Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 614,102,000, representing a 15.5% increase from HKD 531,611,000 in the same period of 2023[1] - Gross profit decreased to HKD 84,721,000, down 17.9% from HKD 103,136,000 year-on-year[1] - Loss attributable to equity holders of the company was HKD 50,097,000, a 130.8% increase compared to a loss of HKD 21,703,000 in the previous year[1] - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) declined by 69.1% to HKD 7,229,000 from HKD 23,423,000[1] - Basic loss per share was HKD (5.61), compared to HKD (2.43) in the same period last year, reflecting a 130.9% increase in loss per share[1] - Total comprehensive loss for the period was HKD 64,565,000, compared to HKD 34,440,000 in the previous year[3] - The group reported a total comprehensive loss of HKD 53,095,000 for the six months ended June 30, 2024, compared to a loss of HKD 22,762,000 for the same period in 2023, highlighting a significant increase in overall losses[13] Assets and Liabilities - Non-current assets amounted to HKD 877,026,000, slightly down from HKD 883,316,000 as of December 31, 2023[4] - Current assets increased to HKD 919,968,000 from HKD 837,175,000, driven by higher inventory levels[4] - Total liabilities increased to HKD 545,850,000 from HKD 398,871,000, primarily due to an increase in current liabilities[5] - The total trade receivables as of June 30, 2024, were HKD 372,163,000, down from HKD 408,201,000 at the end of December 2023, reflecting a decrease of about 8.8%[22] - The group’s total liabilities increased, with trade payables amounting to HKD 214,538,000 as of June 30, 2024, slightly up from HKD 214,513,000 at the end of December 2023[24] - The company's interest-bearing borrowings amounted to approximately HKD 201,180,000 as of June 30, 2024, compared to HKD 64,518,000 as of December 31, 2023[39] Revenue Breakdown - Revenue from the zinc segment was HKD 30,188,000 for the six months ended June 30, 2024, down from HKD 36,007,000 in the same period of 2023, indicating a decline in this segment[11] - The magnesium segment reported a profit of HKD 3,895,000 for the six months ended June 30, 2024, compared to a loss of HKD 9,542,000 for the same period in 2023, showing a turnaround in performance[12] - The plastic business revenue rose by about 41.4% to HKD 268,981,000, contributing approximately 43.8% to total revenue[26] - Magnesium alloy business revenue grew by approximately 25.6% to HKD 199,916,000, accounting for about 32.6% of total revenue[27] - Aluminum alloy business revenue decreased by approximately 17.8% to HKD 96,666,000, contributing about 15.7% to total revenue[28] - Zinc alloy business revenue declined by approximately 16.2% to HKD 30,188,000, representing about 4.9% of total revenue[29] - Other businesses saw a revenue drop of approximately 36.1% to HKD 18,351,000[30] Costs and Expenses - The cost of goods sold for the period was HKD 486,843,000, an increase from HKD 382,974,000 in the previous year, representing a year-on-year increase of approximately 27.1%[18] - Research and development expenses decreased to HKD 8,893,000 from HKD 22,865,000, indicating a reduction of about 61.1%[18] - The group incurred financing costs of HKD 5,642,000 for the six months ended June 30, 2024, significantly higher than HKD 2,056,000 for the same period in 2023, reflecting increased borrowing costs[13] - Interest income decreased to HKD 1,458,000 for the six months ended June 30, 2024, down from HKD 2,598,000 in the same period of 2023, indicating a decline in interest-earning assets[14] - The group’s depreciation and amortization expenses totaled HKD 45,360,000 for the six months ended June 30, 2024, compared to HKD 41,685,000 for the same period in 2023, reflecting increased asset utilization[12] - The group’s depreciation expense for property, plant, and equipment was HKD 37,920,000, a slight increase from HKD 36,229,000 in the previous year[18] Dividends and Shareholder Returns - The group did not declare an interim dividend for the six months ended June 30, 2024, compared to a dividend of HKD 17,875,000 for the same period in 2023[20] - The board has decided not to declare an interim dividend for the six months ending June 30, 2024, maintaining a prudent approach to retain sufficient funds for future business development opportunities[47] Strategic Initiatives - The company continues to focus on the production and sales of zinc, magnesium, aluminum alloys, and smart home products, targeting customers in home goods and automotive parts sectors[6] - The company anticipates new orders driven by restocking demand and expected interest rate cuts starting in Q3 2024, particularly in the laptop and mobile accessories segments[31] - The company has secured an order from a leading domestic aircraft manufacturer for magnesium alloy shell products, marking entry into the low-altitude economy supply chain[32] - The company is collaborating with research institutions to develop high thermal conductivity magnesium alloy materials, enhancing fire resistance and heat resistance[34] - The company aims to leverage big data and cloud computing for real-time management and production scheduling to improve operational efficiency[31] - The company has developed a new generation of ultra-high thermal conductivity magnesium alloy, with thermal conductivity coefficient increased from 110 W/(m • K) to 140 W/(m • K) according to third-party testing data[35] - The company is actively seeking opportunities in Southeast Asia and the Middle East, aligning with regional initiatives such as the Belt and Road[37] - The company has implemented a dual production strategy in China and Mexico, enhancing its market share and reducing geopolitical risks and logistics costs[36] - The company plans to develop a series of special materials for semi-solid equipment forming to increase its market share in various casting industries[35] Governance and Compliance - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2024[55] - The risk management committee was established in October 2020 to oversee and review the risk management and internal control processes[53] - The company has complied with all provisions of the Corporate Governance Code during the reporting period[49] - The remuneration committee is responsible for reviewing and determining the remuneration of individual directors and senior management[52] - The nomination committee evaluates the independence of independent non-executive directors and provides recommendations for board changes[51] - The board consists of four executive directors and four independent non-executive directors as of August 26, 2024[57] - The risk management committee includes the CEO and other executive directors, ensuring effective oversight of risk management practices[53] Employee and Operational Metrics - The company employs approximately 4,430 full-time employees as of June 30, 2024, down from 4,762 as of December 31, 2023[45] - The company has not made any significant investments, acquisitions, or disposals as of June 30, 2024[44] - The company has not established any financial instruments for hedging foreign exchange risks but is monitoring its overall foreign exchange risk exposure[41] - The company or any of its subsidiaries did not purchase, sell, or redeem any of its listed securities during the six months ending June 30, 2024[48] - The company expresses gratitude to customers, suppliers, and shareholders for their continued support during the reporting period[56]
嘉瑞国际(00822) - 2024 - 中期业绩