2021-09-01 08:54Financial Performance - Revenue for the first half of 2021 increased by 52.0% to $6,394 million compared to $4,206 million in 2020[9] - Gross margin improved to 38.6%, up 58 basis points from 38.0% in the previous year[9] - Operating profit before interest and tax rose by 57.4% to $572 million, up from $363 million in 2020[9] - Net profit attributable to shareholders increased by 57.9% to $524 million, compared to $332 million in the prior year[9] - Earnings per share grew by 57.8% to approximately 28.62 cents, up from 18.14 cents in 2020[9] - Total comprehensive income for the six months was $589,356 thousand, a significant rise of 79.7% from $327,610 thousand in the previous year[42] - The group reported a net profit of $563,022 thousand for the six months ended June 30, 2021, compared to $356,159 thousand in the same period of 2020, marking an increase of approximately 58%[60] Dividends - Interim dividend per share increased by 60.4% to approximately 10.94 cents, compared to 6.82 cents in the previous year[9] - The interim dividend declared was HK$0.85 per share (approximately US$0.1094), up from HK$0.53 per share (approximately US$0.0682) in 2020[37] - The company declared a final dividend of HKD 0.82 per share (approximately USD 0.1055) totaling approximately USD 193.49 million for the year 2020, compared to HKD 0.58 per share (approximately USD 0.0746) totaling approximately USD 136.69 million for the previous year[66] Capital Expenditures and Investments - Capital expenditures for the first half totaled $245 million, reflecting strategic investments for future growth[11] - The company invested approximately USD 245 million in property, plant, and equipment, and USD 130 million in intangible assets during the reporting period, compared to USD 117 million and USD 78 million, respectively, in the same period of 2020[68] - The company has capital commitments for property, plant, and equipment amounting to $267,180,000, an increase from $103,957,000 as of December 31, 2020[78] Sales and Market Performance - Sales growth was observed across all regions, with North America and Europe increasing by 50.2% and 62.3% respectively[11] - The sales revenue for the electric tools division increased by 55.3% to $5,800,000,000, with outstanding performance across all regions and business units[15] - The flagship brand Milwaukee achieved a remarkable growth of 64.1% in the first half of 2021, driven by the launch of innovative products and strong commercial execution[15] - The revenue breakdown by region shows North America at $4,885,809 thousand, Europe at $1,018,637 thousand, and other countries at $489,303 thousand for the six months ended June 30, 2021, compared to $3,251,878 thousand, $627,536 thousand, and $326,283 thousand respectively in 2020[63] Research and Development - Research and development expenses accounted for 3.1% of revenue during the period, up from 2.9% in 2020, driven by strategic investments in new products and promotional activities[30] - The company reported a significant increase in R&D expenses to $196,133 thousand, up 62.3% from $120,897 thousand in the previous year[42] Working Capital and Inventory - The operating working capital as a percentage of sales was 18.3%, lower than the target of 20.0%[11] - Total inventory was $4,471,000,000, up from $2,327,000,000 a year earlier, with inventory turnover days increasing from 102 to 136 days[34] - Operating working capital as a percentage of sales was 18.3%, up from 15.8% in the previous year, indicating a strategic focus on managing working capital[34] Employee Costs - Employee costs for the period were $1,074,000,000, compared to $668,000,000 in the same period last year, reflecting a focus on talent development[36] - The group’s employee costs for the six months ended June 30, 2021, were $1,074,459 thousand, compared to $667,906 thousand in 2020, indicating a rise of about 61%[65] Liabilities and Equity - Total liabilities increased to $6,620,925 thousand, compared to $4,081,435 thousand at the end of 2020, indicating a rise of 62.2%[44] - Shareholders' equity reached $4,265,576 thousand, a 9.3% increase from $3,903,005 thousand at the end of 2020[44] - Cash and cash equivalents amounted to $2,270,000,000 after dividends of $193,500,000 were paid, compared to $1,534,000,000 at the end of 2020, with a net debt ratio of 14.8%[32] Stock Options and Share Incentive Plans - The company reported a total expense of $7,375,000 related to stock options granted during the six-month period ending June 30, 2021[5] - The total number of unexercised stock options as of June 30, 2021, is 14,998,000, representing approximately 0.82% of the company's issued share capital[5] - The company has adopted two share incentive plans, which are effective for ten years from their respective adoption dates[6] - The report includes details on the share incentive plan for various executives, indicating a structured approach to performance-based compensation[83] Corporate Governance - The company has complied with all provisions of the Corporate Governance Code as of June 30, 2021, enhancing its governance standards[99] - All directors confirmed full compliance with the Standard Code during the six-month period ending June 30, 2021[100]