Financial Performance - Sales increased by 24% year-on-year, reaching approximately USD 117 million, marking the first time the company exceeded the USD 100 million revenue mark[12]. - Recurring revenue grew by 12% year-on-year to USD 32 million, maintaining a stable percentage of total sales at 28%[18]. - Revenue for 2024 reached US$116,791,000, up from US$94,259,000 in 2023, representing a 24% increase[44]. - Profit for the year attributable to owners of the parent was US$38,046,000, compared to US$28,099,000 in 2023, a 35% increase[44]. - Core net profit for 2024 was US$38,324,000, up from US$28,352,000 in 2023, reflecting a 35% increase[44]. - Basic earnings per share increased to 3.46 US cents in 2024 from 2.56 US cents in 2023, a 35% rise[44]. - Subscription revenue collected in 2024 increased by 36% YoY[24]. - Subscription take-up rate grew from 30.5% to 34.1% YoY[24]. - Gross profit for the year was approximately US$64,149,000, a year-over-year increase of approximately 26.0%[72]. - Gross profit margin improved to approximately 54.9%, compared to approximately 54.0% for the previous year[72]. Sales and Market Expansion - The collaboration with Starlink attracted over 50 channel partners, enhancing the Peplink-Starlink channel program and leading to significant deployments in various sectors[20]. - The company launched the B One series router, which integrates Starlink LEO, 5G, and wired broadband, providing enterprise-grade performance at an accessible price[21]. - The growth in sales was attributed to strong performance across multiple product lines and the positive impact of the Peplink Starlink program[53]. - Sales in North America increased to approximately US$74,760,000, representing year-on-year growth of approximately 37.5%[66]. - Sales to EMEA rose to approximately US$29,064,000, representing a year-on-year growth of approximately 5.5%[66]. - Sales to Asia decreased about 12.2% year-on-year to approximately US$8,756,000[66]. Operational Efficiency and Cost Management - Selling and distribution expenses increased about 22.7% year-on-year to approximately US$4,348,000, mainly due to higher advertising and promotion spending[79]. - General and administrative expenses were approximately US$7,746,000, a year-on-year increase of approximately 10.3%[84]. - Research and development expenses slightly increased by 1.0% to approximately US$8,495,000[86]. - Total operating expenses for the year ended December 31, 2024, amounted to approximately US$20,589,000, representing a year-over-year increase of approximately 8.5%[95]. - Employee costs for the year were approximately US$10,514,000, up from approximately US$9,861,000 in 2023[95]. Strategic Initiatives and Partnerships - The company plans to expand collaboration with Starlink by adding their small-business product to the channel program in 2025[25]. - The "Better Together" program with T-Mobile has been expanded to include Starlink products, promoting bundled services[26]. - The company continues to evolve its product range, including both wired and wireless functions, and has expanded into connectivity products beyond typical SD-WAN routers[50]. - The company aims to enhance "on-demand" connectivity for temporary uses, improving reliability for applications like livestreaming[30]. Corporate Governance and Management - The Company adopted the Corporate Governance Code and has complied with all applicable provisions as of December 31, 2024[148]. - The Board consists of eight members, including four executive Directors and three independent non-executive Directors, ensuring a balanced composition[160]. - The independent non-executive Directors provide a wide range of skills and independent judgment on strategy, performance, and risk[167]. - The Company has received written confirmations of independence from all independent non-executive Directors, ensuring their independent status[164]. - The Board delegates day-to-day operations and business strategies to executive Directors and senior management while maintaining oversight[165]. - The cultural framework of the Company influences strategic planning and helps identify opportunities and challenges[158]. - The Company is committed to maintaining high standards of corporate governance to enhance shareholder value[153]. Employee and Workforce Development - The Group had 180 full-time employees as of December 31, 2024, an increase from 177 in 2023[117]. - The Group's total employee costs for the year ended December 31, 2024, were approximately US$10,514,000, an increase from approximately US$9,861,000 in 2023, reflecting a growth of about 6.6%[123]. - The number of attempts for Peplink Certified Engineers/Associates/Sales Specialists certifications continued to grow at a decent pace in 2024[27]. - The Company focuses on creating a work environment that allows employees to thrive and meet their full potential[155]. Risk Management and Audit - The Audit Committee conducted two meetings to review the annual results for the year ended December 31, 2023, and the interim results for the six months ended June 30, 2024[189]. - The Audit Committee oversees risk management and internal control procedures of the Company[185]. - The roles of Chairman and Chief Executive Officer are separate to ensure a balance of power and authority[177].

Plover Bay Technologies (01523) H2 2024 Earnings Call February 27, 2025 04:30 AM ET Company Participants Christopher Tse - CFOChan Wing Hong Alex - Founder, Chairman & Executive Director Conference Call Participants None - Analyst Christopher Tse Welcome to the conference call for CopaBay Technologies Financial Year twenty twenty four Annual Results. My name is Christopher Verte, and I'm the CFO of the company. We also have Mr. Alex Chan, Founder of CloverBay and the management team here. We will be hosting ...

