Skylight HLDG reports losses, shifts strategy to e-bike distribution

SKYLIGHT HLDG (HKEX:3882) reported a loss of HK$86.6 million for FY2024, compared to a loss of HK$129.3 million in FY2023, as revenue dipped 3.8% to HK$296.4 million. Amidst these results, the company details a significant strategic pivot: the disposal of its loss-incurring AI vending machine business, Wuhan Show Life, and a move into last-mile distribution systems for supermarket chains, utilizing new energy E-Bikes. Citing continued losses and challenges in the domestic consumer and real estate markets in China, SKYLIGHT divested Wuhan Show Life. The group has established Fengcai Intelligent Digital Technology to conduct this new E-Bike business, aiming to capitalize on the growing on-demand retail delivery sector in China. SKYLIGHT intends to provide smart management software, hardware, and dedicated E-Bikes, new energy batteries and charging equipment to Superstore Chains, positioning itself in a market it believes has great business potential. Looking ahead to FY2025, the company anticipates challenges from deglobalization, high inflation, and US tariffs, while also planning to focus on surveillance cameras, a product with synergy to the new E-Bike segment through smart helmet integration. In line with strategic change, SKYLIGHT is proposing re-election of directors, granting of general mandates to issue and buyback shares, and re-appointment of auditors for 2025.