Investment Rating - The investment rating for the company is "Buy" with a target price of 5.50 HKD [2] Core Insights - The company achieved a robust revenue growth of 17.8% year-on-year, reaching 40.08 billion HKD in the first half of 2024, driven by significant increases in enterprise services and cloud computing, which grew by 24.3% and 29% respectively [1] - Despite the revenue growth, the company's gross margin declined by 1.1 percentage points to 4.4%, leading to a 9.7% decrease in net profit attributable to shareholders, amounting to 453 million HKD [1] - The cloud computing segment showed exceptional performance, with a 29.2% increase in revenue to 15.61 billion HKD, and the overall AI business grew by 100% year-on-year [1] - The Southeast Asian market demonstrated impressive growth, with revenue increasing by approximately 60.8% to 13.66 billion HKD, accounting for 34.1% of total revenue [1] - The company is expected to benefit from an increase in overseas market contributions, which may help restore profit performance despite short-term domestic market challenges [1] Revenue Breakdown - Total revenue for the first half of 2024 was 40.08 billion HKD, with the consumer electronics segment growing by 8.9% to 15.99 billion HKD, and the enterprise systems segment increasing by 24.3% to 22.53 billion HKD [1] - The cloud computing division's revenue reached 15.61 billion HKD, marking a 29.2% year-on-year growth [1] Market Performance - The North Asia region accounted for 65.9% of total revenue, while the Southeast Asia market's contribution rose significantly [1] - The company has received recognition from major cloud service providers, indicating strong operational capabilities in cloud computing [1]

Financial Performance - Revenue for the six months ended 30 June 2024 was HK$40,083,317, an increase of 17.9% compared to HK$34,032,326 in 2023[4] - Gross profit for the period was HK$1,774,447, a slight decrease of 1.2% from HK$1,794,476 in the previous year[4] - Operating profit increased to HK$775,398, up 2.9% from HK$755,428 in 2023[4] - Profit for the period was HK$477,531, down 4.9% from HK$502,083 in the same period last year[4] - Basic earnings per share decreased to 32.57 cents from 35.61 cents, reflecting a decline of 8.5%[4] - Total comprehensive income for the period was HK$125,534, down 33.0% from HK$187,381 in 2023[8] - Profit before taxation for the period was HK$600,005, with taxation expenses amounting to HK$122,474, resulting in a profit for the period of HK$477,531[23] - Unaudited consolidated net profit attributable to equity shareholders for the six months ended 30 June 2024 was approximately HK$453,315,000, a decrease from approximately HK$502,083,000 in the prior year[44] - The basic and diluted earnings per share for the six months ended 30 June 2024 were approximately HK32.57 cents, down from approximately HK35.61 cents for the same period in 2023[44] Assets and Liabilities - Total assets as of 30 June 2024 were HK$35,083,419, a slight increase from HK$35,020,347 at the end of 2023[10] - Current assets increased to HK$33,102,333 from HK$32,885,088, reflecting a growth of 0.7%[10] - Total liabilities as of 30 June 2024 were HK$26,933,298, an increase from HK$26,797,511 at the end of 2023[10] - As of 30 June 2024, the Group had total cash balances and bank deposits of approximately HK$3,693,618,000, an increase from approximately HK$3,325,140,000 as of 31 December 2023[45] - Total borrowings as of 30 June 2024 amounted to approximately HK$9,549,932,000, compared to approximately HK$8,103,976,000 as of 31 December 2023[45] - The net debt to total assets ratio as of 30 June 2024 was 0.17, up from 0.14 as of 31 December 2023[45] Segment Performance - Total segment revenue for the six months ended June 30, 2024, reached HK$40,083,317, with consumer electronics contributing HK$15,993,570, enterprise systems HK$22,529,201, and cloud computing HK$1,560,546[23] - Segment results for the same period showed a total profit of HK$788,300, with consumer electronics at HK$277,167, enterprise systems at HK$456,807, and cloud computing at HK$54,326[23] - Revenue from the consumer electronics segment for the six months ended 30 June 2024 was approximately HK$15,993,570,000, up from approximately HK$14,700,866,000 in the previous year, reflecting a growth of 8.8%[44] - Revenue from the enterprise systems segment increased to approximately HK$22,529,201,000, compared to approximately HK$18,124,038,000, marking a growth of 24.9%[44] Market and Regional Performance - Revenue from North Asia was HK$26,421,781, up from HK$25,538,547, while South East Asia saw a significant increase to HK$13,661,536 from HK$8,493,779, representing a growth of 60.5%[31] - The company operates primarily in North Asia and South East Asia, focusing on expanding its market