Core Viewpoint - Dechang Motor Holdings (00179) has seen its stock price rise over 4%, reaching a new high of HKD 44.58, with a year-to-date increase of 320% [1] Group 1: Stock Performance - As of the latest report, the stock is up 4.48%, trading at HKD 44.3, with a trading volume of HKD 554 million [1] - The stock price has increased by 320% since the beginning of the year [1] Group 2: Business Developments - Citigroup noted that Dechang Motor's first fiscal quarter sales declined by 2%, but strong backlog orders are expected to lead to sales recovery in the second and third quarters [1] - The company has established two equity joint ventures with Shanghai Mechanical and Electrical (600835) to enhance its component engineering capabilities in new business areas [1] Group 3: Market Opportunities - The company is experiencing positive momentum in the humanoid robot market, which is anticipated to create larger business opportunities [1] - In July, Dechang Motor announced that its wholly-owned subsidiary, Dechang Automotive Electric, formed two joint ventures with Shanghai Mechanical and Electrical to design and manufacture humanoid robot components in China [1] - The company is also involved in AI server thermal management, including cooling pumps and other thermal management system components, with a new DCP series liquid cooling pump set to launch in May 2025 [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: Johnson Electric Holdings Limited 德昌電機控股有限公司* 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00179 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 1,760,000,000 | HKD | | 0.05 | HKD | | 88,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 1,760,000,000 | HKD | | 0.0 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: Johnson Electric Holdings Limited 德昌電機控股有限公司* 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00179 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 1,760,000,000 | HKD | | 0.05 HKD | | | 88,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | ...

Investment Rating - The investment rating for the company is "Accumulate" [6][10]. Core Views - The report highlights that the company, 德昌电机控股, has formed a joint venture with 上海机电 to enter the humanoid robot joint market, leveraging decades of collaboration to enhance efficiency in this sector [2][10]. - The company is expected to face revenue pressure in the first quarter of the 2025-2026 fiscal year, with a reported revenue decline of 2% year-on-year to $915 million [10]. Financial Summary - Total revenue projections are as follows: - 2025A: $3,815 million - 2026E: $3,751 million - 2027E: $4,096 million - 2028E: $4,475 million - The revenue growth rates are projected at 5%, -4%, 3%, 9%, and 9% respectively [4]. - Gross profit and net profit forecasts are: - Gross profit for 2025A: $851 million, with a projected increase to $1,029 million by 2028E - Net profit for 2025A: $263 million, expected to grow to $355 million by 2028E, reflecting growth rates of 15%, 7%, 15%, and 10% respectively [4][10]. - The company’s PE ratio is projected to be 5.57 for 2025A, increasing to 8.44 by 2028E, while the PB ratio is expected to rise from 0.51 to 0.83 over the same period [4]. Market Data - The current stock price is HKD 25.40, with a 52-week price range of HKD 10.00 to HKD 26.00 [6][7]. - The current market capitalization is approximately HKD 23,734 million [7]. Investment Recommendation - The report maintains a positive outlook on the long-term development prospects of 德昌电机控股 in the humanoid robot components manufacturing sector, with a target price set at HKD 30.61 based on a 13x PE for the fiscal year 2025 [10].

