Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 45,999 thousand, a decrease of 40.60% compared to HKD 77,437 thousand in the same period of 2023[1] - Gross profit decreased by 43.40% to HKD 18,031 thousand from HKD 31,838 thousand year-over-year[1] - Operating profit for the period was HKD 10,843 thousand, down 40.90% from HKD 18,343 thousand in the previous year[1] - Net profit attributable to shareholders was HKD 9,949 thousand, a decline of 32.60% compared to HKD 14,756 thousand in the same period last year[1] - Basic and diluted earnings per share decreased by 33.30% to HKD 1.2 from HKD 1.8 year-over-year[1] Assets and Equity - Total current assets decreased by 11.90% to HKD 123,283 thousand from HKD 139,994 thousand as of December 31, 2023[3] - Total assets decreased by 11.70% to HKD 145,559 thousand from HKD 164,857 thousand as of December 31, 2023[3] - Total equity decreased by 5.30% to HKD 139,769 thousand from HKD 147,660 thousand as of December 31, 2023[3] - As of June 30, 2024, the company's total equity amounted to HKD 139,769 million, a decrease from HKD 147,660 million as of January 1, 2024[5] Cash Flow and Reserves - The company reported a net cash position of HKD 38,748 thousand, down from HKD 54,891 thousand in the previous year[3] - The cash flow from operating activities for the six months ended June 30, 2024, was HKD 26,253 million, compared to HKD 8,304 million for the same period last year[9] - The company incurred a foreign exchange reserve loss of HKD 1,840 million during the period[5] - The company has a statutory reserve of HKD 7,016 million, which is required by Chinese law to allocate at least 10% of after-tax profits[7] Revenue Breakdown - ODM revenue decreased by 45.1% to HKD 16.8 million from HKD 30.6 million in the previous period[35] - OEM revenue decreased by 17.9% to HKD 0.1 million from HKD 0.2 million in the previous period[35] - OBM revenue saw a significant drop of 77.9% to HKD 0.4 million from HKD 1.7 million in the previous period[35] - Revenue from rotary bearings decreased from HKD 41.5 million in the first half of 2023 to HKD 17.3 million, a decline of 58.3%[41] Expenses and Cost Management - The company incurred a total tax expense of 1,309,000 HKD for the six months ended June 30, 2024, compared to 3,929,000 HKD for the same period in 2023[18] - The cost of goods sold and consumables amounted to 23,055,000 HKD for the six months ended June 30, 2024, compared to 40,374,000 HKD for the same period in 2023[17] - The group's selling costs decreased by approximately 38.7% to HKD 28.0 million, primarily due to reduced revenue and the need to produce different product combinations[48] - Administrative expenses were reduced by approximately 46.0% to about HKD 7.5 million, attributed to decreased office expenses and listing-related costs[49] Business Strategy and Market Outlook - The company anticipates that 2024 will be a challenging year due to economic recovery issues in several countries and high interest rates impacting the global business environment[32] - The company aims to further diversify its heavy machinery offerings to include pile drivers and wheeled unloaders[31] - The group decided to expand its product procurement range to include minerals and related products, responding to increasing customer inquiries for a broader product range[34] - The company is positioned as one of the fastest-growing "full-service product" suppliers in its field[68] Corporate Governance and Compliance - The company aims to adhere to the corporate governance code as per the Hong Kong Stock Exchange listing rules[81] - The board has established a corporate governance committee to review the company's governance policies and practices[81] - The Audit Committee was established on October 21, 2019, consisting of three independent non-executive directors[83] Employee and Operational Changes - The group had 82 employees as of June 30, 2024, a decrease from 96 employees as of December 31, 2023[60] - The company has expanded its finance department by hiring senior accountants to manage increased business scale and production capacity[57] - The company aims to increase market share and strengthen sales capabilities, having increased manpower in the sales department to enhance support for sales activities[56] Future Developments - The company plans to enhance automation levels by integrating intelligent automation solutions into the production process, including the installation of robotic arms and the purchase of an automatic packaging machine[57] - The company has set a goal to improve data management efficiency through the establishment of an ERP system, with components currently undergoing testing and expected to be operational in the second half of 2024[57]
永联丰控股(09882) - 2024 - 中期业绩