亿仕登控股(01656) - 2024 - 中期业绩

Financial Summary The group's revenue increased by 2.4% to S$174.6 million, but profit after tax decreased by 35.9% to S$5.8 million, with basic EPS at S$0.85 cents | Metric | Six Months Ended June 30 (2024) | Six Months Ended June 30 (2023) | Change Percentage | | :--- | :--- | :--- | :--- | | Revenue (S$ thousand) | 174,573 | 170,411 | 2.4% | | Gross Profit (S$ thousand) | 44,393 | 45,584 | -2.6% | | Profit After Tax (S$ thousand) | 5,806 | 9,061 | -35.9% | | Profit Attributable to Equity Holders (S$ thousand) | 3,781 | 4,580 | -17.4% | | Basic Earnings Per Share (S$ cents) | 0.85 | 1.04 | -18.3% | | Interim Dividend | Not Recommended | Nil | - | Interim Condensed Consolidated Financial Statements This section presents the group's financial position, performance, equity changes, and cash flows for the interim period Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income In H1 2024, group revenue grew 2.4% to S$175 million, but gross profit declined 2.6% to S$44.4 million, leading to a 36.2% drop in pre-tax profit due to increased costs | Item | H1 2024 (S$ thousand) | H1 2023 (S$ thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 174,573 | 170,411 | 2.4% | | Gross Profit | 44,393 | 45,584 | -2.6% | | Distribution Costs | (14,381) | (12,459) | 15.4% | | Finance Costs | (2,767) | (2,071) | 33.6% | | Profit Before Income Tax | 8,515 | 13,346 | -36.2% | | Profit for the Period | 5,806 | 9,061 | -35.9% | | Profit Attributable to Equity Holders of the Company | 3,781 | 4,580 | -17.4% | | Basic Earnings Per Share (S$ cents) | 0.85 | 1.04 | -18.3% | Consolidated Statement of Financial Position As of June 30, 2024, total assets increased slightly to S$405.8 million, with total equity rising to S$245.9 million, while total liabilities remained stable at S$160.0 million | Item | June 30, 2024 (S$ thousand) | December 31, 2023 (S$ thousand) | | :--- | :--- | :--- | | Assets | | | | Total Non-Current Assets | 157,798 | 153,766 | | Total Current Assets | 248,037 | 246,673 | | Total Assets | 405,835 | 400,439 | | Equity and Liabilities | | | | Total Equity | 245,879 | 240,665 | | Total Non-Current Liabilities | 57,202 | 61,628 | | Total Current Liabilities | 102,754 | 98,146 | | Total Liabilities | 159,956 | 159,774 | | Total Equity and Liabilities | 405,835 | 400,439 | Interim Condensed Consolidated Statement of Changes in Equity Total equity increased from S$241 million at the start of 2024 to S$246 million by June 30, driven by the period's profit and offset by dividends to non-controlling interests - Equity attributable to equity holders of the Company increased from S$199 million at the beginning of 2024 to S$203 million, primarily due to S$3.78 million profit for the period and S$0.34 million in other comprehensive income[10] Interim Condensed Consolidated Statement of Cash Flows Net cash from operating activities significantly improved to S$15.55 million in H1 2024, while investing activities resulted in a S$3.64 million outflow and financing activities a S$10.32 million outflow | Item | H1 2024 (S$ thousand) | H1 2023 (S$ thousand) | | :--- | :--- | :--- | | Net Cash From/(Used in) Operating Activities | 15,546 | (1,149) | | Net Cash Used in Investing Activities | (3,643) | (2,232) | | Net Cash Used in Financing Activities | (10,323) | (1,095) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 1,580 | (4,476) | | Cash and Cash Equivalents at End of Period | 60,071 | 49,572 | Notes to the Interim Condensed Consolidated Financial Statements This section provides detailed disclosures on segment information, earnings per share, dividends, and significant post-reporting period events Segment Information The group operates across four segments, with motion control as the largest revenue contributor at 75% of external sales, and China being the dominant market External Revenue by Business Segment (H1 2024) | Business Segment | Revenue (S$ thousand) | Share of Total Revenue | | :--- | :--- | :--- | | Engineering Solutions - Motion Control | 131,098 | 75.1% | | Other Professional – Engineering Solutions | 34,805 | 19.9% | | Industrial Computing Solutions | 3,101 | 1.8% | | Renewable Energy | 4,961 | 