雷士国际(新)(02222) - 2024 - 中期财报

Financial Performance - Revenue for the first half of 2024 was $118.51 million, a slight decrease from$119.03 million in the same period in 2023[5] - Gross profit increased to $37.11 million in H1 2024, up from$32.69 million in H1 2023[5] - Profit before tax surged to $10.33 million in H1 2024, compared to$2.31 million in H1 2023[5] - Profit attributable to owners of the company rose to $7.66 million in H1 2024, up from$1.03 million in H1 2023[5] - Basic earnings per share increased to $1.51 cents in H1 2024, compared to$0.24 cents in H1 2023[5] - The Group's sales revenue for the period amounted to $118.51 million, representing a decrease of 0.4$96.635 million[47] - The cost of sales as a percentage of revenue decreased from 72.5% to 68.7%, leading to an increase in gross profit margin from 27.5% to 31.3%[49] - Gross profit for the period was $37.107 million, an increase of 13.5$15,717,000, representing 13.3% of revenue[57] - Administrative expenses decreased by 14.6% to $14,872,000, representing 12.5$1,475,000 due to higher current income tax provisions in countries like Vietnam[63] - Net profit for the period (including non-controlling interests) was $8,854,000[64] - Profit attributable to owners of the company was$7,660,000[64] - Profit attributable to non-controlling interests was $1,194,000[64] - Net cash flows from operating activities were ($267,000), while net cash flows from investing activities were $20,425,000[65] - Net increase in cash and cash equivalents was$11,190,000[65] - Cash and cash equivalents at the end of the period were $118,817,000[65] - Net current assets as of 30 June 2024 amounted to$160,531,000, with a current ratio of 3.27[68][69] - Total borrowings increased to $5,750,000 as of 30 June 2024, up from$1,699,000 at the end of 2023[71] - Capital expenditure during the period under review was $2,197,000, primarily due to increased costs of other intangible assets[73][74] - Capital commitments for property, plant, and equipment as of 30 June 2024 were$389,000, down from $971,000 at the end of 2023[76][81] - Net proceeds from the issuance of new shares amounted to approximately$8.9 million, with HK$69.7 million raised from the subscription agreement[79][84] - The company maintains sufficient working capital for current and future 12-month requirements, supported by projected cash inflows from operations[68][69] - Net proceeds from share placement and subscription will be used for overseas business development and expansion (90.4$8.0 million) and general working capital (9.6%, $0.9 million) within the next six months[86] - NVC Lighting acquired the remaining 40$582,000), with a maximum total consideration of SEK 100 million ($9.7 million)[88][89] - ETI Solid State agreed to acquire property in Georgia, USA, for$15,250,000, with the acquisition not yet completed as of the report approval date[90][93] - Trade receivables increased to $8,793,000 as of June 30, 2024, compared to$7,591,000 on December 31, 2023[95] - The company entered into one-year insurance contracts covering 90% of uncollectible receivables from international sales, with a maximum compensation of $20,000,000[100] - The company has no significant liquidity risk as reviewed by the board, ensuring balanced continuity and flexibility of funds through bank loans and other interest-bearing loans[104] - The company has insured 90$20 million[105] - The company’s total number of employees increased to 2,041 as of June 30, 2024, up from 1,967 at the end of 2023[108] - The board does not recommend paying any interim dividend for the six months ended June 30, 2024[107] - The company’s logo was changed effective July 30, 2024, with no other significant events reported since June 30, 2024[106] - Directors’ interests in the company’s shares include Ye Yong with 5.40% and Wang Keven Dun with 16.67% as of June 30, 2024[113] - The company’s cash and short-term deposits are primarily held in registered banks in China, Hong Kong, and Singapore[105] - The company continuously improves its internal staff training system to enhance employees’ professional skills[108] - The company’s trade and bill receivables, guarantees, and other receivables reflect its maximum credit risk exposure[105] - The company’s issued shares as of June 30, 2024, totaled 507,273,677[113] - Elec-Tech International (H.K.) Company Limited holds 74,034,600 ordinary shares, representing 14.59% of the total issued shares[117] - Rising Wealth Limited holds 63,840,000 ordinary shares, representing 12.58% of the total issued shares[117] - Harbour Faith Enterprises Limited holds 41,491,100 ordinary shares, representing 8.18% of the total issued shares[117] - Canopy Capital Limited holds 84,545,613 ordinary shares, representing 16.67% of the total issued shares[117] - SU Lixin holds 64,935,064 ordinary shares, representing 12.80% of the total issued shares[117] - The total number of issued shares as of 30 June 2024 is 507,273,677[118] - ETIC is deemed to be interested in 74,034,600 ordinary shares due to its ownership of Elec-Tech International (H.K.) Company Limited[118] - ZHAO Yu is deemed to be interested in 63,840,000 ordinary shares due to her ownership of Rising Wealth Limited[118] - CHAN Sin Wa Carrie is deemed to be interested in 41,491,100 ordinary shares due to her ownership of Harbour Faith Enterprises Limited[118] - WANG Keven Dun is deemed to be interested in 84,545,613 ordinary shares through his ownership of Harker Hall Capital Ltd.