Financial Performance - The group reported a net profit of $3,208,000 for the six months ended June 30, 2024, compared to a net loss of $1,489,000 for the same period in 2023[1]. - Adjusted net profit (non-IFRS measure) for the current period was $3,753,000, significantly up from $544,000 in the prior year, reflecting a substantial improvement in financial performance[1]. - Revenue for the six months ended June 30, 2024, was $52,107,000, an increase from $50,246,000 in the same period of 2023, indicating a growth of approximately 3.7%[3]. - Gross profit increased to $15,439,000, representing a gross margin of 29.6%, compared to $11,293,000 and a margin of 22.4% in the previous year[3]. - Basic earnings per share for the current period was 0.63 cents, compared to a loss of 0.30 cents per share in the same period last year[3]. - The group recorded a pre-tax profit of approximately $4.1 million for the six months ended June 30, 2024, compared to a pre-tax loss of approximately $1.8 million for the same period in 2023[49]. - Net profit for the six months ended June 30, 2024, was approximately $3.2 million, an increase of about $4.7 million compared to a net loss of approximately $1.5 million for the same period in 2023[51]. Revenue Breakdown - North America generated $21,713 thousand in revenue for the six months ended June 30, 2024, up from $14,013 thousand in 2023, reflecting a significant increase of 54.7%[10]. - Europe reported revenue of $20,259 thousand for the six months ended June 30, 2024, compared to $14,907 thousand in 2023, marking an increase of 35.5%[10]. - Revenue from product sales was $52,046,000 for the six months ended June 30, 2024, compared to $50,134,000 in 2023, reflecting a year-over-year increase of 3.8%[14]. - Customer contract revenue for the six months ended June 30, 2024, was $52,107,000, an increase from $50,246,000 in the same period of 2023, representing a growth of 3.4%[13]. Cost Management - The group optimized its cost structure, excluding non-recurring restructuring and redundancy costs, which positively impacted adjusted net profit[2]. - The cost of goods sold for the six months ended June 30, 2024, was $30,612,000, down from $32,176,000 in 2023, indicating a decrease of 4.9%[16]. - Research and development expenses for the six months ended June 30, 2024, amounted to $2,866,000, a decrease from $3,053,000 in 2023, representing a reduction of 6.1%[16]. - Sales and distribution expenses increased from approximately $3.0 million for the six months ended June 30, 2023, to approximately $3.6 million for the same period in 2024, mainly due to increased distribution and professional fees[45]. - Administrative expenses decreased from approximately $6.1 million for the six months ended June 30, 2023, to approximately $5.9 million for the same period in 2024, primarily due to reduced personnel costs[46]. Liquidity and Assets - Cash and cash equivalents rose to $19,423,000 as of June 30, 2024, compared to $16,872,000 at the end of 2023, indicating improved liquidity[4]. - Total assets decreased slightly to $69,699,000 from $70,736,000 at the end of 2023, primarily due to changes in current assets[4]. - Current liabilities increased to $43,434,000 from $36,363,000, reflecting higher trade payables and bank loans[4]. - The group’s equity increased to $25,948,000 as of June 30, 2024, up from $22,811,000 at the end of 2023, indicating a strengthening balance sheet[4]. Tax and Provisions - The income tax expense for Singapore for the six months ended June 30, 2024, was $761,000, significantly higher than $87,000 in 2023[21]. - The income tax expense for the United States for the six months ended June 30, 2024, was $96,000, slightly up from $85,000 in 2023[21]. - The inventory provision for the six months ended June 30, 2024, was $459,000, compared to $98,000 in 2023, indicating a significant increase of 367.3%[16]. - The company had a deferred tax expense of $101,000 for the period, with total tax expense amounting to $898,000[22]. Corporate Governance - The company has adopted corporate governance policies that are not less stringent than the corporate governance code, ensuring transparency and accountability to shareholders[70]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim financial results for the six months ending June 30, 2024[74]. - The company believes that effective corporate governance is essential for creating greater value for shareholders[72]. - The board of directors will continue to review and improve the corporate governance practices to enhance shareholder returns[72]. - Alain Perrot served as both Chairman and CEO until April 1, 2024, after which he stepped down and was succeeded by Xiao Guoxiong as Executive Director and CEO, ensuring compliance with governance code[71]. Operational Developments - The new digital automation production base in Hunan, China, has commenced mass production as planned, contributing to the group's operational capabilities[39]. - The group plans to continue cost management measures and invest in research and development to diversify its business areas and improve supply chain efficiency[39]. - The company continues to invest in various remote control technologies, including sustainable development and advanced sensors[36]. Employee and Labor Relations - The group has 146 employees as of June 30, 2024, down from 150 employees as of December 31, 2023[66]. - Employee benefits expenses for the six months ended June 30, 2024, amounted to approximately $6.1 million[66]. - No significant labor disputes occurred during the reporting period[66]. Foreign Exchange and Risk Management - The group continues to monitor foreign exchange risks and plans to take prudent measures to mitigate currency exchange risks[65]. - The group’s functional currency is the US dollar, and sales are primarily denominated in US dollars[65]. - Fluctuations in exchange rates may adversely affect the group's financing costs, sales, and product profit margins[65]. - The group has not established any hedging agreements to offset foreign exchange risks[65].
HOME CONTROL(01747) - 2024 - 中期业绩