Financial Performance - Total sales revenue for 2024 was HKD 13.23 billion (USD 1.69 billion), a decrease of 10.0% year-on-year[10]. - Operating profit for 2024 was HKD 558 million, down 49.4% year-on-year[10]. - Basic earnings per share for 2024 were HKD 0.83, a decrease of 52.0% year-on-year[10]. - Adjusted earnings for 2024 were HKD 4.26 billion, down 42.8% year-on-year[10]. - The group's consolidated profit after tax for the year was HKD 342 million (adjusted to HKD 426 million according to non-Hong Kong Financial Reporting Standards), a year-on-year decrease of 51.9%[37]. - The total annual revenue for the group decreased by 10.0% to HKD 13.23 billion (USD 1.69 billion), with adjusted profit down by 42.8% to HKD 426 million[30]. - The group's adjusted profit decreased by 42.8% year-on-year to HKD 4.26 billion ($0.54 billion) in 2024[58]. - The total employee cost for the group in 2024 was HKD 5.19 billion, an increase from HKD 5.02 billion in 2023[81]. Orders and Backlog - The total amount of new orders for 2024 was HKD 12.75 billion (USD 1.63 billion), an increase of 4.0% year-on-year[10]. - As of December 31, 2024, the total backlog of orders was HKD 6.05 billion (USD 0.79 billion)[10]. - The total unfulfilled orders at the end of the year reached HKD 6.05 billion ($0.79 billion), with an order-to-delivery ratio of 0.96[55]. - Total new orders for the group reached HKD 12.75 billion ($1.63 billion) in 2024, reflecting a year-on-year increase of 4%[53]. Market Trends and Focus Areas - The company remains optimistic about growth in the semiconductor industry driven by AI applications and advanced packaging trends[14]. - The company is focusing on expanding its market presence in electric vehicles, 5G technology, and IoT[14]. - The company reported a decline in demand from consumer electronics and automotive sectors due to weak consumer spending[15]. - The demand for advanced packaging solutions is driven by the growth in artificial intelligence and high-performance computing applications, with significant orders from major AI companies[42]. - The automotive end market is projected to contribute approximately 20% or $340 million to the group's total sales revenue in 2024, despite a weak market[52]. Segment Performance - The semiconductor solutions segment recorded a year-on-year revenue growth of 24.1% in Q4 2024, driven by strong demand for advanced packaging solutions[30]. - The surface mount technology solutions segment experienced a year-on-year revenue decline of 21.3%, consistent with the overall weak market performance[30]. - The semiconductor solutions segment accounted for approximately 51% of total sales revenue in 2024, with a year-on-year growth of 6.9%[54]. - The surface mount technology solutions division recorded total new orders of HKD 1.11 billion (USD 142 million) in Q4 2024, down 15.8% quarter-over-quarter and 25.9% year-over-year, reflecting a weak global automotive and industrial end market[67]. Research and Development - The company plans to allocate a significant portion of new R&D resources to high-potential areas, including next-generation products like TCB and hybrid bonding[27]. - The group invested approximately HKD 2.08 billion in R&D in 2024, compared to HKD 2.05 billion in 2023, maintaining a strong commitment to technological leadership[71]. - The company is committed to ongoing cost optimization and improving overall profitability in the long term[31]. Dividends and Shareholder Returns - A special dividend of HKD 0.25 per share is proposed, with a total annual dividend of HKD 0.67 per share for 2024[30]. - The total dividend for the fiscal year 2024 is HKD 0.67 per share, down from HKD 1.39 per share in 2023[38]. - The board proposed a final dividend of HKD 0.07 per share and a special dividend of HKD 0.25 per share, compared to HKD 0.26 and HKD 0.52 per share respectively in 2023[38]. Sustainability and Governance - The company continues to focus on sustainability, achieving significant progress in environmental initiatives and aiming for a 25% female board representation by 2025[28]. - ASMPT is committed to achieving net-zero emissions by 2035, with interim targets of a 30% reduction by 2026 and 50% by 2030[82]. - The board aims to achieve a 25% representation of female directors by the end of 2025[83]. - The company emphasizes a positive corporate culture to support employee development and corporate citizenship[146]. Leadership and Management - Leadership transitions are underway, with key promotions aimed at enhancing R&D capabilities and aligning strategies with market demands[25]. - Dr. Hichem M'Saad appointed as CEO and Chairman of ASM International N.V. on May 13, 2024, previously served as CTO since May 16, 2022[111]. - ASM's executive team includes Mr. Guenter Walter Lauber, who has over 20 years of experience in the SMT equipment industry and has been with ASM since its acquisition of SMT business in 2011[113]. - The company emphasizes its leadership in advanced packaging technology and end-to-end solutions to meet stringent industry