Words from our CEO
The financial year ended 30 June 2021 (“FY2021”) was a challenging year for businesses worldwide. To mitigate the effects of the ongoing COVID-19 pandemic, Karin
Group and its management team proactively took steps to transform our business to meet the rapidly changing global economic landscape and the new norms that had
emerged from the situation.
With the region heavily impacted by the pandemic and supply chain disruptions further compounded by a global shortage in component materials and IC chipsets, our
Group’s performance depended heavily upon the strength of every member of our staff to work closely with our vendors and customers across all parts of our business and sales operations.
As we prepare to enter our 45th anniversary since establishment in January 1977, we are grateful for the many lessons we have learnt during this long journey that has held us in good stead as we faced this unprecedented pandemic head on. Over the years, our growth had always been driven by our willingness to embrace new technology solutions and to adapt our business model as well as our continuing investments into new business areas. Today, Karin Technology is a diversified Group with businesses across Components Distribution, IT businesses, and Consumer Electronics Retail and Distribution.
Karin’s revenue increased 6.2% to HK$1,875,571,000 in FY2021 mainly driven by the strong performance of the Group’s main revenue generator – its Information Technology Infrastructure (“IT Infrastructure”) segment, which expanded 15.6% year-on-year (“YOY”) in revenue to HK$1,065.8 million. The gradual resumption of business also helped the Group’s Components Distribution (“CD”) segment to come back strongly to achieve a 3.6% YOY increase in revenue to HK$654.6 million for the full-year.
The Group’s Consumer Electronic Products (“CEP”) segment was weakened by softer demand in retail mostly due to the continuing COVID-19 pandemic effect. However this was partially mitigated by an increase in distributorships of new products secured by the Group, which narrowed the decline in revenue from 44.7% recorded in the first half of FY2021 to 26.9% for the full-year. The segment recorded revenue of HK$155.2 million in FY2021 as compared to HK$212.3 million in FY2020.
The improved topline, overall reduction in expenses, as well as an increase in other income and gains mainly from government wage subsidies, resulted in a six-fold YOY increase in net attributable profit to HK$32.4 million in FY2021.
Within each of Karin’s business segments, we have Strategic Business Units (“SBUs”) that are responsible for identifying and capturing growth opportunities for new products and markets.
Our CD segment expects the growth in power modules for greener energy application across industries to remain strong. Looking ahead, this SBU intends to focus on IC Application Design for modules for consumer electronics, which it expects to drive growth in markets for smart appliances and toys and devices.
Our IT segment continues to ride on rising demand from new projects in cloud computing and enhanced cyber security, and from more corporate customers adopting solutions for virtual communication and remote operations. The segment has also observed an increasing number of projects related to data management, smart solutions and AI. To seize these opportunities from the Greater Bay Area, the Group has expanded our team and established a new office in Macau in early 2021.
Meanwhile, our CEP segment is looking to grow through an enlarged portfolio of leading brands and new products. We believe the gradual recovery in consumer spending in the region as well as the desire to keep up with the latest trends in gadgets and devices will fuel retail demand for smart phones, gaming and consumer audio products.
The management team’s vigilant management and discipline in healthy financing has provided a strong platform for
We are cautiously optimistic that the business outlook over the next 12 months is promising as economies and businesses have harnessed technology to adapt to new norms that have emerged from the pandemic. We believe that all three of our business segments are in the right business for such times and are well positioned to leveraged these conditions.
We will continue to invest in new infrastructure. We also plan to reinforce our skills and capabilities across technical and software developments through talent acquisition. We expect the expansion of our team to enable us to cater to strong demand for network security products, cloud solutions services and data solutions and services
In closing, I would like to thank all shareholders for your belief in us over the years and also our staff who have worked ceaselessly to drive sales for the Group. I would also like to thank our business partners, customers and suppliers for working with us to seek mutually beneficial outcomes.
As the new CEO of Karin Technology (since July 2021), I would like to assure our staff and shareholders that I will do my utmost to build upon the strong foundation established by our Group’s Founders – our Executive Chairman, Mr. Ng Kin Wing Raymond and our Emeritus Chairman and Executive Director, Mr. Ng Yuk Wing Philip, to take Karin into the next level of growth.
Lastly, I want to thank my fellow Directors on the Board for your contributions. I look forward to your continued guidance as we seek to steer the Group towards greater prosperity in the years ahead.
Ng Mun Kit, Michael
Chief Executive Officer, Karin Group