[118] - The total number of Shares available for grant under the RSU Scheme and other share-based incentive schemes was 211,557,782, representing 5% of the 4,231,155,649 issued Shares as of the Adoption Date[120] - The RSU Scheme expired in February 2024, and as of 30 June 2024, the total number of Shares available for grant in connection with the RSU Scheme was nil[120] - No RSUs were granted to participants under the RSU Scheme since the Adoption Date, resulting in no unvested, cancelled, or lapsed RSUs as of the Adoption Date and up to the end of the Period under Review[120] - The Company did not purchase, sell, or redeem any listed securities during the Period under Review, and as of 30 June 2024, the Company did not hold any treasury shares[120] - The Board confirmed that the Company fully complied with the principles and code provisions of the CG Code during the Period under Review[122] - The Company’s Audit Committee reviewed and discussed the interim results for the Period under Review and the report, with Mr. LEE Kong Wai, Conway serving as the chairman[123] - The Remuneration Committee, chaired by Mr. LEE Kong Wai, Conway, reviewed and made recommendations on remuneration packages for executive Directors and senior management[125] - The Nomination Committee consists of one executive Director and two independent non-executive Directors, with Mr. WANG Donglei as the chairman[126] - The Remuneration Committee is composed of one executive Director and two independent non-executive Directors, with Mr. LEE Kong Wai as the chairman[127] - The Strategy and Planning Committee includes four executive Directors and one independent non-executive Director, with Mr. WANG Donglei as the chairman[129] - No changes in the Board and Directors' information since 1 January 2024, as per Listing Rules 13.51B(1)[131] - Deloitte reviewed the condensed consolidated financial statements for the six-month period ended 30 June 2024, in compliance with IAS 34[133] - The review of financial statements was conducted in accordance with Hong Kong Standard on Review Engagements 2410[137] - Deloitte concluded that the condensed consolidated financial statements were prepared in accordance with IAS 34[139] - Revenue for the six months ended 30 June 2024 was $118.51 million, a slight decrease from$119.03 million in the same period in 2023[141] - Gross profit increased to $37.11 million in 2024 from$32.69 million in 2023, reflecting improved cost management[141] - Profit before tax significantly rose to $10.33 million in 2024 compared to$2.31 million in 2023[141] - Profit for the period attributable to owners of the company was $7.66 million in 2024, up from$1.03 million in 2023[141] - Basic earnings per share increased to 1.51 US cents in 2024 from 0.24 US cents in 2023[141] - Total comprehensive income for the period was $8.65 million in 2024, a significant improvement from a loss of$9.55 million in 2023[142] - Non-current assets slightly decreased to $349.09 million in 2024 from$350.60 million in 2023[144] - Current assets decreased to $231.30 million in 2024 from$241.51 million in 2023, primarily due to a reduction in inventories[144] - Net current assets stood at $160.53 million in 2024, slightly down from$162.33 million in 2023[145] - Total equity decreased marginally to $499.19 million in 2024 from$502.60 million in 2023[145] - Total equity increased to $499,190 thousand as of June 30, 2024, up from$502,601 thousand at the beginning of the year[146] - Retained profits grew to $183,530 thousand, reflecting an increase of$7,660 thousand during the period[146] - Foreign currency translation reserve decreased to $(54,709) thousand, impacted by exchange differences[146] - Non-controlling interests decreased to$9,685 thousand, down from $18,830 thousand at the start of the year[146] - The company acquired an additional 40$582,000 plus a contingent consideration of $1,139,000[148] - The acquisition resulted in a$2,135,000 adjustment to the "other reserve" due to the difference between the consideration and the net liabilities[148] - Total comprehensive income for the period was $7,869 thousand, driven by fair value gains and exchange differences[146] - Dividends paid to non-controlling interests amounted to$10,341 thousand, reducing the total equity[146] - The statutory reserve increased to $19,249 