demands[114]. Corporate Governance - The board consists of ten directors, with two being female, and 60% of the board members are independent non-executive directors[148][152]. - The company has a strong governance structure with a diverse board, including members with backgrounds in law, finance, engineering, and technology[104][105][106][109][110]. - The board has complied with the listing rules requiring at least three independent non-executive directors, with two possessing relevant financial expertise[150]. - The company has adopted a board independence policy to ensure independent opinions are obtained[153]. Employee and Shareholder Engagement - The employee share incentive plan allows for the issuance of up to 40,667,133 new shares, representing 10% of the issued shares as of the approval date in 2019[119]. - The maximum number of shares that can be purchased under the plan for the fiscal year ending December 31, 2025, is 8,329,172 shares, which would result in a 2% dilution for shareholders if fully allocated[120]. - Major shareholders include ASM International N.V. and ASM Pacific Holding B.V., each holding 103,003,000 shares, accounting for 24.73% of the company's equity[127].

Investment Rating - The report maintains a "Buy" rating for ASMPT with a target price of 69 HKD [6][4]. Core Views - The advanced packaging (AP) business is expected to drive revenue growth, with a projected market size of 4 billion USD by 2029, reflecting an 18% CAGR [3][4]. - Despite a decline in overall revenue for 2024, the AP segment showed a 23% year-on-year growth, becoming a key growth engine for the company [1][2]. Summary by Sections 4Q24 Performance Review - ASMPT reported 34.0 billion HKD in revenue for 4Q24, slightly exceeding market expectations, with a year-on-year decline of 10% for the full year [1]. - SEMI business revenue increased by 11% quarter-on-quarter, driven by sales growth in advanced packaging products [2]. - The TCB segment secured significant orders from leading HBM customers, marking a breakthrough in the logic and HBM applications [2]. 1Q25/2025 Outlook - The company anticipates 1Q25 revenue between 370-430 million USD, which is below market expectations [3]. - The demand for advanced packaging remains strong, with expectations for continued growth in this segment [3]. Investment Recommendations - The report projects net profits for 2025, 2026, and 2027 to increase by 75%, 58%, and 58% respectively, reaching 6.05 billion HKD in 2025 [4]. - The target price of 69 HKD is based on a 30x PE for 2026, considering the company's technological advantages in AI-driven advanced packaging [4].

Investment Rating - The report maintains a "BUY" rating for the company with a target price (TP) revised to HK$98.00 from the previous HK$107.00, reflecting a 53% upside potential based on the current price of HK$64.05 [1][4][7]. Core Insights - The company reported 4Q24 revenue at the upper range of guidance, driven by strong Advanced Packaging (AP) growth, although weak margins in both Semiconductor (SEMI) and Surface Mount Technology (SMT) segments led to net income missing estimates. The report emphasizes a positive outlook on structural demand for TCB and other AP tools, particularly in AI applications, despite challenges in mainstream and non-AI sectors [4][10][11]. - The earnings forecasts for 2025 and 2026 have been cut by 28% and 16% respectively, reflecting adjustments in revenue and margin expectations due to competitive dynamics in the packaging business [4][7][27]. Revenue and Earnings Forecasts - Revenue projections for the years ending December are as follows: - 2025E: HK$14,934 million - 2026E: HK$17,908 million - 2027E: HK$20,458 million - Reported net profit estimates are: - 2025E: HK$1,286 million - 2026E: HK$1,771 million - 2027E: HK$2,265 million - Core EPS estimates are: - 2025E: HK$3.088 - 2026E: HK$4.253 - 2027E: HK$5.439 [8][31]. Financial Performance - The company reported a flat revenue of HK$3.4 billion in 4Q24, with gross profit margins decreasing to 37.2%, down from 42.3% in 4Q23. The operating profit margin fell significantly to 0.1% [10][20]. - The 4Q24 results showed a net income of HK$4 million, a drastic decline of 94% year-over-year, primarily due to weak demand in automotive and industrial sectors, along with a one-time restructuring cost of HK$95 million [10][20]. Market Position and Growth Potential - The report highlights that AP revenues are expected to exceed 30% of total revenues and contribute over 50% to net income from 2025 onwards, indicating a strong growth trajectory driven by AI demand [4][11]. - The company aims to capture 35-40% of the global TCB market share by 2027, with significant investments planned for R&D in AP tools [10][11]. Valuation Metrics - The report uses a valuation multiple of 23x the 2026E EPS to assess the company's value, reflecting a competitive landscape in the mainstream packaging business [7][26]. - Key financial metrics include: - Core P/E for 2025E: 20.7x - EV/EBITDA for 2025E: 14.1x - P/B ratio for 2025E: 1.7x [8][31].

