[For Immediate Release]
Tradelink Announces 2024 Annual Results
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Maintains Stability in Challenging Environment
Positive Trends Emerge Across Business Segments
(Hong Kong, 18 March 2025) Tradelink Electronic Commerce Limited ("Tradelink" or the "Group") (Stock Code: 536) today announced its annual results for the year ended 31 December 2024 (the "Year").
In 2024, amidst a challenging operating environment in Hong Kong, marked by global uncertainties, the Group achieved a higher turnover in the second half of the Year compared with the first. However, its overall turnover declined to HK$247.6 million, with operating profit at HK$67.4 million. Excluding one- off items, such as the gains from the disposal of shareholding in an associate in Guangdong Nanfang Haian Science and Technology Service Company Limited and the reverse impairment of the shareholding in an associate in OnePort Holdings (BVI) Limited which were recorded in 2023, the remaining key source of other net income was bank interest and the Group's performance on this front was slightly better than in 2023. Profit before tax was HK$89.3 million, while profit after tax amounted to HK$82.0 million.
With the Group's solid financial position, debt-free position and healthy cash reserves, the Board of Directors of Tradelink has decided to recommend a final dividend of HK 6.4 cents per share. Together with the interim dividend of HK 3.7 cents per share, the total dividend for 2024 will be HK 10.1 cents per share.
During the Year, the Group's E-Commercebusiness, which comprises Government Electronic Trading Services ("GETS") and Supply Chain Solutions ("SCS"), recorded a year-on-year revenue increase of 4.9% to HK$171.7 million and profit rose by 9.5% year-on-year to HK$55.0 million. The GETS sub-segment benefited from the positive growth in Hong Kong's external trade performance and the Group outperformed the market with its quality and reliable services, resulting in a revenue increase of 6% to HK$150.3 million. However, the SCS sub-segment experienced a slight decrease in revenue of 2.3% to HK$21.4 million due to the volatile external trade environment and sluggish local consumption, affecting customer investments in new digitalisation projects. By mid-2024, a strategic review was completed, leading to enhanced business consultant teams with strengthened industry knowledge and a customer-centric culture.
The Group's Identity Management ("IDM") business recorded revenue of HK$45.8 million and profit of HK$3.3 million, representing a year-on-year decline of 33.5% and 79.5% respectively. The segment faced challenges mainly due to a high comparison base in 2023, sluggish economic recovery and weak market demand. However, the Group redeployed staff resources during the Year to complete targeted research and development work on digital identity services and received permission from the Government of the Hong Kong Special Administrative Region to issue a new type of digital certificate to corporates both local and overseas, which enhances the Group's market position in the digital identity sector.
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Tradelink Announces 2024 Annual Results
18 March 2025
The Other Services business segment, comprising Smart Point-of-Sales ("PoS") and related business as well as GETS-related services, generated a revenue of HK$30.1 million and a segment profit of HK$18.4 million, down 11.5% and 10.9% respectively. The Smart PoS and related business was impacted by weak local retail spending and intensified competition in the payment market. However, the GETS-related services performed steadily, with increased referral income and electronic trading access services-related fees offsetting the absence of one-off revenue from setting up call centre services for the Customs & Excise Department in 2023.
Mr. Yuen Man Chung, Tommy S.B.S., Executive Director and Chief Executive Officer of Tradelink said "We are cautiously optimistic about the Group's overall performance in 2025. Despite the ongoing challenges in the external trade environment affecting the GETS business, its resilience is evident. With regard to our SCS sub-segment,we remain confident that upon full implementation of the measures identified in our strategic review, we will have effectively repositioned ourselves in the highly competitive supply chain market. On the other hand, positive growth is anticipated for the IDM business in 2025, with increasing market traction for digital identity and remote signing services. Moreover, challenges for Smart PoS business will prompt the exploration of new partnerships to jointly develop new products and solutions, seizing opportunities in the fiercely competitive payment market. Regarding our GETS-relatedservice, I am reasonably confident that its stable performance over the years will continue., alongside the anticipated growth in Hong Kong's external trade. Additionally, in light of the expected interest rate environment in Hong Kong and the global investment volatility, we plan to maintain time deposits as our main investment channel to ensure our interest income."
Appendix: Consolidated Statement of Profit or Loss for the year ended 31 December 2024
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About Tradelink Electronic Commerce Limited
Established in 1988 and listed in 2005, Tradelink (Stock Code: 536) is Hong Kong's digital efficiency pioneer. Since 1997, the company has successfully brought the advantages of its e-solutions to tens of thousands of organisations. Tradelink has pioneered numerous innovative business technology applications in Hong Kong, including EDI, digital certificates, biometric ID and warehouse automation. In addition to offering expertise in supply chain, identity management and PayTech solutions, the company leads in the city's business-to-government document compliance market. Tradelink customers span all industry sectors. The company has earned the trust of governments, multinationals, and small and medium businesses alike. Hong Kong-based organisations seeking to measurably benefit from greater digital efficiency have a reliable partner with Tradelink.
For more information about Tradelink, please visit www.tradelink.com.hk.
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Tradelink Announces 2024 Annual Results
18 March 2025
Appendix:
Consolidated Statement of Profit or Loss for the year ended 31 December 2024
Year ended 31 December | ||||
2024 | 2023 | |||
(HK$'000) | (HK$'000) | |||
Revenue | 247,625 | 266,611 | ||
Cost of purchases | (21,833) | (27,756) | ||
Staff costs | (113,086) | (120,133) | ||
Depreciation | (9,348) | (8,925) | ||
Other operating expenses | (36,007) | (31,611) | ||
Profit from operations | 67,351 | 78,186 | ||
Other net income | 21,405 | 32,161 | ||
Share of results of an associate | 529 | 705 | ||
Profit before taxation | 89,285 | 111,052 | ||
Taxation | (7,327) | (10,413) | ||
Profit for the year | 81,958 | 100,639 | ||
Earnings per share (HK cents) | ||||
Basic | 10.3 | 12.7 | ||
Diluted | 10.3 | 12.7 |
For media inquiries, please contact:
Strategic Financial Relations Limited
Mandy Go | +852 2864 4812 | mandy.go@sprg.com.hk |
Vivienne Leung | +852 2864 4862 | vivienne.leung@sprg.com.hk |
Christina Wu | +852 2114 4319 | christina.wu@sprg.com.hk |
Fax | +852 2527 1196 | |
Website | www.sprg.com.hk |
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