Alltronics Records Strong Growth of FY2020 Revenue and Profit

Mar 31, 2021 08:30 JST

Source: Alltronics Holdings Limited

Revenue Up 74.8% to HK$2,203.8 million
Turnaround with Net Profit of HK$122.4 million

HONG KONG, Mar 31, 2021 - (ACN Newswire) - Alltronics Holdings Limited ("Alltronics" or the "Group") (SEHK: 833), a leading electronic products manufacturer and provider of energy-saving business solutions, has announced its annual results for the year ended 31 December 2020 ("review year").

During the review year, the operating environment of the Group remained challenging with the global economy adversely affected by the outbreak of COVID-19 pandemic. Although production and sales revenue of the Group were significantly affected in the first quarter of the year, the manufacturing operation managed to quickly resumed to normal came the second quarter and demand from customers continuously increased in the second half year. Revenue of the Group grew significantly by 74.8% to HK$2,203.8 million (2019: HK$1,260.8 million). Gross profit margin widened from 14.6% in 2019 to 18.8% in 2020, owed mainly to the significant increase in total sales revenue during the year and better control on production costs and overheads. Profit for the year attributable to owners of the Company turned around from a net loss to a net profit of HK$122.4 million (2019: loss of HK$262.0 million), on account of the increase in sales revenue and the absence of impact of impairment loss in the review year as oppose to the previous year.

Basic earnings per share of the review year were HK12.94 cents. In its appreciation for the shareholders' continuous support, the Board has proposed to declare the payment of a final dividend of HK2.0 cents per share.

Business Review and Prospects

The Group continued to focus on its electronic products business, which total sales revenue from finished electronic products, plastic moulds and components, and other components for electronic products amounted to HK$2,199.8 million (2019: HK$1,255.8 million) for the review year, up by an impressive 75.2% against the previous year. The rise in public health awareness amid the COVID-19 pandemic led to a significant increase in demand for the Group's electrostatic disinfectant sprayers during the second half of 2020, pushing up sales of the product to HK$972.3 million (2019: HK$6.9 million). Sales of irrigation controller products also rose to HK$496.6 million (2019: HK$457.7 million). The Group believes electrostatic disinfectant sprayers and irrigation controllers will continue to be its dominant income streams in the year ahead.

As for the energy saving business segment, its total revenue for the year climbed to HK$2.6 million (2019: HK$1.6 million), mainly backed by the energy saving revenue generated from the retail stores of Suning.com Co., Ltd. ("Suning"). To focus more resources on its core manufacturing business, the Group has agreed with Suning to cease installation work at the retail stores of Suning. The Group also strategically offered a discount to Suning in order to secure a prompt settlement of all energy saving revenue. Discontinuing installation work at Suning stores has not resulted in any material impact on the overall operation and performance of the Group.

Looking ahead, the Group will continue to explore new markets and new customers to broaden its customer base, as well as look for opportunities for new electronic products with customers and potential customers so as to broaden its revenue base and maintain business growth momentum. The Group will also continue to tighten control over production costs and overheads, plus improve production efficiency, so as to enhance its overall gross profit margin.

Mr. Lam Yin Kee, Chairman of Alltronics, concluded, "2020 undoubtedly was a tough year for businesses in most industries. Although the impacts of the COVID-19 pandemic and the unstable global economy will continue to pose threats to the operating environment, the Group is cautiously optimistic about its business performance in 2021. In the future, we will continue to focus on our core electronic products segment, put more resources and efforts into exploring opportunities for new products and projects with existing and potential customers, with the ultimate goal of providing better returns to shareholders."

About Alltronics Holdings Limited (Stock code: 833)
Alltronics Holdings Limited is mainly engaged in the design and manufacture of a wide range of electronic products with quality and style, supplying biodiesel products and energy efficient gas stoves, as well as the provision of energy-saving business solutions. The Company is a constituent stock of the Morgan Stanley Capital International ("MSCI") Hong Kong Micro Cap Index. For more information, please visit the company website
http://www.alltronics.com.hk/.

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Source: Alltronics Holdings Limited
Sectors: Electronics