thousand, reflecting a transfer of$594 thousand during the period[148] - Share premium remained stable at $345,032 thousand, with no changes reported during the period[146] - Cash generated from operations decreased to$930,000 from $10,758,000 in the previous year[151] - Net cash used in operating activities was$267,000 compared to $9,897,000 generated in the prior year[151] - Net cash from investing activities was$20,425,000, down from $27,715,000 in the previous year[151] - Net cash used in financing activities was$8,968,000, a decrease from $37,924,000 in the prior year[151] - Cash and cash equivalents at the end of the period increased to$118,817,000 from $84,265,000 in the previous year[151] - The company applied amendments to IFRS Standards, including IFRS 16 and IAS 1, effective from January 1, 2024[155] - The condensed consolidated financial statements were prepared in accordance with International Accounting Standard 34 and the Hong Kong Stock Exchange listing rules[153] - The financial statements were prepared on a historical cost basis, except for certain financial instruments measured at fair value[154] - Changes in the company's interests in subsidiaries without losing control are accounted for as equity transactions[159] - The application of amendments to IFRS Standards had no material impact on the company's financial positions and performance[159] - Total revenue for the six months ended 30 June 2024 was$118.51 million, with $16.81 million from International NVC brand,$5.06 million from Domestic non-NVC brand, and $96.64 million from International non-NVC brand[160] - Revenue from the United States market was$77.53 million, contributing the largest share among geographical markets[160] - Segment results for the six months ended 30 June 2024 were $37.11 million, with$7.09 million from International NVC brand, $0.95 million from Domestic non-NVC brand, and$29.07 million from International non-NVC brand[164] - Profit before tax for the six months ended 30 June 2024 was $10.33 million, including$3.54 million from other income and $4.35 million from share of results of associates[164] - Other income for the six months ended 30 June 2024 was$3.54 million, including $1.25 million from bank interest income and$0.79 million from trademark license fee and rental income[170] - Total income tax expense for the six months ended 30 June 2024 was $1,475 thousand, compared to$483 thousand in the same period in 2023[172] - Hong Kong Profits Tax for the six months ended 30 June 2024 was $273 thousand, up from$165 thousand in 2023[172] - PRC Enterprise Income Tax for the six months ended 30 June 2024 was $276 thousand, compared to$322 thousand in 2023[172] - Total amortization and depreciation for the six months ended 30 June 2024 was $6,363 thousand, down from$8,807 thousand in 2023[174] - Total staff costs for the six months ended 30 June 2024 were $19,027 thousand, compared to$22,859 thousand in 2023[174] - Research and development costs for the six months ended 30 June 2024 were $81,984 thousand, down from$86,855 thousand in 2023[174] - Profit attributable to owners of the company for the six months ended 30 June 2024 was $7,660 thousand, compared to$1,034 thousand in 2023[175] - Weighted average number of ordinary shares for the six months ended 30 June 2024 was 507,274 thousand, up from 422,728 thousand in 2023[176] - The group disposed of property, plant, and equipment with a carrying amount of $54 thousand, resulting in a gain on disposal of$163 thousand for the six months ended 30 June 2024[180] - The group acquired property, plant, and equipment of approximately $425 thousand for the six months ended 30 June 2024[180] - The Group's interests in associates as of June 30, 2024, amounted to$159,318 thousand, compared to $156,478 thousand as of December 31, 2023[184] - Impairment losses recognized for interests in associates were$15,511 thousand as of June 30, 2024, up from $11,789 thousand as of December 31, 2023[184] - Trade receivables net of allowance for credit losses increased to$53,287 thousand as of June 30, 2024, from $49,218 thousand as of December 31, 2023[194] - Bills receivables decreased to$169 thousand as of June 30, 2024, from $246 thousand as of December 31, 2023[194] - Trade receivables within 3 months increased to$49,590 thousand as of June 30, 2024, from $42,658 thousand as of December 31, 2023[197] - Trade receivables over 2 years decreased to$138 thousand as of June 30, 2024, from $490 thousand as of December 31, 2023[197] - The Group holds bills receivables totaling$169 thousand as of June 30, 2024, for future settlement of trade receivables[198] - Trade receivables pledged as security for the Group's borrowings amounted to $8,793 thousand as of June 30, 2024, up from$7,591 thousand as of December 31, 2023[198] Market and Economic Conditions - The global economy is expected to grow at a stable but slow rate of