Financial Performance - Group revenue for the first half of the fiscal year 2024 was 1,854million,adecreaseof4438 million, representing 23.6% of revenue, up from 22.2% in the previous year[4]. - Adjusted EBITDA was 177million,or9.5130 million, or 0.1392pershare[4].−Basicnetprofitroseby3133 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 82.9millionor41,854.2 million, compared to 1,937.1millioninthesameperiodofthepreviousfiscalyear[23].−Shareholders′profitforthefirsthalfoffiscalyear24/25was129.6 million, an increase of 9.5% from 120.1millioninthesameperiodofthepreviousyear[41].−Thecompanyreportedarevenueof1,854,168 thousand for the six months ended September 30, 2024, a decrease of 4.3% compared to 1,937,056thousandforthesameperiodin2023[154].−Grossprofitforthesameperiodwas438,051 thousand, reflecting an increase of 1.1% from 429,579thousandyear−over−year[131].−Theoperatingprofitwas157,854 thousand, up from 151,459thousand,indicatingagrowthof4.31,564.4 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 144million,downfrom208 million in the previous year[4]. - Cash balance as of September 30, 2024, was 688million,downfrom809.9 million in March 2024[21]. - The company generated free cash flow of 144.4millioninthefirsthalfofthefiscalyear24/25,adecreaseof63.6millioncomparedto208.0 million in the first half of the fiscal year 23/24[54]. - The company repaid net debt of 203.8millioninthefirsthalfofthefiscalyear24/25,comparedto103.3 million in the same period last year[56]. - Total debt decreased by 204.3millionto356.5 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 947.8millioninavailableandundrawncreditfacilitiesasofSeptember30,2024[63].DividendsandShareholderReturns−ThecompanydeclaredaninterimdividendofHK0.17 per share, equivalent to 0.0218pershare,tobepaidonJanuary8,2025[15].−Thecompanypaiddividendstotaling52.1 million in the first half of the fiscal year 24/25, compared to 37.4millioninthesameperiodlastyear[56].−ThecompanyannouncedaninterimdividendofHKD0.17pershare,consistentwiththepreviousyear[122].InventoryandWorkingCapital−Inventoryincreasedby37.5 million to 589.0millionasofSeptember30,2024,tomeetfluctuatingcustomerdemandanddeliverytimes[51].−Thetotaloperatingworkingcapitalincreasedfrom669.3 million as of March 31, 2024, to 699.6millionasofSeptember30,2024[51].−Theaveragedaysinventoryincreasedfrom68daysto75days,reflectingadjustmentstoinventorylevelsinresponsetodemandtrends[51].ForeignExchangeandCommodityRisks−Foreignexchangefluctuationscontributedanincreaseof15.8 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 2,632,688thousandasofSeptember30,2024,upfrom2,596,667 thousand at the end of March 2024[138]. - The total comprehensive income attributable to shareholders was 136,398thousand,comparedto38,978 thousand in the prior period, indicating a substantial growth[138]. Financial Assets and Liabilities - The total accounts receivable, net of impairment, was 670,802thousandasofSeptember30,2024,comparedto654,155 thousand as of March 31, 2024[199]. - The net amount of financial assets and liabilities as of September 30, 2024, was 134,111thousand,downfrom163,192 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].
