Mar 26, 2024 | Business
BoardWare Intelligence Technology Limited (“BoardWare” or together with its subsidiaries, the “Group”; stock code: 1204.HK), a leading company in the Greater Bay Area (“GBA”) that offers comprehensive, high-quality and end-to-end enterprise IT solutions, today announced its annual results for the year ended 31 December 2023 (“2023” or the “Year”).
Financial Performance
The potential demands of various IT solutions resumed along with the end of the influence from COVID-19 pandemic. During the Year, the Group continued to provide comprehensive and high-quality end-to-end enterprise IT solutions as well as distribution and resale business to customers under various industry sectors in Macau, Hong Kong and the PRC. The Group endeavoured to capture the resumed demands from the recovery of the economy from the pandemic to expand its market share in Macau, Hong Kong and the PRC. During the Year, the Group’s revenue increased by 23.6% to HK$717.6 million, such increase was primarily attributable to the aggregate effect of the increase in revenue generated from both enterprise IT solutions business and distribution and resale business. Gross profit increased by 15.1% to HK$115.6 million, with gross profit margin at 16.1%. Profit for the year increased by 40.6% to HK$4.5 million. Basic earnings per Share attributable to the Shareholders increased by 15.4% to HK0.90 cents.
With regard to business segments, the revenue from enterprise IT solutions increased 27.9% to HK$456.2 million. Such increase was mainly attributable to the increase in the revenue from Professional IT services resulting from the increase in the number of contracts in Macau and the PRC. In particular, the revenue generated from the PRC increased significantly. In addition, the Group also procured different IT products for resale to fulfil the needs from different customers in Macau, Hong Kong and the PRC. The revenue from distribution and resale increased 12.4% to approximately HK$251.0 million.
Maintains the Competitive Advantage in the Macau Market while Seizing the Development Opportunities in the GBA
The government of Macau SAR has been actively promoting the development of smart city for several years. According to the “Government of Macau SAR Five Years Development Plan (2024–2028)” published in October 2023, “Transformation and upgrading of high-tech industries and traditional industries” has been introduced to develop new economy growing point by (i) strengthening the business development and policy supports to IT enterprises in Macau; (ii) enhancing the existing legal framework relating to IT industries; (iii) collaborating with Hengqin on the share of talents, resources and IT infrastructure; and (iv) enhancing the quality of the services and products from traditional industries with the assistance of new technologies.
During the Year, the Group was accredited as one of the top three key technology enterprises under the “Certification Programme for Technology Enterprises” (the “scheme”) in Macau. The scheme assesses enterprises in multi-dimensions, including its businesses and scale, research and development (“R&D”) status, and degree of innovation and more. Qualified enterprises to be accredited, valid for three years, as “Potential Technology Enterprises”, “Growing Technology Enterprises”, or “Key Technology Enterprises”. The accreditation has reinforced the leading position and elevated the reputation of the Group in Macau, allowing the Group to attract more businesses.
The Guangdong-Macao In-Depth Cooperation Zone in Hengqin (the “Zone”) officially started closed-loop operation on 1 March 2024. The Group has been active in leveraging the resource advantages of the Zone to lower the price of IT solutions and products through the tax-free arrangement in the Zone, thereby enhancing the competitiveness of the Group. In addition, that the government of Macau SAR set the new requirements on gaming operator license relating to investments on non-gaming industries aiming at diversifying away from its reliance on gaming industry, drives growth in demand for the IT solutions and products relating to the investments from those gaming operators. Benefiting from the policy, the Group successfully signed a contract with one of the gaming operators to foster the development of digital economy among small and medium-sized enterprises (“SME”) in Macau. The scope of the contract consists of (i) construction of a Software as a Service platform; (ii) development of related mobile applications; and (iii) maintenance of dynamic data storage hub for SME in Macau.