Financial Performance - For the fiscal year ending December 31, 2024, the group reported sales revenue of HKD 132.3 billion (USD 16.9 billion), a decrease of 10.0% year-on-year[7]. - The adjusted profit for the year was HKD 4.26 billion, a decrease of 42.8% year-on-year[7]. - The group recorded total sales revenue of HKD 13.23 billion ($1.69 billion) for the year, a year-on-year decline of 10%, primarily impacted by a 22.9% decrease in the surface mount technology solutions segment[29]. - The operating profit decreased by 49.4% year-on-year to HKD 558 million due to declining sales revenue[33]. - The total comprehensive income for the year ended December 31, 2024, was HKD (232,379), a decrease from HKD 827,017 in 2023[67]. - The group reported a pre-tax profit of HKD 501,537 thousand for the year 2024, down from HKD 1,036,011 thousand in 2023, a decrease of approximately 51.6%[84]. - The total revenue for the group decreased from HKD 14,697,489 thousand in 2023 to HKD 13,229,079 thousand in 2024, a decline of about 10.0%[84]. Sales and Orders - The total new order amount for the year was HKD 127.5 billion (USD 16.3 billion), representing a year-on-year increase of 4.0%[6]. - The total new orders amounted to HKD 12.75 billion ($1.63 billion), representing a year-on-year growth of 4%, with the semiconductor solutions segment's new orders increasing by 36.7%[30]. - Total new orders for Q4 2024 reached HKD 2,154.1 million (USD 277 million), up 16.0% quarter-on-quarter and 73.3% year-on-year, with total new orders for the year at HKD 7,302.2 million (USD 936 million), an increase of 36.7%[35]. Market Trends and Projections - The total potential market for advanced packaging solutions is projected to expand from USD 1.78 billion in 2024 to USD 4.04 billion by 2029, with a compound annual growth rate of approximately 18%[11]. - The total addressable market (TAM) for TCB is projected to grow from $303 million in 2024 to approximately $1 billion by 2027, with a compound annual growth rate (CAGR) exceeding 45%[17]. - The automotive end market is projected to contribute approximately 20% or about $340 million to the group's total sales revenue in 2024, despite a weak market[25]. - The total potential market for automotive end market applications is expected to grow from approximately $1.3 billion in 2024 to $2.1 billion in 2029, with a compound annual growth rate of about 11%[27]. Profitability and Margins - The gross profit margin was 40.0%, an increase of 70 basis points year-on-year[6]. - The group's gross margin increased by 70 basis points to 40.0%, driven by a 418 basis point increase in the semiconductor solutions segment's gross margin[32]. - The gross margin for Q4 2024 was 42.6%, down 594 basis points quarter-on-quarter and 115 basis points year-on-year, primarily impacted by product mix and high base effects from the previous quarter[39]. - The overall segment profit for semiconductor solutions improved significantly from a loss of HKD 44,058 thousand in 2023 to a profit of HKD 303,509 thousand in 2024[84]. Research and Development - R&D investment for 2024 was approximately HKD 2,080 million, compared to HKD 2,050 million in 2023, with over 2,400 R&D staff and more than 2,000 patents filed[48]. - The company is committed to collaborating with external institutions and R&D experts to accelerate innovation and enhance advanced packaging solutions capabilities[50]. Dividends and Shareholder Returns - The company plans to distribute a total dividend of HKD 0.67 per share for the fiscal year, down from HKD 1.39 per share in the previous year[8]. - The proposed final dividend for the year ending December 31, 2024, is HKD 0.07 per share, a decrease from HKD 0.26 per share in 2023, with a total payout of HKD 29,152,000 for 416,458,633 shares[112]. - The proposed special dividend for the year ending December 31, 2024, is HKD 0.25 per share, down from HKD 0.52 per share in 2023, totaling HKD 104,115,000 for 416,458,633 shares[112]. Employee and Corporate Governance - The total employee cost for the group was HKD 5.19 billion, an increase from HKD 5.02 billion in 2023, reflecting the company's commitment to fair compensation[59]. - The group employed approximately 10,600 employees as of December 31, 2024, with a significant presence in China, Singapore, and Germany[59]. - The company aims to achieve a female board representation of 25% by the end of 2025, reflecting its commitment to diversity and inclusion[61]. - The company’s audit committee consists of four independent non-executive directors and one non-executive director, ensuring robust oversight[134]. - The company has complied with all corporate governance codes as per the listing rules during the fiscal year[132]. Financial Position and Liabilities - The group's cash and bank deposits at the end of 2024 amounted to HKD 5.10 billion, up from HKD 4.80 billion at the end of 2023[33]. - The group's debt-to-equity ratio increased to 0.175 from 0.127 in the previous year, indicating a rise in leverage[51]. - The total non-current liabilities increased from HKD 2,145,930 thousand in 2023 to HKD 4,309,638 thousand in 2024, an increase of approximately 100.7%[72]. - The total equity decreased from HKD 15,803,958 thousand in 2023 to HKD 15,291,501 thousand in 2024, a decline of about 3.2%[72]. Foreign Exchange and Risk Management - The company has established hedging contracts in HKD and EUR to mitigate foreign exchange risks associated with its operations[52]. - The net value of gains and losses from foreign currency forward contracts showed a loss of HKD 120,313,000 for the year ended December 31, 2024, compared to a gain of HKD 8,721,000 in 2023[102]. - The company reported a foreign currency net exchange gain of HKD 119,635,000 in 2024, compared to a loss of HKD 71,824,000 in 2023[102]. Compliance and Regulatory - The company is actively assessing global trends and regulatory developments to mitigate compliance risks and protect its reputation[63]. - The estimated effective tax rate for the group in Germany remains at 26.978% to 32.975% for the year ended December 31, 2024[109].

Group 1 - Goldman Sachs lowered the target price for ASMPT from HKD 108 to HKD 100 while maintaining a "Buy" rating, primarily benefiting from the growth in demand for artificial intelligence, high-performance computing, and high-bandwidth memory [1] - ASMPT's revenue for the fourth quarter is expected to be HKD 3.6 billion, representing a year-on-year increase of 5% and a quarter-on-quarter increase of 7%. Despite the continued growth in packaging, thermal compression bonding, and hybrid bonding tools, the company faces headwinds in the semi-finished products and SMT sectors due to moderate capital expenditure from downstream customers [2] - Goldman Sachs also revised down its earnings per share forecasts for 2025-2026 by 7% and 6% respectively [3]

Group 1 - Morgan Stanley has initiated coverage on ASMPT with a "Market Perform" rating and a target price of HKD 82 [1] - Despite a slow recovery in the semiconductor and electronics manufacturing industry, ASMPT has made breakthroughs in the high bandwidth memory (HBM) market [1] - Management forecasts a 3.5% year-over-year decline in sales revenue for Q4, estimating it to be between USD 420 million and USD 424 million, with new orders expected to remain flat [1] Group 2 - Surface mount technology continues to face challenges from market weakness and inventory digestion [2] - Morgan Stanley is optimistic about ASMPT's hot-press welding applications in the HBM market, projecting a 65% compound annual growth rate in related revenue from 2023 to 2026 [2]

