Financial Performance - Revenue for the six months ended 30 September 2020 was HK$1,340,004, a decrease of 28% compared to HK$1,861,015 in the same period of 2019[13]. - Gross profit increased to HK$186,066, representing a gross margin of approximately 13.9%, compared to HK$176,394 in 2019[13]. - Profit before income tax for the period was HK$101,708, up 16.6% from HK$87,251 in the previous year[13]. - Profit for the period attributable to equity holders of the Company was HK$90,378, an increase of 15.4% from HK$78,377 in 2019[13]. - Total comprehensive income for the period was HK$115,362, compared to a loss of HK$16,844 in the same period of 2019[15]. - Earnings per share for continuing operations was HK20.75 cents, up from HK18.40 cents in the previous year[17]. - The Company reported an exchange translation reserve gain of HK$24,922 from foreign operations, compared to a loss of HK$92,996 in 2019[15]. - The total comprehensive income attributable to equity holders of the Company from continuing operations was HK$116,060, compared to a loss of HK$12,117 in 2019[17]. - Profit for the period was HK$90,378, compared to HK$78,377 in the previous period, an increase of 15.5%[24]. - Total comprehensive income for the period was HK$115,359, reflecting an increase from HK$90,159, a growth of 28.0%[24]. Assets and Liabilities - Total assets increased to HK$3,041,720, up from HK$2,874,361, representing a growth of 5.8%[19]. - Total equity rose to HK$1,341,444, compared to HK$1,226,082, reflecting an increase of 9.4%[21]. - Current liabilities increased to HK$1,384,611, up from HK$1,169,878, marking a rise of 18.3%[21]. - Non-current liabilities decreased to HK$315,665 from HK$382,805, a reduction of 17.5%[21]. - Cash and cash equivalents increased to HK$308,686, compared to HK$244,681, showing a growth of 26.2%[19]. - Total non-current assets decreased to HK$1,272,507 from HK$1,325,819, a decrease of 4.0%[19]. - Accounts and bills receivable rose to HK$473,311,000 as of 30 September 2020, compared to HK$228,426,000 at the end of March 2020, representing a significant increase of 107.5%[88]. - The current portion of financial liabilities increased to HK$820,025,000 from HK$624,131,000[126]. Cash Flow - Cash flows from operating activities decreased to HK$87,636,000, down 67.7% from HK$271,511,000 in the previous year[27]. - Net cash outflow from investing activities was HK$11,945,000, a significant reduction from HK$115,896,000 in the prior year[27]. - Cash flows from financing activities resulted in a net outflow of HK$22,690,000, compared to a net outflow of HK$99,967,000 in the previous year[27]. - The net increase in cash and cash equivalents for the period was HK$53,001,000, slightly lower than HK$55,648,000 in the same period last year[27]. - Cash and cash equivalents at the end of the period stood at HK$325,437,000, an increase from HK$288,484,000 at the end of the previous year[27]. - The Group's total cash inflow from the disposal of subsidiaries amounted to HK$37,448,000 during the period[27]. Segment Performance - The Group's total revenue for the period was HK$1,345,515,000, with segment revenue from electrical and electronic products at HK$852,207,000 and motors at HK$507,405,000[44]. - Segment results showed an operating profit of HK$89,979,000 for electrical and electronic products and HK$41,893,000 for motors, totaling HK$111,427,000 for continuing operations[44]. - The Electrical and Electronic Products Business Segment generated external turnover of HK$834,214,000, accounting for 62.3% of the Group's consolidated turnover, a decrease of 40.3% from HK$1,397,142,000 in the same period last year[147]. - The Motors Business Segment contributed HK$505,790,000, representing 37.7% of the Group's consolidated turnover, an increase from HK$463,770,000 in the previous year[147]. - Despite the decrease in turnover, segment profit increased by 14.9% to HK$89,979,000 during the period, up from HK$78,342,000 in the first half of FY2019[157]. - The segment results for electrical and electronic products showed a profit of HK$78,342,000, while motors generated a profit of HK$31,662,000[49]. Operational Challenges and Strategies - The Group's turnover decreased by 28.0% YoY, from approximately HK$1,861,015,000 to approximately HK$1,340,004,000 due to reduced orders from major customers and order postponements amid the COVID-19 pandemic[143][145]. - The robotics sector faced downward pricing pressures due to U.S. tariffs and rising operating costs in China, impacting profitability[158]. - The company plans to diversify its product mix and client portfolio towards less cyclical industries for sustainable growth[171]. - The company is committed to investing in engineering capabilities and R&D to enhance competitive advantages in the market[169]. - The Group's proactive measures included managing raw material and labor costs, maintaining a balanced production schedule, and enhancing customer and product diversity[147]. Market and Product Development - The company has established a new house brand production line, "Kin Yat Health," to diversify its business portfolio[142]. - The company has a strong R&D capability, focusing on technology-driven production in robotics, juvenile products, and smart products[142]. - The company aims to leverage its reliable quality products and strong manufacturing capabilities to expand its clientele during the current market consolidation[180]. - The company plans to continue developing new products for existing clients and explore new opportunities to diversify risks[167]. - The diversified product portfolio of the juvenile products sector helped mitigate the impact of the COVID-19 pandemic on demand[168]. Real Estate and Property Development - The real estate development segment reported a loss of HK$21,224,000, compared to a loss of HK$2,847,000 in the first half of FY2019, primarily due to a one-off impairment loss of HK$20,400,000[196]. - The COVID-19 pandemic adversely affected sales momentum, with no property unit sales closed during the period[198]. - The segment anticipates a boost in property sales from the future commissioning of the Guiyang-Naning high-speed train services[199]. - The segment aims to explore the possibility of realizing remaining property units as a whole, with a total saleable area of approximately 22,000 square meters for residential units and 5,000 square meters for commercial properties[200].
广和通(00638) - 2021 - 中期财报