The government of Macau SAR also reinforced its policies of the “1+4” adequate diversification development strategy to enrich Macau’s function as “One Centre” for integrated tourism and leisure, while facilitating the development of four nascent industries, namely the “Big Health” industry; modern financial services; high technology; and conferences and exhibitions, commerce and trade, and culture and sports in “2024 Policy Address”. By gradually increasing the proportion of these four nascent industries, it will allow Macau to boost economic growth impetus and overall competitiveness. With the increasing influence of IT elements in their business operations and related support policy from the government of Macau SAR, the Group’s business development is also poised to benefit from the increasing demand of IT solutions in the above industries and achieve further growth.
Besides, in response to the development goal of “Opinions on Financial Support for The Construction of The Guangdong-Hong Kong-Macao Greater Bay Area”, the government of Macau SAR will provide financial incentives to local small and medium enterprises and help them develop e-Commerce and cross-border e-Commerce business, as well as popularising digital payment system. With the support of the relevant policies, the Group will further maintain its current competitive advantage in the Macau market.
Driving Diversified Development through Artificial Intelligence of Things (AIoT) and Brain-Computer Interfaces (BCI) Businesses
To embrace the forthcoming business opportunities from the development and widespread application of Web 3.0, the Group continues to build up its own features and functions in Artificial Intelligence (“AI”) technology. In the early of FY2023, the Group has relocated its existing AIoT team and BCI team to a newly established wholly-owned subsidiary incorporated in the PRC, namely Barco Technologies Limited* (“Barco”). During the Year, Barco successfully developed the BCI headband which can integrate with various application scenarios, including wheelchairs, metaverse and gaming applications. The BCI headband is currently under the stage of features’ optimisation. Users can connect with designated application scenarios through the device seamlessly. In addition, the Group signed a cooperation framework agreement with Baidu Group to foster the development of the construction of BCI based metaverse application scenarios. At the same time, Barco entered into a contract relating to metaverse content of Solitary Beauty Peak in Guilin. The scope of the project is to create a virtual scene for Solitary Beauty Peak in Guilin and allow users to enter the virtual scene for immersive tourism experience by using BCI headband and AI technology.
During the Year, Barco also entered into an agreement to build a joint laboratory with Beihang University, which mainly focuses on the development of additional features and furthering new technologies as well as new applications with AIoT, BCI and AI technology. The Group believes such technologies will be the new development trend in IT and will be widely applied in various industries with the increasing awareness from the world.
Expanding Business in China and Entering New Areas of Computing Centre
The Group has also capitalised on the development opportunities in the PRC by entering into a non-legally binding memorandum of understanding with SCB Global Capital Holdings Limited (the “Vendor”) with the intention to indirectly acquire the land use right to develop an internet data centre situated in Pinggu, Beijing (the “Proposed Investment”). The Proposed Investment will create value to the customers and shareholders by further diversifying and extending the current business of the Company in the PRC. As of today, the Group is still under the progress of finalising the formal sale and purchase agreement with the Vendor.
Mr. Matthew CHAO, Chairman and Chief Executive Officer of BoardWare, said, “the rapid recovery of the IT solutions business in the post-epidemic era and the continued supportive policies from the government have had a positive impact on the Group’s development. The Group will proactively grasp the emerging new business opportunities and further expand its presence in the Hong Kong and GBA markets to broaden its profitability. At the same time, the Group will keep abreast of the development trend of AI and fully utilise its competitive advantages and leading position in the GBA by focusing on its AIoT and BCI businesses, which will help the Group diversify its business development.”
BoardWare Intelligence Technology Limited
Headquartered in Macao, BoardWare Intelligence Technology Limited is the leading company in the Macao IT solutions market. With over 10 years of operating history, it has been dedicated to providing comprehensive, end-to-end and high-quality enterprise IT solutions covering professional IT services and managed services, to customers which include globally renowned enterprises or bodies in TMT, gaming and hospitality and public sectors in Macao. To date, it has business presence extended to cover the Greater China region, with a focus on the Guangdong-Hong Kong-Macao Greater Bay Area, with branches and subsidiaries established in Hong Kong, Zhuhai, Guangzhou and Beijing.