2.8% | | Others | 608 | 0.3% | | Total | 174,573 | 100.0% | External Revenue by Geographical Region (H1 2024) | Region | Revenue (S$ thousand) | Share of Total Revenue | | :--- | :--- | :--- | | China | 127,671 | 73.1% | | Singapore | 15,807 | 9.1% | | Vietnam | 7,866 | 4.5% | | Indonesia | 5,190 | 3.0% | | Malaysia | 4,858 | 2.8% | | Hong Kong | 4,268 | 2.4% | | Others | 8,913 | 5.1% | | Total | 174,573 | 100.0% | - The Renewable Energy segment's performance remained largely stable, with segment results at S$2.308 million (H1 2023: S$2.326 million), while revenue more than doubled from S$2.351 million to S$4.961 million[27] - The core "Engineering Solutions - Motion Control" segment's results decreased by 30.9% year-on-year, from S$9.396 million to S$6.488 million[27] Earnings Per Share Basic earnings per share for H1 2024 was S$0.85 cents, a decrease from S$1.04 cents in the prior year, based on S$3.781 million net profit | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders (S$ thousand) | 3,781 | 4,580 | | Weighted Average Number of Ordinary Shares | 446,000,209 | 440,342,787 | | Basic and Diluted Earnings Per Share (S$ cents) | 0.85 | 1.04 | Dividends The Board did not recommend an interim dividend for the six months ended June 30, 2024, but a final dividend for FY2023 was paid in August - The Board did not recommend an interim dividend for 2024 (H1 2023: nil)[1][107] - The company paid a final dividend for FY2023 of S$0.28 cents per share, totaling approximately S$1.249 million, on August 26, 2024[46][47] Material Events Post-reporting period, the company established a joint venture in Malaysia for semiconductor and robotics integration and increased its stake in IDI Laser Pte Ltd to 70% - On July 4, 2024, a joint venture, Fuji Master (Penang) Sdn. Bhd., was established in Malaysia, with the Group holding a 75.5% effective interest, focusing on semiconductor and robotics system integration[63] - On August 5, 2024, the effective equity interest in IDI Laser Pte Ltd was increased from 33.33% to 70.00% through acquisition and subscription[64] Management Discussion and Analysis This section provides an overview of the group's business performance, market outlook, and detailed financial review for the reporting period Business Review H1 2024 revenue grew 2.4% driven by China and renewable energy, but gross margin declined to 25.4% and net profit fell 35.9% due to increased costs and product mix changes - Revenue for H1 2024 increased by 2.4% year-on-year, primarily driven by increased revenue contribution from China and the full commercialization of three mini-hydropower plants[65] - China Industrial Automation Business: Revenue increased by 3.2% year-on-year, accounting for 75.6% of total revenue - Southeast Asia Industrial Automation Business: Revenue decreased by 9.3% year-on-year, accounting for 19.2% of total revenue - Renewable Energy Business: Revenue increased by 111.0% to S$5.0 million, accounting for 2.8% of total revenue[66] - Gross profit margin decreased from 26.7% in the prior year to 25.4%, primarily reflecting changes in product mix across industries such as electronics, semiconductors, and medical[67][73] - Due to a 33.6% increase in finance costs and a 4.3% increase in administrative expenses, the Group's net profit decreased by 35.9% year-on-year to S$5.8 million[67][69] Business Outlook Management is cautiously optimistic about market recovery in China and Southeast Asia, driven by manufacturing expansion and government incentives, despite macroeconomic uncertainties - Management believes that the manufacturing and industrial sectors in China and Southeast Asia are gradually recovering, with China's Caixin PMI averaging 51.3 in H1 2024, remaining in expansionary territory[70] - The Chinese government and private sector are addressing labor shortages by adopting smart manufacturing and advanced technologies, creating opportunities for the Group as a full-stack industrial automation solutions provider[70] - The Southeast Asian market remains a growth market for industrial automation in the long term, driven by wage inflation and the development of advanced manufacturing[70] Financial Review This section analyzes