VTECH HOLDINGS(00303)2024-11-12 08:33Financial Performance - Group revenue decreased by 4.5% to 87.4 million[2] - The total operating profit for the six months ended September 30, 2024, was 110.3 million in 2023, indicating a decrease of about 5.5%[15] - The pre-tax profit for the six months ended September 30, 2024, was 815.4 million in the same period of 2023, representing a decline of approximately 8.4%[17] - The basic and diluted earnings per share for the period were calculated based on a profit attributable to shareholders of 93.6 million in 2023, indicating a decrease of about 6.9%[22] - The net profit attributable to shareholders was 6.2 million or 6.6%, with a net profit margin decreasing from 8.2% to 8.0%[59] Revenue Breakdown - Revenue from North America for the six months ended September 30, 2024, was 489.4 million in 2023, a decrease of about 7.5%[15] - The Asia-Pacific region generated 171.5 million in 2023, reflecting a decline of approximately 7.0%[15] - Revenue from electronic learning products for the six months ended September 30, 2024, was 396.2 million in the previous period, showing a growth of approximately 1.6%[10] - The company reported a revenue of 580.8 million in the previous period, a decline of about 15.2%[10] - Revenue in Europe decreased by 1.4% to 92.2 million in the first half of the fiscal year 2025[37] Dividends - Interim dividend per ordinary share remains unchanged at 17.0 cents[2] - The company declared an interim dividend of 17.0 cents per share for the six months ended September 30, 2024, consistent with the previous year[20] - The company plans to distribute a final dividend of 48.0 cents per share for the fiscal year ending March 31, 2024, compared to 42.0 cents per share in 2023, reflecting an increase of approximately 19%[21] Assets and Liabilities - Non-current assets increased to 293.6 million year-on-year[4] - Total assets less current liabilities increased to 762.5 million year-on-year[4] - The total assets as of September 30, 2024, were 1,262.3 million as of March 31, 2024[16] - The total liabilities as of September 30, 2024, were (617.3) million as of March 31, 2024, indicating an increase in liabilities[16] Inventory and Cash Management - Inventory decreased to 432.0 million year-on-year[4] - Cash and cash equivalents increased to 108.5 million year-on-year[4] - The total accounts receivable, deposits, and prepayments amounted to 516.8 million as of September 30, 2023, showing an increase of approximately 6.4%[24] - The total accounts payable and accrued expenses reached 537.5 million as of September 30, 2023, representing an increase of about 11.8%[25] Corporate Governance - The company has adopted a comprehensive corporate governance framework to ensure effective execution of strategies and policies, safeguarding long-term shareholder interests[66] - The company has complied with all provisions of the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual, Dr. Wong Tsz Yan[67] - The Audit Committee has reviewed the unaudited interim financial report for the six months ended September 30, 2024, in discussion with external auditors and senior management[72] Future Outlook - The company expects overall revenue growth for the fiscal year 2025, driven by increased sales of electronic learning products in the U.S. and improved telecommunications product revenue following the integration of Gigaset assets[50] - The company anticipates a decline in revenue from contract manufacturing services for the fiscal year 2025, although sales are expected to stabilize in the second half of the year[51] - A new warehouse is being constructed in Malaysia to increase production capacity by 30% before the first quarter of fiscal year 2025[51] - The first desktop phone from Gigaset is expected to launch in the second half of fiscal year 2025, complementing its widely recognized multi-base station system[51] Research and Development - Research and development expenses increased by 9.3% to 204.4 million, compared to $184.8 million for the same period last fiscal year, reflecting the inclusion of Gigaset's operations[65]