Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 8,350,516, slightly up from HKD 8,350,449 in 2019[4] - Profit attributable to owners of the company increased by 25.9% to HKD 130,377 compared to HKD 103,515 in the previous year[4] - Basic earnings per share rose by 25.9% to HKD 20.83 from HKD 16.54 in 2019[6] - Total comprehensive income for the period was HKD 170,935, compared to HKD 138,975 in 2019[6] - The company reported a profit of HKD 130,377,000, an increase from HKD 103,515,000 in the same period of 2019, representing a growth of approximately 26%[25] - Gross profit decreased by 3.8% to HKD 400,490,000, with a gross margin of 4.8%, down from 5.0% year-on-year[39] - Net profit increased by 25.9% to HKD 130,377,000, attributed to cost control measures that reduced operating costs[39] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 4.50 per share, up 12.5% from HKD 4.00 in the previous year[4] - The company declared an interim dividend of HKD 0.045 per share, up from HKD 0.040 per share in 2019[30] Assets and Liabilities - Non-current assets as of June 30, 2020, totaled HKD 1,569,821, slightly down from HKD 1,583,364 at the end of 2019[7] - As of June 30, 2020, current liabilities increased to HKD 4,654,486 thousand from HKD 3,418,105 thousand, representing a 36.2% increase year-over-year[8] - Total assets minus current liabilities amounted to HKD 2,322,923 thousand as of June 30, 2020, up from HKD 2,194,666 thousand at the end of 2019, reflecting a 5.8% increase[8] - The total liabilities as of June 30, 2020, were HKD 4,654,486 thousand, which is a substantial increase compared to the previous year[8] - The company’s bank borrowings due within one year increased significantly to HKD 2,898,702 thousand from HKD 1,799,638 thousand, reflecting a 61.2% increase[8] - The current ratio as of June 30, 2020, was 116%, down from 118% at the end of 2019[40] - The net debt-to-equity ratio increased to 99% from 53% at the end of 2019, with net borrowings of approximately HKD 1,956,561,000[40] Cash Flow - The net cash used in operating activities for the six months ended June 30, 2020, was HKD (890,888) thousand, compared to HKD 544,454 thousand in the same period of 2019, indicating a significant decline[11] - The company reported a cash outflow from operating activities of HKD 890,888,000 for the six months ended June 30, 2020, compared to a cash inflow of HKD 544,454,000 in the same period last year[41] - The company reported a net cash inflow from financing activities of HKD 999,532 thousand for the six months ended June 30, 2020, compared to a cash outflow of HKD (484,834) thousand in the same period of 2019[11] Revenue Breakdown - Customer contract revenue reached HKD 8,341,857 for the six months ended June 30, 2020, compared to HKD 8,336,368 in the previous year, indicating a marginal increase[18] - Sales of electronic components and semiconductors amounted to HKD 8,228,426, up from HKD 8,134,614 year-on-year, reflecting a growth of approximately 1.15%[15] - Revenue from LED lighting and display products decreased to HKD 20,096 from HKD 48,253, representing a decline of about 58.3%[15] - Rental income from investment properties was HKD 8,305, down from HKD 8,806, showing a decrease of approximately 5.7%[20] - The revenue from household appliances and commercial equipment sales was HKD 42,694, down from HKD 96,129, indicating a decrease of about 55.6%[15] - Major customer A contributed HKD 4,653,253 to revenue, slightly increasing from HKD 4,648,607 in the previous year, indicating stable reliance on key clients[19] - The company noted that five major customers accounted for 65% of total revenue during the review period, consistent with the previous year[27] Inventory and Receivables - Inventory increased significantly to HKD 1,943,606 from HKD 841,591 in the previous year[7] - Trade and other receivables decreased to HKD 1,082,104 from HKD 1,272,100 in 2019[7] - Trade receivables as of June 30, 2020, amounted to HKD 1,007,960,000, down from HKD 1,187,720,000 as of December 31, 2019, indicating a decrease of approximately 15%[27] - The company provided trade customers with credit terms ranging from 30 to 120 days[23] Other Financial Metrics - The company’s retained earnings stood at HKD 1,442,953 thousand as of June 30, 2020, compared to HKD 1,573,330 thousand previously, indicating a decrease in retained earnings[9] - The company’s non-controlling interests increased to HKD 221,762 thousand from HKD 212,204 thousand, showing a growth of 4.0%[9] - The company’s depreciation of property, plant, and equipment increased to HKD 20,193,000 from HKD 19,892,000 year-over-year[24] - The company’s other income increased significantly to HKD 9,729,000 from HKD 7,271,000, reflecting a growth of approximately 33.8%[26] - The company’s trade payables as of June 30, 2020, were HKD 1,507,438,000, an increase from HKD 1,305,802,000 as of December 31, 2019, representing a growth of approximately 15.5%[29] Strategic Initiatives - The company plans to monitor the ongoing impact of COVID-19 and the US-China conflict, adjusting strategies as necessary to ensure sustainable growth[38] - The company launched LED UV-C health care products under the brand Life In Motion, responding to strong market demand during the pandemic[34] Corporate Governance - The company has complied with the corporate governance code, with specific deviations noted regarding the separation of the roles of Chairman and CEO[53] - The audit committee reviewed the accounting principles, internal controls, and risk management for the six months ending June 30, 2020[54]
S.A.S. DRAGON(01184) - 2020 - 中期财报