Financial Performance - Revenue for the first half of 2024 increased by 6.3% to 7.312billion,comparedto6.879 billion in 2023[2] - Net profit rose by 15.7% to 550million,upfrom476 million in the previous year[2] - Gross margin improved by 67 basis points to 39.9%[2] - Operating profit before interest and tax increased by 11.8% to 626million,withanoperatingmarginof8.67,312,000,000, representing a growth of 6.3% compared to the same period last year[11] - Shareholders' profit increased to 550,000,000,up15.7476,000,000 in the previous year[11] - Gross profit for the same period was USD 2,920,717, compared to USD 2,701,664 in 2023, reflecting a year-over-year increase of about 8.1%[28] - The net profit attributable to shareholders for the six months was USD 550,365, up from USD 475,779 in the previous year, indicating a growth of approximately 15.7%[28] - The group reported a net profit of 550,365,000forthesixmonthsendedJune30,2024,comparedto475,779,000 for the same period in 2023, representing an increase of approximately 15.7%[46] Cash Flow and Capital Management - Free cash flow reached a record 508million,anincreaseof207 million from the prior year[5] - Free cash flow generated during the period was 508,000,000,comparedto301,000,000 in the same period last year[15] - The company reported a strong cash flow and improved balance sheet through rigorous working capital management[27] - The net cash generated from operating activities for the six months ended June 30, 2024, was 774,916thousand,comparedto693,774 thousand in the previous year, indicating an increase of approximately 11.7%[32] - The company incurred a loss of 170,119thousandinacquiringintangibleassetsduringthesixmonthsendedJune30,2024,comparedto186,680 thousand in the same period of 2023[32] Dividends and Shareholder Returns - The company declared an interim dividend of approximately 13.90 US cents per share, up from 12.23 US cents in 2023[3] - The company declared a final dividend of 98.00 HKD cents (approximately 12.61 USD cents) per share, totaling around 231,355,000,comparedto90.00HKDcents(approximately11.58USDcents)pershare,totalingabout212,525,000 in 2023[47] - The company plans to distribute an interim dividend of 108.00 HKD cents (approximately 13.90 USD cents) per share, amounting to approximately 254,725,000,comparedto95.00HKDcents(approximately12.23USDcents)pershare,totalingabout224,334,000 in 2023[47] - The company repurchased a total of 2,500,000 ordinary shares at a price between HKD 86.00 and HKD 105.00, with a total cost of approximately USD 30,960,000[24] - The company repurchased a total of 2,500,000 shares in 2024, with a total cost of approximately 30,960,000,whichhasbeenincludedinretainedearnings[57]−Thecompanyrepurchased1,000,000sharesinMay2024atamaximumpriceofHKD105.00pershare,totaling13,147 thousand[57] Operational Efficiency - Capital expenditure for the first half of 2024 was 100million,adecreaseof52.32,302,000,000, accounting for 31.5% of revenue, an increase from 31.2% in the previous year[13] - The total inventory was 4,027,000,000,withinventoryturnoverdaysdecreasingfrom128daysto104days[17]−Inventorydecreasedby71 million from the end of 2023, with total inventory days reduced from 128 days to 104 days[4] - The company reported a significant increase in depreciation expenses, with property, plant, and equipment depreciation rising to 142,561thousandfrom129,727 thousand year-over-year[31] - The total depreciation and amortization expenses for the period amounted to 325,640,000,upfrom283,046,000 in the previous year, indicating a year-over-year increase of about 15.1%[46] Debt and Equity Management - The debt ratio improved to 9.2%, reflecting effective cost management and lower interest expenses[5] - The net debt-to-equity ratio improved to 9.2%, down from 25.7% in the previous year[15] - The total amount of shareholders' equity increased by 8.8% to 6,300,000,000[14]−AsofJune30,2024,totalequityattributabletoshareholdersincreasedto6,252,844 thousand from 5,747,550thousandasofDecember31,2023,representinganincreaseofapproximately8.85,461,455 thousand of the total revenue for the six months ended June 30, 2024, up from 5,167,421thousandin2023,markinganincreaseofabout5.76,884,453 thousand for the six months ended June 30, 2024, compared to 6,450,231thousandinthesameperiodof2023,reflectinganincreaseofabout6.7725,923 thousand as of June 30, 2024, down from 734,369thousandattheendof2023[30]−Thecompany’stotalliabilitiesandnon−currentliabilitiesamountedto7,978,045 thousand as of June 30, 2024, compared to 7,618,514thousandattheendof2023,markinganincreaseofapproximately4.72,405,903,000, compared to 1,811,592,000asofDecember31,2023,reflectinganincreaseofapproximately32.71,999,013,000, an increase from $1,655,367,000 in the previous year, representing a growth of approximately 20.8%[53] Accounting and Compliance - The group confirmed no projected pillar two income tax expenses for the fiscal year ending December 31, 2024, across all jurisdictions where it operates[5] - The group’s total liabilities related to leaseback transactions were not significantly impacted by the application of the revised Hong Kong Financial Reporting Standards[38] - The group’s non-current liabilities classification remained unaffected by the new accounting policies, with no significant impact on the profit or earnings per share for the six months ended June 30, 2023[38]
TECHTRONIC IND(00669)2024-08-06 10:46