Sales Performance - Group sales declined by 2%[7] - APG's sales decreased mainly due to an unfavorable customer mix in China and competitive pricing pressures[7] - IPG's sales improved slightly amid mixed regional market and customer dynamics[7] - Asia-Pacific IPG sales declined due to keen price competition and customer program delays[19, 22] - EMEA IPG sales were boosted by new launches and replenishment orders[20] - Americas IPG sales faced softer demand in some product segments, partially offset by increased sales for high-precision piezo motors[20] Automotive Products Group (APG) - APG's sales were negatively impacted by reduced demand for non-domestic car brands in China, partially offset by accelerating sales to domestic car brands[11] - APG faced market-driven pricing adjustments[11] - APG experienced phasing out of certain programs[11] Industry Products Group (IPG) - IPG and its customers faced keen price competition and certain customers delayed programs[22] Joint Ventures - Joint venture agreements signed with Shanghai Mechanical & Electrical Industrial Co, Ltd (SMEIC) on 16 July, 2025[27] - Johnson Electric supplies components to the Shenzhen joint venture, including motors and planetary reducers[27] Exchange Rates - CAD weakened against the USD by 1.2%[33] - CNY weakened against the USD by 1.2%[33] - EUR strengthened against the USD by 5.2%[33]

Financial Performance - Total revenue for Johnson Electric Holdings Limited reached $3.64 billion, with a net profit of $263 million[5]. - Group revenue totaled $3,648 million, down 4% from the previous year, with a gross profit of $843 million, representing a gross margin of 23.1%[38]. - Adjusted EBITDA was $344 million, accounting for 9.4% of revenue, an increase from 9.0% in the previous year[38]. - Net profit attributable to shareholders increased by 15% to $263 million, with basic net profit adjusted for non-cash foreign exchange changes at $274 million, up 9%[43]. - The company's revenue for the fiscal year 24/25 decreased by $166.6 million or 4% to $3,647.6 million compared to $3,814.2 million in the fiscal year 23/24[104]. - The automotive product segment's revenue was $3,072.4 million, accounting for 84% of total revenue, which represents a decrease of $137.8 million or 4% from the previous year[104]. - The industrial product segment's revenue was $575.2 million, making up 16% of total revenue, reflecting a decline of $28.8 million or 5% compared to the prior fiscal year[104]. - The group's operating profit for the fiscal year 24/25 was $305.9 million, an increase of $20.6 million or 7.2% compared to the previous fiscal year[119]. - Shareholders' profit for the fiscal year 24/25 was $262.8 million, up by $33.6 million or 15% from $229.2 million in the previous fiscal year[120]. - The adjusted net profit for the fiscal year 24/25 was $274.0 million, reflecting an increase from $252.0 million in the previous fiscal year[121]. Revenue Breakdown - Revenue breakdown shows 84% from automotive products and 16% from industrial products[6]. - Geographical revenue distribution: Americas 32%, Asia-Pacific 37%, EMEA 31%[8][13]. - The automotive products segment generated revenue of $3,072 million, a decrease of 3% year-over-year, primarily due to economic downturns and declining consumer confidence[36]. - The industrial products segment faced challenges with revenue of $575 million, down 5% year-over-year, due to weak demand in post-pandemic conditions[40]. - The automotive products segment is focusing on innovative technologies for electrification and safety improvements while offering competitive value propositions[37]. Innovation and Technology - The company emphasizes innovation and technology leadership, investing significantly in automation and digital transformation[25]. - Johnson Electric is committed to providing innovative drive solutions that enhance the quality of life for end users[12]. - The new Integrated Thermal Management System (ITMS) reduces weight by 25% and assembly time by 20%, while extending the range by 15%-20% in cold weather conditions[58]. - The advanced DC pump for cold plate liquid cooling reduces energy costs by 10% and extends the lifespan of data centers by up to five years[60]. - The company is focusing on developing products that reduce greenhouse gas emissions and energy consumption in the automotive sector[50]. - The company's innovative technologies help customers achieve success in reducing consumption and waste, improving energy efficiency, and lowering carbon emissions[54]. - The company is committed to addressing climate change by enhancing the performance of products in new energy vehicles[52]. - The company is integrating advanced digital technologies, including artificial intelligence, to lower costs and improve efficiency[47]. Sustainability and ESG - The company achieved an 81% reduction in Scope 2 carbon emissions compared to the 22/23 fiscal year baseline, exceeding the recent target of a 65% reduction[84]. - Renewable electricity usage increased to 83%, up from 53% the previous year, with renewable energy usage rising from 44% to 69%[84]. - The MSCI ESG rating improved from "A" to "AA," placing the company in the top 7% of the automotive parts industry[90]. - The company was included in the S&P Global Sustainability Yearbook (China) 2024, ranking in the top 15 among peers in the automotive parts category[91]. - The company has maintained a "B" score in the CDP climate change assessment and improved its water security score by two levels to "B"[89]. - The company has been a constituent of the Hang Seng Sustainable Development Corporate Benchmark Index since 2018 and became part of the FTSE4Good Index Series in June 2024[92]. - The company aims to achieve 100% renewable energy usage by the fiscal year 25/26, demonstrating