Revenue and Profit Performance - Revenue for the six months ended September 30, 2023, decreased by 3.7% to HKD 2,753,733 thousand compared to HKD 2,860,238 thousand in the same period last year[2] - Gross profit declined by 8.4% to HKD 720,488 thousand, with a gross margin of 26.2%, down from 27.5% in the previous year[2] - Operating profit dropped by 20.5% to HKD 272,858 thousand, with an operating profit margin of 9.9%, compared to 12.0% in 2022[2] - Net profit attributable to the company's owners decreased by 24.3% to HKD 205,202 thousand, with a net profit margin of 7.5%, down from 9.5%[2] - Basic and diluted earnings per share were HKD 14.9, a 24.3% decrease from HKD 19.7 in the same period last year[2] - Revenue for the first half of fiscal year 2024 reached HKD 2,753,733,000, a decrease of 3.7% year-over-year, with net profit attributable to owners at HKD 205,202,000, down 24.3% year-over-year[34] - Gross margin was 26.2%, a decrease of 1.3% year-over-year, while operating profit margin was 9.9%, down 2.1% year-over-year[34] - The company's attributable profit decreased to 205,202 thousand HKD in 2023 from 271,193 thousand HKD in 2022[25] - Basic earnings per share decreased to 14.9 HK cents in 2023 from 19.7 HK cents in 2022[25] Segment Performance - The Die Casting Machines segment contributed HKD 2,025.84 million in revenue, representing the largest share among the three main business segments[13] - The Injection Molding Machines segment generated HKD 677.63 million in revenue, while the CNC Machining Centers segment contributed HKD 85.24 million[13] - Segment performance showed a profit of HKD 241.58 million for Die Casting Machines and HKD 19.21 million for Injection Molding Machines, while CNC Machining Centers reported a loss of HKD 7.21 million[13] - Revenue from die-casting machines decreased to 1,996,628 thousand HKD in 2023 from 2,050,390 thousand HKD in 2022[15] - Revenue from injection molding machines increased to 677,626 thousand HKD in 2023 from 659,510 thousand HKD in 2022[15] - Revenue from CNC machining centers significantly dropped to 79,479 thousand HKD in 2023 from 150,338 thousand HKD in 2022[15] - Die-casting machine sales revenue was HKD 1,996,628,000, a decrease of 2.6% year-over-year, with sufficient orders on hand for the full fiscal year[35] - Injection molding machine segment revenue recovered to HKD 677,626,000, a 27.5% increase compared to the second half of fiscal year 2023 and a 2.7% year-over-year growth[37] - CNC machining center revenue decreased to HKD 79,479,000, a 47.1% year-over-year decline, but is expected to improve in the second half of the fiscal year[38] Financial Position and Cash Flow - Total assets increased by 1.4% to HKD 8,662,312 thousand as of September 30, 2023, compared to HKD 8,539,878 thousand as of March 31, 2023[2] - Cash and cash equivalents rose by 10.1% to HKD 666,635 thousand as of September 30, 2023, from HKD 605,365 thousand as of March 31, 2023[2] - Total borrowings increased by 8.0% to HKD 1,771,639 thousand as of September 30, 2023, compared to HKD 1,641,046 thousand as of March 31, 2023[2] - The company's equity attributable to owners decreased by 0.6% to HKD 3,831,204 thousand as of September 30, 2023, from HKD 3,855,716 thousand as of March 31, 2023[2] - Operating activities generated a net cash inflow of HKD 175.72 million, compared to a net cash outflow of HKD 83.36 million in the same period last year[8] - Net cash used in investing activities increased to HKD 268.65 million from HKD 249.65 million year-over-year[8] - Net cash from financing activities decreased significantly to HKD 177.87 million from HKD 425.77 million in the previous year[8] - The company's cash and cash equivalents increased by HKD 84.94 million, reaching HKD 666.64 million at the end of the period[8] - Total assets increased to 8,662,312 thousand HKD as of September 30, 2023, from 8,539,878 thousand HKD as of March 31, 2023[14][15] - Total liabilities increased to 4,831,108 thousand HKD as of September 30, 2023, from 4,684,162 thousand HKD as of March 31, 2023[14][15] - As of September 30, 2023, the company's cash and cash equivalents amounted to HKD 666,635,000, up from HKD 605,365,000 on March 31, 2023[43] - The company's capital gearing ratio was approximately 28.8% as of September 30, 2023, compared to 26.9% on March 31, 2023[43] - The company's total outstanding borrowings were HKD 1,771,639,000 as of September 30, 2023, with 86.7% being short-term loans[43] Other Income and Expenses - Other income, including government subsidies and rental income, increased to 106,376 thousand HKD in 2023 from 77,282 thousand HKD in 2022[15] - The company recognized 38,889 thousand HKD as other income from forfeited deposits related to a city renewal project[16] - The company received government subsidies related to self-developed product sales and R&D in China, totaling 18,637 thousand HKD in 2023[16] - Exchange loss net amount decreased to 6,983 thousand HKD in 2023 from 22,217 thousand HKD in 2022[17] - Investment property fair value decreased by 272 thousand HKD in 2023 compared to an increase of 11,015 thousand HKD in 2022[17] - Employee costs increased to 511,355 thousand HKD in 2023 from 462,309 thousand HKD in 2022[18] - Research costs increased to 26,862 thousand HKD in 2023 from 13,435 thousand HKD in 2022[18] - Bank loan interest increased to 39,120 thousand HKD in 2023 from 26,277 thousand HKD in 2022[19] - Capitalized borrowing costs for property, plant, and equipment were calculated at a capitalization rate of 3.8% in 2023[19] - Current tax expense in China decreased to 32,082 thousand HKD in 2023 from 50,158 thousand HKD in 2022[20] - Deferred tax liabilities for unremitted earnings increased to 34,417 thousand HKD in 2023 