the group's H1 2024 financial performance, highlighting revenue drivers, margin pressures, cost increases, balance sheet changes, and cash flow dynamics Statement of Comprehensive Income Analysis H1 2024 revenue grew 2.4% to S$175 million, but gross margin declined to 25.4%, while distribution, administrative, and finance costs all increased, leading to a drop in pre-tax profit | Business Segment | H1 2024 Revenue (S$ thousand) | H1 2023 Revenue (S$ thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Industrial Automation Solutions | 169,612 | 168,060 | 0.9% | | Renewable Energy | 4,961 | 2,351 | 111.0% | - The gross profit margin for the Industrial Automation Solutions segment decreased from 25.8% to 23.5%, primarily due to increased pass-through sales and heightened competition in cyclical industries like semiconductors and electronics[72][73] Statement of Financial Position Analysis As of June 30, 2024, property, plant, and equipment increased by S$1.6 million, investments in associates rose by S$2.0 million, while inventory decreased and bank borrowings reduced to S$70.8 million - Inventories: Decreased by 4.8% to S$69.5 million due to fulfilling customer orders - Trade and Other Receivables: Increased by 3.6% to S$114.6 million, primarily due to higher trade receivables - Trade and Other Payables: Increased by 2.8% to S$66.5 million, mainly due to higher trade payables - Bank Borrowings: Decreased by 6.5% to S$70.8 million, as repayments exceeded new borrowings[86][87][88][90] Statement of Cash Flows Analysis H1 2024 saw a significant improvement in operating cash flow to S$15.5 million, while investing and financing activities resulted in net outflows of S$3.6 million and S$10.3 million, respectively - Net cash generated from operating activities was S$15.5 million, a significant improvement from a net outflow of S$1.1 million in the prior year, primarily due to positive working capital changes from reduced inventories and increased payables[91] Liquidity and Financial Resources As of June 30, 2024, the group maintained healthy liquidity with S$60.8 million in cash, a quick ratio of 1.7x, and a reduced gearing ratio of 35.1% | Metric | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and Bank Balances (S$ million) | 60.8 | 60.0 | | Quick Ratio | 1.7 times | 1.7 times | | Total Bank Borrowings (S$ million) | 70.8 | 75.7 | | Gearing Ratio | 35.1% | 38.2% | Employees and Remuneration Policies The group's employee count increased to 1,177 as of June 30, 2024, with market-competitive remuneration policies and a performance-sharing plan to incentivize key staff - As of June 30, 2024, the Group's total headcount was 1,177 employees, an increase of 28 from the end of 2023[101] Other Regulatory Information Disclosures This section covers dividend decisions, disclosures on share acquisitions and disposals, and the Audit Committee's review of the interim financial results Dividend Information The Board decided not to declare an interim dividend for H1 2024 to conserve funds for business development amidst an uncertain economic outlook - The Board did not declare or recommend an interim dividend for 2024 to conserve funds for uncertain operating environments and business development[110] Disclosure of Acquisitions or Disposals of Shares During the Period The company made capital injections into subsidiaries for working capital and acquired stakes in FM and Centronics, making them associates, since the last reporting period - On February 22, 2024, 30% stakes in FM and Centronics were acquired for approximately S$2.028 million and S$0.025 million respectively, making both companies associates of the Group[118] - Multiple capital injections were made into wholly-owned subsidiaries in mainland China and Malaysia during the period to support their working capital requirements[116][118] Audit Committee The Audit Committee, comprising three independent non-executive directors, reviewed the unaudited consolidated results and confirmed their compliance with accounting standards and listing rules - The Audit Committee has reviewed the unaudited financial results for the period and confirmed their compliance and adequacy of disclosures[122]