Financial Performance - Revenue for the year ended December 31, 2024, was approximately $116.79 million, an increase of about 23.9% compared to the previous year[4] - Profit attributable to the owners of the company for the year ended December 31, 2024, was approximately $38.05 million, representing a growth of approximately 35.4% year-over-year[4] - Diluted earnings per share for the year ended December 31, 2024, was approximately 3.45 cents, an increase of about 35.3% compared to the previous year[4] - Gross profit for the year ended December 31, 2024, was approximately $64.15 million, compared to $50.91 million in the previous year[5] - The company reported a pre-tax profit of approximately $45.33 million, up from $32.95 million in the previous year[5] - Total revenue from customer contracts increased to $116,791,000 in 2024, up from $94,259,000 in 2023, representing a growth of 24%[32] - Revenue from SD-WAN router sales reached $83,325,000 in 2024, compared to $63,982,000 in 2023, marking a 30% increase[34] - The North America region generated $74,760,000 in revenue in 2024, a significant rise from $54,386,000 in 2023, reflecting an increase of 37%[28] - The company reported a pre-tax profit of $45,326,000 for the year, up from $32,950,000 in the previous year, indicating a growth of 37%[25] - The total segment performance for software licensing and support services was $28,753,000 in 2024, compared to $25,188,000 in 2023, showing an increase of 10%[25] Cash Flow and Assets - Cash and cash equivalents increased to approximately $65.93 million from $36.75 million year-over-year[6] - The operating cash flow for the year ended December 31, 2024, was $62,174 thousand, an increase of 36.8% compared to $45,436 thousand in 2023[12] - The net cash flow from operating activities for 2024 was $55,162 thousand, up 46.2% from $37,722 thousand in 2023[12] - Total assets less current liabilities amounted to approximately $68.99 million, an increase from $58.03 million in the previous year[6] - Cash and cash equivalents at the end of 2024 increased to $65,933 thousand, compared to $36,745 thousand at the end of 2023, reflecting a growth of 79.4%[14] Dividends and Shareholder Returns - The board declared a second interim dividend of 13.37 HK cents per share and a special dividend of 5.65 HK cents per share, expected to be paid on March 27, 2025[4] - The company paid dividends amounting to $32,709 thousand in 2024, which is a 48.3% increase from $22,049 thousand in 2023[14] - The company declared an interim dividend of $15,310,000 for 2024, up from $9,859,000 in 2023, representing a growth of about 55%[48] Expenses and Liabilities - The total tax expense for 2024 was $7,280,000, compared to $4,851,000 in 2023, indicating a significant increase of approximately 50%[46] - Employee benefits expenses, excluding directors' remuneration, rose to $9,025,000 in 2024 from $8,530,000 in 2023, marking an increase of about 5.8%[43] - The company’s total liabilities related to lease obligations decreased to $51,000 in 2024 from $158,000 in 2023, a decline of about 67.7%[41] - Total liabilities, including trade payables, other payables, and accrued items, amounted to $7,420,000 for 2024, compared to $4,686,000 in 2023[57] Research and Development - The company’s research and development expenses were approximately $8.50 million, slightly up from $8.41 million in the previous year[5] - Research and development expenses slightly increased by about 1.0% to approximately $8.50 million[75] Market and Sales Performance - One-time sales accounted for 72.4% of total revenue in 2024, while recurring sales made up 27.6%[65] - The company experienced a healthy growth in the number of devices with subscriptions and subscription usage rates, indicating a strong recurring revenue pipeline for the future[64] - North America sales increased to approximately $74.76 million, a year-over-year growth of about 37.5%, contributing 64.0% to total revenue[67] - EMEA sales rose to approximately $29.06 million, a year-over-year increase of about 5.5%, accounting for 24.9% of total revenue[67] Corporate Governance and Compliance - The company has adopted a corporate governance code and has complied with all applicable provisions as of December 31, 2024[123] - The audit committee has reviewed the consolidated annual performance for the year ended December 31, 2024, including discussions on auditing, internal controls, and financial reporting[126] - The company has confirmed compliance with the non-competition agreement signed by the controlling shareholder as of December 31, 2024[118] Future Outlook and Strategy - The company plans to expand its partnership with Starlink in 2025, introducing small business products into the channel program[91] - The integration of edge computing capabilities into most product lines is anticipated to reduce reliance on centralized cloud servers[92] - The company aims to optimize "on-demand" connectivity to meet temporary high bandwidth needs, enhancing user experience[93] - The company has maintained a recurring revenue model that shows healthy growth trajectories for the coming years[88] Shareholder Information - As of December 31, 2024, the company has a total of 774,000,000 shares held by directors and senior management, representing 70.2% ownership[112] - Chen Yongkang holds 756,000,000 shares through Namlong Development Limited, accounting for 68.6% of the total shares[113] - The company has not participated in any arrangements that would allow directors or senior management to profit from acquiring shares or debt securities of the company or any other entity[114] Miscellaneous - The company has no significant investments or future investment plans as of December 31, 2024[104] - There were no major acquisitions or disposals of subsidiaries or associates during the year ending December 31, 2024[105] - The company has not established any preemptive rights for existing shareholders regarding the issuance of new shares[120] - The company's auditors have verified the figures in the preliminary consolidated financial statements for the year ended December 31, 2024[125]

Financial Performance - Revenue for the six months ended June 30, 2024, was approximately $57,298,000, an increase of about 28.4% compared to the same period last year[2] - Net profit for the same period was approximately $19,103,000, representing a year-on-year increase of about 55.0%[2] - Basic earnings per share for the six months ended June 30, 2024, were approximately 1.74 cents, up approximately 55.4% year-on-year[2] - Gross profit for the six months was approximately $31,745,000, compared to $23,799,000 in the previous year, indicating a significant increase[2] - The company recorded a pre-tax profit of approximately $22,710,000, compared to $14,887,000 in the previous year[2] - The total pre-tax profit for the six months ended June 30, 2024, was $22,710,000, compared to $14,887,000 in 2023, representing a 52.5% increase[14] - Revenue from customer contracts for the six months ended June 30, 2024, was $57,298,000, up from $44,632,000 in 2023, indicating a growth of 28.5%[16] - Revenue from SD-WAN sales reached $40,946 thousand in 2024, up from $29,864 thousand in 2023, representing a growth of 37.1%[17] - The