东江集团控股(02283) - 2023 - 中期财报

Financial Performance - Profit for the period for the first half of 2023 was approximately HK$54.7 million, representing a decrease of approximately HK$3.8 million or 6.4% from approximately HK$58.5 million for the corresponding period in 2022[15]. - The Group's revenue for the first half of 2023 was HK$855.9 million, a decrease of 11.7% compared to HK$969.2 million in the same period of 2022[58]. - Profit for the period was HK$54.7 million, down 6.4% from HK$58.5 million in the first half of 2022[63]. - Basic earnings per share decreased to 6.6 HK cents, down 5.7$13.3 million, a decrease of 48.8% from HK$26.0 million in the same period of 2022[93]. - Net finance income for the first half of 2023 was approximately HK$3.8 million, down from HK$10.7 million in the same period of 2022, mainly due to increased interest expenses[95]. Profitability Metrics - The Group's gross profit margin for the first half of 2023 was 29.2$199.7 million, with a gross profit margin rising by 4.6 percentage points to 23.3%[66]. - The gross profit margin increased to 23.3%, up 4.6 percentage points from 18.7% in the corresponding period last year, due to enhanced capabilities and cost reduction measures[112]. - The gross profit margin for the mold fabrication segment increased by 6.6 percentage points to 29.2% in the first half of 2023, up from 22.6% in the same period of 2022[90]. - The gross profit margin for the plastic components manufacturing segment rose by 3.4 percentage points to 20.7%, attributed to cost reduction efforts and falling raw material prices[92]. Revenue Breakdown - The Group's sales in the mobile and wearable devices and smart home sectors decreased by 24.4% and 38.6%, respectively, compared to the same period last year[11]. - Revenue from the mold fabrication business increased by approximately 6.5% to HK$263.2 million, accounting for approximately 30.8$592.7 million, down 17.9% year-on-year, accounting for about 69.2% of the Group's total revenue[86]. - Revenue from the medical and personal health care segment experienced an 18.4% decline in revenue, primarily due to reduced orders from customers in the U.S. and Europe, although domestic medical customer revenue increased[87]. - Revenue from electronic vaporizer products increased by 93.2% year-on-year, reflecting strong demand in overseas markets[109]. Equity and Financial Position - Total equity of the Group as of June 30, 2023, was approximately HK$1,526.4 million, down from HK$1,605.6 million as of December 31, 2022[16]. - The gearing ratio as of June 30, 2023, was approximately 11.3%, a decrease from 21.6% as of December 31, 2022, primarily due to a reduction in bank borrowings[16]. - Net current assets as of June 30, 2023, were HK$1,050.7 million, compared to HK$1,090.9 million at the end of 2022[52]. - The current ratio as of June 30, 2023, was approximately 231.3%, an increase from 219.1% as of December 31, 2022[131]. - The Group maintained a high level of net cash at HK$935.7 million, a year-on-year increase of 24.6%[68]. Operational Efficiency - The Group is focusing on cost reduction and efficiency improvement measures to enhance production efficiency and management effectiveness[63]. - The Group has implemented employee training programs to enhance productivity in response to various job requirements[10]. - The Group is focusing on internal optimization, technological upgrades, and adopting Industry 4.0 to enhance operational efficiency and reduce costs[186]. - The Group's inventory turnover days decreased to 116 days, a reduction of 7 days compared to the same period last year, reflecting improved logistics and transportation[105]. - Trade receivable turnover days decreased to 61 days, down 2 days from the previous year, indicating effective credit policies[139]. Market and Strategic Developments - The Group has successfully established overseas production bases in Vietnam to provide supply solutions outside of China and is actively developing new customers in Southeast Asia and Europe[21]. - The newly developed medical business has gradually become a new growth point for the Group, focusing on innovative product solutions using silicone integration technology[21]. - The Group aims to develop optical silicone components to meet the demand for light output capabilities in Mini LED display parts, targeting a "blue ocean" market[21]. - The Group's mold business benefited from the gradual recovery in the automotive industry, with a significant increase in order volume[72]. - The group plans to invest in capacity expansion and projects to capitalize on potential growth opportunities in the coming years[146]. Shareholder Information - As of June 30, 2023, Eastern Mix holds 357,014,000 shares, representing 42.85% of the issued share capital[192]. - Lead Smart Development Limited owns 89,400,000 shares, accounting for 10.73% of the issued share capital[192]. - Cheer Union Development Ltd. has 55,620,000 shares, which is 6.67% of the issued share capital[192]. - Normal Times International Limited holds 53,640,000 shares, representing 6.44% of the issued share capital[192]. - FMR LLC has an interest in controlled corporations amounting to 49,212,000 shares, or 5.91% of the issued share capital[192]. - FIL Limited and its affiliates collectively hold 249,726,000 shares, representing 9.99% of the issued share capital[192]. - Brown Brothers Harriman & Co. holds 42,716,200 shares, which is 5.13% of the issued share capital[192]. - The company purchased 1,930,000 shares for its share award scheme during the six months ended June 30, 2023[196]. Compliance and Governance - The company complied with all code provisions as set out in the CG Code during the six months ended June 30, 2023[199]. - No major subsequent events affecting the Group have occurred since the end of the period[197].