震雄集团(00057) - 2024 - 中期业绩

Financial Highlights The company experienced a significant decline in revenue and profit for the six months ended September 30, 2023 Results Summary for the Six Months Ended September 30 (Unaudited) | Indicator | Six Months Ended September 30 (Unaudited) | Change | | :--- | :--- | :--- | | | 2023 (HKD thousands) | 2022 (HKD thousands) | (YoY) | | Revenue | 1,002,400 | 1,321,680 | -24% | | Profit before tax | 63,722 | 92,177 | -31% | | Profit attributable to owners of the Company | 50,501 | 75,104 | -33% | | Basic earnings per share (HK cents) | 8.0 | 11.9 | -33% | | Cash dividend per share (HK cents) | 3.0 | 4.5 | -33% | Consolidated Financial Statements This section presents the company's consolidated financial statements, including income, comprehensive income, and financial position Consolidated Income Statement For the six months ended September 30, 2023, the company's revenue decreased by 24% year-on-year to HKD 1.002 billion, with gross profit down 20% to HKD 246 million, resulting in a 33% decline in profit attributable to owners of the Company to HKD 50.5 million Key Data from Consolidated Income Statement (Six Months Ended September 30) | Item (HKD thousands) | 2023 (Unaudited) | 2022 (Unaudited) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1,002,400 | 1,321,680 | -24.2% | | Gross profit | 246,498 | 308,872 | -20.2% | | Profit before tax | 63,722 | 92,177 | -30.9% | | Profit for the period | 50,499 | 74,323 | -32.1% | | Profit attributable to owners of the Company | 50,501 | 75,104 | -32.8% | - Basic earnings per share decreased from 11.9 HK cents in the prior year to 8.0 HK cents, a 32.8% reduction[4] Consolidated Statement of Comprehensive Income During the period, net other comprehensive expense from foreign operations translation differences was HKD 120 million, significantly lower than HKD 280 million in the prior year, leading to a total comprehensive expense of HKD 68.91 million - Exchange differences on translation of foreign operations were the primary source of other comprehensive expense, amounting to -HKD 118 million for the current period, compared to -HKD 277 million in the prior period[6] - Total comprehensive expense for the period was HKD 68.91 million, of which HKD 68.20 million was attributable to owners of the Company[6] Consolidated Statement of Financial Position As of September 30, 2023, the Group's total assets were HKD 3.925 billion, net current assets remained stable at HKD 1.927 billion, and total shareholders' equity was HKD 2.935 billion, indicating a stable financial structure Balance Sheet Summary | Item (HKD thousands) | September 30, 2023 (Unaudited) | March 31, 2023 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total non-current assets | 1,122,970 | 1,178,385 | -4.7% | | Total current assets | 2,802,101 | 2,970,924 | -5.7% | | Total current liabilities | 875,252 | 980,520 | -10.7% | | Net current assets | 1,926,849 | 1,990,404 | -3.2% | | Net assets | 2,953,730 | 3,068,181 | -3.7% | | Equity attributable to owners of the Company | 2,935,393 | 3,049,140 | -3.7% | Notes to the Financial Statements This section provides detailed notes on the accounting policies, revenue segmentation, taxation, dividends, and receivables supporting the consolidated financial statements 1. Accounting Policies The interim financial statements are prepared in accordance with HKAS 34, with the adoption of new and revised HKFRSs during the period having no significant impact on the financial statements - The adoption of new and revised Hong Kong Financial Reporting Standards during the reporting period had no significant financial impact or material changes to accounting policies in the condensed interim financial statements[12] 2. Revenue and Segment Information The Group, primarily engaged in manufacturing and selling injection molding machines, saw revenue decline across all three operating segments, with Mainland China and Hong Kong remaining the main source despite a 24% year-on-year decrease, and Taiwan experiencing the largest drop of 53% Revenue and Results by Operating Segment (Six Months Ended September 30) | Segment (HKD thousands) | Revenue (2023) | Revenue (2022) | Change | Results (2023) | Results (2022) | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Mainland China and Hong Kong | 726,760 | 952,551 | -23.7% | 62,900 | 87,374 | -28.0% | | Taiwan | 17,805 | 38,142 | -53.3% | (2,993) | 2,897 | -203.3% | | Other Overseas Countries | 257,835 | 330,987 | -22.1% | 16,233 | 18,726 | -13.3% | | Total | 1,002,400 | 1,321,680 | -24.2% | 76,140 | 108,997 | -29.9% | 4. Income Tax Expense Income tax expense for the period decreased by 26% to HKD 13.22 million from HKD 17.85 million in the prior year, primarily due to a reduction in current tax expense from other regions - No Hong Kong profits tax was provided for the period as there was no assessable profit arising in Hong Kong, and tax expense from other regions decreased by 50% year-on-year to HKD 9.59 million[17][21] 5. Dividends and 6. Earnings Per Share The Board declared an interim dividend of HKD 0.030 per share, a 33% decrease from HKD 0.045 last year, with basic earnings per share also down 33% to HKD 0.080, showing no dilutive effect from share options - An interim dividend of HKD 0.030 per ordinary share was declared, totaling approximately HKD 18.92 million[23] - Basic earnings per share was HKD 0.080, calculated based on profit for the period of HKD 50.50 million and a weighted average of 631 million ordinary shares outstanding[19][24] 7. Trade and Bills Receivable As of September 30, 2023, total trade and bills receivable decreased to HKD 1.325 billion from HKD 1.479 billion at the beginning of the year, with an increase in trade receivables over one year, though the Group perceives no significant concentration of credit risk Aging Analysis of Trade Receivables (Net) | Aging | September 30, 2023 (HKD thousands) | March 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | Within 90 days | 356,710 | 337,415 | | 91 to 180 days | 129,729 | 202,952 | | 181 to 365 days | 200,906 | 319,359 | | Over one year | 224,201 | 165,373 | | Total | 911,546 | 1,025,099 | Management's Discussion and Analysis This section provides management's insights into the company's business performance, market conditions, new product development, operational efficiency, financial liquidity, and future outlook Business Performance The Group's first-half performance faced challenges due to global