Creative Global Technology Holdings Limited (CGTL) reported its financial results for the fiscal year ended September 30, 2024, showing a strategic shift towards profitability despite a revenue decline. Total revenue for fiscal year 2024 was US$35.6 million, a decrease from US$50.3 million in fiscal year 2023, primarily due to a drop in wholesale revenue. This reduction was a result of the company's strategy to prioritize higher-margin orders and enhance market share.
Despite the revenue contraction, CGTL achieved a net income of US$4.3 million for fiscal year 2024, marking a 34.4% increase from US$3.2 million in the previous fiscal year. This improvement was driven by a significant rise in gross profit, which grew from US$5.0 million in 2023 to US$6.3 million in 2024. The gross margin also expanded substantially from 9.9% to 17.8% during the same period.
The company's smartphone product category, while still the largest contributor, saw its share of total revenue decrease from 81.8% to 73.8%, with units sold dropping from 149,032 to 67,448. This was a direct consequence of emphasizing higher-margin products, leading to an increase in the average unit cost from $248 to $319 and the selling price from $272 to $390. The CEO, Shangzhao (Cizar) Hong, stated that these strategies position the company for sustainable growth and improved financial performance.
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