company reported a pre-tax profit of $12,000 thousand for the six months ended June 30, 2024, compared to $8,000 thousand for the same period in 2023, indicating a year-over-year increase of 50%[19] Dividends and Shareholder Returns - The board has declared an interim dividend of HK$0.1083 per share to shareholders listed on August 9, 2024[1] - The company plans to declare an interim dividend of 10.83 HKD cents per share for the six months ended June 30, 2024, compared to 7.01 HKD cents in 2023, representing a 54.1% increase[23] - The board has declared an interim dividend of HKD 0.1083 per share for the period ending June 30, 2024, expected to be paid on August 20, 2024[62] Assets and Cash Flow - The total assets as of June 30, 2024, were approximately $89,051,000, compared to $78,169,000 as of December 31, 2023[4] - Cash and cash equivalents increased to approximately $53,538,000 from $36,745,000 as of December 31, 2023[4] - Net cash flow from operating activities for the six months ended June 30, 2024, was $31,843,000, compared to $15,797,000 for the same period in 2023, representing a 101.5% increase[7] - The net cash flow from investing activities was $138,000 for the six months ended June 30, 2024, compared to a net outflow of $243,000 in 2023[7] - Trade receivables as of June 30, 2024, were $17,529 thousand, slightly up from $17,442 thousand as of December 31, 2023, showing a marginal increase of 0.5%[26] - Trade payables decreased significantly from $2,300 thousand as of December 31, 2023, to $1,001 thousand as of June 30, 2024, indicating improved cash flow management[29] Revenue Segmentation - The segment revenue from fixed network priority connections was $8,752,000 in 2024, compared to $8,151,000 in 2023, reflecting a 7.4% increase[14] - The segment revenue from mobile network priority connections rose to $32,194,000 in 2024, up from $21,713,000 in 2023, marking a significant increase of 48.3%[14] - The segment revenue from software licensing and support services increased to $16,352,000 in 2024, compared to $14,768,000 in 2023, which is a growth of 10.7%[14] - Revenue from North America grew approximately 37.9% year-over-year to about $36,761,000, accounting for 64.2% of total revenue[40] - Warranty and support services revenue increased by about 6.8% to approximately $12,575,000[36] - The company’s software license sales grew by approximately 26.2% year-over-year to about $3,777,000[36] Expenses and Cost Management - Sales and distribution expenses increased by approximately 22.0% to about $1,853,000, primarily due to increased advertising and promotional expenses[44] - General and administrative expenses increased by 6.8% year-on-year to approximately $3,688,000 for the six months ended June 30, 2024[45] - Research and development expenses decreased by 3.1% year-on-year to approximately $4,204,000, attributed to increased collaboration with contract manufacturers[45] - Total operating expenses decreased by approximately 4.6% year-on-year to about $9,745,000 for the six months ended June 30, 2024[47] Share Capital and Stock Options - The total number of issued shares increased to 1,100,604,000 as of June 30, 2024, from 1,100,494,000 as of December 31, 2023[28] - The company issued 2,971,000 shares at an average exercise price of HKD 1.326, generating approximately $503 thousand in cash before expenses[28] - The company repurchased 256,000 shares at a total cost of approximately $88 thousand during April 2024, which were subsequently canceled[31] - The unexercised stock options as of June 30, 2024, totaled 10,500,000, with an average exercise price of HKD 2.661[33] - The company has a total of 10,500,000 options remaining as of June 30, 2024, after accounting for various exercises and cancellations[67] Corporate Governance and Compliance - The company has adopted a corporate governance code and has complied with all applicable provisions during the period[74] - The audit committee reviewed the group's interim performance, including accounting principles and financial reporting matters for the six months ending June 30, 2024[76]

Financial Performance - The company reported revenue of approximately $57,298,000 for the six months ended June 30, 2024, representing an increase of about 28.4% compared to the same period last year[103]. - The total comprehensive income attributable to the owners of the parent for the period was $19,137,000, compared to $12,395,000 in the previous year[111]. - The company reported a net profit of approximately $19,103,000 for the six months ended June 30, 2024, representing a year-on-year increase of about 55.0%[135]. - Basic earnings per share for the six months ended June 30, 2024, were approximately 1.74 cents, an increase of about 55.4% year-over-year[110]. - The diluted earnings per share for the same period was 1.73 cents, compared to 1.12 cents in the previous year[136]. - The gross profit for the six months ended June 30, 2024, was $31,745,000, up from $23,799,000 in the previous year[112]. - The pre-tax profit for the six months ended June 30, 2024, was $22,710,000, compared to $14,887,000 for the same period in 2023[112]. - The company achieved a pre-tax profit of $22,710,000 for the six months ended June 30, 2024, compared to $14,887,000 for the same period in 2023[121]. - The company’s total liabilities decreased from $17,399,000 to $15,370,000 for the financing activities during the period[108]. - The company’s total liabilities increased to $43,018,000 as of June 30, 2024, from $35,051,000 as of December 31, 2023[137]. Revenue Breakdown - Revenue from recurring sales increased by 12.8% year-on-year, with the number of subscription devices growing by 34.9% compared to the same period last year[39]. - Non-recurring sales increased by 35.5% year-on-year, driven by strong demand across multiple regions and verticals[66]. - Total revenue for 2024 reached $57,298,000, a 28.4% increase from $44,632,000 in 2023[197]. - One-time sales accounted for 72.5% of total revenue in 2024, increasing by approximately 35.5% year-over-year[196][197]. - Recurring sales represented 27.5% of total revenue in 2024, showing a year-over-year increase of about 12.8%[196][197]. - Revenue from external customers reached $57,298,000 for the six months ended June 30, 2024, up from $44,632,000 in the same period last year, marking an increase of approximately 28.5%[145]. - Revenue from mobile network priority connections surged to $32,194 thousand in 2024, a significant rise from $21,713 thousand in 2023, marking an increase of 48.3%[123]. - The sales of SD-WAN routers for fixed network priority connections amounted to $8,752 thousand in 2024, compared to $8,151 thousand in 2023, reflecting an increase of 7.4%[123]. - Warranty and support services revenue grew approximately 6.8% to about $12,575,000[162]. Expenses and Costs - Sales and distribution expenses grew by approximately 22.0% to about USD 1,853,000, primarily due to increased advertising and promotional expenses[30]. - R&D, consulting, and other expenses slightly decreased by 3.1% to approximately USD 4,204,000, attributed to reduced internal hardware R&D material and mold requirements[32]. - The company reported a cost of goods sold of $24,450,000 for the six months ended June 