Financial Performance - The Group's turnover increased by 10.7% year-on-year to HK$1,003.3 million (1H 2020/21: HK$906.0 million) due to rising sales of pet training equipment[10]. - Gross profit rose by 10.0% to HK$134.7 million (1H 2020/21: HK$122.4 million), with a gross profit margin of 13.4% (1H 2020/21: 13.5%) [11]. - Profit attributable to shareholders remained stable at HK$29.1 million (1H 2020/21: HK$29.1 million), with a net profit margin of 2.9% (1H 2020/21: 3.2%) [11]. - Sales from the core electronic products business amounted to HK$768.7 million, representing a year-on-year increase of 6.4% and accounting for 76.6% of total sales[18]. - The pet business recorded sales of HK$234.6 million, a year-on-year increase of 27.9%, accounting for 23.4% of total sales[21]. - Revenue from the electronic products segment recorded approximately HK$768.7 million, representing 76.6% of the group's total revenue, with an increase of HK$46.1 million or 6.4% compared to the previous year[58]. - Revenue from the pet-related products segment recorded approximately HK$234.6 million, representing 23.4% of the group's total revenue, with an increase of HK$51.1 million or 27.9% compared to the previous review period[58]. - Operating profit for the period was HK$39.0 million, an increase of HK$1.6 million or 4.2% compared to the corresponding period last year[47]. - Profit for the period was HK$29.5 million, representing an increase of HK$0.2 million or 0.6% compared to HK$29.3 million in the previous year[47]. Dividends and Shareholder Returns - The interim dividend declared is HK$6.0 cents per share, consistent with the previous year[11]. - The Board declared an interim dividend of HK$6.0 cents per share for the six months ended 30 September 2021, consistent with the previous period[92]. - The company paid dividends totaling HK$31,327,000 during the period[183]. Production and Operations - The Group is optimizing its production base in Vietnam to meet strong customer demand for diversified supply chains[9]. - The new highly automated factory in Vietnam, covering over 30,000 sq. m., commenced operations in October to meet customer demand for cost-effective production[31]. - The Group aims to improve operational efficiency in its factories in Mainland China and Vietnam to enhance cost-effectiveness and reduce geopolitical risks[39]. - The Group continues to benefit from the "stay-at-home" mentality, driving demand for home appliances and related products[19]. - The overall market is showing signs of recovery despite ongoing global material supply tensions and shipping challenges[9]. Research and Development - The Group plans to enhance R&D resources for smart and big data-related products, showcasing innovative technologies such as pet facial recognition and AI solutions at the Hong Kong Electronics Fair[40]. Financial Position and Assets - As of 30 September 2021, the Group's current assets were approximately HK$904.9 million, an increase from HK$875.2 million as of 31 March 2021[64]. - The liquidity ratio decreased slightly to 1.65 times as of 30 September 2021, compared to 1.68 times as of 31 March 2021[64]. - The Group's cash and bank balances were approximately HK$126.5 million as of 30 September 2021, down from HK$127.8 million as of 31 March 2021[64]. - Total bank borrowings increased to HK$155.5 million as of 30 September 2021, compared to HK$138.6 million as of 31 March 2021, resulting in a gearing ratio of 19.5%[64]. - The Group's total assets amounted to approximately HK$1,350.3 million as of 30 September 2021, up from HK$1,326.6 million as of 31 March 2021[64]. - The debt ratio was approximately 0.41 times as of 30 September 2021, compared to 0.40 times as of 31 March 2021[64]. - The net asset value decreased from HK$802.2 million as of 31 March 2021 to HK$798.7 million as of 30 September 2021[64]. - The Group's total capital expenditures for the period were HK$28.2 million, primarily for machinery and equipment for production plants in PRC and Vietnam[64]. Corporate Governance and Compliance - The Audit Committee reviewed the accounting policies and practices adopted by the Group for the six months ended 30 September 2021[97]. - The Company confirmed compliance with the Model Code for Securities Transactions by Directors during the reporting period[97]. - The public float of the Company's issued shares was not less than 25% as required under the Listing Rules[97]. - The company has adopted the standard code of conduct for securities trading by directors, confirming compliance as of September 30, 2021[98]. - The company confirms compliance with the Securities and Futures Ordinance regarding the interests and short positions of directors[110]. Employee and Remuneration - The Group employed approximately 2,896 employees, with 69 based in Hong Kong and the remainder primarily in Mainland China and Vietnam[88]. - The Group's remuneration policy includes educational sponsorship subsidies, discretionary performance bonuses, and share options[88]. Shareholder Interests - Dr. Ng Chi Ho holds a total interest of 170,528,000 shares, representing 59.88% of the issued ordinary shares[101]. - Mr. Ma Fung On has a total interest of 14,223,000 shares, accounting for 4.99% of the issued ordinary shares[101]. - Dr. Ng Man Cheuk holds 111,000,000 shares, which is 38.98% of the issued ordinary shares[101]. - Superior View Inc. holds 110,000,000 shares, representing 38.62% of the issued shares[129]. - Billion Linkage Limited owns 53,598,000 shares, accounting for 18.82% of the issued shares[133]. - Lee Wai Fun has an interest in 116,930,000 shares, which is 41.06% of the issued shares[137]. Cash Flow and Investments - For the six months ended September 30, 2021, cash generated from operations was HK$49,385,000, compared to HK$48,404,000 in the same period of 2020, reflecting a slight increase[190]. - The net cash used in investing activities amounted to HK$34,533,000, primarily due to purchases of property, plant, and equipment totaling HK$29,741,000[190]. - Proceeds from bank borrowings were HK$175,000,000, while repayments of bank borrowings were HK$158,050,000, resulting in a net cash inflow from financing activities of HK$15,520,000[190]. - The cash and cash equivalents at the end of the period were HK$126,547,000, down from HK$128,459,000 at the beginning of the period, indicating a decrease of HK$1,649,000[190]. Accounting Policies and Standards - The accounting policies applied are consistent with those of the annual consolidated financial statements for the year ended March 31, 2021, with no material effect from the adoption of new amendments[195]. - The Group has not early adopted new accounting standards and amendments that are not yet effective for the financial year beginning April 1, 2021[199]. - The amendments to HKAS 16, HKAS 37, and HKFRS 3 will take effect from January 1, 2022, impacting property, plant, and equipment accounting practices[200]. - The amendments to HKAS 1 and HKFRS Practice Statement 2 regarding the disclosure of accounting policies will be effective from January 1, 2023[200]. - The definition of accounting estimates has been revised under HKAS 8, effective January 1, 2023[200]. - Amendments to HKAS 12 regarding income taxes and asset sales between investors and their associates will also take effect on January 1, 2023[200].
信佳国际(00912) - 2022 - 中期财报