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珩湾科技(01523) - 2021 - 中期财报

Financial Performance - Revenue for the six months ended June 30, 2021, was approximately $32,751,000, an increase of about 35.9% compared to $24,102,000 for the same period in 2020[1] - Profit attributable to the owners of the company for the six months ended June 30, 2021, was approximately $9,292,000, representing an increase of about 81.5% from $5,120,000 in the same period of 2020[2] - Basic earnings per share for the six months ended June 30, 2021, was approximately 0.86 cents, compared to approximately 0.49 cents for the same period in 2020[2] - The company recorded a gross profit of $19,645,000 for the six months ended June 30, 2021, compared to $14,136,000 for the same period in 2020[2] - Cash flow from operating activities for the six months ended June 30, 2021, was $7,766,000, an increase from $3,511,000 in the same period of 2020[6] - The company achieved a pre-tax profit of $11,042,000 for the six months ended June 30, 2021, compared to $6,070,000 for the same period in 2020, representing an increase of approximately 82.2%[13] - The company reported a pre-tax profit of $1,750,000 for the six months ended June 30, 2021, compared to $950,000 for the same period in 2020, indicating an increase of 84%[20] - Net profit attributable to the parent company reached approximately $9,292,000, reflecting a year-over-year growth of about 81.5%[46] Revenue Breakdown - The sales of SD-WAN routers generated $18,275,000 in revenue for the six months ended June 30, 2021, compared to $12,960,000 in the same period of 2020, reflecting a growth of approximately 41.1%[13] - The software licensing and support services segment reported revenue of $8,530,000 for the six months ended June 30, 2021, compared to $7,266,000 in 2020, marking an increase of about 17.4%[13] - Revenue from North America reached $18,106,000 for the six months ended June 30, 2021, up from $13,628,000 in 2020, which is a growth of about 32.3%[14] - Revenue from Europe, the Middle East, and Africa was $9,366,000 for the six months ended June 30, 2021, compared to $6,257,000 in 2020, reflecting an increase of approximately 49.5%[14] - Revenue from customer contracts for the six months ended June 30, 2021, was $32,751,000, an increase of 36% compared to $24,102,000 for the same period in 2020[15] - SD-WAN sales contributed $24,221,000 in revenue for the first half of 2021, up from $16,836,000 in 2020, representing a growth of 44%[15] Assets and Liabilities - Total current assets as of June 30, 2021, were $54,421,000, slightly down from $54,941,000 as of December 31, 2020[3] - Total non-current assets as of June 30, 2021, were $3,706,000, down from $4,366,000 as of December 31, 2020[3] - The company’s total equity attributable to owners was $34,364,000 as of June 30, 2021, compared to $35,838,000 as of December 31, 2020[4] - Trade receivables as of June 30, 2021, were $8,622,000, up from $7,110,000 at the end of 2020, showing a growth of 21%[25] - The total inventory as of June 30, 2021, was $15,824,000, an increase from $12,509,000 at the end of 2020, reflecting a growth of 27%[21] - As of June 30, 2021, the company's bank borrowings were approximately $1.368 million, down from $3.387 million on December 31, 2020, resulting in a capital debt ratio of about 4.0% compared to 9.4% the previous year[52] Dividends and Shareholder Information - The company declared an interim dividend of 5.32 HK cents per share to shareholders listed on August 11, 2021[1] - The company declared an interim dividend of 5.32 HKD per share for the six months ended June 30, 2021, compared to 3.03 HKD per share for the same period in 2020, marking a 76% increase[22] - The company has authorized 4,000,000,000 shares, with 1,081,760,000 shares issued and fully paid as of June 30, 2021, compared to 1,071,728,000 shares as of December 31, 2020[28] - The beneficial ownership of shares by directors includes 756 million shares (69.9%) held by Chen Yongkang[64] - The beneficial ownership of shares by other directors includes 6 million shares (0.6%) held by Zhou Jiehuai, Zhuang Mingpei, and Yang Yu[64] Operational Highlights - The company has been engaged in the design, development, and marketing of software-defined wide area network (SD-WAN) routers during this period[9] - The company has two reportable operating segments: sales of SD-WAN routers and software licensing and support services, with both segments showing positive growth[12] - The significant increase in sales of wired and wireless SD-WAN routers was attributed to the growing demand for flexible connectivity to ensure online business continuity and productivity[36] - The company continues to experience growth in warranty and support services at a rate similar to past trends[36] - The company plans to launch several advanced new products supporting 5G and WiFi 6 in the second half of the year[49] - The company is preparing for the next phase of growth with the launch of a disruptive new service aimed at simplifying mobile connectivity for enterprise customers, potentially increasing recurring revenue significantly in the coming years[50] Governance and Compliance - The company has adopted a corporate governance code to maintain high levels of governance and transparency, complying with all applicable provisions during the reporting period[75] - The audit committee has reviewed the group's interim performance, including accounting principles and financial reporting matters for the six months ended June 30, 2021[77] - The company has confirmed that no directors or their associates held any interests in businesses that compete with the group during the reporting period[71] - The company has complied with the standard code for securities transactions by directors throughout the reporting period[76] Research and Development - Research and development expenses increased by approximately 13.8% to about $4,630,000, driven by the expansion of the R&D team and investments in 5G product development[44] - The company has fully utilized the net proceeds of approximately $14.0 million from its IPO, with allocations including 36% for expanding the R&D team and 15% for marketing activities[59] Other Financial Information - The company reported a net cash flow from investing activities of $(568,000) for the six months ended June 30, 2021, compared to $(5,862,000) in the same period of 2020[6] - The company reported a net foreign exchange loss of $140,000 for the six months ended June 30, 2021, compared to a gain of $103,000 in 2020[17] - The company received government grants totaling approximately $308,000 related to R&D projects during the reporting period[18] - The company did not purchase, redeem, or sell any of its listed securities during the reporting period[74] - There were no significant subsequent events after June 30, 2021, up to the date of this report[72]