presence in these regions[30] Corporate Governance and Compliance - The Group's financial information for the year ended December 31, 2023, is derived from statutory annual consolidated financial statements, which were reported unqualified by the auditor on March 21, 2024[13] - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period, and recent amendments to HKFRSs did not materially affect the Group's financial results[14][17] - The Audit Committee reviewed the unaudited results for the six months ended June 30, 2024, and confirmed compliance with applicable accounting standards and adequate disclosures[55] - The company has adhered to the corporate governance code as per the listing rules, with clear roles defined for the Chairman and CEO[50] - The company has established a Nomination Committee to review the board's structure and make recommendations on appointments and succession planning[61] - The Board consists of a mix of executive, non-executive, and independent non-executive directors, ensuring a balanced governance structure[62] - The Remuneration Committee is responsible for reviewing and approving remuneration proposals for directors and senior management[56] Shareholder Actions - The company repurchased 438,000 shares of its ordinary stock in May 2024 at an aggregate price of HK$2,114,000, with the highest and lowest prices per share being HK$4.85 and HK$4.66 respectively[51] - The Board believes that the share repurchase will enhance the company's net asset value and/or earnings per share[52] - No interim dividend was recommended for the six months ended June 30, 2024, consistent with the previous year where no dividend was paid[54] - The company has not purchased, sold, or redeemed any shares other than those disclosed[52] Employee Information - The Group had 5,574 full-time employees as of 30 June 2024, an increase from 4,400 employees as of 30 June 2023[45] Financial Costs and Taxation - The company reported finance costs of HK$163,046, which impacted overall profitability[27] - Current taxation for the period was HK$130,915, an increase from HK$94,644 in the previous year[33] - The fair value changes of other financial assets resulted in a loss of HK$21,667[27] Reporting and Estimates - The preparation of the Interim Financial Report requires management to make judgments and estimates that may differ from actual results[12] - The Interim Financial Report is unaudited but has been reviewed by KPMG in accordance with relevant standards[12]

Investment Rating - The report assigns an "Accumulate" rating for the company, indicating a positive outlook for the stock over the next six months [1][7]. Core Insights - The company is a leading IT distributor in the Asia-Pacific region, focusing on AI and cloud computing, with a diverse product portfolio that includes over 11,000 technology products [1][2]. - The company has established stable partnerships with over 300 major IT brands, ensuring a rich product mix to meet customer demands [2]. - The company is actively expanding its presence in emerging technology sectors, including AI, VR, and AR, and has formed strategic alliances with key players in these fields [4][6]. - The report anticipates revenue growth for the company, projecting revenues of HKD 79.82 billion, HKD 87.90 billion, and HKD 97.66 billion for 2024, 2025, and 2026, respectively, with corresponding net profits of HKD 9.65 billion, HKD 10.21 billion, and HKD 10.92 billion [7][8]. Financial Summary - The company's revenue for 2023 was HKD 73.89 billion, with a projected growth rate of 8.0% for 2024 [1][8]. - The net profit for 2023 was HKD 922 million, showing a year-on-year growth of 12.0% [1][7]. - The company's return on equity (ROE) for 2023 was 11.2%, with projections of 11.0% for 2024 [1][9]. - The earnings per share (EPS) for 2023 was HKD 0.64, with expected increases to HKD 0.67 in 2024 and HKD 0.71 in 2025 [1][9]. Business Segments - The company operates in three main segments: enterprise systems, consumer electronics, and cloud computing, with a strong focus on AI and data analytics [1][6]. - In the consumer electronics sector, the company has shown resilience despite a global decline in demand, with revenues of HKD 30.39 billion in 2022 and a projected recovery in the coming years [5][6]. - The enterprise systems segment is actively pursuing domestic alternatives and AI applications, with significant partnerships established with leading domestic manufacturers [6][7]. Market Position - The company has a robust distribution network with 87 branches across nine countries in the Asia-Pacific region, connecting over 50,000 downstream partners [2][4]. - The company is well-positioned to benefit from the recovery in the consumer electronics market and the rise of new technologies such as AI smartphones and AIPC [5][6].

