Valuetronics : Media Release - Valuetronics remains profitable in 1HFY2021 with net profit of HK$91.5 million and Interim Dividend of 5 HK cents declared despite COVID-19 pandemic effects

Valuetronics Holdings Limited

Unit 9-11, 7/F, Technology Park

No. 18 On Lai Street, Shatin,

New Territories, Hong Kong

Tel: (852) 2790 8278

Fax: (852) 2304 1851

www.valuetronics.com.hk

Media Release

Valuetronics remains profitable in 1HFY2021 with net profit of

HK$91.5 million and Interim Dividend of 5 HK cents declared despite

COVID-19 pandemic effects

Singapore, 11 November 2020 - SGX Mainboard listed Valuetronics Holdings Limited ("Valuetronics", "鸿通电子控股有限公司" or collectively with its subsidiaries, the "Group"), a

premier design and manufacturing partner for the world's leading brands in the Consumer Electronics ("CE") and Industrial and Commercial Electronics ("ICE") sectors is pleased to announce that it has achieved a net profit of HK$91.5 million for the six months ended 30 September 2020 ("1HFY2021").

Mr Ricky Tse Chong Hing ("谢创兴"), Chairman and Managing Director of Valuetronics commented: "Our 1HFY2021 results reflect the impact of the COVID-19 pandemic and the resultant slowdown in demand from certain customers, and there is still no end in sight given the new waves of infection in several countries. Furthermore, the Sino-US trade tensions have caused certain customers to transfer their production for the US end-market from us to other suppliers in North America and ASEAN and we will see the negative impact of this in our next financial year. Nevertheless, despite these uncertain and challenging times, we remain steadfast in our efforts to weather this extremely tough business environment, supported by our dedicated staff and strong balance sheet."

Page 1 of 6

Interim Dividend

Taking into account its 1HFY2021 results performance, the extremely uncertain business environment, and the capital expenditure needs of the Company given its Vietnam expansion, the Board is recommending an Interim Dividend of 5 HK cents per share for 1HFY2021 (1HFY2020: 6 HK per share), which is payable on 8 December 2020.

Financial Highlights

The Group's 1HFY2021 revenue decreased by 19.9% to HK$1,094.9 million from HK$1,367.1 million for the six months ended 30 September 2019 ("1HFY2020"). Gross profit

correspondingly decreased by 9.7% to HK$185.9 million in 1HFY2021 (1HFY2020: HK$205.9

million), with gross profit margin up 1.9 percentage point to 17.0% for 1HFY2021 due to a

change in product sales mix for the period under review.

Segmental Revenue

The revenue from the CE segment decreased by 35.8% from HK$568.7 million in 1HFY2020 to

HK$365.1 million in 1HFY2021 due to reduced demand under the COVID-19 pandemic.

Page 2 of 6

This is an excerpt of the original content. To continue reading it, access the original document here.