Financial Statements and Related Announcement::Full Yearly Results | 29/5/21, 9:33 AM |
FINANCIAL STATEMENTS AND RELATED ANNOUNCEMENT::FULL YEARLY RESULTS
Issuer & Securities
Issuer/ Manager
VALUETRONICS HOLDINGS LIMITED
Securities
VALUETRONICS HOLDINGS LIMITED - BMG9316Y1084 - BN2
Stapled Security
No
Announcement Details
Announcement Title
Financial Statements and Related Announcement
Date &Time of Broadcast
29-May-2021 09:31:48
Status
New
Announcement Sub Title
Full Yearly Results
Announcement Reference
SG210529OTHR0KU5
Submitted By (Co./ Ind. Name)
Tse Chong Hing
Designation
Chairman and Managing Director
Description (Please provide a detailed description of the event in the box below - Refer to the Online help for the format)
Please see attached:
Media Release - Valuetronics reported relatively stable FY2021 results as compared to FY2020, but challenges arising from COVID-19 pandemic, Sino-US trade tensions and global component shortage will continue.
Additional Details
For Financial Period Ended
Financial Statements and Related Announcement::Full Yearly Results | 29/5/21, 9:33 AM |
31/03/2021
Attachments
VHL-MediaRelease-FY2021 Results.pdf
Total size =201K MB
Valuetronics Holdings Limited
Unit 9-11, 7/F, Technology Park
No. 18 On Lai Street, Shatin,
New Territories, Hong Kong
Tel: (852) 2790 8278
Fax: (852) 2304 1851
www.valuetronics.com.hk
Media Release
Valuetronics reported relatively stable FY2021 results as compared to FY2020, but challenges arising from COVID-19 pandemic, Sino-US trade tensions and global component shortage will continue
- Proposes a Final Dividend of HK 16 cents per share1 and together with the Interim Dividend of HK 5 cents per share paid in December 2020, the aggregate dividend for FY2021 amounts to HK 21 cents per share.
Singapore, 29 May 2021 - SGX Mainboard listed Valuetronics Holdings Limited ("Valuetronics", "鸿通电子控股有限公司" or collectively with its subsidiaries, the "Group"), a premier design and manufacturing partner for the world's leading brands in the Consumer Electronics ("CE") and Industrial and Commercial Electronics ("ICE") sectors is pleased to announce that it has achieved a net profit of HK$187.1 million for the financial year ended 31 March 2021 ("FY2021"), a 4.6% increase from HK$178.9 million in the financial year ended 31 March 2020 ("FY2020").
Mr Ricky Tse Chong Hing (" 谢 创 兴 "), Chairman and Managing Director of Valuetronics commented: "With the loss of orders from customers switching their supply chain to other countries due to Sino-UStrade tensions, compounded with the uncertainties resulting from the global components shortage and evolving COVID-19pandemic, the Group's financial results for FY2022 are expected to be significantly lower compared to FY2021. On the other
1 Subject to shareholders' approval at the upcoming Annual General Meeting
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hand, our Vietnam expansion is proceeding according to schedule during the year. We are targeting the new Vietnam campus to commence production by the end of FY2022. By then, we will be fully equipped to serve customers' multi-site production strategy as a means to mitigate Sino-US trade tensions, and we will be seeking out new opportunities emerging with our extended geographic footprint."
Dividend
Taking into account the Company's FY2021 results performance, the Company is recommending a Final Dividend of HK 16 cents per share for FY2021 (FY2020: HK 14 cents per share). The Company also paid an Interim Dividend of HK 5 cents in December 2020 (FY2020: HK 6 cents per share) and in aggregate, the Interim and Final Dividends amount to HK 21 cents per share (FY2020: HK 20 cents per share).
The aggregate dividend amount is approximately 48.9% of the net profit attributable to shareholders for FY2021 and is in line with the Company's formal dividend policy of paying out between 30% to 50% of net profit as normal dividends to shareholders.
Financial Highlights
Year ended 31 March | |||
HK$'M | 2021 | 2020 | %Change |
Revenue | 2,281.5 | 2,354.4 | -3.1 |
Gross Profit | 386.2 | 362.8 | 6.5 |
Gross Profit Margin | 16.9% | 15.4% | 1.5%pt |
Net Profit attributable to owners of the Company | 187.1 | 178.9 | 4.6 |
The Group's FY2021 revenue decreased by 3.1% to HK$2,281.5 million from HK$2,354.4 million in FY2020. However, gross profit increased by 6.5% to HK$386.2 million in FY2021 (FY2020:
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HK$362.8 million), with gross profit margin up 1.5 percentage points to 16.9% for FY2021 due to a change in product sales mix during the year.
Segmental Revenue
HK$'M | FY2021 | FY2020 | % Change |
Consumer Electronics ("CE") | 680.7 | 916.0 | -25.7 |
Industrial & Commercial Electronics ("ICE") | 1,600.8 | 1,438.4 | 11.3 |
Total | 2,281.5 | 2,354.4 | -3.1 |
Despite the uncertainties presented during the pandemic, the Group reported relatively stable revenue and profits for FY2021 as compared FY2020, largely due to an unexpected rebound in customer demand in the second half of FY2021.
ICE revenue increased by 11.3% from HK$1,438.4 million in FY2020 to HK$1,600.8 million. The surge in demand for logistics and e-commerce benefited several key customers during COVID- 19 pandemic lockdowns. The prolonged COVID-19 pandemic also caused a delay in the schedule of a customer in the auto industry with regard to its production switch-over from the Group's China factory to another vendor in North America, which led to continued orders from that customer in FY2021.
CE revenue decreased by 25.7% to HK$680.7 million from HK$916.0 million in FY2020 and the significant drop was due to a key customer experiencing weak demand as a direct result of reduced activity caused by social distancing and COVID-19 containment measures, and its schedule production switch-over from the Group's China factory to another vendor in an ASEAN country.
The Group's other income decreased by 25.4% to HK$18.4 million, mainly due to the decrease in interest income, which was offset by an increase in net exchange gains. In FY2021, administrative expenses slightly decreased by 0.5% to HK$163.3 million, while selling and distribution expenses increased by 21.4% to HK$32.0 million (FY2020: HK$26.3 million) mainly due to an increase in product warranty expenses.
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Disclaimer
Valuetronics Holdings Limited published this content on 29 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 May 2021 02:49:00 UTC.