its commitment to sustainability[99]. Market Challenges and Risks - The geopolitical environment and global trade uncertainties continue to pose significant challenges for the company, with potential impacts on supply chains and international relations[45]. - The products affected by the increased import tariffs currently account for a mid-single-digit percentage of the group's total revenue[47]. - The company actively manages risks through proactive supervision and flexible business processes, with a risk management committee analyzing existing and potential risks quarterly[178]. - Key risks identified include strategic, operational, financial, and sustainability risks, with specific concerns around supply chain, cybersecurity, and global economic conditions[180]. - The company faces risks in emerging markets due to political, regulatory, social, and economic fluctuations, but overcoming these challenges can yield significant returns and strengthen global operations[192]. Employee Engagement and Development - Over 1,700 students graduated from the company's technology academy, and more than 400 children participated in the Little Engineers program[85]. - The company was recognized as one of the "2024 Asia's Best Employers" by HR Asia, reflecting its commitment to employee engagement and development[85]. - The company focuses on attracting and retaining talent, addressing workforce stability amid demographic changes[199]. - The company is retraining employees to maintain productivity and adaptability in response to technological trends and regulatory changes[191]. Financial Health and Capital Management - Cash reserves stood at $791 million as of March 31, 2025, with total debt to capital ratio at 12%[39]. - The company's cash position as of March 31, 2025, was $790.6 million, down from $809.9 million a year earlier[103]. - Total debt decreased significantly from $560.8 million to $359.3 million, resulting in a net cash position of $431.3 million[103]. - The company's market capitalization increased to $1,881.2 million from $1,294.6 million year-over-year[103]. - The debt-to-capital ratio improved to 12% from 18% in the previous year, indicating a stronger balance sheet[103]. - The group maintained investment-grade ratings with a stable outlook from both Moody's and S&P as of March 31, 2025[143]. Strategic Initiatives - Strategic acquisitions have been made over the past two decades to enhance technology and strengthen market position[29]. - The company aims to diversify its customer and product portfolio through internal development, joint ventures, and targeted acquisitions to mitigate adverse market changes[183]. - The company emphasizes the importance of optimizing production capacity and maintaining a flexible global operational footprint to respond to changing customer demands and regulatory factors[184]. - The company is focused on innovation and intellectual property development to improve product cost and production efficiency, ensuring competitiveness in the market[191]. - The company implements strategic in-sourcing of the supply chain and dual sourcing to stabilize supply and alleviate cost pressures[197].

Financial Performance - Johnson Electric's total sales revenue reached US$3.6 billion[23] - Net income amounted to US$263 million[23] - Gross profit was US$843.3 million with a gross margin of 23.1%[73] - Adjusted net profit reached US$274 million[73] - Capital expenditure accounted for 5.4% of sales[73] Automotive Products Group (APG) - APG sales were affected by a 4% decrease in overall sales[82] due to reduced global light vehicle production and unfavorable customer mix[82] - The NEV market is expected to grow at a CAGR of 13% from 2024-2031[40] Industry Products Group (IPG) - IPG faced tough markets in EMEA and the Americas[82] - Increased sales in Asia-Pacific mitigated declines in EMEA and Americas due to restocking and new business[90] Sustainability - The company achieved an 81% reduction in Scope 2 CO2 emissions[66] - Over 90% of employees received ethics training[66] - 80% of suppliers by spending were assessed on ESG performance[66] Outlook - Group sales in the first weeks of FY25/26 were a mid-single digit percentage lower compared to the previous year[120]

Financial Performance - The group's revenue for the year ended March 31, 2025, was $3,648 million, a decrease of 4% compared to the previous year[3]. - Gross profit was $843 million, representing 23.1% of revenue, up from 22.3% last year[3]. - Adjusted EBITDA was $344 million, or 9.4% of revenue, compared to $343 million, or 9.0% last year[3]. - Net profit attributable to shareholders increased by 15% to $263 million[9]. - The automotive products segment generated revenue of $3,072 million, down 3% when excluding foreign exchange effects[5]. - The industrial and commercial products segment's revenue was $575 million, a decrease of 5% compared to last year[7]. - The company's revenue for the fiscal year 24/25 decreased by $166.6 million or 4% to $3,647.6 million compared to $3,814.2 million in the fiscal year 23/24[17]. - The automotive product segment accounted for 84% of total revenue, with reported sales of $3,072.4 million, down 4% from $3,210.2 million[17]. - The industrial product segment represented 16% of total revenue, with reported sales of $575.2 million, also down 5% from $604.0 million[17]. - The gross profit for the fiscal year 24/25 was $843.3 million, resulting in a gross margin of 23.1%, an increase from 22.3% in the previous year[16]. - Adjusted EBITA for the fiscal year 24/25 was $344.3 million, representing an adjusted EBITA margin of 9.4%, up from 9.0% in the previous year[16]. - The company reported a net profit attributable to shareholders of $262.8 million, an increase from $229.2 million in the previous