30, 2024, compared to $19,664,000 in the same period last year, representing an increase of approximately 24.5%[148]. - The interest expense on bank loans decreased to $77 thousand in 2024 from $211 thousand in 2023, a reduction of 63.5%[125]. Cash Flow and Equity - The net cash flow from operating activities for the six months ended June 30, 2024, was $31,843,000, compared to $15,797,000 for the same period in 2023[108]. - The company experienced a net increase in cash and cash equivalents of $16,611,000 for the six months ended June 30, 2024, compared to $2,040,000 in the same period last year[108]. - The company’s cash and cash equivalents at the end of the period were $53,538,000, up from $30,788,000 at the end of the previous year[108]. - The company declared a second interim dividend of $15,400 thousand for 2023, reflecting its commitment to returning value to shareholders[121]. - The company declared an interim dividend of 10.83 HK cents per share for the six months ended June 30, 2024, up from 7.01 HK cents in the previous year[150]. - The total equity attributable to equity holders of the parent increased to USD 50,641,000 as of June 30, 2024, compared to USD 48,806,000 as of December 31, 2023, representing a growth of approximately 3.4%[3]. - The total equity as of June 30, 2024, was $52,059 thousand, up from $43,957 thousand as of June 30, 2023, representing a growth of 18.5%[114]. Strategic Initiatives - The company plans to launch a user-friendly product with full SpeedFusion capabilities at an affordable price, directly selling to end customers through deep market partnerships[38]. - The company is developing new products and next-generation platforms to continue leading technological advancements and ecosystem development in the coming years[40]. - The company plans to continue its focus on the design, development, and marketing of SD-WAN routers, indicating a strategic emphasis on expanding its product offerings[115]. - The collaboration with Starlink has significantly enhanced user experience and improved Peplink's market position, providing unparalleled connectivity in remote environments[63]. - The company signed contracts with no fewer than 50 distributors to join the Peplink and Starlink Solution Provider program during the reporting period[177]. Governance and Compliance - The company has adopted a corporate governance code and has complied with all applicable provisions during the reporting period[86]. - The company has not engaged in any significant acquisitions or disposals of subsidiaries or associates during the period ending June 30, 2024[72]. - The company has no major investments or investment plans as of June 30, 2024[71]. - The company does not have a foreign exchange hedging policy but closely monitors foreign exchange risks[69]. - The company has not disclosed any interests or short positions held by directors or senior management in competing businesses[82]. Shareholder Information - The stock options plan was adopted on June 21, 2016, to recognize employee contributions to the group's growth[70]. - The company issued 366,000 shares through stock options at an average exercise price of HKD 1.145, resulting in a total cash consideration of approximately $53,000[185]. - As of June 30, 2024, the total number of stock options was 10,500,000, down from 11,879,000 in 2023[189]. - The company repurchased a total of 256,000 shares at a total cost of approximately $88,000 during the reporting period[155].

Business Growth and Market Opportunities - In 2023, Plover Bay Technologies Limited helped a major cruise ship company connect multiple Starlink connections across its fleet, enhancing internet access for thousands of passengers and crew[15]. - The Fixed Wireless Access (FWA) market is projected to see connections more than double to over 300 million by 2030, indicating a significant growth opportunity[15]. - The company was appointed as Starlink's first Authorized Technology Provider, which is expected to increase brand visibility and access to a growing user base[15]. - The strong uptake of 5G products in North America was a key driver for sales, particularly in maritime, government, and public safety sectors[28]. - The company emphasizes the importance of diverse connectivity options for business growth, as no single service provider can offer flawless reliability across all markets[35]. - The emergence of AI is expected to create new opportunities in the expanding connectivity market[40]. - The company aims to enhance software features and launch affordable new products to boost recurring revenue growth[40]. - The company plans to reach the next US$100 million in revenue faster with stronger manufacturing and go-to-market partners[40]. Financial Performance - Total revenue for the year ended December 31, 2023, was US$94.259 million, a significant increase from US$86.757 million in 2022[22]. - Revenue for 2023 was reported at US$94.3 million, an increase from US$86.8 million in 2022[42]. - Profit for the year attributable to owners of the parent was US$28.1 million, up from US$22.7 million in 2022[42]. - Core net profit for 2023 was US$28.4 million, compared to US$22.9 million in the previous year[42]. - Basic earnings per share increased to 2.56 US cents from 2.07 US cents in 2022[42]. - In 2023, recurring revenue reached 30% of total sales and 52% of gross profit[40]. - Warranty and support services generated US$23.765 million, representing 25.2% of total revenue[22]. - Software licenses contributed US$6.512 million, which is 6.9% of total revenue, up from US$4.447 million in 2022[22]. - The gross profit margin for the year was approximately 54.0%, compared to approximately 53.6% for the year ended December 31, 2022[85]. - For the year ended December 31, 2023, the company's gross profit was approximately US$50,913,000, representing a year-over-year increase of approximately 9.5%[83]. Sales and Revenue Breakdown - Revenue from Mobile First Connectivity (formerly Wireless SD-WAN routers) was US$49.393 million, accounting for 52.4% of total revenue in 2023[22]. - North America sales increased to approximately $54.39 million, a year-over-year growth of about 4.6%[27]. - EMEA sales rose to approximately $27.54 million, reflecting a year-over-year increase of approximately 26.7%[27]. - Sales in Asia decreased by approximately 10.3% to about $9.98 million[27]. - Other regions experienced a year-over-year sales growth of approximately 25.4%, reaching about $2.36 million[27]. - Sales of Fixed First Connectivity and Mobile First Connectivity are considered one-time sales, indicating a focus on recurring revenue streams[24]. Operational Efficiency and Cost Management - Total operating expenses for the year amounted to approximately US$18,976,000, representing a year-over-year decrease of approximately 5.4%[62]. - General and administrative expenses for the year ended December 31, 2023, were approximately US$7,021,000, a decrease of approximately 14.1% year-on-year[87]. - Research and development expenses for the year ended December 31, 2023, were approximately US$8,411,000, a decrease of about 4.3% year-on-year[88]. - Component costs and production lead times have returned to reasonable levels, leading to improved margins in Fixed First