TRIO IND ELEC(01710)

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致丰工业电子(01710) - 2020 - 中期财报
2020-09-22 08:48
Financial Performance - Revenue for the six months ended June 30, 2020, was HK$281,872,000, a decrease of 29.8% compared to HK$401,437,000 for the same period in 2019[6] - Gross profit for the same period was HK$67,157,000, down 30.5% from HK$96,645,000 in 2019[6] - The company reported a loss before income tax of HK$1,851,000, compared to a profit of HK$17,889,000 in the previous year, marking a decline of 110.4%[6] - Basic and diluted loss per share was HK$0.24, a decrease of 116.3% from earnings of HK$1.47 per share in 2019[6] - The Group recorded a loss attributable to owners of HK$2.4 million for the first half of 2020, compared to a profit of HK$14.7 million for the same period in 2019[63] - The Group reported a loss of HK$2.4 million for the six months ended June 30, 2020, compared to a profit of HK$14.7 million for the same period in 2019, driven by declined sales and additional COVID-19 related costs[112] Assets and Liabilities - Net assets decreased by 2.8% to HK$342,523,000 as of June 30, 2020, from HK$352,491,000 at the end of 2019[7] - Total assets increased slightly by 0.9% to HK$519,971,000 from HK$515,235,000[7] - As of June 30, 2020, the Group had net current assets of HK$275.9 million, slightly down from HK$282.3 million as of December 31, 2019[113] - Cash and bank balances increased from HK$103.9 million as of December 31, 2019, to HK$142.4 million as of June 30, 2020[113] - The current ratio decreased from 3.0 times as of December 31, 2019, to 2.8 times as of June 30, 2020[113] - As of June 30, 2020, the Group had bank borrowings of HK$10.1 million, down from HK$11.9 million as of December 31, 2019[121] Market and Sales - Sales of electro-mechanical products accounted for 43.8% of total sales in 2020, up from 40.9% in 2019[12] - The company plans to focus on market expansion in Europe and North America, which represented 79.0% and 74.6% of sales respectively in 2020[12] - The percentage of sales to the European market increased from 74.6% in the first half of 2019 to 79.0% in 2020, while North America's share decreased due to trade tensions[79] - The Group's sales in North America continued to be affected by tense US-China relations, but there is a growing demand for "new era" products with higher value and profit contribution, such as smart chargers and smart vending systems[170] COVID-19 Impact - The Group's revenue decreased by approximately 30% in the first half of 2020 compared to the first half of 2019 due to the impact of COVID-19[26] - The decline in revenue was primarily due to reduced customer demand caused by the rapid global spread of COVID-19, adverse operating conditions, and disruptions in production facilities and supply chains[70] - Production facilities in Nansha, Guangzhou were halted for nearly two months from January 22, 2020, to mid-March 2020[25] - The ongoing COVID-19 pandemic continues to create a highly uncertain environment for the global economy, including Hong Kong[194] - The COVID-19 pandemic has increased demand for medical and healthcare products, automation, self-service solutions, and smart charging applications, prompting the Group to allocate more resources to sales and marketing[169] Cost Management - The Group has implemented various cost control measures and closely monitored discretionary spending to navigate the challenging business environment[64] - Selling and distribution expenses decreased by 22.8% from HK$7.0 million in the first half of 2019 to HK$5.4 million in 2020, primarily due to travel restrictions during the pandemic[96] - Administrative expenses decreased by 13.4% from HK$68.2 million in the first half of 2019 to HK$59.1 million in 2020, driven by cost control measures[97] - Finance expenses, net dropped by 56.8% from HK$6.2 million in the first half of 2019 to HK$2.7 million in 2020, attributed to lower interest expenses and bank charges[99] Dividends - The company maintained an interim dividend of HK$0.80 per share, unchanged from the previous year[6] - The Board declared an interim dividend of HK$0.8 cents per ordinary share for the six months ended June 30, 2020, consistent with the previous year[196] - A final dividend of HK$0.8 cents per ordinary share for the year ended December 31, 2019, amounting to HK$8 million, was approved by shareholders and paid on July 3, 2020[197] Business Development - The company is exploring new product development and technology enhancements to improve future performance[6] - Business development efforts have continued, including the restructuring of the European team to enhance management between European and Hong Kong operations[42] - The Group has laid solid foundations in the smart charger industry, smart vending systems, and power supplies for the medical and healthcare industries[47] - The management is preparing to regain revenue and profit growth in the near future[41] Employee and Operations - The Group's total employee benefit expenses for the six months ended June 30, 2020, amounted to HK$72.5 million, a decrease from HK$95.6 million for the same period in 2019[161] - The Group's employee count decreased to approximately 1,500 as of June 30, 2020, from approximately 1,700 as of December 31, 2019[160] - The Group has implemented work-from-home policies successfully, leading to cost-cutting ideas and streamlined procedures[40] - Hygiene measures and administrative rules were developed promptly to protect employees and visitors, with no reported COVID-19 infections among staff[38]