year[16]. - The total debt decreased significantly from $560.8 million to $359.3 million, resulting in a debt-to-capital ratio of 12% compared to 18% the previous year[16]. - The company maintained a strong cash position with $790.6 million in cash as of March 31, 2025, down slightly from $809.9 million the previous year[16]. - The market capitalization increased to $1,881.2 million from $1,294.6 million, reflecting a positive market response[16]. Dividends and Shareholder Returns - The board proposed a final dividend of 44 HK cents (5.64 US cents) per share, maintaining a cautious approach due to global trade uncertainties[10]. - The company paid dividends totaling $72.2 million in the fiscal year 24/25, up from $52.5 million in the fiscal year 23/24[47]. - The company proposed a final dividend of 44 HK cents per share, amounting to $52.1 million, to be paid in September 2025[67]. Debt and Cash Management - The company maintained a cash reserve of $791 million, with a total debt-to-capital ratio of 12%[9]. - The company repaid a net amount of $200.2 million in loans during the fiscal year 24/25, compared to borrowing a net amount of $87.7 million in the fiscal year 23/24[50]. - The company has $951.7 million in available and undrawn credit facilities as of March 31, 2025[56]. - The total debt-to-capital ratio decreased to 12% from 18% as of March 31, 2024, due to the reduction in loans[68]. - The total debt-to-adjusted EBITDA ratio decreased to 0.8 times from 1.1 times as of March 31, 2024[68]. - The net cash position increased by $182.2 million to $431.3 million as of March 31, 2025, compared to $249.1 million as of March 31, 2024[57]. Operational Performance - The company is focusing on innovative technologies in the automotive sector to enhance electrification and safety[6]. - The company is actively adjusting pricing strategies to mitigate short-term impacts of tariffs while exploring long-term production relocation options[13]. - The company is focusing on cost leadership and standardization in its industrial product segment to address competitive pressures[26]. - The company is focusing on automation and artificial intelligence to transform production and create smart factories[96]. - The company aims to strengthen regional production capabilities to reduce delivery times and reliance on global supply chains[102]. - The company is focusing on local suppliers to simplify logistics and decrease global dependency[102]. Sustainability and Environmental Initiatives - The company is committed to reducing carbon emissions and increasing the use of renewable energy[105]. - The company is implementing measures to monitor and minimize waste generation, water consumption, and emissions[105]. - The company has quantified the product carbon footprint (PCF) for 70 products and implemented strategies to reduce carbon-intensive materials and use renewable resources[116]. - The company aims to develop all new products with optimized lifecycle assessment (LCA) and environmental product declarations[116]. - The company has set greenhouse gas absolute reduction targets, aiming for a 59% reduction in Scope 1, 65% in Scope 2, and 35% in Scope 3 emissions by the 34/35 fiscal year, using the 22/23 fiscal year as a baseline[134]. - The company has committed to using 100% renewable energy in all operational sites by 2025 and aims to reduce energy consumption intensity by 15% by 2030 compared to the 19/20 fiscal year[134]. - The company has established a comprehensive environmental, health, and safety (EH&S) management system, with all production sites certified under ISO 14001 and major sites under ISO 50001, covering 53% of total energy consumption[123]. - The company has provided over 1,600 hours of EH&S training in the 24/25 fiscal year, supporting the adoption of clean technologies and improving environmental performance[123]. Employee Engagement and Development - The company emphasizes the importance of employee well-being and has implemented health and safety measures that exceed requirements[112]. - The company conducts biannual employee engagement assessments to implement targeted follow-up actions[112]. - The company invests in employee development through various training programs, enhancing overall organizational efficiency[156]. - The company aims to increase the proportion of women in senior management from 13% to 15% by the end of the 25/26 fiscal year[161]. - The company has implemented pollution control technologies and maintains emissions below permitted levels, with VOC emissions at 46 tons[141]. Governance and Compliance - The board consists of independent non-executive directors with diverse experience, ensuring high levels of objective discussion and overall engagement in decision-making[196]. - The board meets quarterly to discuss business performance, corporate strategy, risk management, and significant transactions, ensuring accountability to shareholders[197]. - The company is committed to maintaining compliance with relevant regulations and internal control systems[198]. - The company recognizes the importance of independent directors in understanding and engaging with its operations and management[196]. - The internal audit department conducted visits to 18 entities to test anti-corruption controls for appropriateness and compliance[183]. Risk Management - The company has established a risk management committee led by the CEO to analyze and monitor existing and potential risks on a quarterly basis[85]. - The company actively manages commodity price risks through appropriate clauses in customer contracts and price adjustments, although there may be a time lag in passing on increased costs to customers[82]. - The company has signed currency swaps between USD and RMB to hedge related operational costs[75].

