【True Burn Hong Kong Stock Trends】Chi Feng (01710.HK) revenue increased by 18.6% to approximately HKD 1.16 billion, building a Greater Asia new energy business circle.

Zhenzhuo Financial News April 12, 2024, $TRIO IND ELEC(01710.HK) is a leading Hong Kong-based manufacturer and seller of industrial electronic components and products. The group announced the consolidated annual results of the company and its subsidiaries for the year ended December 31, 2023.

The group's revenue for the year ended December 31, 2023, increased by 18.6% year-on-year to approximately HKD 1.16 billion. Gross profit further rose by about 7.4% year-on-year to around HKD 220 million, with a gross profit margin of about 19.2%. The group recorded a profit of approximately HKD 47.15 million for the fiscal year 2023.

Europe and North America continued to be the group's primary markets this year, accounting for 89.1% and 7.3% of total revenue, respectively. The group's sales growth was mainly driven by increased sales of smart vending systems and switching power supplies in Europe. Revenue from smart vending systems surged by 184.3% to HKD 410 million, accounting for about 35.2% of the group's total revenue. The group's other major products include electromechanical products, switching power supplies, and smart chargers.

In terms of business expansion, the group actively participates in emerging industries such as electric vehicles, solar energy, and wind power, producing components for solar and wind applications. It has also developed highly regarded electric vehicle charging solutions under its own Deltrix brand, entering the electric vehicle charging sector in Hong Kong, Macau, and Southeast Asia to expand its business footprint. To support business development, the group strategically leased two buildings adjacent to its existing production base in China during the year, equipped with state-of-the-art automation and digital equipment to enhance overall production efficiency. Additionally, the group further expanded regional capacity, with a new factory near its existing production facility in Thailand scheduled to commence operations in the second quarter of 2024.

The group has maintained a robust financial position, with cash and bank balances (including restricted bank deposits) of approximately HKD 77.5 million (2022: approximately HKD 79 million). The current ratio increased to about 2.9 times as of December 31, 2023 (2022: 2.3 times).

Mr. Wong Sze Chai, Chairman of Cheung Fung Industrial Electronics Group, stated: "Cheung Fung maintains its position at the forefront of innovation through smart manufacturing practices. Despite the uncertain global economic environment in 2023, we were able to seize positive business opportunities and achieve revenue growth. Looking ahead, trends such as societal emphasis on health awareness, digital transformation, automation solutions, and energy-saving technologies are driving increased global demand for power products, with notable growth in the European market. In addition, Cheung Fung Group is aligning with China's 'Belt and Road' initiative, actively seeking expansion opportunities in Central Asia (including Kazakhstan), including establishing a partnership with state-owned enterprise CNPC in 2024 to advance electric vehicle charging station projects in Kazakhstan. The group has also initiated in-depth cooperation with another state-owned enterprise, China CAMC Engineering, for the 2025 Asian Youth Games Olympic City project in Uzbekistan. We are committed to building a strong business presence in Hong Kong, Macau, and Southeast Asia by providing comprehensive electric vehicle charging solutions, with the goal of creating a 'Greater Asia New Energy Business Circle' to promote regional cooperation and development."