of 49.8%.
Business Review
The Company has been growing the more profitable segments of the business, with a 9.9% year-on-year revenue growth for the combined Commercial and Industrial Controls (“CIC”) and Building and Home Controls (“BHC”) segments. The lower margin Appliance Controls (“APC”) segment recorded a 1.8% reduction in revenue, as the Company deliberately diverted resources away from low margin product lines within this segment.
The SALUS business, which is the Company’s own line of proprietary thermostatic controls and home automation products sold in Europe and North America, generated revenue in line with that of the prior year in local currency terms. The UK construction market continued to be mired by Brexit uncertainties, negatively affecting sales of SALUS products in the UK as wholesalers and distributors adopted more conservative purchasing strategies. However, in the rest of the European territories, especially the Nordic regions, SALUS posted healthy sales growth.
Outlook
The Company expects the growth momentum for its higher margin businesses will continue given the strong demand for its products and services in these areas, but certain macro issues, such as the ongoing global trade disputes and constrained supply of certain critical electronic components, could potentially dominate during FY2019 and affect the Company’s short term overall performance.
Looking forward into the longer term, the Company strongly believes its plans and strategies will deliver exceptional results for its customers and shareholders. Leveraging its solid manufacturing foundation and increasingly sophisticated technical capabilities, the Company has a strong portfolio of innovative IoT-related technologies with increasingly wider applications to serve its Electronic Manufacturing Services (“EMS”) customers. The Company’s EMS business will continue to serve as a foundation of support as it invests in more advanced technologies while expanding the SALUS brand.
Dr. King Owyang, Executive Director and Chief Executive Officer of Computime, said, “I am pleased to say that our growing technical capabilities are increasingly being recognized by the marketplace, opening up new and sizeable market opportunities for us. For example, our SALUS brand recently entered into a strategic alliance in the UK to become the designated provider of smart heating control devices for a large global electronics conglomerate in their participation in utility tenders for smart home projects. We also won orders from both existing and new EMS customers for technologically advanced products, and are in discussions with other customers regarding large-scale white label projects in the IoT area. Despite these encouraging developments, uncertainties in macro factors could overshadow our performance in the short term. We are cautiously optimistic about FY2019, and will strive to manage uncertainties to the best of our abilities to deliver the best possible results. Regardless of the external environment, we will stay focused on our vision of becoming a global technology-driven company. Our change journey is far from over. We are constantly rethinking ourselves and making changes that will provide further benefits to our stakeholders. I am confident that, as we stay on this transformation trajectory, we will emerge as a winner in this digital age.”
– End –
HONG KONG, 14 May 2018 – Computime Group Limited (“Computime” or the “Company”; stock code: 0320) reached another milestone in its transformation into a technology-driven company with the relocation of its corporate headquarters into Hong Kong Science Park.
Hong Kong Science Park is regarded as a major hub for Hong Kong’s innovation and technology (“I&T”) sector, with world-class infrastructure and home to some of the top talent and facilities for research and development (“R&D”). There are about 9,000 engineers and technology innovators involved in R&D at the Park every day, designing and testing solutions in artificial intelligence (“AI”), robotics, Internet of Things (“IoT”), biotech and data analytics.
Computime’s move not only reflects the Company’s business expansion, but also puts Computime right in the heart of one of the most vibrant I&T ecosystems in the Greater Bay Area in southern China. The Company will now have greater opportunities to engage and share knowledge with 600 companies and start-ups, spark new ideas with the aim of initiating potential partnerships and collaborations for innovative products.
To kick off this new milestone for the Company, Computime co-hosted a forum on “Advancements in Data Analytics” with Hong Kong Science and Technology Parks Corporation (“HKSTP”) today. Attendees included Hong Kong Government officials, academics, investors, analysts and industry peers. The Forum highlighted presentations and discussions on machine learning, a form of AI, and its impact on everyday lives. Computime shared its insights and expertise in interconnected technology and data analytics with other global experts in the field.
