Financial Performance - Revenue for the six months ended June 30, 2021, was $1,982 million, an increase of 3.4% compared to $1,916 million for the same period in 2020[11]. - Gross profit for the same period was $268 million, reflecting a 2.5% increase from $261 million in 2020[11]. - Operating profit decreased by 50.1% to $15.9 million from $31.9 million in the previous year[11]. - Profit attributable to owners of the company was $9.3 million, down 58.2% from $22.2 million in 2020[11]. - The company reported a net profit of $7,880 thousand, down from $20,145 thousand in the previous year, indicating a decrease of 60.91%[58]. - Basic earnings per share for the company was $0.14, compared to $0.33 in the prior year, a decline of 57.58%[58]. - The company reported a foreign exchange loss of $10,780 thousand for the period, contrasting with a gain of $27,645 thousand in the previous year[59]. - The company’s net profit attributable to shareholders for the six months ended June 30, 2021, was $9.264 million, a decrease of 58% compared to $22.173 million for the same period in 2020[105]. Revenue Segments - The mobile device segment saw a revenue decrease of 28.4% due to the removal of wired headphone configurations in new smartphones[15]. - Communication infrastructure revenue increased by 7.4% due to the rise in demand for networking products during the pandemic[15]. - Revenue from the computer and consumer electronics segment increased by 22.3% as a result of remote work and online learning trends[15]. - Automotive, industrial, and medical segments experienced a revenue increase of 30.6%[15]. - Smart accessories revenue surged by 79.6% as physical retail channels reopened in Europe and the US[15]. - Revenue from the mobile devices segment decreased by 28.4%, primarily due to the removal of wired earphone configurations in new smartphones, although Lightning cable products partially offset this decline[22]. - The communications infrastructure segment saw a revenue increase of 7.4%, driven by the growing demand for high-speed connectors and cables[22]. - Revenue from the computer and consumer electronics segment increased by 22.3%, supported by the ongoing trends of remote work and online learning[22]. - The automotive, industrial, and medical segment experienced a revenue increase of 30.6%, benefiting from rising demand for electric vehicles and in-car infotainment products[22]. - The smart home segment's revenue grew by 2.4%, reflecting the increasing interconnectivity of home appliances[22]. - Revenue from the smart accessories terminal market surged by 79.6%, attributed to the recovery of the pandemic in Europe and the U.S., along with the launch of new true wireless Bluetooth earphones[26]. Expenses and Costs - Research and development expenses rose by 13.9% to $131 million, mainly due to investments in upgrading Lightning cables and high-speed connectors[29]. - Operating profit decreased by 50% to $16 million, with the operating profit margin dropping from 1.7% to 0.8%[31]. - Income tax expenses increased by 20.0% to $6 million, with the effective tax rate rising from 21.3% to 43.2%[32]. - Employee benefits expenses totaled $368 million for the first half of 2021, compared to $329 million in the same period of 2020[49]. - The company incurred depreciation and amortization expenses of $74.051 million for property, plant, and equipment during the six months ended June 30, 2021[110]. Assets and Liabilities - Cash and cash equivalents stood at $757 million, a slight decrease from $766 million at the end of the previous year[34]. - Total assets decreased from $4,638,937 thousand to $4,451,631 thousand, a decline of approximately 4.03%[60]. - Total liabilities decreased from $2,448,561 thousand to $2,166,619 thousand, a decrease of approximately 11.48%[61]. - Current liabilities increased significantly from $1,789,962 thousand to $2,091,503 thousand, an increase of about 16.86%[61]. - Trade receivables decreased from $872 million as of December 31, 2020, to $668 million as of June 30, 2021, due to improved collection efforts on overdue receivables[41]. - Inventory increased from $944 million as of December 31, 2020, to $994 million as of June 30, 2021, due to overall business expansion and anticipated higher product demand in the second half of 2021[40]. Financing and Investments - The company issued convertible preferred shares to Fortinet Inc. for $75 million, which can be converted into 32.6% of Linksys' equity[38]. - The company raised $2,140,415 thousand from bank borrowings, significantly higher than the $1,605,216 thousand raised in the previous year[64]. - The company reported a net cash inflow from operating activities of $55,412 thousand, compared to a cash outflow of $53,816 thousand for the same period in 2020[64]. - The company incurred a net cash outflow from investing activities of $65,147 thousand, an improvement from the $108,513 thousand outflow in the same period last year[64]. - The company recognized government subsidies of $7,278 thousand for the six months ended June 30, 2021, up from $5,954 thousand in the same period of 2020[96]. Shareholder Information - The company did not declare any interim dividend for the six months ended June 30, 2021[54]. - The company has a significant shareholder, Hon Hai, holding 5,179,557,888 shares, representing 75.15% of the total equity[174]. - The company plans to issue 2,400,232 preferred shares to Fortinet Inc. for approximately $85,000,000, resulting in a change in ownership structure for Linksys Holdings, Inc.[167]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ending June 30, 2021[186]. Corporate Governance - The chairman and CEO roles are held by the same individual, which the board believes provides strong and consistent leadership[187]. - The board of directors has confirmed compliance with the standard code of conduct for securities trading during the six months ending June 30, 2021[188]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated interim financial information for the six months ending June 30, 2021[191].
FIT HON TENG(06088) - 2021 - 中期财报