Financial Performance - The revenue for the six months ended June 30, 2021, was $297.6 million, a decrease of 3.2% compared to $307.5 million in the same period of 2020[9]. - The net profit for the same period was $22.5 million, down from $28.2 million in the first half of 2020[9]. - Gross profit for the same period was $45,280 thousand, down 7.8% from $48,838 thousand in 2020[42]. - Operating profit decreased to $25,369 thousand, a decline of 27.3% compared to $34,885 thousand in the previous year[42]. - Profit before tax was $24,967 thousand, down 27.7% from $34,526 thousand in 2020[42]. - Net profit for the period was $22,502 thousand, a decrease of 20.1% from $28,164 thousand in 2020[42]. - Basic and diluted earnings per share were $0.027, down from $0.034 in the previous year[42]. - Total comprehensive income for the period was $25,377 thousand, an increase from $22,707 thousand in 2020[45]. - Revenue for the six months ended June 30, 2021, was $297,629 thousand, a decrease of 3.0% from $307,521 thousand in 2020[42]. - The company reported a profit of $45,280,000 from its reportable segments for the six months ended June 30, 2021, down from $48,838,000 in 2020[61]. Assets and Liabilities - Total assets as of June 30, 2021, were $392.6 million, up from $381.6 million on December 31, 2020[14]. - The net current assets were $188.8 million, compared to $162.8 million as of December 31, 2020[14]. - Non-current assets as of June 30, 2021, totaled $100,416 thousand, slightly up from $99,860 thousand at the end of 2020[47]. - Current assets increased to $292,183 thousand from $281,781 thousand at the end of 2020, primarily due to an increase in inventory[47]. - Trade receivables (net of impairment) as of June 30, 2021, were HKD 78,549,000, down from HKD 101,682,000 as of December 31, 2020, representing a decrease of 22.7%[71]. - Cash and cash equivalents as of June 30, 2021, totaled HKD 62,442,000, a decrease of 26.1% from HKD 84,603,000 as of December 31, 2020[72]. - Trade payables as of June 30, 2021, were HKD 90,270,000, down from HKD 97,281,000 as of December 31, 2020, indicating a decrease of 7.0%[73]. Employee and Management - Total employee costs during the reporting period were approximately $22.0 million, compared to $18.3 million for the six months ended June 30, 2020[18]. - As of June 30, 2021, the company employed 2,471 full-time employees, down from 2,735 as of December 31, 2020[18]. - The total remuneration for key management personnel for the six months ended June 30, 2021, was HKD 295,000, a significant decrease of 66.2% from HKD 873,000 for the same period in 2020[78]. - The company has a long-term incentive plan for employee compensation, which is based on performance, qualifications, and capabilities[19]. Capital Expenditures and Investments - Capital expenditures for the reporting period amounted to $6.1 million, a decrease from $6.6 million for the six months ended June 30, 2020[16]. - The company plans to fund future capital expenditures through a combination of cash flow from operations and potential fundraising activities[16]. - Research and development costs (excluding depreciation) for the six months ended June 30, 2021, were $10,736,000, an increase from $8,377,000 in 2020[63]. Shareholder and Equity Information - Major shareholder, Lijing Innovation Technology Co., Ltd., holds a beneficial interest of 62.84% in the company[22]. - The company has pledged a total of 522,932,760 shares as collateral for bank financing, representing approximately 62.67% of the total issued share capital as of June 30, 2021[23]. - The total number of share options exercised during the first half of 2021 was 150,000, leaving 3,700,000 options outstanding[26]. - The company granted a total of 45,450,000 share options under the new share option plan adopted on May 5, 2021, with an exercise price of HKD 4.144 per share[27]. - As of June 30, 2021, the total number of shares available for issuance under the share option plan was 45,150,000 shares, representing approximately 5.4% of the company's issued shares[28]. - The total equity increased to $275.7 million from $250.1 million on December 31, 2020[14]. Governance and Compliance - The company has complied with the corporate governance code during the reporting period[31]. - The audit committee reviewed the accounting standards and policies adopted by the group and confirmed that the financial statements fairly present the group's financial position and performance for the reporting period[33]. - The board is responsible for the overall strategic leadership and planning of the company, including monitoring financial performance and internal controls[36]. - The company has adopted a standard code for securities transactions, and all directors confirmed compliance throughout the reporting period[34]. - No significant events affecting the company occurred after the reporting period that required disclosure in the interim report[35]. Market and Economic Conditions - The company plans to focus on developing new optical-related products and increasing R&D investment to enhance operational efficiency[13]. - The company aims to optimize supply chain management, including order, material, procurement, and inventory management[13]. - The management emphasizes the importance of talent acquisition and development to drive future growth[13]. - The board decided not to declare an interim dividend for the reporting period due to the uncertain economic outlook caused by the COVID-19 pandemic[29]. - The company did not declare any dividends for the six months ended June 30, 2021, compared to HKD 50,000,000 in dividends declared for the same period in 2020[74].
高伟电子(01415) - 2021 - 中期财报