Dr. King Owyang, Executive Director and Chief Executive Officer of Computime, said, “I have always believed that sustainable development in technology requires the cooperation and partnership between the government, academia and corporations. I am particularly delighted to see representatives from each of these sectors hold engaging and robust discussions today. Science Park provides not only a location, but also the innovators, the thinkers, and a living lab where ideas can be tested and fine-tuned. May our move here further add to the vibrant R&D environment that the Park is already known for, and help produce innovative solutions that will move Hong Kong closer to becoming a world-class smart city.”
Mr. Albert Wong, Chief Executive Officer of HKSTP, said, “Computime is a home-grown Hong Kong company that embodies true digital transformation. They saw the opportunity and evolved from a manufacturer into an innovative technology developer. They not only conceptualise and produce solutions that are award-winning, but are also very practical and aligned with our Smart City initiatives. We welcome Computime to the Hong Kong Science Park family and look forward to seeing them share their knowledge and collaborate with other innovators at the Park.”
Computime embarked on its transformation journey over 10 years ago, when it began transitioning from a traditional electronics manufacturer to a global technology company. As a home-grown Hong Kong enterprise with over 40 years of heritage, the Company has always carried a forward-looking vision to be dynamic and embrace a fast-changing technology landscape. Foreseeing the high potential growth of IoT and Smart Living solutions, the Company invested heavily in R&D initiatives, establishing R&D facilities in Hong Kong, Shenzhen, Cincinnati and Silicon Valley. The Company has since developed expertise in advanced electronic control and wireless connectivity, providing sophisticated solutions to complex engineering and manufacturing challenges for its Electronic Manufacturing Services (“EMS”) customers. The Company also launched SALUS, a line of smart home connected products that are distributed and sold in Europe and North America. Computime’s efforts recently began to bear fruit with wider market recognition. Its SALUS Smart Comfort System, a first-to-market IoT solution that focuses on home comfort, won the Gold Award in the Smart Living Category of the prestigious Hong Kong Information and Communications Technology Awards 2018.
Dr. King Owyang, Computime Group Limited Executive Director and CEO (right), together with Mr. Donald Mak, Assistant Government Chief Information Officer (IT Infrastructure), Office of the Government Chief Information Officer, HKSAR Government (left), kicked off the opening of the Advancements in Data Analytics forum.
HONG KONG, 7 May 2018 – Computime Group Limited (“Computime” or the “Company”; stock code: 0320) is pleased to announce a major milestone in its journey of transformation into a technology-driven company: it has relocated its headquarters into the Hong Kong Science Park, Hong Kong’s major hub for driving technological innovation and development, to continue its pursuit for excellence and growth in technological innovation in this new era of Big Data, AI and Internet of Things (“IoT”). With this move, Computime has enlarged its footprint and formally become part of Hong Kong’s innovation and technology ecosystem, allowing the Company to further seek collaborations with other technology innovators and create synergistic opportunities.
In celebration of this important milestone, Computime has joined hands with Hong Kong Science and Technology Parks Corporation (“HKSTP”) to host a forum titled Advancements in Data Analytics (the “Forum”) at the Hong Kong Science Park on 14 May 2018. Emerging as a market leader in the design, manufacturing and commercialization of IoT and home automation products, Computime has developed both expertise and insights into the practical use of IoT and data analytics. The Forum will share some of these insights alongside with other global experts in these fields, providing an avenue for technology innovators to explore how we can best harness the power of machine learning for the greater good of the society. Computime hopes that the Forum will encourage further discussions and innovations in Hong Kong’s technological sphere, thereby helping Hong Kong advance into a world class smart city.
