Financial Information

Consolidated revenue of the Group increased by approximately HK$162.4 million or 8.0% to HK$2,202.0 million for the year ended 30 June 2024 (“FY2024”) from HK$2,039.6 million for the year ended 30 June 2023 (“FY2023”).

Revenue from our Components Distribution (“CD”) segment declined by HK$59.4 million, or 13.3%, to HK$387.1 million for the year under review, compared to HK$446.5 million for the year ended 30 June 2023. The decrease was mainly due to the sluggish economic recovery in China, following the relaxation of its strict zero-COVID measures.

Revenue from our Information Technology Infrastructure (“IT Infrastructure”) segment surged by HK$284.6 million or 21.1% to HK$1,634.4 million for the current year, up from HK$1,349.8 million for the year ended 30 June 2023. The significant growth was primarily driven by the securing of a few mega projects during the year under review.

Revenue from our Consumer Electronics Products (“CEP”) segment fell by HK$62.8 million, or 25.8%, to HK$180.5 million for the current year, down from HK$243.3 million for the year ended 30 June 2023. This decline was primarily driven by weak consumer sentiment and reduced spending in the local CEP market.

Gross profit rose by HK$14.4 million, or 8.4%, to HK$187.0 million for the year ended 30 June 2024, compared to HK$172.6 million for the year ended 30 June 2023. The increase in gross profit was due mainly to: (1) higher revenue from the IT Infrastructure segment; and (2) a net reversal of write down of inventories of HK$4.0 million in the current year.

Other income and gains, net decreased by HK$37.7 million or 80.6% to HK$9.1 million for the year ended 30 June 2024 from HK$46.8 million for the year ended 30 June 2023. The decrease was mainly because the previous year included non-recurring gains of HK$38.8 million from the disposal of investment properties and properties held for own use.

Selling and distribution costs increased by HK$2.5 million or 3.3% to HK$78.4 million for the year ended 30 June 2024 from HK$75.9 million for the year ended 30 June 2023.

Administrative expenses decreased by HK$0.7 million or 0.8% to HK$78.8 million for the year ended 30 June 2024 from HK$78.1 million for the year ended 30 June 2023.

Other expenses, net increased by HK$4.7 million or 346.9% to HK$6.1 million for the year ended 30 June 2024 from HK$1.4 million for the year ended 30 June 2023. The increase was mainly due to (1) the increase in fair value loss on investment property of HK$2.1 million; (2) loss on disposal of property, plant and equipment of HK$1.5 million in relation to the Beijing property and (3) impairment of goodwill of HK$1.0 million relating to component distribution business in the PRC.

Finance costs increased by HK$1.4 million or 13.4% to HK$11.8 million for the year ended 30 June 2024 from HK$10.4 million for the year ended 30 June 2023. The increase was mainly due to (1) increase in bank borrowings interest rate during the current year; and (2) temporary increase in bank borrowings during the year to finance the purchase of goods to meet the increased demand in the IT Infrastructure segment.

The decrease was mainly due to the reversal of over provision of Income tax expenses in prior year.

Net profit attributable to owners of the Company decreased by HK$28.0 million or 59.5% to HK$19.0 million for the year ended 30 June 2024 from HK$47.0 million for the year ended 30 June 2023. The decrease was mostly due to the absence in current year of HK$38.8 million gain on disposals of properties held for own use and investment in the PRC and Singapore in last year.

Non-controlling interests represented the non-controlling shareholders’ share of losses of our non-wholly owned subsidiaries.

At 30 June 2024, non-current assets amounted to HK$69.8 million, representing approximately 6.0% of the total assets. Non-current assets decreased by HK$14.4 million or 17.2% to HK$69.8 as at 30 June 2024 from HK$84.4 million as at 30 June 2023. The decrease was mostly due to the disposal of property in Beijing.

As at 30 June 2024, current assets amounted to HK$1,099.0 million, an increase of HK$91.1 million compared to the preceding financial year end as at 30 June 2023. The increase was mainly due to (1) increase in trade and bills receivables of HK$54.1 million which was in line with the increase in revenue; (2) increase in cash and cash equivalents of HK$37.1 million mainly due to a mega deal sale in June 2024 for which the customer made an immediate payment; and (3) increase in prepayments and other receivables of HK$12.5 million.

As at 30 June 2024, current liabilities amounted to approximately HK$722.2 million, an increase of HK$97.8 million compared to the preceding financial year end as at 30 June 2023. The increase was mainly due to (1) increase in trade and bills payables by HK$81.1 million due to the supply of goods related to the mega deal mentioned above; (2) increase in other payables and accruals by HK$64.6 million from the increase in advance payments from customers; and (3) set off by a decrease in interest-bearing bank and other borrowings by HK$40.9 million which was due to the receipt of the mega deal settlement mentioned above.

Non-current liabilities amounted to HK$46.8 million, representing 6.1% of the total liabilities as at 30 June 2024. The amount comprised deferred tax liabilities, long term contract liabilities and long-term lease liabilities. Deferred tax liabilities were recognised as a result of temporary differences between the carrying amounts and tax bases of property, plant and equipment due to depreciation and withholding tax on retained profits on PRC subsidiaries.

As at 30 June 2024, cash and cash equivalents amounted to HK$127.2 million. Total interest-bearing loans and borrowings as at 30 June 2024 were HK$105.5 million (30 June 2023: HK$146.4 million). The gearing ratio (total interest-bearing borrowings to total equity) is 0.26 times (2023: 0.34 times).