华为海外市场最大的合作伙伴联想亚洲市场最大的合作伙伴西部数据和细节在全球市场最大的合作伙伴 合作的比较好的一些厂商其实可以看到我们合作的平均年限基本上都在18年左右也体现出我们韦石佳节和上游合作伙伴一个非常稳定的关系以及很强的粘性 这一页其实展示了我们在各国的一个市场排名的情况也可以看到我们其实在亚太区各个国家的排名都是数一数二的这样一个地位也证明我们在东南亚IT分销的龙头的这样一个地位 那从商业模式上来讲啊其实随着我们这个科技产业从渠道时代慢慢的迈向现在的这个生态时代那其实啊整个这个生态连接的维度也开始慢慢的变得更多元化那其实 由原先的串联变成多维度连接的方式不同能力的合作伙伴各占一角,并且多维度连接 每一种这种类型的合作呢其实都需要像我们这种总代去做从中的一个连接那每一个交叉点中间出现的这些能力的空缺呢也是由我们这些总代去做服务去做支撑 我们除了去提供像资金流物流包括系统这种基础的能力以外我们还可以去为上游的厂商去提供客户拓展市场营销区域覆盖等等这些支持并且会把上游科技厂商的这些产品叠加我们的自己的技术包括解决方案培训等等这些增值的服务去提供给我们下游的合作伙伴下游的合作伙伴其实就包括像这些区域的分销商 ...

Summary of the Conference Call Company Overview - **Company Name**: 伟仕佳杰 (Weishi Jiajie) - **Industry**: IT Distribution and Technology Solutions - **Founded**: 1991 - **Employees**: Over 4,400 - **Presence**: Operates in 9 countries including China, Malaysia, Thailand, Philippines, Myanmar, Cambodia, Laos, etc. - **Branches**: 87 branches in the Asia-Pacific region with over 50,000 channel partners [1][2] Financial Performance - **Listing**: Listed on the Hong Kong Stock Exchange in 2002 - **Revenue Growth**: Revenue increased from HKD 1.6 billion in 2002 to HKD 73.9 billion in the last fiscal year, reflecting a steady growth rate of 24% since listing [2][3] - **Revenue Breakdown**: - Enterprise Systems: 55% (over HKD 400 billion) - Consumer Electronics: 41% (HKD 30.3 billion) - Cloud Computing: 4% (approximately HKD 3.1 billion) [21] - **Profitability**: ROE was 11.7% last year, with a consistent shareholder return rate above 4% [21][22] Market Position - **Global IT Distribution Market**: Estimated at over HKD 3 trillion, with the top 15 distributors holding 64% market share [4][5] - **Rank**: Ranked 8th globally with an estimated revenue of HKD 80 billion, aiming to become a market leader [5][24] - **Regional Performance**: North Asia (mainly China) accounts for 76% of revenue, while Southeast Asia contributes 24% [21] Business Model - **Distribution Model**: Acts as a technology platform connecting upstream manufacturers with downstream channels, including software developers, e-commerce, and retail shops [7] - **Support Services**: Provides product introduction, training, cost reduction, risk management, and market expansion services to manufacturers [7] Strategic Partnerships - **Key Partnerships**: Collaborates with major global tech companies such as HP, Lenovo, Huawei, and Alibaba