The Forum will be opened by Mrs. Fanny Law, Chairperson of HKSTP. The keynote speeches at the Forum cover three important aspects of a smart city – smart living, smart mobility and smart healthcare, followed by a panel discussion to explore how data-driven machine learning is driving improvements in the way we live. Speakers and panelists include:
Scott Hublou, VP – Global Connected Services, SALUS
Karthik Chandrasekaran, Senior Managing Consultant, Global Electronics Centre of Competence, IBM Services
Antonio Wong Shek-tung, Co-founder & CEO, GreenSafety Technology
Dina Katabi, Andrew & Erna Viterbi Professor of Electrical Engineering and Computer Science, Massachusetts Institute of Technology
Helen Meng, Professor and Chairman, Department of Systems Engineering and Engineering Management, The Chinese University of Hong Kong
Charles Sodini, Professor, Electrical Engineering, Massachusetts Institute of Technology
More information on the Forum can be found below:
Date: 14 May 2018 (Monday)
Time: 13:30 – 18:00 HKT
Venue: Function Hall, 1/F, Building 12W, Science Park, Shatin, Hong Kong
Fee: Free of charge
For further details and to register for the Forum, please visit:
dataanalytics-forum.com
– End –
HONG KONG, 9 April 2018 – Computime Group Limited (“Computime” or the “Company”; stock code: 0320) is very pleased to announce that its Smart Comfort System, under its SALUS brand, successfully distinguished itself against intense competition and garnered the Gold Award in the Smart Living Category of the Hong Kong Information and Communications Technology Awards (“HKICT Awards”) 2018. This prestigious award recognizes Computime for developing and commercializing a solution with technological innovation and creativity, high level of functionality and market potential, and an easy yet powerful way to enable a smart way of living. The award presentation ceremony was held on 29 March, 2018.
The HKICT Awards is an annual highlight for the Hong Kong ICT industry and aims at recognizing and promoting outstanding ICT inventions and applications, thereby encouraging innovation and excellence among Hong Kong’s technology-driven enterprises. The award, now in its 12th year, is steered by the Office of the Government Chief Information Officer, the Government of the Hong Kong Special Administrative Region.
Computime’s Smart Comfort System is a first-to-market Internet-of-Things (“IoT”) solution that focuses on home comfort. Sold in Europe and North America under the brand name SALUS, it is compatible with all major heating/cooling systems, ensuring the home is always at a comfortable temperature and reducing energy consumption by heating specific rooms only when necessary. The Smart Comfort System is also flexible to add other smart home devices such as sensors and smart plugs. Through the cloud-based distributed rules engine, homeowners can manage their homes intelligently by creating rules that automate how home devices work with each other. Complete with an intuitive app and voice control, the Smart Comfort System gives homeowners a warm, secure, and energy-efficient home, and most importantly, a peace of mind.
The judging process of the HKICT Awards was rigorous. Having gone through two rounds of presentation to the judging panel consisting of ICT industry veterans, Computime’s Smart Comfort System was assessed based on five criteria: innovation and creativity, functionality, market potential and performance, benefits and impact, and quality. The Smart Comfort System proved to be an innovative, reliable and practical solution that effectively addresses the fast growing smart home market, and stood out as the Gold winner from various competitors in the Smart Living (Smart Home) category.
Dr. King Owyang, Executive Director and CEO of Computime, said, “We take great pride in receiving this prestigious industry honor as it acknowledges Computime’s ongoing efforts in developing smart technologies that enhance everyday life. Computime has come a long way since its beginnings in electronic manufacturing services, and this award is a testament to our determination in transforming ourselves into a technology-driven company. We are pleased to contribute to the overall competitiveness of Hong Kong’s ICT industry, and we will continue to strive for better and more advanced solutions.”
Dr. Ha Wai Leung, Executive Vice President of Technologies of Computime, added, “As a Hong Kong home grown company, it is very encouraging to receive this accolade from the HKSAR government. The Smart Comfort System is a collaborative effort of our strong and capable R&D team, and we are thrilled to be able to bring and promote Hong Kong-developed technologies overseas. Looking ahead, we will continue to strengthen our R&D pipeline to advance our technological capabilities to the next level.”
Computime Group Limited Executive Director and CEO Dr. King Owyang (middle),
together with SALUS VP – Global Connected Services Scott Hublou (left),
receive the Hong Kong ICT Awards 2018: Smart Living Gold Award.
Computime’s Smart Comfort System, marketed under the brand name “SALUS”,
is a first-to-market IoT solution that focuses on home comfort.
Computime’s Smart Comfort System stood out as the Gold winner from various competitors
in the Smart Living (Smart Home) category of the Hong Kong ICT Awards 2018.
– End –
HONG KONG, 22 February 2018 – Computime Group Limited (“Computime” or the “Company”; stock code: 0320), today announced that it has made a strategic decision to gradually scale down its brand distribution division in order to focus on further strengthening its core capabilities in electronic controls and wireless technologies to capture opportunities in the thriving Internet-of-Things (“IoT”) market. The Company believes that this enhanced resource allocation will greatly improve its profitability as well as sharpen its competitive edge in the smart home sector for years to come.
