Financial Performance - Revenue for the six months ended June 30, 2021, was HK$1,020,829,000, representing a 40% increase from HK$729,393,000 in the same period of 2020[10]. - Profit attributable to owners of the Company increased to HK$115,191,000, up 178% from HK$41,357,000 in the prior year[10]. - Basic earnings per share rose to 13.9 HK cents, compared to 5.0 HK cents in 2020, reflecting a significant improvement in profitability[10]. - Gross profit for the first half of 2021 was approximately HK$242.3 million, an increase of approximately HK$79.8 million or 49.1% from HK$162.5 million in the same period of 2020[52]. - Operating profit rose significantly to HK$118,085, compared to HK$46,651 in the prior year, marking a 153.5% increase[179]. - The total comprehensive income for the period was HK$137,235, compared to HK$16,836 in the same period of 2020[179]. Profitability Metrics - Gross profit margin improved to 23.7%, up from 22.3% in the previous year, indicating better cost management[11]. - Net profit margin increased to 11.3%, compared to 5.7% in 2020, showcasing enhanced operational efficiency[11]. - Return on equity reached 7.9%, up from 3.7% in the prior year, demonstrating effective use of shareholders' funds[11]. - The gross profit margin of the mold fabrication segment increased by 1.7 percentage points to 29.6%[37][38]. - The gross profit margin of the plastic injection business increased by 1.6 percentage points to 20.5%[47]. Liquidity and Financial Position - Current ratio improved to 204.6%, compared to 182.5% at the end of 2020, indicating stronger liquidity[12]. - Net current assets increased to HK$973,517,000, up from HK$835,259,000, reflecting a solid financial position[12]. - Total equity of the Group as of 30 June 2021 was approximately HK$1,466.2 million, compared to HK$1,394.6 million as of 31 December 2020[82]. - The current ratio as of 30 June 2021 was approximately 204.6%, an increase of 22.1 percentage points from 182.5% as of 31 December 2020[74][101]. - The Group's cash and bank balances are primarily denominated in US dollar, RMB, Euro, and HK dollar, with operating cash inflows and outflows mainly in these currencies[104][108]. Revenue Breakdown by Segment - The mobile phones and wearable devices segment generated revenue of HK$279.8 million, accounting for 27.4% of total revenue, while the automobiles segment contributed HK$245.2 million, or 24.0%[25]. - Revenue from the mold fabrication segment increased by approximately 34.6% to HK$365.5 million, accounting for approximately 35.8% of the Group's total revenue[32][35]. - Revenue from the plastic components manufacturing segment amounted to approximately HK$655.3 million, representing a year-on-year increase of 43.1% and accounting for approximately 64.2% of the Group's total revenue[39][41]. - The medical and health care segment reported revenue of HK$188.7 million, representing 18.5% of total revenue, with a year-on-year increase of 34.0%[25]. - The smart home segment recorded a significant year-on-year revenue increase of 67.4%[45]. Operational Efficiency - The Group's orders and production capacity have recovered to levels close to those in 2019, benefiting from the easing of COVID-19 restrictions[19]. - The Group expects continuous improvement in gross profit margin in the second half of 2021 due to enhanced production efficiency and stabilized raw material prices[26]. - The Group's trade receivable turnover days were 56 days, similar to the same period in 2019, and inventory turnover days were reduced to 119 days[31][34]. Shareholder Information - As of June 30, 2021, Mr. Li Pui Leung holds 52.86% of the Company's shares, amounting to 440,458,000 shares[135]. - Substantial shareholders include Jidong Limited and Anling Development Limited, holding 351,058,000 shares and 89,400,000 shares respectively, both controlled by Mr. Li Pui Leung[139]. - The total interim dividend declared is HK$44,996,000, equating to HK5.4 cents per share, expected to be paid on September 15, 2021[147]. Corporate Governance - The company has complied with all code provisions set out in the Corporate Governance Code during the period[150]. - All directors confirmed compliance with the Model Code regarding securities transactions throughout the period[156]. - The company established written guidelines for relevant employees regarding securities transactions, with no noted incidents of noncompliance[157]. Future Outlook and Strategy - The Group plans to invest in capacity expansion and investment projects to capitalize on potential business growth, primarily funded by internal resources[113]. - The management anticipates a strong global economic recovery trend in the second half of the year, despite ongoing COVID-19 threats in Asian countries[129]. - The Group will continue to develop new customers and enhance the automation level of production lines to maintain its industry leadership[129].
东江集团控股(02283) - 2021 - 中期财报