and Mobile First Connectivity segments[57]. Corporate Governance and Management - The Board is committed to maintaining high standards of corporate governance and will continue to review practices to comply with the Corporate Governance Code[102]. - The Chairman and CEO roles are separate to ensure a balance of power and authority within the Group[115]. - The Board comprises seven members, including four executive Directors and three independent non-executive Directors[131]. - The Company emphasizes the importance of good corporate governance practices and procedures[151]. - The Board is responsible for maximizing long-term shareholder value while balancing broader stakeholder interests[135]. Employee and Workforce Management - As of December 31, 2023, the Group had 177 full-time employees, a decrease from 202 in 2022[97]. - Total employee costs for the year were approximately US$9,861,000, slightly down from US$9,957,000 in 2022[97]. - The Company issued share options on December 11, 2023, as part of its employee recognition program[97]. Risk Management and Compliance - The Audit Committee oversees risk management and internal control procedures of the company[158]. - The Group does not currently have a foreign exchange hedging policy but monitors foreign exchange risks closely[98]. - The Group applies a simplified approach for calculating expected credit losses (ECLs) based on lifetime ECLs at each reporting date[180]. Revenue Recognition and Accounting Policies - Revenue from contracts with customers is recognized when control of goods or services is transferred, reflecting the expected consideration[192]. - Revenue from the sale of routers and software licenses is recognized upon delivery of the assets[192]. - Revenue from the provision of license services and warranty support is recognized over the scheduled period on a straight-line basis[192].

Financial Performance - The company reported a profit attributable to equity holders for the year ended December 31, 2023, was approximately $28,099,000, representing an increase of about 24.0% compared to the previous year[91]. - The revenue for the year ended December 31, 2023, was approximately $94,259,000, an increase of about 8.6% compared to $86,757,000 for the year ended December 31, 2022[114]. - The gross profit for the year ended December 31, 2023, was $50,913,000, compared to $46,507,000 for the previous year, indicating a growth in profitability[118]. - The company reported a pre-tax profit of $32,950,000 for the year ended December 31, 2023, compared to $26,381,000 in the previous year[118]. - The total comprehensive income was $28,226,000, an increase from $22,518,000 in 2022, representing a growth of approximately 25%[122]. - The company reported a profit of $28,099,000 for the year, compared to $22,659,000 in the previous year, indicating a year-over-year increase of about 24%[122]. - The diluted earnings per share for the year ended December 31, 2023, was approximately $2.55, representing an increase of about 23.8% from $2.06 for the year ended December 31, 2022[115]. - The net cash generated from operating activities for the year was $37,722,000, significantly higher than $17,572,000 in the previous year[106]. Revenue Breakdown - Recurring revenue reached a significant milestone, accounting for 30% of total sales and 52% of gross profit for the year[17]. - Software licensing and support service revenue reached $30,277,000 in 2023, up from $25,554,000 in 2022, representing an increase of approximately 18.5%[142]. - Revenue from customer contracts increased to $94,259,000 in 2023, up from $86,757,000 in 2022, representing a growth of approximately 8.6%[141]. - North America generated $54,386,000 in revenue in 2023, compared to $52,017,000 in 2022, reflecting an increase of about 4.6%[140]. - EMEA revenue rose significantly to $27,536,000 in 2023 from $21,736,000 in 2022, marking an increase of approximately 26.7%[140]. - Sales from Mobile Network Priority Connection (formerly known as Wireless SD-WAN) rose to approximately $49,393,000, reflecting a year-on-year increase of about 5.6%[187]. - Warranty and support services revenue increased by approximately 12.6% to $23,765,000[187]. - Sales from Fixed Network Priority Connection (formerly known as Wired SD-WAN) slightly increased to approximately $14,589,000, a year-on-year increase of about 1.1%[187]. Expenses and Costs - The company reported a financial cost of approximately USD 349,000 for the year ended December 31, 2023, representing a year-on-year increase of approximately 43.0% due to higher interest rates[5]. - Total operating expenses for the year ended December 31, 2023, were approximately $18,976,000, a decrease of about 5.4% year-on-year[87]. - Research and development expenses for the year ended December 31, 2023, were approximately $8,411,000, a decrease of about 4.3% due to increased outsourcing of hardware development[96]. - The total tax expense for the year was $4,851 thousand in 2023, compared to $3,722 thousand in 2022, indicating a rise of 30.4%[172]. - The depreciation expense for 2023 was $2,156,000, an increase from $2,009,000 in 2022, reflecting a rise of approximately 7.3%[146]. Dividends and Shareholder Returns - The board declared a second interim dividend of HKD 0.1094 per share and a special dividend of HKD 0.0142 per share for the year ended December 31, 2023[27]. - The company plans to declare a second interim dividend of HKD 0.1094 per share and a special dividend of HKD 0.0142 per share, expected to be paid on March 28, 2024[99]. - The company paid dividends totaling $22,049,000 in 2023, compared to $20,771,000 in 2022, which is an increase of about 6%[125]. - The interim dividend per ordinary share was increased to 7.01 HK cents in 2023 from 5.90 HK cents in 2022, representing an increase of 19%[173]. Assets and Liabilities - The total assets less current liabilities amounted to $58,033,000, an increase from $48,057,000 in the previous year[106]. - The total equity for the company as of December 31, 2023, was $50,224,000, up from $43,291,000 in 2022[102]. - The total current assets increased slightly to $78,169,000 from $77,796,000 in the previous year[106]. - The total non-current liabilities rose to $7,809,000 from $4,766,000 in the previous year, indicating increased long-term obligations[106]. - The company experienced a decrease in inventory from $32,333,000 to $16,938,000, reflecting improved inventory management[106]. - Cash and cash equivalents at the end of 2023 amounted to $36,745,000, up from $28,658,000 at the end of 2022, reflecting a net increase of approximately 28%[125]. - The company’s retained earnings increased to $24,145,000 in 2023, up from $17,949,000 in 2022, indicating a growth of approximately 34%[122]. Strategic Initiatives and Market Position - The company launched the "Peplink App," an extension of its InControl2 management software, aimed at simplifying user experience and attracting customers in the FWA sector[16]. - The company plans to enhance its software capabilities and focus on launching affordable new products to drive growth in recurring revenue channels[18]. - The company has established a complete product ecosystem around SpeedFusion, continuously improving its routers based on