The brand distribution team was formed approximately 4 years ago to explore the E-commerce market potential of promoting and selling child safety-related branded products from Europe and USA into China. Given the strong and lucrative growth opportunities for smart home products in recent years, the Company made the strategic decision to increase focus and investments into this core area, and to de-emphasize other non-core activities.
In line with this strategic decision, Computime today announced that Mr. Dennis Au will be leaving his position as Deputy Chief Executive Officer of the Company to pursue other opportunities, effective 28 February 2018. Mr. Au has, however, agreed to remain as a non-executive director of the Company. For the past 4 years, Mr. Au has been responsible for overseeing the brand distribution division, and will now focus on providing his advice and counsel to the Company as a member of the Board of Directors.
Dr. King Owyang, Executive Director and CEO of Computime, commented, “I would like to thank Dennis for all of the effort and commitment he has put into Computime over the past 4 years as Deputy CEO. As Computime continues to transition into a technology driven company, and given the strong performance and vast market opportunities of smart home products, we concluded that focusing on IoT capabilities best aligns with the Company’s strategic direction. The resources released from the brand distribution division will be used to ramp up our R&D initiatives, supporting us in further expanding business opportunities and driving innovations for our smart home products. I am confident that this move will drive sustainable long term growth for the Company as well as maximize value for our shareholders.”
– End –
HONG KONG, 8 February 2018 – Computime Group Limited (“Computime” or the “Company”; stock code: 0320), continues to enhance its leadership in the underfloor heating control market with the launch of its unique product innovation, the Auto Balancing Actuator (“ABA”). The ABA, marketed under the SALUS trademark, is a patent pending product powered by innovative technology to tackle the problems associated with conventional actuators, thereby improving home comfort and heating efficiency. SALUS is Computime’s own line of proprietary thermostatic controls, home automation and sensor products sold in Europe and North America.
In a standard underfloor heating system, hydronic balancing is a very difficult and laborious process, requiring installers hours of manual calibration work to achieve uniform heating throughout the home. The new ABA completely automates this process, making system balancing a simple and quick operation. Meanwhile, with a correctly balanced system, homeowners enjoy constant temperature in all areas of the home, while the underfloor heating suppliers will receive less service calls and complaints.
In addition, the ABA consumes only 0.5W compared to the 2-3W power usage of conventional actuators, providing homeowners with substantial power savings. With a very short response time of typically 30 seconds, the ABA is also able to heat up rooms significantly faster than conventional actuators that require 3 or more minutes to open or close. These benefits make the ABA a tremendously attractive product for both installers and homeowners alike.
Dr. King Owyang, Executive Director and CEO of Computime, commented, “We are very excited about the recent launch of the ABA in Europe as part of our SALUS portfolio. At Computime, we are committed to providing innovative, reliable and powerful solutions that enhance the lives of our customers. The ABA is the latest example of our commitment, offering a technologically advanced yet competitively priced solution to a long-standing issue in the underfloor heating sector. We are confident that this industry leading product will be positively received by the customers and open up sizeable market opportunities for us which were previously untapped. The ABA is one of the fruits of our R&D initiatives, and we will continue to invest in R&D to deliver more cutting-edge solutions to customers and create value for our shareholders.”
– End –
HONG KONG, 12 December 2017 – Computime Group Limited (“Computime” or the “Company”; stock code: 0320), recently beat out a large group of listed competitors to win the Bloomberg Businessweek/Chinese Edition: Listed Enterprises of the Year 2017 award. Separately, the Company also successfully passed a set of stringent criteria and stood out from strong competition to garner the Economic Digest Hong Kong Outstanding Enterprises 2017 Award. Both awards are a testament to Computime’s tremendous developments over the past few years, and highlight the Company’s increasing recognition in both the capital market and the financial community in Hong Kong.
Bloomberg Businessweek/Chinese Edition is one of the most influential financial publications in Asia, and its Listed Enterprises of the Year 2017 award looks to identify listed enterprises with the most outstanding business performance and sustainable development. Computime was chosen for this award for its strong accomplishments, excellent financial performance and strategic development trajectory.