Investment Rating - The investment rating for ASMPT is "Buy" (maintained) [1] Core Views - The traditional business is recovering slowly, with profit improvement expected to be driven by TCB volume growth [3][4] - The SMT business is dragging down the company's performance, with the recovery in 2024 not meeting expectations [3][4] - The company has adjusted its net profit forecasts for 2024-2026 downwards due to weak SMT demand, with expected profits of 4 billion, 12 billion, and 22 billion HKD respectively [4][6] Financial Summary - Q3 2024 revenue was 429 million USD, a slight increase of 0.1% quarter-on-quarter, within the guidance range of 370-430 million USD [3] - New orders increased by 1.5% quarter-on-quarter, with the semiconductor segment growing by 7%, while SMT orders declined by 5% [3] - The company expects Q4 2024 revenue to be between 380-460 million USD, with a median estimate indicating a 2% decline quarter-on-quarter [3] - Revenue projections for 2024-2026 show a decline in 2024 followed by growth in subsequent years, with year-on-year growth rates of -41%, 177%, and 88% respectively [4][6] Market Position and Outlook - The company is positioned to benefit from advancements in TCB technology, particularly in HBM applications, which are expected to drive future growth [5] - The current stock price of 83.75 HKD corresponds to P/E ratios of 81.7, 29.5, and 15.7 for 2024-2026 [4][6] - The traditional packaging business is still at the recovery starting point, with AI advanced packaging expected to remain a long-term focus [4]

Investment Rating - The report maintains an "Overweight" rating for ASMPT (0522 HK) [4] Core Views - Q3 2024 revenue exceeded expectations at $429 million (HK$3 34 billion), up 0 1% QoQ but down 3 7% YoY, beating market expectations by 4% [1] - Semiconductor Solutions revenue grew 14% YoY and 8% QoQ to $229 million, driven by strong demand for advanced packaging [1] - SMT revenue declined 18% YoY and 8% QoQ to $199 million due to slow recovery in the traditional semiconductor cycle [1] - Q3 2024 gross margin improved by 0 94 ppts to 41%, with Semiconductor Solutions margin up 4 ppts to 48 6%, offsetting a 3 4 ppt decline in SMT margin [1] - Net profit was HK$23 8 million, down 83% QoQ due to HK$108 million in FX losses, but would have been flat QoQ excluding FX impact [1] - New orders in Q3 2024 totaled $406 million, up 1 5% QoQ, driven by semiconductor business growth [1] - TCB equipment is expected to accelerate shipments in Q4 2024 and 2025, supported by AI-related capital expenditure and HBM customer orders [1] Financial Performance - 2024E revenue is projected at HK$13 248 million, with net profit of HK$492 million [2] - 2025E revenue is forecasted at HK$15 766 million, with net profit of HK$1 073 million [2] - 2026E revenue is expected to reach HK$17 345 million, with net profit of HK$1 632 million [2] - EPS for 2024E, 2025E, and 2026E is projected at HK$1 19, HK$2 59, and HK$3 94, respectively [2] Business Segments - Semiconductor Solutions revenue is expected to grow from HK$6 766 million in 2024E to HK$10 478 million in 2026E [6] - SMT revenue is projected to remain relatively flat, from HK$6 482 million in 2024E to HK$6 868 million in 2026E [6] - Gross margin for Semiconductor Solutions is expected to remain strong, while SMT margin continues to face pressure [6] Key Developments - TCB equipment secured a bulk order from a leading HBM manufacturer in October 2024, with deliveries expected in Q4 2024 and Q1 2025 [1] - The company continues to win orders from leading IDM and foundry customers for C2W and C2S applications [1] - AI-related advanced packaging demand is driving growth in TCB equipment orders and improving long-term gross margin prospects [1] Market Data - Current share price: HK$87 0 [4] - Market capitalization: HK$36 062 billion [4] - 52-week range: HK$65 05 - HK$119 [4] - 3-month turnover rate: 79 6% [4]