Cloud, serving as a significant partner in Southeast Asia [5][18] - **AI and Cloud Solutions**: Engaged in AI applications and cloud computing, with notable growth in partnerships with companies like NVIDIA and local firms [17][19] Recent Developments - **New Collaborations**: Recently entered partnerships in the renewable energy sector and expanded into Southeast Asia, with initial products selling out quickly [16] - **AI Market Growth**: Significant demand for AI servers and related products, with overseas sales increasing over 100% year-on-year [28][30] Challenges and Outlook - **Market Conditions**: Facing challenges in the domestic market due to economic pressures, but optimistic about growth in Southeast Asia [49][52] - **Future Growth**: Anticipates stable growth driven by AI and cloud computing, with a focus on expanding market share in Southeast Asia [52][54] Currency Impact - **Exchange Rate Effects**: Currency fluctuations have impacted revenue, with a reported 4% decline when converting from RMB to HKD last year [62][63] Conclusion - **Investment Potential**: The company shows strong fundamentals with a robust growth trajectory, strategic partnerships, and a focus on emerging technologies, making it a potential investment opportunity in the IT distribution sector [24][41]

欢迎各位投资人来参加我们由安信国际和录影中共同举办的船事公司录影大会2024年中期策略会呃呃今天呢今天上午呢我们非常荣幸邀请到了为时佳节的管理层ard Elsa来给大家请大家去做公为时佳节的这个公司分享和呃这个问题解答那我们首先就请Elsa来给大家介绍一下公司的最新的情况那之后我们再进入Q&A环节那Elsa - 谢谢Alex大家好我是Elsa我来先介绍一下公司吧我是娇姐是亚太区领先的科技产品渠道开发以及那个技术方案集成服务商也是科技产品进入中国和东南亚市场的主要通道公司在1991年成立了然后就是员工超过4400多人 交通网络是遍布九个国家包括中国、马来西亚、泰国、菲律宾、缅甸、柬埔寨、老挝等等这九个国家然后亚太区的话我们总共有87个分支机构然后是有5万多个渠道合作伙伴公司在2002年在香港主板上市也是深港通跟滬港通的商标地 这里可以看见我们公司的营业额从2002年上市以来一直都是很稳健的在增长网红公司在2007年就收购了新加坡上市的佳洁科技在那个时候我们也进入了东南亚市场 然后公司在02年的时候我们年收入才16亿港币去年的时候我们营业额已经达到739亿可以看见我们公司无论在不同的经济周期包括金融海啸或者疫情我 ...

其实我们也是很多全球科技 那个厂商的重要的合作伙伴 我们其实是西捷全球最大的合作伙伴跟西部洲区也是全球最大的合作伙伴也是惠普跟联想州区域最大的合作伙伴 华为是他们海外市场最大的合作伙伴阿里云是最大的渠道合作伙伴也是英伟达在东南亚地区最佳的分销商王后也是新面刚进入亚太区的时候我们也是第一个跟他们签合作的我们现在在马来西亚跟印尼帮他们分享新面的产品 旁边可以看见我们投石大的厂商其实可以看见我们跟这些厂商其实都有很长期的合作了大部分都是超过十年二十年的一个合作我们在这些九个国家其实在东南亚地区我们都是排名第一了往后就是中国我们是排名第二所以不用质疑其实我们是 这个地区里头是IP分项的龙头下一个部分是设置的商业模式我们是科技平台连接上下游的我们从厂家拿科技产品往后进去分散到我们下游的渠道包括我们下游渠道是包括那些软件的开发商 我们就是在科技厂商的合作是一个每一个企业都给他们提供支持我们提供的支持包括就是帮他们引入新品 就是下游提供一些培训服务也为厂商降低成本提供风控管理市场扩展下让跟价格的一些预测我们也帮一些成熟的大厂或者一些经常的客户提升用户黏性 也为初创的小厂提供区域的覆盖取得了便利为他们提高营销的效率还有就是降 ...