Similarly, the Economic Digest is one of the most authoritative financial publications in Hong Kong, and the Outstanding Enterprises 2017 Award commands a strict selection process that identifies enterprises with excellent business growth, high level of corporate governance, popularity among shareholders and so on. Computime was selected as one of the 21 outstanding enterprises for 2017 based on these stringent criteria.
These two awards are a clear acknowledgement of Computime’s success in its transition from a traditional manufacturer into a value-added technology-driven company. Over the past few years, Computime has focused on investing in research and development initiatives while growing its technological and manufacturing capabilities as part of its strategic focus to provide high-value design and manufacturing solutions. Computime now offers a broad portfolio of solutions to multinational clients from around the globe, and has become one of the market leaders in the design and manufacturing of IoT and home automation products. The Company also continues to expand its own proprietary line of smart home products through its SALUS brand in both the North America and European Union markets.
Dr. King Owyang, CEO and Executive Director of Computime, commented, “We are pleased to have been recognised by the distinguished judges on both panels of the Bloomberg Businessweek and Economic Digest awards for our excellent performance in 2017. In recent years, we have reinvented ourselves as a company, and this transformation has produced notable results. We are confident that we will be able to continue building on our positive performance, and we are well-positioned to capture the growing trend of the IoT market. With a forward-looking vision, we will continue to invest in and grow our technological capabilities to stay ahead of the curve. We would like to thank all of our shareholders and partners for their continued support over the years, and we look forward to generating additional shareholder value in the years to come.”
Dr. King Owyang, CEO and Executive Director of Computime Group Limited, receives the Bloomberg Businessweek/Chinese Edition: Listed Enterprises of the Year 2017 award.
Dr. King Owyang (fourth from right), CEO and Executive Director of Computime Group Limited, together with other company representatives, photographed at the award presentation ceremony of the Economic Digest Hong Kong Outstanding Enterprises 2017 Award.
-End-
About Computime Group Limited
Computime is a global technology and manufacturing company headquartered in Hong Kong, with 12 offices in strategic locations around the world. Over the past 40 years, Computime has worked with global brands to produce design and manufacturing solutions, as well as developing innovative products under its own brand name. Offering much more than standard manufacturing services, Computime has established a broad portfolio of solutions, including bespoke IP and sophisticated R&D to accelerate time-to-market. Computime also designs and manufactures industry-leading connected products under its SALUS brand. Computime has positioned itself at the forefront of technology, and is emerging as a market leader in the design and manufacturing of IoT and home automation products.
For further enquiries, please contact:
Computime Group Limited
Carey Kwan
Director – Investor Relations
Phone: 852-2260 0455
Email: careykwan@computime.com
Christensen China Limited
Brian Hon
Phone: 852-2117 0861
Mobile: 852-6114 3457
Email: bhon@christensenir.com
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Our Executive Director and CEO, Dr King Owyang, was recently profiled in The CEO Magazine, where he shared his background and upbringing, as well as his passion for technology, his thoughts on leadership, and his insights on building successful businesses. You can read the article in its entirety by following the links below:
Original link: http://www.theceomagazine.com/business/dr-king-owyang/
To view PDF version, click here.
HONG KONG, 23 November 2017 – Computime Group Limited (“Computime” or the “Company”; stock code: 0320), today announced its unaudited condensed consolidated results for the half year ended 30 September 2017 (“1H FY2018”).
Financial Highlights:
Six months ended 30 September 2017
Revenue was HK$1,911.8 million, an increase of 12.0% from HK$1,707.6 million in the half year ended 30 September 2016 (“1H FY2017”)
Net Profit was HK$53.6 million, an increase of 27.5% from HK$42.1 million in 1H FY2017
Gross Margin was 14.6%, compared to 13.7% in 1H FY2017
Earnings Per Share were HK$6.41 cents, compared to HK$5.04 cents in 1H FY2017
Computime continued to record strong growth momentum in the first half of fiscal 2018, as revenue increased to HK$1,911.8 million, while net profit rose to HK$53.6 million. Gross profit margin also improved, rising to 14.6% in 1H FY2018.
The Company maintained a healthy cash and cash equivalents balance at the amount of HK$754.4 million, compared to HK$771.9 million as of the end of the financial year ended 31 March 2017.
