信佳国际(00912) - 2025 - 年度财报

Corporate Information This section provides fundamental company information, including board members, key committees, auditors, legal advisors, principal bankers, registered office, and contact details - The report provides fundamental company information, including board members, key committees, auditors, legal advisors, principal bankers, registered office, and contact details[7][8][11] Financial Highlights The company's financial performance shows a slight revenue decrease but significant profit growth and improved financial health, driven by reduced financial costs and strong cash generation Operating Results and Financial Position In FY2025, total revenue slightly decreased by 0.9% to HKD 1.388 billion, yet profit attributable to owners increased by 7.3% to HKD 34.4 million due to significantly lower financial costs, while the financial position improved with a 129.6% surge in net cash to HKD 278 million and a reduced gearing ratio of 0.3% Operating Results (Year Ended March 31) | Metric | FY2025 (HKD thousands) | FY2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1,388,007 | 1,400,293 | -0.9% | | Gross Profit | 192,725 | 203,267 | -5.2% | | Gross Margin | 13.9% | 14.5% | -0.6pp | | Operating Profit | 36,932 | 44,956 | -17.8% | | Profit Attributable to Owners | 34,397 | 32,059 | +7.3% | | Basic Earnings Per Share | 12.08 HK cents | 11.26 HK cents | +7.3% | Financial Position (As at March 31) | Metric | FY2025 (HKD thousands) | FY2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 280,317 | 161,874 | +73.2% | | Total Bank Borrowings | 2,225 | 40,795 | -94.5% | | Net Cash | 278,092 | 121,079 | +129.6% | | Gearing Ratio | 0.3% | 5.2% | -4.9pp | Revenue Breakdown Analysis Electronic products remain the primary revenue source, accounting for 86.1% of total revenue with stable performance, while pet-related product revenue declined; geographically, the US and China are core markets, with China's revenue growing by 5.7% and the US declining by 11.3% Revenue by Product Category (Year Ended March 31) | Product Category | FY2025 (HKD thousands) | % of Total | FY2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Electronic Products | 1,195,637 | 86.1% | 1,160,198 | +3.1% | | Pet-Related Products | 192,370 | 13.9% | 240,095 | -19.9% | | Total | 1,388,007 | 100% | 1,400,293 | -0.9% | Revenue by Geographical Region (Year Ended March 31) | Geographical Region | FY2025 (HKD thousands) | % of Total | FY2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | :--- | | United States | 547,504 | 39.5% | 617,211 | -11.3% | | China* | 525,804 | 37.9% | 497,281 | +5.7% | | Japan | 104,605 | 7.5% | 111,523 | -6.2% | | Singapore | 75,020 | 5.4% | 19,730 | +280.2% | | Others | 134,874 | 9.7% | 154,548 | -12.7% | | Total | 1,388,007 | 100% | 1,400,293 | -0.9% | Production Facility The company owns properties in Hong Kong, Dongguan, and Vietnam for its headquarters and production facilities, totaling over 1.2 million square feet, with Dongguan and Vietnam serving as primary manufacturing bases - The company owns properties in Hong Kong, Dongguan, and Vietnam for its headquarters and production facilities, totaling over 1.2 million square feet, with Dongguan and Vietnam serving as primary manufacturing bases[24][25][26] Chairman's Statement The Chairman's Statement reviews the company's resilient performance amidst global challenges and outlines strategic priorities for future growth, including diversification and leveraging its 'China+1' manufacturing strategy Performance Review and Response Strategies Amidst high inflation and geopolitical risks, the Group maintained stable operating performance in FY2025 with HKD 1.388 billion in turnover, achieved through accelerated destocking and stringent cost control, resulting in an 18.9% inventory reduction and a 129.6% increase in net cash to HKD 278 million - Amidst a complex macroeconomic environment, the company adopted a prudent strategy, maintaining stable operating performance through accelerated destocking and stringent cost control[30][31] FY2025 Key Operating Metrics | Metric | FY2025 | YoY Change | | :--- | :--- | :--- | | Turnover | HKD 1.388 billion | Largely Stable | | Inventory Level | - | Decreased by 18.9% | | Net Cash | HKD 278 million | Increased by 129.6% | Outlook and Future Focus The Group maintains cautious optimism, continuing its business diversification strategy and leveraging its 'China+1' Vietnam production base, established in 2019, which now matches mainland China's efficiency, to meet new customer demands, enhance R&D in IoT and 5G, and expand its pet business - The company's Vietnam factory, established in 2019 as part of the “China+1” strategy, has become a robust hedge against global trade uncertainties, with its production efficiency now comparable to mainland China facilities[36][37] - Future strategic priorities include: Internet of Things (IoT), with asset trackers continuing to generate significant revenue and exploring