user feedback[24]. - The company plans to enter the Fixed Wireless Access (FWA) market with the launch of the B One series routers, which feature comprehensive SpeedFusion capabilities[45]. - The FWA market is projected to double by 2030, reaching over 300 million connections, indicating significant growth potential despite intense competition[75]. - The company has become the first recognized technology supplier for Starlink, enhancing its visibility and access to a rapidly growing user base[73]. - The company is leveraging advancements in artificial intelligence to create new product platforms, anticipating significant opportunities in the expanding connectivity market[48]. - The proprietary technology "SpeedFusion" combines various connection technologies to create superior connectivity, which has been a key factor in the company's competitive advantage[80]. Government Support and Compliance - The company received approximately $96,000 from the Hong Kong government for brand development and market expansion, and about $419,000 from the Lithuanian government for various R&D projects[84]. - The company has adopted the standards set out in Appendix 10 of the Listing Rules as its securities trading code, ensuring compliance by directors[39]. - The defined contribution plan expenses for the Taiwan subsidiary amounted to approximately $54,000 for the year ending December 31, 2023, compared to $48,000 in 2022[52]. - The company has no forfeited contributions available to reduce future contributions to the retirement benefit plan as of December 31, 2023[171].

Financial Performance - Revenue from customer contracts for the six months ended June 30, 2023, was $44,632 thousand, an increase of 11.8% compared to $40,114 thousand for the same period in 2022[15]. - The company reported a profit of $12,323 thousand for the six months ended June 30, 2023, compared to a profit of $10,308 thousand for the same period in 2022, marking a year-over-year increase of 19.5%[1]. - Revenue for the six months ended June 30, 2023, was approximately $44,632,000, an increase of about 11.3% compared to the same period last year[39]. - The company reported a pre-tax profit of $14,887,000 for the six months ended June 30, 2023, compared to $12,283,000 for the same period in 2022[37]. - Total revenue for the six months was $44,632,000, compared to $40,114,000 in the same period last year, reflecting a growth of approximately 11.8%[69]. - The company recorded a net profit of approximately $12,323,000 for the six months ended June 30, 2023, representing a year-on-year increase of about 19.5%[50]. - Basic earnings per share for the period were approximately 1.12 cents, an increase of about 19.1% compared to the previous year[60]. - Overall revenue increased by 11% year-over-year in the first half of 2023, with a gross margin of 53%[75]. Revenue Breakdown - The company’s SD-WAN sales for the six months ended June 30, 2023, reached $8,151 thousand, an increase from $6,562 thousand in the same period of 2022[22]. - The company’s software licensing and support services revenue for the six months ended June 30, 2023, was $11,774 thousand, compared to $9,916 thousand for the same period in 2022, indicating a growth of 18.6%[22]. - Recurring revenue for the period reached $13.9 million, a 28% increase compared to the same period last year[76]. - The wired SD-WAN product grew by 24% year-over-year, driven by the adoption of 5G fixed wireless access and Starlink services[75]. - Sales of fixed network priority connections (formerly known as wired SD-WAN) grew to approximately $8,151,000, a year-on-year increase of about 24.2%[108]. - Warranty and support services increased by approximately 18.7% to about $11,774,000, while software license sales grew by approximately 53.6% to about $2,994,000[108]. Expenses and Liabilities - Non-current liabilities as of June 30, 2023, totaled $5,432 thousand, up from $4,766 thousand as of December 31, 2022, representing an increase of 13.9%[9]. - Total tax expense for the period was $2,564,000, compared to $1,975,000 for the same period last year, representing an increase of approximately 30%[28]. - The cost of goods sold for the period was $19,664,000, up from $16,864,000 in the previous year, reflecting an increase of approximately 10.6%[5]. - The company’s financial costs increased significantly, with bank loan interest rising to $211,000 from $45,000 in the previous year[5]. - Total operating expenses for the six months ended June 30, 2023, were approximately $9,312,000, a decrease of about 7.5% year-on-year[129]. Cash Flow and Assets - The company generated cash flow from investing activities of $(371) thousand for the six months ended June 30, 2023, compared to $(587) thousand for the same period in 2022[2]. - Cash flows from operating activities increased significantly to $15,797,000 from $4,971,000, showing improved operational efficiency[56]. - The company’s cash and cash equivalents increased to $18,082 thousand as of June 30, 2023, from $17,949 thousand as of January 1, 2023[1]. - The company’s cash and cash equivalents at the end of the period were $30,788,000, up from $28,658,000 at the end of the previous period[65]. - The total non-current assets decreased to $4,660,000 from $5,494,000, a decline of approximately 15.1%[42]. Shareholder Information - The company declared an interim dividend of 7.01 HKD cents per share for the six months ended June 30, 2023, compared to 5.9 HKD cents for the same period in 2022[29]. - The board declared an interim dividend of HKD 0.0701 per share for the period ended June 30, 2023, with payment expected on August 22, 2023[155]. - The group’s major shareholders include Namlong Development Limited, which holds 756,000,000 shares, representing 68.8% of the total[147]. Market and Growth Strategy - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[4]. - The company plans to continue focusing on developing its ecosystem to pave the way for future recurring revenue[122]. - The company has rebranded its product categories, renaming wired SD-WAN routers to "Fixed Network Priority Connection" and wireless SD-WAN routers to "Mobile Network Priority Connection" to better reflect their usage[97]. - The company continues to expand its product offerings, including non-router connectivity products such as mobile antennas and network switches[106]. Research and Development - The R&D team has expanded to include locations in Toronto and Ho Chi Minh City, enhancing talent acquisition[76]. - The company received government subsidies totaling approximately $171,000 related to R&D projects in Lithuania during the reporting period[25]. - Research and development expenses slightly increased to approximately $4,339,000 for the six months ended June 30, 2023[135]. Operational Highlights - The company successfully integrated multiple Starlink and 5G networks for a major cruise fleet, enhancing its service offerings and attracting interest from other cruise companies[72]. - A major deployment project in Germany involves updating communication equipment for over 3,000 city buses, utilizing FusionSIM for remote management[84]. - The company expressed gratitude to shareholders and business partners for their support during the past six months[198].

