盈利时(06838) - 2024 - 中期业绩

Financial Highlights Key Financial Indicators The Group experienced a significant decline in performance during the first half of 2024, with double-digit decreases in revenue, gross profit, and profit for the period, yet the Board declared an interim dividend of HK 0.5 cents per share | Indicator | H1 2024 | YoY Change | | :--- | :--- | :--- | | Revenue | 322,245,000 HKD | -16.1% | | Gross Profit | 68,559,000 HKD | -37.4% | | Profit for the Period | 9,255,000 HKD | -67.0% | | Basic EPS | 1.5 HK cents | -68.1% | | Interim Dividend | 0.5 HK cents per share | - | Management Discussion and Analysis Business Review The Group specializes in high-grade stainless steel products, including watch bands, mobile phone casings, smart wearable device casings, and fashion accessories; while most segments saw sales decline due to global economic challenges and slowing luxury demand, the mobile phone casing and parts business achieved a 32.6% growth from a low base - The Group's core business involves developing and producing high-grade stainless steel products across four main segments: watch bands, mobile phone casings and parts, smart wearable device casings and parts, and fashion accessories[3] - Global economic challenges, including high US interest rates, European conflicts, and China's real estate crisis, led to a slowdown in luxury consumer goods demand, negatively impacting the Group's product sales[4] H1 2024 Revenue YoY Change by Business Segment | Business Segment | H1 2024 Revenue YoY Change | | :--- | :--- | | Mobile Phone Casings and Parts | +32.6% | | Fashion Accessories | -15.6% | | Watch Bands | -19.5% | | Smart Wearable Device Casings and Parts | -57.8% | Financial Review The period saw comprehensive financial pressure with total revenue down 16.1%, gross profit margin contracting 7.2 percentage points to 21.3% due to intense market competition, and profit for the period sharply declining by 67.0%; the company managed expenses, improved inventory turnover despite increased balances, and maintained robust liquidity with a low gearing ratio of 0.04 Revenue Analysis Total revenue decreased by 16.1% year-on-year to HKD 322 million, with significant shifts in segment contributions as mobile phone casings and parts surged from 29.9% to 47.2% of revenue, becoming the largest source, while smart wearable device casings declined from 32.4% to 16.3% Revenue by Business Segment (HK$'000) | Business Segment | H1 2024 Revenue (HK$'000) | H1 2023 Revenue (HK$'000) | YoY Change | | :--- | :--- | :--- | :--- | | Mobile Phone Casings and Parts | 152,124 | 114,707 | +32.6% | | Watch Bands | 99,701 | 123,796 | -19.5% | | Smart Wearable Device Casings and Parts | 52,564 | 124,577 | -57.8% | | Fashion Accessories | 17,856 | 21,153 | -15.6% | | Total | 322,245 | 384,233 | -16.1% | Gross Profit and Profit for the Period Gross profit decreased by 37.4% year-on-year to HKD 68.56 million, with the gross profit margin contracting by 7.2 percentage points to 21.3% due to intense market competition from domestic manufacturers' price reductions, ultimately leading to a 67.0% decline in profit for the period to HKD 9.26 million Gross Profit and Profit for the Period Indicators | Indicator | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Gross Profit | 68,559,000 HKD | 109,534,000 HKD | -37.4% | | Gross Profit Margin | 21.3% | 28.5% | -7.2 percentage points | | Profit for the Period | 9,255,000 HKD | 28,013,000 HKD | -67.0% | - The primary reason for the decline in gross profit margin was intense market competition driven by price reductions from domestic manufacturers[6] Costs and Expenses The Group effectively controlled various expenses; direct material costs increased to 47.7% of sales costs, while selling and distribution, administrative, and research and development expenses all saw double-digit percentage decreases, with R&D down 50.4%, and other income grew 142.7% primarily due to increased bank fixed deposit interest - Within the cost of sales composition, direct material costs increased from 42.3% to 47.7%, while direct labor costs decreased from 40.5% to 36.1%[7][8] - Other income increased by 142.7% year-on-year to HKD 7.83 million, primarily due to higher interest from bank fixed deposits[9] - Various operating expenses decreased: - Selling and distribution costs: decreased by 15.8% - Administrative and other expenses: decreased by 12.2% - Research and development expenses: decreased by 50.4%[10] Working Capital Analysis In working capital management, inventory balance increased by 14.1% from the beginning of the year, but inventory turnover days improved from 51.2 to 46.3 days; trade receivables turnover days slightly increased to 78.9 days, while trade payables turnover days decreased from 65.1 to 61.7 days Working Capital Balances | Indicator | As at June 30, 2024 | As at December 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Inventory Balance | 68,851,000 HKD | 60,358,000 HKD | +14.1% | | Trade Receivables | 137,501,000 HKD | 141,884,000 HKD | -3.1% | | Trade Payables | 86,366,000 HKD | 85,776,000 HKD | +0.7% | Working Capital Turnover Days | Indicator | H1 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Inventory Turnover Days | 46.3 Days | 51.2 Days (Same Period) | Improved | | Trade Receivables Turnover Days | 78.9 Days | 77.5 Days (Annual) | Slightly Increased | | Trade Payables Turnover Days | 61.7 Days | 65.1 Days (Annual) | Improved | Liquidity and Financial Position The Group maintained ideal liquidity with HKD 283 million in bank balances and cash, and a very low gearing ratio of 0.04; sales are primarily settled in USD, HKD, and RMB, and while production costs are mainly in RMB, exposing the Group to exchange rate