Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 563,536,000, representing a 3.1% increase from HKD 546,606,000 in the same period of 2023[1] - Gross profit increased by 41.6% to HKD 108,445,000, with a gross margin of 19.2%, up 520 basis points from 14.0%[1] - Operating profit surged by 535.5% to HKD 28,406,000 compared to HKD 4,470,000 in the previous year[1] - EBITDA rose by 82.6% to HKD 47,262,000 from HKD 25,883,000 year-on-year[1] - Profit attributable to equity holders for the period was HKD 15,701,000, a significant recovery from a loss of HKD 1,552,000 in the prior year[2] - Basic and diluted earnings per share were HKD 15.70, compared to a loss per share of HKD 1.55 in the same period last year[2] - The company reported a profit attributable to equity holders of HKD 15,701 thousand for the six months ended June 30, 2024, compared to a loss of HKD 1,552 thousand in the same period of 2023, marking a significant turnaround[19] - Basic and diluted earnings per share for the six months ended June 30, 2024, were HKD 15.70, compared to a loss of HKD 1.55 per share in the prior year[19] Assets and Liabilities - Total assets decreased to HKD 949,619,000 from HKD 965,631,000 as of December 31, 2023[3] - Total liabilities reduced to HKD 785,010,000 from HKD 815,338,000[4] - The company had bank borrowings of HKD 243,364 thousand due within one year as of June 30, 2024, compared to HKD 292,603 thousand as of December 31, 2023[24] - Trade receivables, net of impairment, amounted to HKD 273,365 thousand as of June 30, 2024, down from HKD 297,822 thousand as of December 31, 2023[20] - Cash and cash equivalents decreased to HKD 251,738,000 from HKD 274,572,000[3] - Non-current assets totaled HKD 124,400,000 as of June 30, 2024, compared to HKD 129,850,000 as of December 31, 2023[13] Inventory and Revenue Sources - The company reported an increase in inventory to HKD 237,875,000 from HKD 223,828,000[3] - Revenue from major customers contributing 10% or more to total revenue was not applicable for the current period, while customer C contributed HKD 116,537,000 and customer D contributed HKD 72,695,000 in the previous period[10] - Total revenue by geographical location for the six months ended June 30, 2024, was HKD 563,536,000, compared to HKD 546,606,000 for the same period in 2023, showing a slight increase[11] - The Philippines became the largest market, contributing approximately HKD 180.5 million or 32.0% of total revenue, compared to 15.8% in the same period of 2023[27] Costs and Expenses - The company's net financing costs increased to HKD 8,011 thousand for the six months ended June 30, 2024, up from HKD 6,880 thousand in the same period of 2023[16] - The company’s financing costs, including interest on bank loans and lease liabilities, totaled HKD 9,999 thousand for the six months ended June 30, 2024, compared to HKD 8,601 thousand in the prior year[16] - Total employee costs for the six months ended June 30, 2024, amounted to HKD 124.0 million, compared to HKD 223.5 million for the year ended December 31, 2023[39] Tax and Government Grants - The current tax expense for the six months ended June 30, 2024, was HKD (4,849) thousand, significantly higher than HKD (1,308) thousand in the same period of 2023[16] - The company received government grants amounting to HKD 200 thousand for the six months ended June 30, 2024, compared to no grants in the same period of 2023[14] Corporate Governance and Compliance - The company has adopted the corporate governance code and complied with all applicable provisions, except for the separation of the roles of Chairman and CEO[41] - The group has not adopted new standards that will take effect after January 1, 2024, and does not expect significant impacts on financial performance[8] Future Plans and Strategies - The company plans to transition pipeline products to mass production in the latter half of 2024 and early 2025, focusing on R&D and engineering resources[29] - The company aims to enhance its product portfolio and implement new product strategies to expand market share and maximize overall profitability[29] Employment and Staff - As of June 30, 2024, the company employed approximately 2,000 staff, an increase from 1,600 as of December 31, 2023[39] Other Financial Information - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024, and 2023[17] - There were no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the six months ended June 30, 2024[38] - The company's capital structure remained unchanged, with a total of 100,000,000 shares issued as of June 30, 2024[37] - The company has no contingent liabilities or legal proceedings that could significantly impact its business as of June 30, 2024[33] - There were no securities purchased, sold, or redeemed by the company or its subsidiaries during the six months ended June 30, 2024[40] - The group operates primarily in the electronic products manufacturing and sales sector, with a single reportable segment identified[9] - The group’s revenue is recognized at a point in time based on contracts with customers[9] - The group reported a loss of HKD 21,000 from the sale of properties, plant, and equipment for the six months ended June 30, 2024, compared to a loss of HKD 285,000 in the previous period[13] - Foreign exchange gains for the six months ended June 30, 2024, were HKD 3,215,000, down from HKD 6,542,000 in the previous period[13] - The company experienced a decrease in foreign exchange gains, reporting approximately HKD 3.2 million for the first half of 2024, down from HKD 6.5 million in the same period of 2023[28] - The company has closely monitored its foreign exchange risks, primarily related to USD and RMB, and adopts prudent measures to mitigate these risks[35] - No stock options were granted during the six months ended June 30, 2024, and there are no unexercised options as of that date[39]
丽年国际(09918) - 2024 - 中期业绩