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].
珩湾科技(01523) - 2023 - 年度业绩