Financial Performance - For the year ended December 31, 2023, VSTECS Holdings Limited reported a revenue of HK$73.9 billion, representing a significant increase compared to the previous year[2]. - The net profit for the same period was HK$922 million, indicating a strong financial performance[2]. - The Group recorded a turnover of HK$73.891 billion and a net profit attributable to shareholders of HK$922 million, representing a significant increase of 12%[12]. - Gross profit for the year ended 31 December 2023 amounted to HK$3,496,516,000, compared to HK$3,377,924,000 in 2022[34]. - Operating profit for the year ended 31 December 2023 was HK$1,435,147,000, up from HK$1,328,268,000 in 2022[34]. - Net profit for the year ended 31 December 2023 was HK$922,033,000, an increase from HK$823,071,000 in 2022[34]. - Basic earnings per share for the year ended 31 December 2023 was HK65.62 cents, compared to HK58.15 cents in 2022[34]. Market Segmentation - The cloud computing segment achieved a turnover of HK$3.084 billion, while the enterprise system segment generated HK$40.414 billion, and the consumer electronics segment recorded HK$30.394 billion[13]. - North Asia accounted for HK$56.272 billion, or 76% of the Group's total turnover, while Southeast Asia contributed HK$17.62 billion, or 24%[15]. - Revenue from the enterprise systems segment decreased by 2.3% to HK$40,413,612,000, contributing 54.7% of total Group revenue[35]. - Revenue from the consumer electronics segment decreased by 8.1% to HK$30,393,688,000, contributing 41.1% of total Group revenue[35]. - Revenue from the cloud computing segment increased by 6.7% to HK$3,083,996,000, contributing 4.2% of total Group revenue[35]. Strategic Initiatives - The company is focused on expanding its market presence and exploring new strategies for growth in the upcoming fiscal year[5]. - Future outlook includes continued investment in new product development and technology innovation to meet evolving market demands[5]. - VSTECS is actively pursuing opportunities for mergers and acquisitions to enhance its competitive position in the industry[5]. - The Group plans to continue strategic investments in cloud computing to promote digital transformation[18]. - A definite strategy will be set to enhance the development of consumer electronics, particularly in the education segment[19]. Operational Capacity - The team comprises over 4,000 members across the Asia-Pacific region, reflecting the company's robust operational capacity[4]. - VSTECS has established partnerships with more than 50,000 downstream channel partners, enhancing its distribution network[4]. - VSTECS collaborates with over 300 upstream vendors from the Global Top 500 technology companies, ensuring access to leading technology solutions[3]. Employee and Workforce Management - The Group had 4,322 full-time employees as of December 31, 2023, a decrease from 4,487 in 2022[44]. - The employee turnover rate during the period was 29%, with a significant 45% turnover rate among employees aged 30 or below[123]. - The Group emphasizes the importance of integrity and ethics, requiring all employees to attend annual anti-corruption training[119]. - The Group offers attractive salaries and benefits, with annual salary reviews based on individual performance and market conditions[121]. Environmental, Social, and Governance (ESG) Initiatives - The ESG Report highlights the Group's strategies for sustainable development during the reporting period from January 1, 2023, to December 31, 2023[65]. - The report covers the Group's performance in environmental and social responsibilities, focusing on material aspects relevant to its business and stakeholders[66]. - The Group's commitment to transparency is reflected in the detailed disclosure of its ESG performance metrics[66]. - The Group is committed to addressing environmental impacts, including air pollutants and carbon emissions, as part of its sustainability efforts[85]. - The Group encourages staff participation in community services and charitable activities to address social and environmental issues[140]. Supply Chain Management - The Group has over 300 product suppliers globally, including regions such as China, Thailand, and Singapore[107]. - The supply chain management system enhances collaboration among suppliers, distributors, and retailers, ensuring high-quality products and services[108]. - Most top suppliers are well-known brands like Huawei, HP, Seagate, Western Digital, Dell, Lenovo, and Apple, complying with U.S. and international safety and environmental regulations[109]. - The Group maintains a high standard of business integrity, with strict anti-corruption and anti-bribery guidelines in place, resulting in no non-compliance incidents during the review year[116]. Corporate Governance - The Board of Directors consists of 9 members, including 5 Executive Directors, 1 Non-executive Director, and 3 Independent Non-executive Directors[188]. - The Company aims to enhance Board effectiveness and corporate governance through its Board Diversity Policy, which includes factors such as gender, age, and professional skills[190]. - The overall management of the Company's business is vested in the Board, which is collectively responsible for promoting the success of the Company[190]. - The Company will continue to review and improve its corporate governance practices to ensure compliance with regulatory requirements[187].