Financial Performance - For the third quarter of 2024, ASMPT Limited reported sales revenue of HKD 33.4 billion (USD 4.29 billion), a year-on-year decrease of 3.7% and a quarter-on-quarter increase of 0.1%[2]. - Adjusted profit for the quarter was HKD 29.5 million, down 35.0% year-on-year and down 78.5% quarter-on-quarter[9]. - The company forecasts sales revenue for the fourth quarter of 2024 to be between USD 3.8 billion and USD 4.6 billion, indicating a year-on-year decrease of 3.5% and a quarter-on-quarter decrease of 2.0%[1]. - Basic earnings per share were HKD 0.06, a year-on-year increase of 50.0% but a quarter-on-quarter decrease of 81.8%[2]. - The group reported adjusted earnings of HKD 29.5 million, a decrease compared to the previous year and quarter, primarily due to foreign exchange losses[10]. - For the three months ended September 30, 2024, the company reported a profit of HKD 23,845, a decrease from HKD 136,696 for the same period in 2023[17]. - The total comprehensive income for the period was HKD 454,537, significantly higher than HKD 5,025 in the previous year[17]. - The adjusted profit for the period, excluding restructuring costs, was HKD 29,524, with an adjusted profit margin of 0.7%[24]. - Basic earnings per share for the three months ended September 30, 2024, was HKD 0.06, compared to HKD 0.33 for the previous quarter[22][26]. - The company reported a total revenue of HKD 3,344,731 for the three months ended September 30, 2024, slightly up from HKD 3,474,436 in the same period last year[20]. Orders and Revenue Segments - The total new orders amounted to HKD 31.7 billion (USD 4.06 billion), reflecting a year-on-year increase of 7.1% and a quarter-on-quarter increase of 1.5%[9]. - The semiconductor solutions segment contributed USD 285 million in new orders, with a quarterly increase of 7.0% and a year-on-year increase of 40.1%[12]. - The semiconductor solutions segment's sales revenue was USD 229 million, reflecting a quarterly growth of 7.7% and a year-on-year growth of 13.7%[11]. - The SMT solutions segment's sales revenue was USD 199 million, down 7.5% quarter-on-quarter and down 18.2% year-on-year[13]. - The advanced packaging solutions, particularly TCB, continued to drive strong new order totals and sales revenue, benefiting from demand in generative AI and high-performance computing applications[6]. - The photonics and silicon photonics solutions contributed significantly to new order totals and sales revenue in the semiconductor solutions segment, driven by strong demand for 800G optical transceivers[7]. Profit Margins - The gross profit margin was 41.0%, up 683 basis points year-on-year and 94 basis points quarter-on-quarter[9]. - The operating profit margin was 5.3%, an increase of 343 basis points year-on-year and 129 basis points quarter-on-quarter[9]. - The gross margin for the semiconductor solutions segment improved to 48.6%, up 406 basis points quarter-on-quarter and 1,665 basis points year-on-year[11]. - The profit margin for the Semiconductor Solutions segment improved to 7.9% from 5.3% year-over-year[18]. - The operating profit margin improved to 5.3%, showing improvements both year-on-year and quarter-on-quarter[10]. Cash Position and Future Plans - The group maintained a strong cash position with total cash and bank deposits of HKD 5.47 billion and bank borrowings of HKD 2.58 billion as of September 30, 2024[10]. - The group plans to sell its stake in AAMI to SOAC, which may create additional value for shareholders due to growth potential in semiconductor materials[15]. - The company plans to continue focusing on market expansion and new product development to drive future growth[25]. Corporate Governance and Announcements - ASMPT announced a potential offer on October 14, 2024, under Rule 3.7 of the Hong Kong Code on Takeovers and Mergers[30]. - The unaudited profit figures mentioned in the announcement are considered profit forecasts under Rule 10 of the Code, requiring a report from ASMPT's auditors and financial advisors[30]. - ASMPT's auditors and financial advisors need additional time to complete their work and expect to release their report by November 11, 2024, or earlier[31]. - Shareholders and potential investors are advised to exercise caution when relying on the profit forecasts due to the announcement not meeting the standards set by Rule 10[31]. - The board of directors includes independent non-executive directors and executive directors, ensuring a diverse governance structure[32].