Topic: Press release summary
Mar 23, 2024 | Business
Jiumaojiu International Holdings Limited (“Jiumaojiu” or the “Company” and its subsidiaries (together, the “Group”); Stock Code: 9922HK) is pleased to announce the audited consolidated results of the Company for the year ended December 31, 2023.
Key Financial Highlights
- Revenue increased by 49.4% from RMB4,005.7 million for the year ended December 31, 2022 to RMB5,985.9 million for the year ended December 31, 2023;
- Net profit for the year increased significantly by 763.3% from RMB55.6 million for the year ended December 31, 2022 to RMB480.0 million for the year ended December 31, 2023;
- Profit for the year attributable to equity shareholders of the Company increased by 819.9% from RMB49.3 million for the year ended December 31, 2022 to RMB453.5 million for the year ended December 31, 2023;
- Adjusted net profit increased by 623.2% from RMB69.3 million for the year ended December 31, 2022 to RMB501.2 million for the year ended December 31, 2023.
- Final dividend proposed after the end of the year of HKD0.15 per ordinary share, representing a payout ratio of approximately 43.1%of profit for the year attributable to equity Shareholders.
In the year of 2023, the Group continued to adhere to its multi-brand and multi-concept strategy and explored new business opportunities, aiming to further expand its market share and maintain its market position as a leading Chinese cuisine restaurant brand manager and operator in the People’s Republic of China. In the year of 2023, total revenue of the Group increased by 49.4% from RMB4,005.7 million for the year ended December 31, 2022 to RMB5,985.9 million for the year ended December 31, 2023, and its net profit for the year increased significantly by 763.3% from RMB55.6 million for the year ended December 31, 2022 to RMB480.0 million for the year ended December 31, 2023. While the Group’s revenue is increasing, it further optimizes operational efficiency through effective management control, leading to a substantial growth in profits.
Steady Expansion of Stores And Advancing Overseas Deployment
Following the relaxation of anti-pandemic measures against the novel coronavirus COVID-19 (the “Pandemic”) and border reopening in early 2023, the Group adopted an active expansion strategy and opened 180 new restaurants in 2023, comprising 134 Tai Er restaurants, 35 Song Hot Pot restaurants, four Jiu Mao Jiu restaurants, six Lai Mei Li Grilled Fish restaurants and one Fresh Wood Beef Hot Pot(“Fresh Wood”) restaurant. As of December 31, 2023, the Group self-operated 726 restaurants, covering 142 cities in the PRC, Singapore, one city in Canada, one city in Malaysia, one city in Thailand and two cities in the United States.
As of December 31, 2023, the Group had a total of 578 Tai Er restaurants, 62 Song Hot Pot restaurants, 77 Jiumaojiu restaurants, 1 Uncle Chef restaurant, 7 Lai Mei Li Grilled Fish restaurants and 1 Fresh Wood restaurant. In 2023, the Group accelerates the restaurant network expansion of Tai Er brand and Song Hot Pot brand, while optimize the operation of Lai Mei Li Grilled Fish brand by restaurant renovation and menu upgrades. Meanwhile, in July 2023, the Group introduced its Fresh Wood brand, positioned as a high-end brand, to offer customers beef hot pot dishes using natural and premium food ingredients.
Multiple Brands under The Umbrella Flourishing And Operational Capabilities Continuously Strengthening
The Group generates revenue from four segments classified by brands, including Tai Er, Song Hot Pot, Jiu Mao Jiu and all other brands. Restaurant performance of most of the Group’s brands improved in 2023. Revenue contribution from Tai Er, Song Hot Pot and Lai Mei Li Grilled Fish increased by 44.3%, 210.4% and 272.3%, respectively. Moreover, the table turnover rates of Tai Er, Song Hot Pot, Jiu Mao Jiu and Lai Mei Li Grilled Fish also increased, which were mainly attributable to the increase in customer traffic following the relaxation of anti-pandemic measures against the Pandemic and border reopening in early 2023.