Financial Performance - Group revenue for the first half of the fiscal year 2024 was $1,854 million, a decrease of 4% compared to the same period last year[4]. - Gross profit was $438 million, representing 23.6% of revenue, up from 22.2% in the previous year[4]. - Adjusted EBITDA was $177 million, or 9.5% of revenue, compared to 9.3% in the previous year[4]. - Net profit attributable to shareholders increased by 8% to $130 million, or $0.1392 per share[4]. - Basic net profit rose by 3% to $133 million, excluding unrealized gains or losses related to exchange rate fluctuations[4]. - Revenue for the first half of the 24/25 fiscal year decreased by $82.9 million or 4% to $1,854.2 million, compared to $1,937.1 million in the same period of the previous fiscal year[23]. - Shareholders' profit for the first half of fiscal year 24/25 was $129.6 million, an increase of 9.5% from $120.1 million in the same period of the previous year[41]. - The company reported a revenue of $1,854,168 thousand for the six months ended September 30, 2024, a decrease of 4.3% compared to $1,937,056 thousand for the same period in 2023[154]. - Gross profit for the same period was $438,051 thousand, reflecting an increase of 1.1% from $429,579 thousand year-over-year[131]. - The operating profit was $157,854 thousand, up from $151,459 thousand, indicating a growth of 4.3%[131]. Segment Performance - The automotive segment accounted for 84% of total revenue, with a 3% decline in revenue at constant exchange rates, aligning with the overall decline in global light vehicle production[7]. - The commercial products segment represented 16% of total revenue, with a 9% decline in revenue at constant exchange rates[11]. - The automotive product segment's revenue decreased by 3% to $1,564.4 million, representing 84% of total revenue[29]. - The industrial products segment's revenue decreased by 9% in the first half of fiscal year 24/25, accounting for 16% of total group revenue[37]. - For the first half of the fiscal year 24/25, the automotive product segment's revenue decreased by 3% overall, with specific regional declines of 1% in Asia-Pacific, 3% in Europe, and 5% in the Americas[34]. Cash Flow and Debt Management - Free cash flow from operating activities was $144 million, down from $208 million in the previous year[4]. - Cash balance as of September 30, 2024, was $688 million, down from $809.9 million in March 2024[21]. - The company generated free cash flow of $144.4 million in the first half of the fiscal year 24/25, a decrease of 63.6 million compared to $208.0 million in the first half of the fiscal year 23/24[54]. - The company repaid net debt of $203.8 million in the first half of the fiscal year 24/25, compared to $103.3 million in the same period last year[56]. - Total debt decreased by $204.3 million to $356.5 million as of September 30, 2024[65]. - The total debt-to-capital ratio improved to 12% as of September 30, 2024, down from 18% in March 2024[21]. - The company has $947.8 million in available and undrawn credit facilities as of September 30, 2024[63]. Dividends and Shareholder Returns - The company declared an interim dividend of HK$0.17 per share, equivalent to $0.0218 per share, to be paid on January 8, 2025[15]. - The company paid dividends totaling $52.1 million in the first half of the fiscal year 24/25, compared to $37.4 million in the same period last year[56]. - The company announced an interim dividend of HKD 0.17 per share, consistent with the previous year[122]. Inventory and Working Capital - Inventory increased by $37.5 million to $589.0 million as of September 30, 2024, to meet fluctuating customer demand and delivery times[51]. - The total operating working capital increased from $669.3 million as of March 31, 2024, to $699.6 million as of September 30, 2024[51]. - The average days inventory increased from 68 days to 75 days, reflecting adjustments to inventory levels in response to demand trends[51]. Foreign Exchange and Commodity Risks - Foreign exchange fluctuations contributed an increase of $15.8 million to adjusted net profit, primarily due to changes in the Euro and Renminbi during the period compared to the first half of the fiscal year 23/24[46]. - The company faces commodity price risk mainly from fluctuations in copper, steel, silver, and aluminum prices, which are managed