new models like solutions and software licensing; 5G technology, expanding into smart homes, smart cities, and mobile asset management; and pet business, consolidating existing markets and vigorously expanding into new channels like e-commerce[38][40][41] CEO Message The CEO's message highlights the company's resilient financial performance and strategic business developments, emphasizing growth in IoT, the 'China+1' strategy, and the pet business amidst a challenging global environment Financial Performance Amidst a challenging macroeconomic environment, the Group maintained stable operations through cost control and efficiency gains, with FY2025 revenue at HKD 1.388 billion and gross margin slightly down to 13.9%, while profit attributable to shareholders grew 7.3% to HKD 34.4 million due to reduced interest expenses and increased interest income, with a proposed final dividend of HKD 4.0 cents per share, maintaining a total annual dividend of HKD 8.0 cents FY2025 Financial Performance Summary | Metric | FY2025 | FY2024 | Reason for Change | | :--- | :--- | :--- | :--- | | Revenue | HKD 1.388 billion | HKD 1.400 billion | Largely Stable | | Gross Margin | 13.9% | 14.5% | - | | Profit Attributable to Shareholders | HKD 34.4 million | HKD 32.1 million | Decreased interest expenses and increased interest income | | Basic Earnings Per Share | 12.08 HK cents | 11.26 HK cents | - | | Full-Year Dividend | 8.0 HK cents | 8.0 HK cents | Stable dividend payout | Business Review The Group's business comprises electronic products and pet business; electronic products, the core segment, generated HKD 1.196 billion, 86.1% of total revenue, with IoT product growth offsetting professional audio equipment decline, while pet business sales decreased by 19.9% to HKD 192 million due to reduced pet electronic product orders, though pet food and accessories remained stable - Electronic Products Business: Sales reached HKD 1.196 billion, accounting for 86.1% of total revenue, with strong demand for IoT products, particularly asset trackers and e-paper displays, offsetting the decline in professional audio equipment revenue, and significant order growth from new mainland Chinese customers[53][54][57] - Pet Business: Sales were HKD 192 million, a 19.9% year-on-year decrease, primarily due to reduced orders for pet electronic products as customers implemented stricter inventory management, while pet food and accessories sales remained stable, performing well in Hong Kong and Japan markets[58][59][60] Outlook The Group will adopt a 'wait and see, seize opportunities' cautious strategy, expecting stable growth in core electronic products, leveraging its 'China+1' advantage for Chinese enterprises expanding overseas, with IoT as a key growth engine, bolstered by the April 2025 acquisition of TxWireless for enhanced R&D and service, and anticipating continued growth in the pet business, especially in Japan, all supported by a robust financial structure - The Group will leverage its “China+1” production layout and supply chain advantages to hedge against tariff risks and capitalize on opportunities for Chinese enterprises expanding overseas[66][67] - To strengthen IoT business R&D and one-stop service capabilities, the company acquired Irish IoT firm TxWireless in April 2025, aiming to expand its European and American customer base and explore licensing fee revenue models beyond hardware sales[70][73] - The pet business is expected to continue its positive momentum, potentially benefiting from the Yen's appreciation to further expand its market share in Japan[71][74] Management Discussion and Analysis This section provides a detailed review of the Group's financial performance, business segment contributions, and liquidity position, highlighting revenue drivers, margin impacts, and robust financial health Financial Review In FY2025, Group revenue slightly decreased by 0.9% to HKD 1.388 billion, offset by IoT growth and hearing-impaired phone business recovery despite reduced pet electronics and professional audio orders; gross margin fell to 13.9% due to higher-cost IoT sales, but profit for the year ultimately grew 6.1% to HKD 34.3 million, driven by a positive shift in net finance income FY2025 Income Statement Summary | Metric | FY2025 (HKD thousands) | FY2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1,388,007 | 1,400,293 | -0.9% | | Gross Profit | 192,725 | 203,267 | -5.2% | | Operating Profit | 36,932 | 44,956 | -17.8% | | Net Finance Income/(Costs) | 4,512 | (3,490) | +229.3% | | Profit for the Year | 34,304 | 32,327 | +6.1% | - The revenue decline was primarily due to cautious customer ordering, with reduced orders for pet electronic and professional audio equipment, largely offset by growth in IoT business and a recovery in hearing-impaired phone business[79] - The decrease in gross margin was mainly attributable to increased sales of IoT products, which have higher material costs and relatively lower profit margins[82][85] Business