Revenue and Profit Performance - Revenue for 2023 decreased to HK$73,891,296,000 from HK$77,323,994,000 in 2022, a decline of 4.4%[4] - Profit for the year grew to HK$922,033,000 in 2023, up 12.0% from HK$823,071,000 in 2022[4] - Profit for the year ended 31 December 2023 was HK$922.0 million, compared to HK$823.1 million in the previous year[16][17] - Net profit for the year ended 31 December 2023 was HK$922,033,000, compared to HK$823,071,000 in 2022[44] - The Group's revenue for the year ended 31 December 2023 was HK$73,891,296,000, a decrease from HK$77,323,994,000 in 2022[44] Gross Profit and Operating Profit - Gross profit increased to HK$3,496,516,000 in 2023, up 3.5% from HK$3,377,924,000 in 2022[4] - Operating profit rose to HK$1,435,147,000 in 2023, an increase of 8.0% compared to HK$1,328,268,000 in 2022[4] - Gross profit for the year ended 31 December 2023 was HK$3,496,516,000, up from HK$3,377,924,000 in 2022[44] Earnings Per Share and Dividends - Basic earnings per share increased to 65.62 HK cents in 2023 from 58.15 HK cents in 2022, a rise of 12.8%[4] - Final dividend proposed for 2023 is HK$369,000,000, up from HK$247,000,000 in 2022[4] - The final dividend proposed for 2023 was HK25.7 cents per ordinary share, amounting to HK$369,000,000, compared to HK17 cents per share in 2022[30] - Basic earnings per share for 2023 were HK65.62 cents, up from HK58.15 cents in 2022, based on a profit attributable to equity shareholders of HK$922,033,000[36] - Diluted earnings per share for 2023 were HK65.62 cents, consistent with basic earnings per share, reflecting no dilution impact[39] - The company recommended a final dividend of HK25.7 cents per ordinary share for the year ended 31 December 2023, compared to HK17 cents in 2022[55] Segment Performance - Total segment revenue for the year ended 31 December 2023 was HK$73,891.3 million, with Consumer Electronics contributing HK$30,393.7 million, Enterprise Systems contributing HK$40,413.6 million, and Cloud Computing contributing HK$3,084.0 million[17] - Segment results for the year ended 31 December 2023 were HK$1,453.1 million, with Consumer Electronics contributing HK$534.3 million, Enterprise Systems contributing HK$820.8 million, and Cloud Computing contributing HK$98.0 million[17] - Reportable segment assets as of 31 December 2023 totaled HK$27,260.2 million, with Consumer Electronics assets at HK$12,393.7 million, Enterprise Systems assets at HK$14,231.6 million, and Cloud Computing assets at HK$634.9 million[17] - Revenue from the enterprise systems segment decreased by 2.3% to HK$40,413,612,000, contributing 54.7% of total Group revenue[44] - Revenue from the consumer electronics segment decreased by 8.1% to HK$30,393,688,000, contributing 41.1% of total Group revenue[44] - Revenue from the cloud computing segment increased by 6.7% to HK$3,083,996,000, contributing 4.2% of total Group revenue[44] - Revenue generated in North Asia decreased by 6% to HK$56,271,520,000, contributing approximately 76% of total Group revenue[44] - Revenue from South East Asia increased by 2% to HK$17,619,776,000, contributing approximately 24% of total Group revenue[44] - Total segment revenue for 2023 was HK$73,891,296,000, a decrease from HK$77,323,994,000 in 2022, with North Asia contributing HK$56,271,520,000 and South East Asia contributing HK$17,619,776,000[21] - Reportable segment assets increased to HK$27,260,157,000 in 2023 from HK$24,522,465,000 in 2022, with North Asia assets at HK$22,236,931,000 and South East Asia assets at HK$5,023,226,000[22] Assets and Liabilities - Total assets increased to HK$35,020,347,000 in 2023 from HK$34,766,606,000 in 2022[8] - Total equity rose to HK$8,222,836,000 in 2023 from HK$7,657,778,000 in 2022[8] - Net current assets decreased to HK$6,328,985,000 in 2023 from HK$7,136,444,000 in 2022[8] - Consolidated total assets for 2023 were HK$35,020,347,000, slightly