Net profit rose to HK$53.6 million, up 27.5% from HK$42.1 million in 1H FY2017. Basic earnings per share rose to HK$6.41 cents, up 27.2% from HK$5.04 cents in 1H FY2017.
Segment Results
During the first half of fiscal 2018, the Company continued to grow its higher margin businesses, with Commercial and Industrial Controls (CIC) recording revenue of HK$383.3 million, up 45.3% year-over-year, and Building and Home Controls (“BHC”) with revenue of HK$779.1 million, an increase of 25.4%. Revenue from the Appliance Controls (APC) segment dropped 8.9% to HK$749.3 million.
Within the BHC segment is Computime’s own line of heating control products and new Internet of Things (“IoT”) suite of smart devices. Marketed under the brand name SALUS, this business recorded healthy growth during 1H FY2018 when compared to 1H FY2017 in all European territories with the exception of the United Kingdom (“UK”) due to Brexit concerns. Despite this setback in the UK, the SALUS business as a whole was able to match last year’s sales in local currency terms during 1H FY2018.
Outlook
In the second half of fiscal year 2018, Computime expects the demand for its products and services to remain strong, driven by orders from both existing and new customers. The Company expects to commence shipments to a new EMS (Electronic Manufacturing Services) customer in the consumer products sector in the second half, while orders from an existing customer in the mobile point-of-sale (mPOS) sector is expected to progressively ramp up. In addition, Computime expects sales of SALUS in this fiscal year will increase on a year-on-year basis with new product launches including the Auto Balancing Actuator (ABA), new market initiatives in the UK, and sales ramp up in North America in the second half.
Dr. King Owyang, CEO and Executive Director of Computime, commented, “We continued to build on our strong growth momentum in the first half of fiscal 2018, driven by a better mix of higher margin businesses. While EMS continues to be the backbone of the Company, Computime has continued to transition from a traditional manufacturer into a value-added technology driven company, and as part of this, we have made a conscious effort to grow our more profitable segments, while being more selective in engaging lower margin businesses. This, alongside our ongoing cost control and operational efficiency improvements, have contributed to our tangible improvement in profitability.
During 1H FY2018, we took advantage of our strong results to make further investments for long term growth. We purchased two new SMT (surface-mount technology) lines to upgrade our manufacturing capabilities, invested in further growing our sales and marketing capabilities in the EU and North American markets for our SALUS brand, and increased research and development (“R&D”) spending.
We remain committed to growing our higher-margin businesses alongside our SALUS brand, and we are on track to deliver solid growth for the full fiscal year. We will continue to seize various opportunities in both the EMS and IoT markets to achieve sustainable, long-term growth.”
Mr. Matthew Au, CFO of Computime, added, “We are pleased to have recorded another solid performance for 1H FY2018. Both revenue and net profit achieved positive year-on-year growth of 12.0% and 27.5% respectively to HK$1,911.8 million and HK$53.6 million in 1H FY2018. Our better mix of higher margin businesses and cost reduction initiatives allowed us to achieve an improved gross margin of 14.6%, compared to 13.7% in 1H FY2017.
Our cash flow remained strong despite continuing investments into our business. Our net working capital cycle improved from 69 days in the first half of last year to 60 days this year. Our cash position remains healthy, with cash and cash equivalents of HK$754.4 million as at the end of 1H FY2018.”
About Computime Group Limited
Computime is a global technology and manufacturing company headquartered in Hong Kong, with 12 offices in strategic locations around the world. Over the past 40 years, Computime has worked with global brands to produce design and manufacturing solutions, as well as developing innovative products under its own brand name. Offering much more than standard manufacturing services, Computime has established a broad portfolio of solutions, including bespoke IP and sophisticated R&D to accelerate time-to-market. Computime also designs and manufactures industry-leading connected products under its SALUS brand. Computime has positioned itself at the forefront of technology, and is emerging as a market leader in the design and manufacturing of IoT and home automation products.
For further enquiries, please contact:
Computime Group Limited
Investor Relations Department
Email: ir@computime.com
Christensen China Limited
Brian Hon
Phone: 852-2117 0861
Mobile: 852-6114 3457
Email: bhon@christensenir.com
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