Revenue and Growth - Total revenue for the six months ended June 30, 2023, was $44,632,000, representing an 11% increase compared to $40,114,000 in the same period of 2022[30]. - One-time sales increased by approximately 4.9% year-over-year to $30,687,000, while recurring sales grew by approximately 28.3% to $13,945,000[13]. - Revenue from customer contracts for the six months ended June 30, 2023, was $44,632 thousand, compared to $40,114 thousand for the same period in 2022, representing an increase of 12.5%[82]. - Revenue from North America for the six months ended June 30, 2023, was $26,667 thousand, up from $23,638 thousand in 2022, indicating a growth of 8.6%[82]. - The company recorded a subscription volume of $8,600,000 in the first half of 2023, representing a year-on-year growth of 24%[56]. - Recurring revenue for the period was $13,900,000, which is a 28% increase compared to the same period last year[56]. - Revenue from SD-WAN sales increased to $29.864 million in the first half of 2023, up from $28.249 million in the same period of 2022, marking a 5.7% increase[84]. - The total segment revenue from external customers for wired routers was $8.151 million in 2023, up from $6.562 million in 2022, reflecting a growth of approximately 24.2%[99]. - The total segment revenue from external customers for wireless routers was $21.713 million in 2023, slightly increasing from $21.687 million in 2022, indicating a growth of approximately 0.1%[99]. - The total segment revenue from warranty and support services was $14.768 million in 2023, compared to $11.865 million in 2022, marking an increase of approximately 24.3%[99]. Profitability and Expenses - The company reported a pre-tax profit of $19.664 million for the six months ended June 30, 2023, compared to $16.864 million in the same period of 2022, indicating a growth of 16.5%[87]. - Total tax expense for the first half of 2023 was $2.564 million, up from $1.975 million in the same period of 2022, representing a 30% increase[91]. - The company recorded a net profit of approximately $12,323,000, representing a year-on-year increase of about 19.5%[126]. - Basic earnings per share for the six months ended June 30, 2023, were approximately 1.12 cents, an increase of about 19.1% year-over-year[106]. - The company's net profit margin improved to 28%, compared to the previous year's level[137]. - Total operating expenses for the six months ended June 30, 2023, were approximately $9.312 million, a decrease of about 7.5% year-on-year[159]. - The company incurred finance costs of $241,000 for the period, compared to $75,000 in the previous year, indicating an increase in financial expenses[129]. Research and Development - Research and development expenses slightly increased to approximately $4,339,000 for the six months ended June 30, 2023[23]. - The company's research and development expenses amounted to $4,339,000, slightly up from $4,330,000 in the previous year[129]. - The company has expanded its R&D team geographically, now including locations in Toronto and Ho Chi Minh City, in addition to existing centers in Hong Kong, Taipei, Kuala Lumpur, and Lithuania[165]. Inventory and Receivables - Inventory balance as of June 30, 2023, was $24,826,000, down from $32,333,000 as of December 31, 2022, indicating effective consumption of previously accumulated key component stocks[27]. - Trade receivables aged analysis showed a total of $12,757,000 as of June 30, 2023, compared to $12,054,000 at the end of 2022, with a notable increase in receivables aged 1 to 2 months[3]. - Trade receivables amounted to $12,780,000 as of June 30, 2023, compared to $12,078,000 as of December 31, 2022, reflecting an increase of 5.8%[45]. Dividends and Share Capital - The interim dividend declared for the six months ended June 30, 2023, is 7.01 HK cents per share, an increase from 5.9 HK cents per share for the interim dividend in 2022[75]. - The authorized share capital remains at 4,000,000,000 shares, with issued and fully paid shares increasing to 1,099,106,000 as of June 30, 2023, from 1,097,523,000 as of December 31, 2022[48]. - The board has declared an interim dividend of 7.01 HK cents per share for the period ended June 30, 2023, expected to be paid on August 22, 2023[196]. Market Expansion and Strategy - The company continues to expand its vertical business in Europe, the Middle East, and Africa, with new partnerships driving growth in the maritime vertical[16]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[84]. - The company plans to change its classification of "wired SD-WAN" and "wireless SD-WAN" to "fixed network priority connection" and "mobile network priority connection" to better understand market dynamics[164]. - The company is focusing on developing its ecosystem to pave the way for future recurring revenue[153]. Financial Position - The total current assets decreased from $77.796 million to $73.314 million, a reduction of approximately 5.7%[doc id='130']. - Non-current liabilities increased from $4.766 million to $5.432 million, an increase of approximately 13.9%[doc id='130']. - The company’s cash and cash equivalents increased to $30.788 million from $28.658 million, a growth of approximately 7.4%[doc id='130']. - The total comprehensive income attributable to owners of the parent for the period was $12.395 million, compared to $10.172 million in the previous year[104]. - The total equity attributable to owners of the parent as of June 30, 2023, was $43.957 million, an increase from $43.291 million as of December 31, 2022[109]. Stock Options and Securities - The total number of stock options granted on April 5, 2017, was 13,600,000, with 25% exercisable one year after the grant date[65]. - The total number of stock options granted on September 14, 2018, was 12,264,000, with 25% exercisable one year after the grant date[66]. - The total number of unexercised stock options as of June 30, 2023, was 11,879,000, compared to 22,546,000 in the previous year[124]. - The stock option plan was conditionally adopted on June 21, 2016, and became effective on the listing date[199]. - For the stock options granted on July 20, 2016, 25% of the total options can be exercised one year after the grant date, with subsequent 25% increments exercisable each year thereafter[200]. Foreign Exchange and Risks - The company faces foreign exchange rate fluctuation risks due to transactions in currencies such as Euro, USD, GBP, and AUD, and currently has no foreign exchange hedging policy[117].