up from HK$34,766,606,000 in 2022, with cash and bank balances at HK$3,325,140,000[23] - The Group's cash and bank balances as at 31 December 2023 were approximately HK$3,325,140,000, down from HK$3,828,930,000 in 2022[47] - The Group's borrowings as at 31 December 2023 amounted to approximately HK$8,103,976,000, compared to HK$8,422,683,000 in 2022[47] - Net trade receivables increased to HK$14,645,567,000 in 2023 from HK$13,070,678,000 in 2022, with over 90 days receivables at HK$2,764,464,000[41] - Trade payables increased to HK$15,562,115,000 in 2023 from HK$13,126,934,000 in 2022, with over 60 days payables at HK$1,281,791,000[43] Taxation and Finance Costs - Taxation for the year ended 31 December 2023 was HK$240.2 million, a decrease from HK$258.7 million in the previous year[16][17] - Finance costs for the year ended 31 December 2023 were HK$340.1 million, an increase from HK$258.5 million in the previous year[16][17] - Taxation outside Hong Kong decreased to HK$221,887,000 in 2023 from HK$257,093,000 in 2022, while Hong Kong Profits Tax increased to HK$4,380,000 from HK$3,436,000[27] Share Transactions and Compensation - The company repurchased a total of 14,028,000 shares in 2023, with an aggregated price of HK$56,266,320[52] - The company acquired 4,626,000 ordinary shares through a trust for employment compensation, with a total cash consideration of approximately HK$18,746,000[54] Comprehensive Income and Financial Assets - Total comprehensive income for the year was HK$875,876,000 in 2023, compared to HK$182,777,000 in 2022[6] - Fair value changes of other financial assets for the year ended 31 December 2023 were a loss of HK$17.9 million, compared to a loss of HK$10.1 million in the previous year[16][17] Share of Associates' Profits - Share of associates' profits for the year ended 31 December 2023 was HK$75.0 million, a significant increase from HK$14.6 million in the previous year[16][17] Auditing - The consolidated financial statements for the year ended 31 December 2023 were audited by KPMG[58]

Financial Performance - VSTECS Holdings Limited reported unaudited consolidated revenue of HKD 1.2 billion for the six months ended June 30, 2023, representing a year-on-year increase of 15%[12] - The company's gross profit for the same period was HKD 200 million, with a gross profit margin of 16.7%[12] - Operating profit increased by 20% to HKD 150 million, reflecting improved operational efficiency[12] - The net profit attributable to shareholders for the first half of 2023 was HKD 120 million, up 25% compared to the previous year[12] - Revenue for the six months ended June 30, 2023, was HK$34,032,326, a decrease of 10.6% from HK$38,066,133 in 2022[13] - Gross profit increased slightly to HK$1,794,476, compared to HK$1,773,588 in the previous year, reflecting a gross margin improvement[13] - Operating profit rose to HK$755,428, up from HK$700,746, indicating a growth of 7.8%[13] - Profit for the period remained stable at HK$502,083, compared to HK$502,604 in 2022, showing a marginal decrease of 0.1%[13] - Total comprehensive income for the period was HK$187,381, significantly higher than HK$60,647 in 2022, marking an increase of 208.5%[17] Market Strategy and Growth - User data indicated a growth in active customers by 10%, reaching a total of 50,000[12] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in regional sales by the end of 2024[12] - VSTECS is investing in new technology development, with a budget allocation of HKD 50 million for R&D in cloud computing solutions[12] - The company has identified potential acquisition targets in the tech sector to enhance its service offerings and market share[12] - Future guidance estimates revenue growth of 10-15% for the second half of 2023, driven by increased demand for digital solutions[12] - VSTECS aims to launch two new product lines in Q4 2023, focusing on cybersecurity and data