Review The Group's business is segmented into electronic products and pet-related products; electronic products revenue grew 3.1% to HKD 1.196 billion, comprising 86.1% of total revenue, with significant IoT growth offsetting professional audio equipment decline, while pet-related product revenue decreased 19.9% to HKD 192 million due to revised customer purchasing strategies and reduced pet training equipment sales amidst economic instability, though pet food remained stable - Electronic Products: Revenue was approximately HKD 1.196 billion, a 3.1% year-on-year increase, accounting for 86.1% of total revenue, with a significant increase in IoT business orders and a recovery in hearing-impaired phone sales fully offsetting the sharp decline in professional audio equipment orders[99][103] - Pet-Related Products: Revenue was approximately HKD 192 million, a 19.9% year-on-year decrease, primarily due to reduced sales of pet training equipment as customers adopted more cautious purchasing strategies and stricter inventory controls amidst an unstable global economic climate, while the pet food business performed stably[104][105][108] Liquidity and Financial Resources The Group maintains a robust financial position with ample liquidity; as of March 31, 2025, net cash significantly increased from HKD 121 million to HKD 278 million, total bank borrowings decreased from HKD 40.8 million to HKD 2.2 million, and the gearing ratio plummeted from 5.2% to 0.3%, with HKD 761 million of unused bank facilities providing strong financial support Key Financial Resources Metrics (As at March 31) | Metric | FY2025 | FY2024 | | :--- | :--- | :--- | | Current Ratio | 2.62 times | 2.61 times | | Cash and Bank Balances | HKD 280 million | HKD 162 million | | Total Bank Borrowings | HKD 2.2 million | HKD 40.8 million | | Net Cash Position | HKD 278 million | HKD 121 million | | Gearing Ratio | 0.3% | 5.2% | | Unutilized Bank Facilities | HKD 761 million | HKD 736 million | Directors and Senior Management Profiles This section details the backgrounds, qualifications, and appointments of the company's executive, non-executive, and independent non-executive directors, as well as senior management, including founder and Chairman Dr. Ng Chi Ho, and his son, CEO Dr. Ng Man Cheuk, who oversees overall business operations - This section details the backgrounds, qualifications, and appointments of the company's executive, non-executive, and independent non-executive directors, as well as senior management, with key figures including founder and Chairman Dr. Ng Chi Ho and his son, CEO Dr. Ng Man Cheuk, who is responsible for overall business operations[130][137][166] Corporate Governance Report The Corporate Governance Report outlines the company's governance framework, including board structure, committee functions, key policies, and risk management, ensuring effective oversight and compliance with regulatory standards Board and Committees The company's Board of Directors comprises eight members, including two executive, three non-executive, and three independent non-executive directors, reflecting diverse backgrounds, with four dedicated committees (Audit, Remuneration, Nomination, and Corporate Governance) each fulfilling their roles, and all board and committee meetings during the year recorded a 100% attendance rate - The Board of Directors consists of 8 members, with a clear separation of roles between the Chairman and CEO to ensure a balance of power[184][185] FY2025 Board and Committee Meeting Attendance | Meeting | Number of Meetings | Member Attendance Rate | | :--- | :--- | :--- | | Board of Directors | 4 | 100% | | Audit Committee | 3 | 100% | | Remuneration Committee | 2 | 100% | | Nomination Committee | 2 | 100% | | Corporate Governance Committee | 1 | 100% | Key Policies and Compliance The company has adopted and implemented several key governance policies, including Board Diversity, Dividend, Nomination, and Remuneration policies, to ensure effective board operations and alignment with shareholder interests, while complying with Listing Rules' Model Code for securities transactions by directors and providing liability insurance for directors and senior officers - The company has adopted a Board Diversity Policy and, in June 2025, added an Employee Diversity Policy; as of March 31, 2025, women constituted 25% of senior management and 46.3% of the total workforce[247][252][255] - The company has adopted a dividend policy without a preset payout ratio, with dividend decisions contingent on operating results, financial position, and future prospects, among other factors[260] - The company has adopted a Model Code governing directors' securities transactions, and all directors confirmed full compliance with the code during the year[277] Risk Management and Internal Control The Board affirms its overall responsibility for establishing and regularly reviewing the risk management and internal control systems, designed to provide