from 30,689 thousand HKD in 2022[23] Corporate Governance and Compliance - The company has complied with all the code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules during the review period[56] - The Audit Committee consists of four independent non-executive directors: Mr. Tsang Yiu Keung, Dr. Lui Ming Wah, Dr. Lau Shiu Chai, and Mr. Luk Tung, with Mr. Tsang Yiu Keung serving as the Chairman[57] - The Audit Committee has reviewed the unaudited condensed interim financial information of the group for the six months ended September 30, 2023[58] - The external auditor, PricewaterhouseCoopers, has reviewed the unaudited condensed interim financial information for the six months ended September 30, 2023, in accordance with Hong Kong Standard on Review Engagements 2410[58] - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing Rules, and all directors confirmed full compliance during the review period[57] - The Board of Directors has the discretion to determine the vesting of awards on an overall or individual basis, regardless of the termination of employment or change of control of the company[55] - The 2023/24 interim report containing all information required by the Listing Rules will be dispatched to shareholders and made available on the company's website[60] - The executive directors as of the announcement date are Ms. Zhang Qiaoying, Mr. Liu Zhuoming, and Mr. Xie Xiaosi, while the independent non-executive directors are Dr. Lau Shiu Chai, Dr. Lui Ming Wah, Mr. Tsang Yiu Keung, and Mr. Luk Tung[59] Dividends and Shareholder Information - The company declared an interim dividend of HK61,938,000, an increase from HK0.045 per share for the six months ended September 30, 2023, compared to HK$0.04 per share in 2022[48] - Shareholder registration will be suspended from December 20 to December 22, 2023, for the interim dividend eligibility[54] - No purchase, sale, or redemption of the company's listed securities during the six months ended September 30, 2023[49] - No unvested, vested, canceled, or lapsed awards under the share incentive plan during the 2022/23 fiscal year[54] Market and Strategic Developments - The company's global market share for large die-casting machines remains above 90%, highlighting its leading position in the automotive integrated die-casting industry[36] - The company expanded its customer base in the automotive chassis integrated die-casting field, securing new clients from both domestic and international markets[36] - New product launches in the injection molding machine segment, including the ELETTRICA series and VARIA series, contributed to revenue recovery and market competitiveness[37] - The company anticipates better development opportunities for the CNC segment with the gradual production of new five-axis gantry machining centers[38] - The company plans to expand overseas markets by establishing new R&D centers, service centers, and production bases in the US, Germany, Mexico, and India, building on its existing network of over 60 sales offices and service centers in more than 20 countries[39][40] - Overseas revenue has been gradually increasing, with the company securing equipment orders or意向 agreements from local automotive manufacturers in Europe, the US, Japan, and South Korea[40] - The company achieved a breakthrough in super-large intelligent die-casting units, advancing from 12,000 tons to 16,000 tons, marking a milestone in China's high-end and green development of the casting industry[41] - The company is collaborating with domestic automakers to develop integrated die-casting technology for A00-class vehicle chassis, expanding the application of integrated die-casting in the automotive industry[41] - The company's subsidiary, Shenzhen Lijin Technology, introduced high-quality strategic investors, including the Advanced Manufacturing Industry Fund, to enhance its global competitiveness in die-casting machines[42] - Advanced Manufacturing Industry Investment Fund II agreed to invest between RMB 1.15 billion and RMB 1.5 billion in Shenzhen Likong Technology, acquiring 9.47% to 12% of the expanded registered capital[52] - Post-investment, the company (via Likong Machinery) holds approximately 13.77% of Shenzhen Likong's expanded equity, while Advanced Manufacturing holds approximately 9.89%[53] Trade Receivables and Payables - Trade receivables and bills receivable net amount was HK2,520,720,000 as of March 31, 2023[28] - Trade receivables impairment provision was HK3,117,000 made during the period[28] - Trade receivables aging analysis showed 90 days or less accounted for HK342,898,000 as of September 30, 2023[29] - Trade payables and bills payable amounted to HK1,810,562,000 as of March 31, 2023[31] - Contract liabilities increased to HK432,348,000 as of March 31, 2023[31] - Trade payables aging analysis showed 90 days or less accounted for HK24,947,000 as of September 30, 2023[33] Other Financial Information - Other comprehensive loss for the period was HKD 169,402 thousand, primarily due to exchange differences, compared to HKD 361,630 thousand in the previous year[5] - The company terminated a cooperation agreement related to a city renewal project, resulting in the recognition of 38,889 thousand HKD as other income[16] - The urban renewal project for the Likong High-Tech Industrial Park was terminated on July 26, 2023, due to the buyer's failure to obtain project approval[50] - The company provided guarantees for customer bank loans totaling HKD 4,770,000 as of September 30, 2023, down from HKD 21,991,000 on March 31, 2023[44] - The company had capital commitments of HKD 192,650,000 for the acquisition of property, plant, and equipment as of September 30, 2023, up from HKD 178,850,000 on March 31, 2023[46]
力劲科技(00558) - 2024 - 中期业绩