Revenue Growth - One-time sales increased approximately 10.9% year-over-year, while recurring sales grew approximately 37.2% year-over-year[6] - Total revenue for 2022 was approximately US$86,757,000, with one-time sales contributing US$63,004,000 (72.6%) and recurring sales contributing US$23,753,000 (27.4%) [9] - Revenue for 2022 reached $86,757,000, an increase of 16.4% from $74,128,000 in 2021[27] - For the year ended December 31, 2022, the Group's revenue increased to approximately US$86,757,000, representing a year-over-year growth of approximately 17.0%[32] - The company reported a significant increase in revenue, achieving a total of $150 million, representing a 25% year-over-year growth[47] Sales by Region - Sales from North America reached approximately US$52,017,000, representing year-over-year growth of approximately 20.7%[8] - EMEA sales rose to approximately US$21,736,000, reflecting a year-over-year growth of approximately 10.6%[8] - Sales from Asia increased approximately 19.3% to approximately US$11,121,000[8] - Sales from other regions decreased approximately 8.6% year-over-year to approximately US$1,883,000, primarily due to high inflation and unfavorable exchange rates[8] - North America accounted for 60.0% of total revenue, with revenue of US$52,017,000, up from US$43,087,000 in 2021[39] Recurring Revenue - Recurring revenues grew by 37% year-over-year, now accounting for over 27% of total sales[20] - The number of devices with at least one subscription increased by 33% year-over-year, while subscription bookings dollar amount grew by 49% year-over-year[20] - The company expects recurring sales to continue to increase rapidly as the installed base grows and subscription services are enriched[7] - A pilot project for built-in data services has shown promising results, indicating strong potential for recurring revenue growth[20] Profit and Earnings - Profit for the year attributable to owners of the parent was $22,659,000, up 6.9% from $21,200,000 in 2021[27] - Core net profit for 2022 was $22,925,000, reflecting a growth of 2.8% compared to $21,323,000 in 2021[27] - Basic earnings per share for 2022 was 2.07 cents, compared to 1.96 cents in 2021, representing a growth of 5.6%[27] Assets and Liabilities - Total assets as of December 31, 2022, amounted to $83,290,000, a rise of 16.0% from $71,743,000 in 2021[30] - Total current assets increased to $77,796,000, up from $66,943,000 in 2021, marking a growth of 16.0%[30] - Total liabilities for 2022 were $39,999,000, which is a 26.4% increase from $31,660,000 in 2021[30] - Equity attributable to owners of the parent was $43,291,000, an increase of 5.5% from $40,083,000 in 2021[30] Product and Service Development - The company has migrated many products from older platforms to new ones, which support new software features and access to cloud services[12] - The company has successfully migrated to new hardware platforms during semiconductor shortages, enabling advanced software features[20] - The shift in product strategy aims to enhance the growth of subscription services in the coming years[164] - New product launches are expected to contribute an additional $20 million in revenue, with a focus on innovative technology solutions[47] Connectivity Solutions - The company continues to expand its connectivity solutions across various sectors, including partnerships with a fast food chain in Malaysia and a public transport company in Hong Kong[18] - The technology has been adopted by one of the largest cruise ship operators to enhance connectivity across their fleet, indicating a significant market opportunity[18] - The focus on supercharged connectivity aims to improve network reliability and user experience across diverse industries[18] Financial Management - The company is committed to ensuring the accuracy of its financial reporting and compliance with accounting standards[171] - The Group's financial statements preparation involves management making judgments, estimates, and assumptions that impact reported amounts of revenues, expenses, assets, and liabilities[158] - The Group recognizes impairment losses only when the carrying amount of an asset exceeds its recoverable amount, which is determined based on future cash flows discounted to present value using a pre-tax discount rate[94] Research and Development - Research and development expenses increased by 10%, reflecting the company's commitment to innovation and new technology[47] - Research and development expenditures are charged to profit or loss as incurred, while expenditures on new product development are capitalized only if technical feasibility and other criteria are met[100] Employee Benefits - The company has expanded its medical insurance coverage for employees to provide more comprehensive health and wellness protection[160] - The Group provides paid annual leave to employees, allowing unused leave to be carried forward to the following year, with an accrual made for the expected future cost of such leave[153] - The Group operates a defined contribution Mandatory Provident Fund retirement benefit scheme for eligible employees, with contributions based on a percentage of basic salaries[153] Corporate Governance - The company plans to propose the reappointment of Ernst & Young as its auditor at the upcoming annual general meeting[165] - The independent non-executive Directors confirmed compliance with the terms of the Deed of Non-Competition during the year ended 31 December 2022[199] - The Company has taken out appropriate Directors' liability insurance coverage for the Directors[189]