reasonable assurance of operational efficiency, reliable financial reporting, and regulatory compliance; the Group has a Risk Management Committee and internal audit function reporting to the Audit Committee and Board, which reviewed the system's effectiveness for FY2025 and deemed it effective and adequate - The Board holds overall responsibility for the risk management and internal control systems, having reviewed and confirmed their effective operation during the year[290][304][310] - The risk management process encompasses risk identification, analysis, registration, mitigation, and confirmation, executed collaboratively by the Risk Management Committee, internal audit department, and management[298][300] - The company has adopted anti-bribery and whistleblowing policies, and established policies and procedures for handling and disseminating inside information[308][311] Report of the Directors The Report of the Directors provides statutory disclosures on the Group's principal activities, financial performance, dividend distribution, and share capital changes, alongside details of directors' and major shareholders' interests Business and Financials This section outlines statutory disclosures on the Group's principal activities, performance distribution, reserves, and share capital changes; the Group primarily engages in R&D, manufacturing, and sales of electronic and pet-related products, with a proposed final dividend of HKD 4.0 cents per share for FY2025, totaling HKD 8.0 cents for the full year, and customer concentration showing the largest customer at 10.8% and top five at 41.3% of total revenue - The company's principal activities are the research, development, manufacturing, and sale of electronic products and pet-related products[327] - A final dividend of HKD 4.0 cents per share is proposed, bringing the total annual dividend to HKD 8.0 cents per share including the interim dividend[341] - Regarding customer concentration, the largest customer accounted for 10.8% of revenue, and the top five customers collectively accounted for 41.3%[432] Directors and Share Interests The report discloses the Board members, service contracts, and shareholdings of directors and substantial shareholders for the year; Dr. Ng Chi Ho, Mr. Ma Fung On, and Mr. Chan Kit Hung will retire by rotation and offer themselves for re-election at the upcoming AGM, while Chairman Dr. Ng Chi Ho and his family trust collectively hold approximately 59.88% of the company's shares, and no new share options were granted during the year, with 1 million options lapsing under the old scheme - Chairman Dr. Ng Chi Ho, through personal holdings, controlled corporations, and family trusts, collectively holds 170,528,000 shares, representing 59.88% of the issued share capital[414] - The company adopted a new share option scheme in August 2022, with no new options granted under it during the year; under the old scheme, 1,000,000 share options lapsed during the period, leaving no outstanding options at year-end[381][409] Independent Auditor's Report The Independent Auditor's Report provides an unqualified opinion on the consolidated financial statements and highlights the key audit matter of inventory impairment assessment Audit Opinion and Key Audit Matters PricewaterhouseCoopers issued an unqualified opinion on the Group's consolidated financial statements as of March 31, 2025, affirming a true and fair view of the Group's financial position and performance; the sole key audit matter identified was 'Inventory impairment assessment,' due to significant inventory balances and high estimation uncertainty in impairment determination, with auditors concluding management's impairment provisions were sufficiently supported by evidence after evaluating internal controls, observing stock counts, and testing aging and net realizable value - Auditor PricewaterhouseCoopers issued an unqualified opinion on the financial statements, deeming them to present a true and fair view of the company's financial position[448] - The key audit matter identified was 'Inventory impairment assessment,' and the auditors, through various audit procedures, concluded that management's provisions for inventory impairment were supported by available evidence[461][463][467] Consolidated Financial Statements This section presents the Group's comprehensive financial statements, including the balance sheet, income statement, comprehensive income, equity changes, and cash flow, providing a complete overview of its financial position and performance Consolidated Balance Sheet As of March 31, 2025, the Group's total assets were HKD 1.083 billion, total liabilities HKD 295 million, and total equity HKD 788 million; total assets and liabilities remained largely stable year-on-year, but the asset structure improved with a significant increase in cash within current assets, reduced inventories and trade receivables, and a substantial decrease in bank borrowings Consolidated Balance Sheet Summary (As at March 31) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Total Assets | 1,083,313 | 1,079,098 | | Non-current Assets | 316,816 | 324,867 | | Current Assets | 766,497 | 754,231 | | Total Liabilities | 295,308 | 296,062 | | Non-current Liabilities | 2,625 | 7,076 | | Current Liabilities | 292,683 | 288,986 | | Total Equity | 788,005 | 783,036 | Consolidated Income Statement For the year ended March 31, 2025, the Group achieved revenue of HKD 1.388 billion and gross profit of HKD 193 million; despite operating profit decreasing from HKD 44.96 million to HKD 36.93 million, profit before tax remained at HKD 41.44 million due to improved net finance income, with profit for the year ultimately recorded at HKD 34.3 million, a 6.1% year-on-year increase Consolidated Income Statement Summary (Year Ended March 31) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 1,388,007 | 1,400,293 | | Gross Profit | 192,725 | 203,267 | | Operating Profit | 36,932 | 44,956 | | Profit Before Income Tax | 41,444 | 41,466 | | Profit for the Year | 34,304 | 32,327 | Consolidated Statement of Comprehensive Income Building on a profit for the year of HKD 34.3 million, and after accounting for exchange differences on translating foreign operations of HKD 6.23 million and other comprehensive losses, the Group's total comprehensive income for FY2025 was HKD 27.75 million, a significant increase from HKD 9.96 million last year Consolidated Statement of Comprehensive Income Summary (Year Ended March 31) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Profit for the Year | 34,304 | 32,327 | | Other Comprehensive Loss | (6,551) | (22,364) | | Total Comprehensive Income for the Year | 27,753 | 9,963 | Consolidated Statement of Changes in Equity As of March 31, 2025, the Group's total equity increased from HKD 783 million at the beginning of the year to HKD 788 million, primarily driven by the HKD 34.3 million profit for the year, partially offset by HKD 22.78 million in dividends paid - Total equity increased from HKD 783 million to HKD 788 million, with the change primarily influenced by profit for the year and dividends paid[500] Consolidated Cash Flow Statement In FY2025, the Group demonstrated strong cash flow, with net cash generated from operating activities at HKD 189 million, net cash used in investing activities at HKD 3.31 million, and net cash used in financing activities at HKD 63.13 million, resulting in a net increase of HKD 123 million in cash and cash equivalents, reaching a year-end balance of HKD 280 million Consolidated Cash Flow Statement Summary (Year Ended March 31) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 189,449 | 162,427 | | Net Cash Used in Investing Activities | (3,309) | (6,384) | | Net Cash Used in Financing Activities | (63,128) | (130,333) | | Net Increase in Cash and Cash Equivalents | 123,012 | 25,710 | | Cash and Cash Equivalents at Year End | 280,317 | 161,874 | Notes to the Financial Statements This section provides detailed explanations and supplementary information to the consolidated financial statements, covering principal accounting policies, segment information, details of assets and liabilities, related party transactions, capital commitments, and post-balance sheet events, with key notes including segment revenue, inventory impairment, bank borrowings, share option schemes, directors' emoluments, and the April 2025 acquisition of TxWireless - This section provides detailed explanations and supplementary information to the consolidated financial statements, including principal accounting policies, segment information, details of assets and liabilities, related party transactions, capital commitments, and post-balance sheet events; key notes include: Note 5: detailed segment revenue, results, assets, and liabilities; Note 15: inventory details and impairment provisions; Note 19: composition and terms of bank borrowings; Note 23: details of the share option scheme; Note 34: directors' emoluments; and Note 40: disclosure of the acquisition of Irish IoT company TxWireless completed in April 2025[503][612][960] Five-Year Financial Summary This section provides a summary of the Group's key financial data over the past five years, covering core metrics such as consolidated results, assets, and liabilities, enabling readers to analyze the company's long-term financial trends Five-Year Financial Data Summary (Year Ended March 31) | Metric (HKD thousands) | 2021 | 2022 | 2023 | 2024 | 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Consolidated Results | | | | | | | Revenue | 2,101,573 | 1,855,875 | 1,443,482 | 1,400,293 | 1,388,007 | | Operating Profit | 102,083 | 75,933 | 84,291 | 44,956 | 36,932 | | Profit Attributable to Owners | 79,274 | 56,465 | 59,810 | 32,059 | 34,397 | | Consolidated Assets and Liabilities | | | | | | | Total Assets Less Current Liabilities | 806,881 | 832,458 | 823,064 | 790,112 | 790,630 | | Total Equity | 802,168 | 809,959 | 804,400 | 783,036 | 788,005 |