IDT INTERNATIONAL LIMITED (Hong Kong, 26 June 2015) - IDT International Limited ("IDT" or the "Group"; Stock code: 167) announced its annual results for the year ended 31 March 2015.
The Group's total turnover amounted to HK$1,100.4 million, a decrease of 18.6% when compared to HK$1,352.4 million last year, which was primarily due to the difficult retail market conditions in America and Europe, and severe competition in the children's tablet segment. The Group continued to place significant effort on executing stringent cost controls and streamlining its organizational structure and operational processes. Total operating expenses of the Group, including research and development costs, distribution and selling expenses, and general administrative expenses, amounted to HK$344.8 million, which is a significant reduction of 21.2% when compared to HK$437.8 million for the previous year. Therefore, the loss for the year has slightly narrowed to HK$ 67.0 million, compared to a loss of HK$68.8 million for the year ended 31 March 2014.
On 23 March, 2015, Hongtu High Technology Int'l Inc. ("Hongtu (Seychelles)") becomes the controlling shareholder of IDT. Hongtu Seychelles is the indirect wholly-owned subsidiary of Jiangsu Hongtu High Technology Co., Ltd., whose shares are listed on the Shanghai Stock Exchange (Stock code: 600122). We expect synergies to the Group's business development in terms of value chain, distribution network and geographical presence.
Oregon Scientific ("OS")
Sales revenue from OS was HK$348.7 million, a reduction of 31.3% when compared with HK$507.4 million last year and represented 31.7% of the Group's total sales. The decrease was mainly due to the sluggish retail market conditions in America and Europe, as well as the Group's strategy of exiting the children's tablet market due to severe competition.
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IDT International Limited
Announces FY2014/15 Annual Results (26 June 2015)
The Time & Weather ("T&W") category remained to be the key contributor in terms of sales revenue, which accounted for 55.5% of total OS sales revenue. During the year, the Group further expanded its development of projection clocks and weather stations, like Bluetooth enabled Weather@Home, Wireless Pro Weather Station and Jumbo Clock. In addition, a series of colorful and stylish designer projection clocks, i.e. "PRYSMA", have been well received by customers since their initial launch.
The Smart Learning Products ("SLP") category accounted for 18.7% of total OS sales revenue. "SmartGlobes" Collections were still the key revenue and margin contributors for this product category. A new "Smart Globe Discovery" product, which combines the characteristics of the original "SmartGlobes" with enhanced features and enriched content, has been introduced to tap into the youth market segment in America, Europe and Russia. Furthermore, the Collections also extended its footprint to South America and received encouraging feedback during the year.
The Sport, Fitness and Healthcare ("SFH") category accounted for 12.1% of total OS sales revenue. OS launched the second generation of BLE-enabled "Ssmart Dynamo 2 and 2+" Activity Tracker with additional features such as activity recognition, incoming call and message notifications, as well as ECG heart rate measurement to further enhance users' benefits and experiences.
The Wellness & Beauty ("W&B") category accounted for 11.0% of total OS sales revenue and it continues to be the focus in the Asia Pacific region. W&B aims to address the demands of an increasingly growing group of affluent individuals who seek a more upscale and healthy lifestyle. During the year, the stylish and unconventional design of the twin scent chamber, known as "DuoScent Aroma Diffuser", won the "Hong Kong Awards for Industries". In addition, the newly launched "Dream Science", a sleep enhancing device that features clinically proven sounds and brainwave embedded music that helps people fall asleep easier, received positive comments from consumers.
E-commerce is a developing sales channel for OS that allows it to directly offer products to the vast number of internet users worldwide. The e-commerce business has enjoyed reasonable growth over the past year, with the largest increase coming from the Group's key European markets such as the United Kingdom, France and Italy. With a surge in mobile visitors, the company introduced a new e-commerce platform which resulted in a sales increase from smart phone and tablet devices.
To further strengthen OS's brand presence in global markets, it participated in several key events including IFA in Berlin, one of world's leading trade shows for consumer electronics and home appliances, in September 2014; Hong Kong Electronic Fair Autumn Edition, the world's largest electronics marketplace, in October 2014; and the Nuremburg Toy Fair in Germany, in February 2015, to attract potential visitors, media
and new customers.
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IDT International Limited
Announces FY2014/15 Annual Results (26 June 2015)
Value Manufacturing Services ("VMS")
Sales revenue from VMS totaled HK$751.7 million, which accounted for 68.3% of the Group's total revenue, a decline of 11.0% when compared with last year. The decrease in revenue was mainly due to the fact that one of the major customers of the SFH product category closed its electronic business during the year and project development for some new SFH customers were delayed.
In terms of business segment performance, SFH continued to be the largest product category, accounting for
74.4% of VMS revenue - a similar level to last year. The telecommunication products category was the second largest product category based on sales. This is in line with the Group's product strategy, which is to focus on SFH products such as GPS watches, activity monitors, blood glucose meters, fitness computer consoles and heart rate monitors. The majority of these products is being app-based and connected to smart devices.
Mr. See Chi Kwok, Executive Director and Group Chief Executive Officer of IDT International, concluded, "We anticipate that the pace of economic recovery in the United States and Europe will remain slow. As such, the Group will continue to implement various initiatives and measures to improve its overall business performance and productivity. The Group will focus on streamlining factory operations, driving more ODM businesses to improve margins and investing in wearables and medical technology to differentiate ourselves from our competitors and to become more competitive and efficient. The Group will also continue to develop innovative products and open new markets and channels. Together with IDT's solid business foundation, we are confident in capturing new business opportunities in order to bring the maximized profitability to our shareholders."
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About IDT International Limited
IDT International is a holding company whose shares are publicly listed on The Stock Exchange of Hong
Kong Limited. Headquartered in Hong Kong, IDT International is a leader in the design, development, manufacturing, marketing and distribution of lifestyle products created through the application of innovative
LCD, microprocessor and sensor applications with wireless technologies. Its core businesses include the
Value Manufacturing Services and the Oregon Scientific-branded products, with major product categories including Sports, Fitness and Healthcare, Electronic Learning, Time & Weather, Telecommunications and
Wellness & Beauty. Marketing is globally managed through its marketing and distribution offices in the US, Italy, the UK, Spain, France, Germany, Australia, Brazil, China, Japan and Hong Kong. Research and
development resources have been established in both Hong Kong and China while its manufacturing facilities
are centred in Xixiang, Shenzhen, China.
For more corporate and product information on the IDT Group and Oregon Scientific, please access our websites at http://www.idthk.com or http://www.oregonscientific.com
For press enquiries, please contact:
Strategic Financial Relations Limited
Eveline Wan Tel: (852) 2864 4822 Email: eveline.wan@sprg.com.hk
Joanne Lam Tel: (852) 2864 4816 Email: joanne.lam@sprg.com.hk
Becky Liu Tel: (852) 2864 4864 Email: becky.liu@sprg.com.hk
Fax: (852) 2527 1196
Website : www.sprg.com.hk
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