Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 2,294,045, a decrease of 7.85% compared to HKD 2,489,078 for the same period in 2023[2] - Gross profit for the same period was HKD 550,271, down from HKD 576,567, reflecting a gross margin of approximately 24%[2] - Operating profit decreased to HKD 349,301, a decline of 16.9% from HKD 420,621 in the previous year[2] - Profit for the period was HKD 278,854, down 16.5% from HKD 333,848 in the prior year[3] - Basic and diluted earnings per share were HKD 0.412, compared to HKD 0.493 for the same period last year, representing a decrease of 16.4%[2] - Total comprehensive income for the period was HKD 238,954, down from HKD 327,650 in the previous year[4] Revenue Breakdown - Revenue from plush toys was HKD 1,186,083 thousand for the six months ended June 30, 2024, compared to HKD 1,239,913 thousand in 2023, a decrease of 4.3%[13] - Revenue from plastic model products was HKD 936,337 thousand for the six months ended June 30, 2024, down from HKD 1,007,115 thousand in 2023, a decline of 7.0%[13] - Revenue from waterproof covers was HKD 171,625 thousand for the six months ended June 30, 2024, a significant decrease of 29.1% compared to HKD 242,050 thousand in 2023[13] - Revenue from North America was HKD 976,417 thousand for the six months ended June 30, 2024, down 18.3% from HKD 1,194,381 thousand in 2023[14] Assets and Liabilities - Non-current assets increased to HKD 1,404,215 from HKD 1,389,802 as of December 31, 2023[5] - The total assets for the reporting segments as of June 30, 2024, were HKD 3,341,892 thousand, compared to HKD 3,510,121 thousand as of December 31, 2023, indicating a decrease of 4.8%[15] - The total liabilities for the reporting segments increased to HKD 960,907 thousand as of June 30, 2024, from HKD 947,935 thousand as of December 31, 2023, representing an increase of 1.5%[15] Operational Highlights - The company continues to focus on the design, development, manufacturing, and sales of plastic models, plush toys, and waterproof covers, with no new product launches or market expansions reported in this period[8] - The company reported an operating profit before interest, tax, depreciation, and amortization of HKD 306,266 thousand for the six months ended June 30, 2024, compared to HKD 377,703 thousand in 2023, a decrease of 19.0%[16] - The company has 27 factories with an average utilization rate of approximately 84%, and has made significant progress in production automation[37] - A new factory is being constructed in Indonesia, expected to be completed in the first half of 2025, to expand production capacity and meet customer demand outside of China[38] Tax and Expenses - The current tax provision for Hong Kong profits tax was HKD 4,560,000 for the six months ended June 30, 2024, compared to HKD 19,233,000 in 2023, showing a decrease of about 76.3%[19] - Depreciation expenses for owned properties, plants, and equipment were HKD 67,496,000 for the six months ended June 30, 2024, down from HKD 73,812,000 in 2023, reflecting a reduction of approximately 8.4%[18] - Interest income increased to HKD 25,099 thousand for the six months ended June 30, 2024, compared to HKD 18,364 thousand in 2023, reflecting an increase of 36.7%[16] - The interest expense on bank borrowings decreased to HKD 356,000 for the six months ended June 30, 2024, from HKD 4,922,000 in 2023, reflecting a significant reduction of approximately 92.8%[17] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.20 per ordinary share for the six months ended June 30, 2024, unchanged from the same period in 2023, totaling HKD 135,373,000[21] - The board has proposed an interim dividend of HKD 0.20 per share, consistent with the previous year[33] Employment and Costs - As of June 30, 2024, the group employed 25,602 staff, a decrease from 26,210 as of December 31, 2023[39] - Total employee costs for the period amounted to HKD 670,500,000, nearly unchanged from HKD 670,600,000 for the same period last year[39] Current Assets and Cash Flow - Cash and cash equivalents totaled HKD 1,127,500,000 as of June 30, 2024, compared to HKD 1,264,500,000 as of December 31, 2023[40] - The group's net current assets were HKD 2,313,100,000 as of June 30, 2024, down from HKD 2,326,100,000 as of December 31, 2023[40] - The group's bank loans increased to HKD 81,100,000 as of June 30, 2024, from HKD 73,500,000 as of December 31, 2023[40] Inventory Management - Inventory as of June 30, 2024, was HKD 969,275, an increase from HKD 815,616 at the end of 2023, indicating a rise of 19%[6] - The company recorded a reversal of inventory write-downs amounting to HKD 22,508,000 for the six months ended June 30, 2024, compared to HKD 601,000 in 2023, indicating improved inventory management[28] Compliance and Governance - The interim results for the six months ended June 30, 2024, were reviewed by the audit committee and found to comply with relevant accounting standards[47] - The group has not engaged in any purchase, sale, or redemption of its listed securities during the reporting period[42] - The group maintains a prudent approach to foreign exchange risk management, primarily financing non-HKD assets with local currency liabilities[40]
德林国际(01126) - 2024 - 中期业绩