Financial Performance - For the six months ended June 30, 2021, the company's revenue was approximately $46.6 million, a decrease of about 33.3% compared to $69.8 million for the same period in 2020[47]. - The adjusted net profit for the same period was $1.9 million, slightly up from $1.7 million in 2020, despite the overall revenue decline[47]. - The gross profit margin improved from approximately 20.4% for the six months ended June 30, 2020, to about 24.6% for the same period in 2021, indicating a shift towards higher-margin products[52]. - The group recorded a pre-tax profit of approximately $0.3 million for the six months ended June 30, 2021, compared to a pre-tax loss of approximately $2.0 million for the same period in 2020[68]. - The company reported a total comprehensive income of $(52,000) for the six months ended June 30, 2021, compared to a total comprehensive income of $1,547,000 for the same period in the previous year[150]. - The company reported a pre-tax profit of $270,000 for the six months ended June 30, 2021, a decrease of 86.5% compared to $2,005,000 in the same period of 2020[152]. - Net profit attributable to the company's shareholders was $81,000, down from $1,503,000, representing a decline of 94.6%[143]. - Basic and diluted earnings per share for the period were both $0.02, compared to $0.30 in the same period last year, a decrease of 93.3%[143]. Revenue Breakdown - Revenue breakdown by region shows North America at $4.31 million (9.3%), Europe at $21.11 million (45.3%), Asia at $14.21 million (30.5%), and Latin America at $6.94 million (14.9%) for the six months ended June 30, 2021[57]. - North America generated $4,314 thousand in revenue, a substantial drop from $29,102 thousand in the previous year, indicating a decline of 85.2%[165]. - Europe saw an increase in revenue to $21,114 thousand from $20,867 thousand, representing a growth of 1.2%[165]. - Revenue from product sales was $46,348 thousand, down 33.5% from $69,658 thousand in the previous year[170]. - The company reported no individual customer contributing 10% or more to total revenue for the six months ended June 30, 2021[169]. Costs and Expenses - The cost of sales for the six months ended June 30, 2021, was approximately $35.12 million, representing about 75.4% of total revenue, compared to $55.58 million (79.6%) for the same period in 2020[59]. - Gross profit for the six months ended June 30, 2021, was approximately $11.5 million, down from $14.2 million in the same period in 2020[61]. - Employee benefits expenses for the six months ended June 30, 2021, were approximately $6.8 million, with a total of 180 employees as of the same date[91]. - Financing costs increased to $2,364,000 from $1,122,000, reflecting a rise of 110.6%[143]. - The total income tax expense for the six months ended June 30, 2021, was $189,000, a decrease from $502,000 in 2020[190]. Cash Flow and Financial Position - The net cash used in operating activities for the six months ended June 30, 2021, was approximately $(0.95) million, compared to $3.06 million for the same period in 2020[74]. - Cash and cash equivalents as of June 30, 2021, were approximately $21.2 million, indicating a stable financial position[73]. - The net cash flow from investing activities for the six months ended June 30, 2021, was approximately $0.1 million, primarily related to the sale of intangible assets of about $0.5 million, offset by the purchase of property, plant, and equipment of $0.4 million[77]. - The net cash flow used in financing activities for the same period was approximately $0.3 million, mainly due to the repayment of interest-bearing bank loans of $24.5 million and payment of loan interest of $0.4 million, partially offset by proceeds from interest-bearing bank loans of $24.9 million[78]. - The cash and cash equivalents at the end of the period were $21,188,000, down from $22,433,000 at the end of the previous year, reflecting a decline in liquidity[153]. Investments and Future Plans - The company plans to utilize the IPO proceeds for strategic investments or acquisitions in OTT systems and/or smart home security products, with an allocation of approximately $2.93 million[97]. - The company intends to invest $1.82 million in R&D and development of OTT sector products and expanding the smart home product line[97]. - An investment of $1.76 million is planned to expand the professional sales team to support business development[97]. - The company aims to enhance supply chain management and invest $0.84 million in expanding supply chains outside of China[97]. - The company expects to fully utilize the unallocated IPO proceeds by the end of 2021[99]. COVID-19 Impact - The company continues to monitor the impact of COVID-19 on its operations and is complying with government measures and recommendations[55]. - The COVID-19 pandemic has hindered business discussions and due diligence processes, but the board is closely monitoring the situation[99]. - A new COVID-19 contact tracing system has been successfully launched in India and the United States, with expectations for more orders in the second half of 2021[54]. Shareholder Information - Major shareholders, including Morgan Stanley and its affiliates, hold a combined 74.76% of the company's issued share capital, totaling 375,000,000 shares[132]. - The total number of shares issued by the company as of June 30, 2021, was 501,633,663 shares[127]. - The company granted a master option to purchase 40,841,584 shares at an exercise price of approximately $0.0877 per share, representing about 8.14% of the total shares issued as of June 30, 2021[113]. - As of June 30, 2021, a total of 5,016,337 shares were granted under the share award plan, accounting for approximately 1.00% of the total shares issued at the time of grant[118].
HOME CONTROL(01747) - 2021 - 中期财报