fluctuations, no hedging instruments were used during the period - As at June 30, 2024, the Group held bank balances and cash of HKD 282.8 million and net current assets of HKD 374.5 million[13] - The gearing ratio (total borrowings/total assets) remained stable at 0.04 compared to the beginning of the year, indicating a robust financial structure[13] - Sales are primarily settled in USD (51.4%), HKD (34.3%), and RMB (14.3%), while production costs are mainly paid in RMB, exposing the Group to exchange rate risks; no hedging operations were undertaken by the Group[14][15] Outlook Looking ahead, the Group anticipates ongoing global economic challenges and will prioritize long-term profitability by focusing on improving operational efficiency and resource utilization to achieve sustainable growth - The Group anticipates continued global economic challenges, including US trade sanctions against China and geopolitical tensions[19] - The future strategic focus is to ensure consistent and sustained long-term profitability, to be achieved through improved operational efficiency and optimal resource utilization[19] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2024, the Group reported revenue of HKD 322 million and gross profit of HKD 68.56 million; after deducting expenses and taxes, profit for the period was HKD 9.26 million, a significant decrease from HKD 28.01 million in the prior year period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (HK$'000) | Item (HK$'000) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue | 322,245 | 384,233 | | Gross Profit | 68,559 | 109,534 | | Profit Before Tax | 12,583 | 32,258 | | Profit for the Period | 9,255 | 28,013 | Condensed Consolidated Statement of Financial Position As at June 30, 2024, the Group's total assets were HKD 1.154 billion, total liabilities HKD 171 million, and net assets HKD 983 million; net current assets stood at HKD 375 million, indicating strong short-term solvency and financial health Condensed Consolidated Statement of Financial Position (HK$'000) | Item (HK$'000) | As at June 30, 2024 | As at December 31, 2023 | | :--- | :--- | :--- | | Non-current Assets | 610,571 | 630,682 | | Current Assets | 543,337 | 562,125 | | Total Assets | 1,153,908 | 1,192,807 | | Current Liabilities | 168,825 | 180,860 | | Non-current Liabilities | 2,496 | 3,237 | | Total Liabilities | 171,321 | 184,097 | | Net Assets | 982,587 | 1,008,710 | Notes to Financial Statements Revenue and Segment Information This note details revenue by major product and geographical region; mobile phone casings and parts became the largest revenue source, while Mainland China remained the largest market despite a 27.6% year-on-year revenue decrease, Switzerland saw a 16.2% decline, and Vietnam's revenue significantly grew from HKD 1.32 million to HKD 15.68 million Revenue by Major Product (HK$'000) | Product | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Mobile Phone Casings and Parts | 152,124 | 114,707 | | Watch Bands | 99,701 | 123,796 | | Smart Wearable Device Casings and Parts | 52,564 | 124,577 | | Fashion Accessories | 17,856 | 21,153 | Revenue by Geographical Region (HK$'000) | Region | H1 2024 | H1 2023 | | :--- | :--- | :--- | | China | 138,145 | 190,696 | | Switzerland | 94,669 | 113,026 | | Hong Kong | 45,734 | 41,803 | | Vietnam | 15,684 | 1,321 | Dividends The Board resolved to declare an interim dividend of HK 0.5 cents per ordinary share for the six months ended June 30, 2024, totaling HKD 3 million, compared to HKD 9 million for the same period last year - The Board declared a 2024 interim dividend of HK 0.5 cents per ordinary share, totaling HKD 3,000,000[32] - The total interim dividend paid for the same period in 2023 was HKD 9,000,000[32] Earnings Per Share Basic earnings per share, calculated based on profit for the period attributable to owners of the Company of HKD 9.255 million and a weighted average of 600 million shares, was HK 1.5 cents, a significant decrease from HK 4.7 cents in the prior year period; diluted earnings per share is identical to basic earnings per share due to the absence of potential dilutive shares Earnings Per Share Indicators | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit for the Period (HK$'000) | 9,255 | 28,013 | | Weighted Average Number of Shares | 600,000,000 | 600,000,000 | | Basic EPS | 1.5 HK cents | 4.7 HK cents | Corporate Governance and Other Information Corporate Governance and Compliance The company is committed to maintaining high corporate governance standards, complying with all applicable provisions of the Corporate Governance Code during the reporting period, with only one deviation where an independent non-executive director was unable to attend the annual general meeting; furthermore, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the period - The Company complied with the Corporate Governance Code during the reporting period, with the exception of one independent non-executive director who was unable to attend the annual general meeting due to other commitments (a deviation from Code Provision C.1.6)[39] - All Directors confirmed compliance with the Model Code for Securities Transactions by Directors during the reporting period[41] - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[40] Interim Dividend Details This section announces the specific arrangements for the interim dividend: an interim dividend of HK 0.5 cents per share will be paid on October 4, 2024, to shareholders registered on September 16, 2024, with the share register closed from September 12 to 16 for this purpose - The interim dividend is HK 0.5 cents per ordinary share[43] - The record date for entitlement is September 16, 2024, with payment on October 4, 2024[43]