through appropriate contract terms and cash flow hedging[94]. - The company hedges foreign exchange risks through forward contracts and structured contracts, with contracts maturing between 1 to 48 months[80]. - The company has fixed-price procurement contracts for steel with different maturities ranging from 1 to 39 months to mitigate price risks[94]. Strategic Outlook - The company remains cautiously optimistic about sales recovery in the second half of the fiscal year, driven by planned new product launches and inventory replenishment[16]. - The company will continue to focus on core strategies, including innovative technology solutions and optimizing global manufacturing to enhance resilience against external shocks[18]. - The company is focusing resources on segments with the most promising long-term growth potential, despite some markets still facing declines[37]. - The company has plans for market expansion and new product development, although specific details were not disclosed in the provided content[140]. - The company’s strategy includes potential acquisitions and partnerships to enhance market presence and product offerings, as indicated in the overall financial strategy[140]. Shareholder Structure and Equity - As of September 30, 2024, the major shareholders include Wang Gu Yizhen with 532,889,010 shares (57.02%), Deltec Bank & Trust Limited with 221,760,000 shares (23.73%), and HSBC International Trustee Limited with 217,070,710 shares (23.23%) [110]. - The company's equity attributable to shareholders increased to $2,632,688 thousand as of September 30, 2024, up from $2,596,667 thousand at the end of March 2024[138]. - The total comprehensive income attributable to shareholders was $136,398 thousand, compared to $38,978 thousand in the prior period, indicating a substantial growth[138]. Financial Assets and Liabilities - The total accounts receivable, net of impairment, was $670,802 thousand as of September 30, 2024, compared to $654,155 thousand as of March 31, 2024[199]. - The net amount of financial assets and liabilities as of September 30, 2024, was $134,111 thousand, down from $163,192 thousand on March 31, 2024, reflecting a decrease of approximately 17.8%[170]. - The company had outstanding contracts for copper, silver, aluminum, and iron ore with a total estimated future cash flow of $20.5 million as of September 30, 2024[173].

Financial Performance - The group's revenue for the six months ended September 30, 2024, was $1,854 million, a decrease of 4% compared to the same period last year[3]. - Gross profit was $438 million, representing a gross margin of 23.6%, up from 22.2% in the previous year[3]. - Adjusted EBITDA was $177 million, or 9.5% of revenue, compared to 9.3% in the previous year[3]. - Net profit attributable to shareholders increased by 8% to $130 million, or $0.1392 per share[3]. - Free cash flow from operations was $144 million, down from $208 million in the previous year[3]. - Revenue for the first half of the fiscal year 24/25 decreased by $82.9 million or 4% to $1,854.2 million compared to $1,937.1 million in the first half of the fiscal year 23/24[22]. - Shareholders' profit for the first half of fiscal year 24/25 was $129.6 million, an increase of 9.5 million from $120.1 million in the same period of fiscal year 23/24[36]. - The gross profit margin for the first half of fiscal year 24/25 was 23.6%, compared to 22.2% in the previous year[34]. - Adjusted net profit margin for the first half of fiscal year 24/25 was 7.2%, up from 6.7% in the previous year[37]. - The company reported a profit of $131,191 thousand for the six months ended September 30, 2024, an increase of 7.1% compared to $121,826 thousand for the same period in 2023[130]. Segment Performance - The automotive segment accounted for 84% of total revenue, with a 3% decline in revenue at constant exchange rates, aligning with the overall decline in global light vehicle production[6]. - The industrial products segment represented 16% of total revenue, with a 9% decline in revenue at constant exchange rates, reflecting ongoing operational challenges[10]. - Automotive product segment revenue decreased by 3% to $1,564.4 million, accounting for 84% of total group revenue[26]. - Industrial product segment revenue also declined by 9% to $289.8 million, representing 16% of total group