致丰工业电子(01710) - 2019 - 年度财报
2020-04-22 08:37
Financial Performance - Revenue for the year ended December 31, 2019, was HK$808,599,000, a decrease of 8.7% compared to HK$885,971,000 in 2018[25]. - Gross profit for 2019 was HK$191,053,000, down 12.7% from HK$218,733,000 in 2018[25]. - Profit before income tax decreased by 51.0% to HK$24,311,000 in 2019 from HK$49,639,000 in 2018[25]. - Profit for the year was HK$22,357,000, representing a 47.2% decline compared to HK$42,378,000 in 2018[25]. - Basic earnings per share dropped to 2.24 HK cents in 2019, down 47.2% from 4.24 HK cents in 2018[25]. - The final dividend per share was reduced to 0.80 HK cents in 2019 from 1.80 HK cents in 2018, marking a 55.6% decrease[25]. - The gross profit margin for 2019 was reported at 23.7%[34]. - The net profit margin for 2019 was 2.8%[34]. - Revenue for the year ended December 31, 2019, decreased by 8.7% to HK$808.6 million compared to the same period in 2018[116]. - Profit attributable to owners of the Company recorded a 47.2% decrease to HK$22.4 million for the year[116]. Market and Operational Challenges - The company faced significant challenges due to international relations and macroeconomic factors, leading to a notable drop in sales demand, particularly from the US market[39]. - The company experienced strategic delays and cancellations of projects, particularly in the European market, impacting overall sales performance[39]. - The recent coronavirus outbreak has introduced uncertainties in the global economy, affecting the EMS industry and leading to a temporary decrease in production at the Group's facilities in Guangzhou, China[51]. - The slowdown in revenue was attributed to reduced sales orders from Europe and the US due to trade frictions and a deteriorating global economic environment[129]. - The Group's production facilities in the PRC experienced a temporary decrease in production due to COVID-19 related travel restrictions and extended public holidays[122]. Strategic Initiatives and Future Plans - The company aims to capture global demand for innovative products in the new smart economy[4]. - The Group plans to implement an "Internationalisation" strategy to enhance production flexibility in regions such as Europe and Southeast Asia, potentially eliminating extra tariffs on imports to the US[42]. - An assembly factory is being established in Waterford, Ireland, along with a larger-scale plant in Rayong, Thailand, with a strong focus on cost controls, particularly in material and labor costs[42]. - The Group anticipates significant growth opportunities from the demand for electronic devices supporting 5G ecosystems, such as smart chargers and smart electric vehicles[47]. - The Group plans to focus on improving productivity and cost efficiency while seeking expansion opportunities despite a deteriorating macroeconomic environment[195]. - The Group will continue to invest in sales and marketing to explore new business opportunities despite adverse economic conditions[195]. Corporate Governance and Management - The Company complied with all code provisions in the CG Code during the year ended 31 December 2019[199]. - The Board conducts at least four regular Board meetings in a year to ensure effective governance[200]. - The Board is responsible for formulating strategic objectives and overseeing significant operational and financial matters, including mergers and acquisitions[199]. - Comprehensive information is provided to Directors in a timely manner to facilitate discussion and decision making at Board meetings[200]. - The Company is committed to ensuring a quality board and transparency to shareholders[199]. - The management team is committed to enhancing corporate governance and financial oversight within the Group[106]. Employee and Social Responsibility - The Group recognizes employees as valuable assets and regularly reviews staff benefits for improvement[176]. - The Group is committed to minimizing environmental impacts from its operational activities[176]. - The Group complies with all relevant laws and regulations in Hong Kong and applicable PRC labor laws during FY2019[176]. - Trio Industrial Electronics Group Limited is committed to being socially and environmentally responsible to all stakeholders[4].