Revenue from Tai Er increased by 44.0% from RMB3,108.3 million for the year ended December 31, 2022 to RMB4,476.9 million for the year ended December 31, 2023 primarily due to the restaurant network expansion of Tai Er from 450 restaurants as of December 31, 2022 to 578 restaurants as of December 31, 2023. Meanwhile, its business operation has recovered from the Pandemic, leading to the increase in the number of operating days in 2023 compared to that in 2022 and the increase in table turnover rate of Tai Er restaurants from 3.5 in 2022 to 4.1 in 2023.
Revenue from Song Hot Pot increased significantly by 210.4% from RMB259.8 million for the year ended December 31, 2022 to RMB806.5 million for the year ended December 31, 2023 primarily due to the restaurant network expansion of Song Hot Pot from 27 restaurants as of December 31, 2022 to 62 restaurants as of December 31, 2023, and the increase in table turnover rate of Song Hot Pot restaurants from 3.6 in 2022 to 3.8 in 2023. In addition, revenue from Song Hot Pot as a percentage of total revenue increased from 6.5% in 2022 to 13.5% in 2023. In addition, Revenue from Jiu Mao Jiu remained relatively stable at RMB605.5 million and RMB629.6 million for the years ended December 31, 2022 and 2023, respectively.
Restaurant Operating And Delivery Services Concurrently to Jointly Boost Group Growth
Services provided by the Group or activities it engages in currently comprise restaurant operations, delivery business and others, mainly including sales of goods and sales of specialties. In 2023, the Group experienced accelerated growth in both its restaurant operations and delivery services revenue.
Revenue from restaurant operations increased by 58.2% from RMB3,203.2 million for the year ended December 31, 2022 to RMB5,066.5 million for the year ended December 31, 2023, primarily due to the Group’s restaurant network expansion from 556 restaurants as of December 31, 2022 to 726 restaurants as of December 31, 2023 and the growth in same store sales as the number of days of operation and table turnover rates of the Group’s restaurants increased in 2023 amid the recovery of its business operation from the Pandemic. As a result, revenue from restaurant operations as a percentage of total revenue increased from 80.0% for the year ended December 31, 2022 to 84.6% for the year ended December 31, 2023.
In addition, Revenue from delivery business increased by 14.5% from RMB787.1 million for the year ended December 31, 2022 to RMB901.2 million for the year ended December 31, 2023, primarily due to an increase in the number of restaurants that offered delivery services along with the Group’s restaurant network expansion.
In the future, the Group remains fully devoted to providing marvelous dining experience to customers through exquisite dishes, high-quality services and unique dining ambience. By replicating the Group’s success through further expansion; continually expanding into more market segments by pursuing a multi-brand and multi-concept strategy; continually strengthening the Group’s supply and support capabilities; expanding into the global markets to gain international presence; introducing franchise and cooperative model for regional and international expansion, the Group maintains the group’s strong market position and enhance its competitiveness, in order to maintain a strong market position and enhancing its competitiveness.
Propose Distributing Final Dividends to Showcase Confidence in Corporate Growth
The Board is committed to increasing returns for the shareholders of the Company (the “Shareholders”). For the year ended December 31, 2023, apart from utilizing approximately HKD150.0 million for share repurchases on market, the Board also proposes to distribute a final dividend of HKD0.15 per ordinary share (totalling approximately HKD215.4 million), which represents a payout ratio of approximately 43.1% of profit for the year attributable to equity Shareholders. Going forward, after a thorough reevaluation of the Group’s financial performance, financial position, and strategic development plans for the future, the Board intends to maintain a dividend payout ratio of no less than 40% of profit for the year attributable to equity shareholders.
About Jiumaojiu International Holdings Limited
Jiumaojiu International Holdings Limited is a leading chained Chinese cuisine restaurant brand manager and operator, focusing on serving cuisines with quick services, and creating a casual and upscale ambience with modern decoration of restaurants which are primarily located in shopping malls. As of December 31, 2023, the Group self-operated 726 restaurants, covering 142 cities in the PRC, Singapore, one city in Canada, one city in Malaysia, one city in Thailand and two cities in the United States.
Topic: Press release summary
Sectors: Daily Finance
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