revenue[22]. - For the first half of the fiscal year 24/25, the automotive product segment's revenue decreased by 3% overall, with specific declines of 1% in Asia-Pacific, 3% in Europe, and 5% in the Americas[29]. - The industrial products segment's revenue decreased by 9% in the first half of fiscal year 24/25, with a 5% increase in Asia-Pacific offsetting declines in Europe and the Americas[31]. Cash Flow and Debt Management - The total debt-to-capital ratio as of September 30, 2024, was 12%, with cash reserves of $688 million[3]. - Net cash as of September 30, 2024, was $331.2 million, an increase from $249.1 million on March 31, 2024[20]. - Total debt decreased to $356.5 million from $560.8 million, resulting in a debt-to-capital ratio of 12% compared to 18% previously[20]. - The group generated a free cash flow of $144.4 million in the first half of the fiscal year 24/25, down from $208.0 million in the same period of the fiscal year 23/24[49]. - The group reported a net cash flow decrease of $62.2 million for the period, compared to an increase of $31.5 million in the previous year[49]. - Total debt decreased to $356.5 million as of September 30, 2024, down from $560.8 million on March 31, 2024, representing a reduction of $204.3 million[61]. - The debt-to-capital ratio improved to 12% as of September 30, 2024, compared to 18% on March 31, 2024, indicating a stronger capital structure[68]. Dividends and Shareholder Returns - The company announced an interim dividend of HKD 0.17 per share, equivalent to USD 0.0218 per share[15]. - The company declared a final dividend of 44 HK cents per share, amounting to $52.1 million, compared to a final dividend of 34 HK cents per share, totaling $40.0 million for the previous fiscal year[68]. - The group paid dividends totaling $52.1 million in the first half of fiscal year 24/25, compared to $37.4 million in the same period of the previous year[51]. Market Outlook and Strategic Focus - The company remains cautiously optimistic about sales recovery in the second half of the fiscal year, driven by new product launches and inventory replenishment[16]. - Ongoing macroeconomic uncertainties and consumer confidence issues are highlighted as significant risks to sales outlook[18]. - The company will continue to focus on core strategies, including innovation in technology solutions and optimization of global manufacturing[18]. - The company is focusing resources on segments with the most promising long-term growth potential, despite some markets still facing declines[31]. Inventory and Receivables Management - Inventory increased to $589.0 million as of September 30, 2024, reflecting a strategy to meet fluctuating customer demand and delivery times[44]. - Accounts receivable increased to $788.9 million, indicating a focus on maintaining high-quality receivables[44]. - Days sales outstanding for accounts receivable increased to 86 days as of March 31, 2024, from 75 days as of September 30, 2024[44]. - The company is continuously evaluating demand trends and inventory data to optimize inventory levels[44]. Foreign Exchange and Commodity Management - The company reported a net gain of $15.8 million from foreign exchange fluctuations, primarily due to changes in the euro and renminbi[40]. - The company continues to manage commodity price risks through cash flow hedging contracts, with various expiration dates ranging from 1 to 39 months as of September 30, 2024[84]. - The company has hedged its production costs and operational expenses in various currencies, including the euro, Chinese yuan, and Mexican peso, to mitigate foreign exchange risks[183]. - The estimated future cash flow benefit from commodity and foreign exchange contracts is approximately $149 million as of September 30, 2024, down from $198 million as of March 31, 2024[199]. Shareholder Structure and Governance - As of September 30, 2024, the company has a significant shareholder, Wang Gu Yizhen, holding 532,889,010 shares, representing 57.03% of the total equity[99]. - Deltec Bank & Trust Limited holds 221,760,000 shares, accounting for 23.73% of the total equity[102]. - HSBC International Trustee Limited owns 217,070,710 shares, which is 23.23% of the total equity[102]. - The company remains committed to high corporate governance standards to safeguard and enhance stakeholder interests[91].