Computime Group Limited (Stock Code: 320.HK) Announces FY 2021/22 Annual Results

Computime Group Limited (Stock Code: 320.HK) Announces FY 2021/22 Annual Results

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

HONG KONG, July 5, 2022 /PRNewswire/ -- 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. 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."

About Computime Group Limited

Computime Group Limited is a leading smart and sustainable living enabler, offering customized, turnkey design and manufacturing solutions to its established and diversified list of clients. Through its bespoke IP, strong research and development capabilities, as well as established brands, technology, and manufacturing platforms, the Group has also launched its own line of proprietary products under the brand SALUS in the European and North American markets.

SOURCE Computime Group Limited