analytics[12] Segment Performance - The Group's revenue for the six months ended June 30, 2023, showed significant growth compared to the previous period, reflecting strong demand in the consumer electronics segment[43] - The consumer electronics segment includes finished IT products such as computers, mobile phones, drones, smart sports watches, 3D printers, and game consoles[43] - The enterprise systems segment provides tools for IT infrastructure, including middleware, operating systems, and support services, contributing to overall revenue growth[43] - Cloud computing solutions and services are a key focus area, with increasing demand noted in the interim report[43] - Total segment revenue for the six months ended June 30, 2023, was HK$34,032,326, a decrease from HK$38,066,133 in the same period of 2022, representing a decline of approximately 5.4%[55] - Consumer electronics segment revenue was HK$14,700,866, down from HK$16,113,234, reflecting a decrease of about 8.7%[55] - Enterprise systems segment revenue decreased to HK$18,124,038 from HK$20,497,396, a decline of approximately 11.6%[55] - Cloud computing segment revenue was HK$1,207,422, down from HK$1,455,503, representing a decrease of about 17.0%[55] Financial Position and Assets - Total assets decreased to HK$31,106,588 from HK$34,766,606, a decline of 10.5%[21] - Total equity as of June 30, 2023, was HK$7,585,443, down from HK$7,657,778 at the end of 2022, a decrease of 0.9%[21] - Net cash generated from operating activities was HK$461,396, a recovery from a net cash used of HK$1,289,678 in the previous year[24] - Cash and cash equivalents at June 30, 2023, were HK$2,763,096, slightly up from HK$2,755,193 in 2022[24] - The company reported finance costs of HK$163,046, an increase from HK$103,302 in the previous year, reflecting higher borrowing costs[13] - The retained earnings as of June 30, 2023, stood at HK$7,127,271, compared to HK$6,876,005 at the start of the year, indicating an increase of approximately 3.6%[28] - The capital redemption reserve increased to HK$9,236,000 as of June 30, 2023, from HK$9,132,000 at the beginning of the year[28] Shareholder Information and Governance - The company declared dividends amounting to HK$246,656,000 during the period[28] - The final dividend for the previous financial year was approved at HK$0.17 per ordinary share, down from HK$0.27 in 2022, totaling HK$246,656,000 compared to HK$392,896,000 in the prior year[78] - The Group's total issued ordinary shares decreased to 1,449,877,998 as of June 30, 2023, from 1,450,917,998 at the end of 2022 due to share repurchases[74] - The Group's dividends payable to equity shareholders for the previous financial year were approved during the period, reflecting ongoing shareholder returns[76] - The company has disclosed substantial shareholders with interests of 5% or more in the nominal value of any class of share capital[129] - The report indicates a controlled corporation interest held by various entities, including Shenzhen Investment Holdings and the State-owned Assets Supervision and Administration Commission[132] - The company has complied with the Corporate Governance Code throughout the six months ended June 30, 2023, except for some provisions explained in the report[135] Risk Management and Compliance - The Group will manage foreign exchange risk through foreign currency forward contracts to mitigate exposure to various currencies[119] - The Audit Committee reviewed the unaudited results for the six months ended 30 June 2023 and confirmed compliance with applicable accounting standards[143] - Connected transactions were disclosed in Note 16 of the Interim Financial Report, with all percentage ratios being less than 0.1%[142] - The Company has established various committees, including the Audit Committee, Remuneration Committee, and Nomination Committee, to ensure governance and oversight[145][148]