Financial Performance - Revenue for the first half of 2024 increased by 6.3% to $7.312 billion, compared to $6.879 billion in 2023[2] - Net profit rose by 15.7% to $550 million, up from $476 million in the previous year[2] - Gross margin improved by 67 basis points to 39.9%[2] - Operating profit before interest and tax increased by 11.8% to $626 million, with an operating margin of 8.6%[4] - The company's revenue for the reporting period was $7,312,000,000, representing a growth of 6.3% compared to the same period last year[11] - Shareholders' profit increased to $550,000,000, up 15.7% from $476,000,000 in the previous year[11] - Gross profit for the same period was USD 2,920,717, compared to USD 2,701,664 in 2023, reflecting a year-over-year increase of about 8.1%[28] - The net profit attributable to shareholders for the six months was USD 550,365, up from USD 475,779 in the previous year, indicating a growth of approximately 15.7%[28] - The group reported a net profit of $550,365,000 for the six months ended June 30, 2024, compared to $475,779,000 for the same period in 2023, representing an increase of approximately 15.7%[46] Cash Flow and Capital Management - Free cash flow reached a record $508 million, an increase of $207 million from the prior year[5] - Free cash flow generated during the period was $508,000,000, compared to $301,000,000 in the same period last year[15] - The company reported a strong cash flow and improved balance sheet through rigorous working capital management[27] - The net cash generated from operating activities for the six months ended June 30, 2024, was $774,916 thousand, compared to $693,774 thousand in the previous year, indicating an increase of approximately 11.7%[32] - The company incurred a loss of $170,119 thousand in acquiring intangible assets during the six months ended June 30, 2024, compared to $186,680 thousand in the same period of 2023[32] Dividends and Shareholder Returns - The company declared an interim dividend of approximately 13.90 US cents per share, up from 12.23 US cents in 2023[3] - The company declared a final dividend of 98.00 HKD cents (approximately 12.61 USD cents) per share, totaling around $231,355,000, compared to 90.00 HKD cents (approximately 11.58 USD cents) per share, totaling about $212,525,000 in 2023[47] - The company plans to distribute an interim dividend of 108.00 HKD cents (approximately 13.90 USD cents) per share, amounting to approximately $254,725,000, compared to 95.00 HKD cents (approximately 12.23 USD cents) per share, totaling about $224,334,000 in 2023[47] - The company repurchased a total of 2,500,000 ordinary shares at a price between HKD 86.00 and HKD 105.00, with a total cost of approximately USD 30,960,000[24] - The company repurchased a total of 2,500,000 shares in 2024, with a total cost of approximately $30,960,000, which has been included in retained earnings[57] - The company repurchased 1,000,000 shares in May 2024 at a maximum price of HKD 105.00 per share, totaling $13,147 thousand[57] Operational Efficiency - Capital expenditure for the first half of 2024 was $100 million, a decrease of 52.3% year-over-year[5] - Operating expenses totaled $2,302,000,000, accounting for 31.5% of revenue, an increase from 31.2% in the previous year[13] - The total inventory was $4,027,000,000, with inventory turnover days decreasing from 128 days to 104 days[17] - Inventory decreased by $71 million from the end of 2023, with total inventory days reduced from 128 days to 104 days[4] - The company reported a significant increase in depreciation expenses, with property, plant, and equipment depreciation rising to $142,561 thousand from $129,727 thousand year-over-year[31] - The total depreciation and amortization expenses for the period amounted to $325,640,000, up from $283,046,000 in the previous year, indicating a year-over-year increase of about 15.1%[46] Debt and Equity Management - The debt ratio improved to 9.2%, reflecting effective cost management and lower interest expenses[5] - The net debt-to-equity ratio improved to 9.2%, down from 25.7% in the previous year[15] - The total amount of shareholders' equity increased by 8.8% to $6,300,000,000[14] - As of June 30, 2024, total equity attributable to shareholders increased to $6,252,844 thousand from $5,747,550 thousand as of December 31, 2023, representing an increase of approximately 8.8%[30] - The company’s current liabilities totaled USD 5,143,611, compared to USD 4,783,469 at the end of 2023, indicating an increase in operational scale[29] Market Performance - The Milwaukee brand saw a sales growth of 11.2% in local currency, reinforcing its position as the leading professional power tool brand globally[4] - North America accounted for $5,461,455 thousand of the total revenue for the six months ended June 30, 2024, up from $5,167,421 thousand in 2023, marking an increase of about 5.7%[43] - The external sales revenue from the power tools segment was $6,884,453 thousand for the six months ended June 30, 2024, compared to $6,450,231 thousand in the same period of 2023, reflecting an increase of about 6.7%[39] Strategic Initiatives - The company aims to expand its market leadership through its brands MILWAUKEE and RYOBI, which complement each other in the industry[27] - The company plans to continue its leadership in the rechargeable sector with a strong and motivated team under the new CEO Steven Philip Richman[27] Assets and Liabilities - As of June 30, 2024, total assets amounted to USD 7,930,699, an increase from USD 7,122,714 as of December 31, 2023[29] - The company reported a decrease in non-current liabilities, with lease liabilities at $725,923 thousand as of June 30, 2024, down from $734,369 thousand at the end of 2023[30] - The company’s total liabilities and non-current liabilities amounted to $7,978,045 thousand as of June 30, 2024, compared to $7,618,514 thousand at the end of 2023, marking an increase of approximately 4.7%[30] - The total accounts receivable at the end of the reporting period was $2,405,903,000, compared to $1,811,592,000 as of December 31, 2023, reflecting an increase of approximately 32.7%[51] - The total procurement payables amounted to $1,999,013,000, an increase from $1,655,367,000 in the previous year, representing a growth of approximately 20.8%[53] Accounting and Compliance - The group confirmed no projected pillar two income tax expenses for the fiscal year ending December 31, 2024, across all jurisdictions where it operates[5] - The group’s total liabilities related to leaseback transactions were not significantly impacted by the application of the revised Hong Kong Financial Reporting Standards[38] - The group’s non-current liabilities classification remained unaffected by the new accounting policies, with no significant impact on the profit or earnings per share for the six months ended June 30, 2023[38]
创科实业(00669) - 2024 - 中期业绩