致丰工业电子(01710) - 2019 - 中期财报
2019-09-24 08:37
Revenue and Profitability - Revenue for the six months ended June 30, 2019, was HK$401,437,000, a slight decrease of 0.2% compared to HK$402,200,000 in the same period of 2018[5] - Gross profit for the same period was HK$96,645,000, down 1.7% from HK$98,308,000 year-on-year[5] - Profit before income tax increased by 21.8% to HK$17,889,000, compared to HK$14,693,000 in the previous year[5] - Profit for the period rose by 41.2% to HK$14,704,000, up from HK$10,415,000 in the prior year[5] - Earnings per share increased by 41.3% to 1.47 HK cents, compared to 1.04 HK cents in the same period last year[5] - The Group's profit for the six months ended June 30, 2019, amounted to HK$14.7 million, representing an increase of 41.2% compared to HK$10.4 million for the same period in 2018[60] - The net profit margin improved from 2.6% for the six months ended June 30, 2018, to 3.7% for the same period in 2019[60] - Profit from operations increased to HK$24,135,000, representing a growth of 20.88% from HK$19,969,000 in the previous year[113] Assets and Liabilities - Total assets decreased by 6.0% to HK$539,140,000 from HK$573,573,000 as of December 31, 2018[6] - Total liabilities decreased by 14.9% to HK$188,714,000 from HK$221,678,000 as of December 31, 2018[6] - As of June 30, 2019, the Group had net current assets of HK$289.3 million, compared to HK$297.6 million as of December 31, 2018[61] - Cash and bank balances (including restricted bank deposits) were HK$124.7 million as of June 30, 2019, down from HK$202.7 million as of December 31, 2018[61] - The Group's current ratio remained stable at 2.7 times as of June 30, 2019, compared to 2.4 times as of December 31, 2018[61] - The gearing ratio was not applicable as of June 30, 2019, due to sufficient working capital from the net proceeds received from the listing[61] - As of June 30, 2019, the Group had bank borrowings of HK$34.9 million, an increase from HK$31.9 million as of December 31, 2018[66] Market Conditions and Business Outlook - The Group experienced a slight slowdown in sales due to international tensions and macroeconomic challenges, particularly the Sino-US trade disputes[23] - Business sentiment for the second half of 2019 is expected to remain prudent, with customers in Europe reducing purchase orders or delaying projects[23] - Revenue experienced a slight decline due to geopolitical tensions and economic uncertainties, particularly from the ongoing US-China trade disputes and Brexit[36] - Despite challenges, the Group sees opportunities in the "New Era" industry and plans to invest in innovation and talent to sustain growth and create long-term shareholder value[36] - The Group's management remains cautiously optimistic about future prospects despite various unfavorable conditions[36] Operational Efficiency and Cost Management - Profit margins improved due to decreased operating costs from the depreciation of the Renminbi against the Hong Kong dollar and lower raw material prices[23] - The Group's operating costs decreased due to the depreciation of RMB and reduced material prices from stabilized supplies of certain components[36] - Administrative expenses decreased by 5.1% from HK$71.9 million for the first half of 2018 to HK$68.2 million for the same period in 2019[60] - Other operating expenses, net dropped by 69.1% from HK$2.3 million for the six months ended June 30, 2018, to HK$0.7 million for the same period in 2019[60] Investments and Expansion - A new production facility is under construction in Nansha, Guangzhou, expected to be completed by mid-2020, which will enhance production capacity to meet existing and new product demands[32] - The Group's strategy includes expanding its overseas business portfolio and diversifying products and regions to enhance recurrent income bases[36] - The Group is expanding its operations in the ATE business segment despite uncertainties from Sino-US trade disputes and slower economic growth in China[90] - The new production base construction began in Q2 2019, expected to enhance production efficiency and capacity for high-value and heavy-duty product series[101] Financial Management and Risk - The Group's liquidity is supported by maintaining sufficient bank balances and committed credit lines to ensure operational continuity[74] - The Group's credit risk is considered low for time deposits and cash held at banks due to high credit ratings of counterparties[69] - The Group's financial risk management program focuses on minimizing potential adverse effects on financial performance due to market unpredictability[156] - The Group's liquidity risk is mitigated through the availability of financing from its own cash resources and banking facilities[158] Employee and Talent Management - The total number of employees remained approximately 1,800 as of June 30, 2019, consistent with the number as of December 31, 2018[80] - The Group is actively recruiting talents at the strategic talent center in Guangzhou, currently employing ten staff members[94] - The Group granted share options to 15 employees for the subscription of 9,100,000 ordinary shares as of June 30, 2019, down from 9,700,000 shares granted to 16 employees as of December 31, 2018[81] Dividends - The Group declared an interim dividend of HK0.8 cents per ordinary share for the six months ended June 30, 2019, compared to nil for the same period in 2018[106] - A final dividend of HK1.8 cents per ordinary share for the year ended December 31, 2018, was approved, amounting to HK$18 million[106]