Financial Performance - For the six months ended June 30, 2024, ASMPT reported sales revenue of HKD 6.48 billion (USD 829 million), a decrease of 17.1% year-on-year and 5.8% half-on-half[8]. - The adjusted profit for the first half of 2024 was HKD 315 million, down 49.5% year-on-year but up 158.1% half-on-half[5]. - The gross profit margin for the second quarter of 2024 was 40.0%, down 6 basis points year-on-year and 184 basis points quarter-on-quarter[5]. - The total new orders for the second quarter of 2024 amounted to HKD 3.12 billion (USD 399 million), an increase of 3.5% year-on-year but a decrease of 2.4% quarter-on-quarter[5]. - The company declared an interim dividend of HKD 0.35 per share, down 42.6% from HKD 0.61 in 2023[9]. - As of June 30, 2024, the total backlog of orders was HKD 6.40 billion (USD 820 million)[5]. - The basic earnings per share for the first half of 2024 was HKD 0.76, a decrease of 50.0% year-on-year but an increase of 245.5% half-on-half[8]. - The operating profit margin for the first half of 2024 was 5.8%, down 512 basis points year-on-year but up 212 basis points half-on-half[5]. - The company expects revenue for the third quarter of 2024 to be between USD 370 million and USD 430 million, representing a year-on-year decrease of 9.9%[5]. Market Segments - In the first half of 2024, the group's advanced packaging solutions contributed approximately 25% of total sales revenue, amounting to about $210 million, driven by strong demand from generative AI and high-performance computing applications[12]. - The automotive sector accounted for approximately 24% of total sales revenue, contributing about $200 million, despite a slowdown in the automotive market[15]. - The communication market was the second-largest source of revenue, accounting for about 17%, with growth driven by high-end smartphones and photonic applications[17]. - The total new order amount for advanced packaging solutions saw significant growth both year-on-year and half-on-half, with TCB solutions leading the revenue contributions[12]. Research and Development - Research and development expenses for the first half of 2024 were HKD 993 million, slightly down from HKD 1.00 billion in the same period last year[7]. - The group plans to invest approximately HKD 250 million in additional operational expenditures for R&D in 2024, focusing on strategic areas including infrastructure[25]. - The group has submitted over 2,000 patents and patent applications to date, reflecting its commitment to innovation[25]. Financial Position - The group’s cash and bank deposits totaled HKD 5.44 billion, while bank borrowings stood at HKD 2.53 billion, indicating a solid liquidity position[18]. - As of June 30, 2024, the group's cash and bank deposits amounted to HKD 5.44 billion, an increase from HKD 4.80 billion as of December 31, 2023[26]. - The group's capital investments for the first half of 2024 totaled HKD 182 million, supported entirely by operational cash flow[26]. - The group’s debt-to-equity ratio increased to 0.163 as of June 30, 2024, from 0.127 as of December 31, 2023[26]. Employee and Management - The total employee cost for the first half of 2024 was HKD 2.53 billion, compared to HKD 2.49 billion in the same period of 2023[29]. - As of June 30, 2024, the group employed approximately 10,800 staff, excluding 800 flexible and outsourced employees[29]. - The remuneration for directors and other key management personnel during the period amounted to HKD 33,267,000, an increase from HKD 31,865,000 for the six months ended June 30, 2023[84]. Shareholder Information - The company declared an interim dividend of HKD 783,758 for the previous year, which was paid out during the current period[46]. - The total dividend declared for the six months ended June 30, 2024, was HKD 322.3 million, down from HKD 783.8 million in the same period last year, representing a decrease of 58.8%[63]. - The company has proposed a special dividend for the year 2023, reflecting its commitment to returning value to shareholders[40]. Acquisitions and Investments - The acquisition of Beijing Borui Advanced Technology Co., Ltd. was completed on April 28, 2023, for RMB 23,500,000 (approximately HKD 26,844,000)[86]. - The acquisition of Soft Rock Technologies Sdn. Bhd. was completed on February 16, 2023, for MYR 7,044,000 (approximately HKD 12,921,000)[86]. - The acquisition of Tech Rewards Solutions, S. de R.L. de C.V. was completed on July 4, 2023, for MXN 25,682,000 (approximately HKD 11,756,000)[86]. Corporate Governance - The company has complied with all provisions of the Corporate Governance Code as of June 30, 2024[103]. - The audit committee consists of four independent non-executive directors and one non-executive director with extensive experience in auditing, legal matters, and corporate governance[104]. - The company has adopted the standard code of corporate governance and confirmed compliance by all directors for the six months ending June 30, 2024[103].