economic downturn, high interest rates, and weak consumption, resulting in a 24% decrease in turnover to HKD 1.002 billion and a 33% decline in profit attributable to owners to HKD 50.5 million, prompting cost reduction and sales team restructuring measures - Global economic downturn, US interest rate hikes, suppressed consumption, geopolitical crises, and Sino-US trade disputes were the main external factors contributing to the performance decline[40][41][42] - The Group swiftly implemented contingency measures, including cost reduction, sales team expansion, new client development, and new product line launches[44] Market Analysis All major markets experienced performance declines, with Mainland China seeing a 24% drop due to export slowdown and weak domestic demand, Taiwan a 53% decrease due to reliance on European and US markets, and other overseas countries a 22% decline amid global consumption weakness and high interest rates Turnover by Customer Region | Customer Region | 2023 (HKD millions) | 2022 (HKD millions) | Change | | :--- | :--- | :--- | :--- | | Mainland China and Hong Kong | 727 | 953 | -24% | | Taiwan | 18 | 38 | -53% | | Other Overseas Countries | 257 | 331 | -22% | | Total | 1,002 | 1,322 | -24% | Mainland China and Hong Kong The Mainland China market faced dual pressures from export deceleration and weak domestic demand, leading to a 24% year-on-year decline in Group turnover to HKD 727 million, partly due to a significant reduction in orders from a major new energy vehicle client compared to the prior year - The Mainland China market faced dual pressures from export deceleration and weak domestic demand, with manufacturing PMI consistently hovering around the 50 boom-bust line[46][47] - A significant order of nearly RMB 200 million from BYD in the prior year was a key reason for the substantial year-on-year decline in sales this period[47] Taiwan Taiwanese clients, primarily supplying European and US markets, were severely impacted by weak consumption and geopolitical instability in those regions, leading to a 53% year-on-year decline in turnover to HKD 18 million for the period - Taiwan market turnover significantly declined by 53% to HKD 18 million, primarily impacted by weak consumption in European and US markets[48] Other Overseas Countries International markets also faced global consumption weakness, high interest rates, and currency depreciation, particularly in export-oriented Southeast Asian countries, resulting in a 22% decline in the Group's international market turnover to HKD 257 million, despite continued investment in potential growth markets - International market turnover decreased by 22% to HKD 257 million, primarily due to global economic weakness[57] - The Group continues to strengthen market development in adverse conditions, actively investing in countries with growth potential such as India, Brazil, Mexico, and Turkey[50] New Technology and Product Development To address the market's emphasis on cost-effectiveness, the Group began mass production of new machine models in the first half, including the cost-effective MK6.6 series, high-performance MK6 plus/max series, flagship MK6 PRO, and large two-platen TP SMART, expected to contribute to sales in the second half - In response to the current market environment, the Group launched four new product lines, covering diverse market demands from high cost-effectiveness to flagship high-end models[51][52][58] Production Operations and Cost Control The Group has completed production base renovation and automation implementation, with plans for further smart factory upgrades, and will continue to strengthen supply chain management and implement Value Improvement (VI) cost control activities to enhance product competitiveness amid insufficient market demand and intense competition - The Group will continue to enhance the automation and intelligence levels of its production bases and deepen the implementation of Total Quality Management (TQM)[58] - To address market competition, the Group will actively promote comprehensive production operation cost reduction[58] Liquidity and Financial Position The Group's financial position remains robust, with net current assets of HKD 1.927 billion and a net cash balance of HKD 741 million at period-end, an increase of HKD 70 million from the beginning of the year, and no bank loans, resulting in a zero gearing ratio - As of September 30, 2023, the Group held a net cash balance of HKD 741 million with no bank loans, thus reporting a zero gearing ratio[55][59] Second Half Outlook The second half is expected to remain challenging due to global economic uncertainty, high interest rates, and geopolitical tensions, which will continue to impact consumer confidence and the Chinese economy, though the Group will persist in R&D investment, new product launches, and sales channel strengthening to mitigate market impact and capture future recovery opportunities - Business in the second half is expected to remain constrained by macroeconomic uncertainties, particularly the unfavorable export situation in China[69] - The Group will continue to invest in R&D, launch market-demanded products, and strengthen its sales team and channel management to prepare for future market recovery[69] Dividends and Shareholder Information This section details the interim dividend declaration, record date, and payment schedule for shareholders - The Board declared an interim dividend of HKD 0.030 per ordinary share (compared to HKD 0.045 in the prior period)[38] - The record date for the dividend is December 18, 2023, with payment expected around January 11, 2024[38] - To be eligible for the dividend, share transfer registration will be suspended from December 15 to 18, 2023[39] Corporate Governance and Other Information This section outlines the company's adherence to corporate governance principles, the audit committee's review of interim results, and the absence of share repurchases during the period - The company complied with most provisions of the Corporate Governance Code during the reporting period, with two deviations: the Chairman and Managing Director are not subject to rotation and re-election, and the roles of Chairman and Group President are held by the same person (Ms. Chiang Lai Yuen)[70] - The Audit Committee has reviewed these interim results and continues to review the Group's risk management and internal control systems[71][75] - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[73]