Financial Performance - The group's revenue for the six months ended June 30, 2024, was approximately HKD 2,986,005,000, an increase of about 0.3% compared to HKD 2,975,627,000 for the same period in 2023[2] - The profit attributable to the company's owners for the six months ended June 30, 2024, was approximately HKD 12,842,000, a decrease of about 33.7% from HKD 19,377,000 for the same period in 2023[2] - Basic earnings per share for the six months ended June 30, 2024, were HKD 0.13, a decrease of about 35.0% compared to HKD 0.20 for the same period in 2023[3] - Gross profit for the six months ended June 30, 2024, was HKD 624,838,000, compared to HKD 588,240,000 for the same period in 2023[2] - The group reported a net profit of HKD 36,296,000 for the six months ended June 30, 2024, compared to HKD 32,378,000 for the same period in 2023[4] - The company's effective tax rate remains stable at 16.5% for Hong Kong profits tax, consistent with the previous year[20] - The group reported a total tax expense of HKD 20,680 for the six months ended June 30, 2024, compared to HKD 14,223 in 2023, indicating a year-over-year increase of approximately 45.5%[22] Dividends and Shareholder Returns - The board did not recommend any interim dividend for the six months ended June 30, 2024[1] - The company did not recommend any interim dividend for the period ending June 30, 2023[34] - No interim dividend will be paid for the year 2023, reflecting a cautious approach to cash distribution[68] Assets and Liabilities - The total non-current assets as of June 30, 2024, were HKD 4,999,500,000, a decrease from HKD 5,269,173,000 as of December 31, 2023[5] - Current liabilities totaled HKD 3,136,654,000 as of June 30, 2024, down from HKD 5,072,868,000 as of December 31, 2023[6] - The net asset value as of June 30, 2024, was HKD 6,876,870,000, compared to HKD 7,003,496,000 as of December 31, 2023[6] - Total assets as of June 30, 2024, amounted to HKD 10,533,790 thousand, while total liabilities were HKD 3,656,920 thousand, resulting in a net asset position of HKD 6,876,870 thousand[14] - The group had total assets of HKD 10,533.8 million as of June 30, 2024, a decrease from HKD 13,302.7 million as of December 31, 2023[52] Revenue Segmentation - The segment revenue from consumer electronic components was HKD 2,478,496 thousand, down 2.2% from HKD 2,533,899 thousand in the previous year[13] - The segment revenue from home and sports products increased by 14.9% to HKD 507,509 thousand, compared to HKD 441,728 thousand in the prior year[13] - Revenue from external customers in China for the six months ended June 30, 2024, was HKD 2,317,515, a slight decrease from HKD 2,323,887 in 2023[16] - Major customers A, B, and C contributed a total of HKD 685,239 in revenue, down from HKD 932,295 in the previous year, with customer A's revenue at HKD 381,029[18] Expenses and Cost Management - The group's financial expenses for the six months ended June 30, 2024, were HKD 75,001,000, down from HKD 86,654,000 for the same period in 2023[2] - General and administrative expenses rose by 30.2% to approximately HKD 655.5 million, accounting for 22.0% of total revenue, up from 16.9% in the previous year[49] - Financial expenses decreased by approximately 13.5% to about HKD 75.0 million, mainly due to a reduction in outstanding bank borrowings[51] Research and Development - Research and development costs increased significantly to HKD 372,080 for the six months ended June 30, 2024, compared to HKD 248,048 in 2023, reflecting a growth of approximately 49.9%[19] Acquisitions and Sales - The company completed the acquisition of Credence Technology Limited for HKD 60,000,000, with a guaranteed EBITDA of no less than HKD 12,000,000 for the fiscal year ending December 31, 2024[29] - The revenue contribution from the acquired company for the period up to June 30, 2024, was HKD 160,994,000, with a profit contribution of HKD 3,010,000[33] - The company agreed to sell its precision micro-component manufacturing business for HKD 2,015,000,000, with the transaction expected to complete on April 3, 2024[57] Employee and Corporate Governance - The group employed approximately 10,000 long-term employees as of June 30, 2024, down from 15,000 a year earlier[56] - The company has adhered to the corporate governance code as per the listing rules, with the roles of Chairman and CEO currently held by the same individual, Mr. Wang Yanan[72] - The audit committee consists of three independent non-executive directors and one non-executive director, ensuring compliance with the guidelines set by the Hong Kong Institute of Certified Public Accountants[74] Market Outlook and Strategy - The smartphone market appears to have emerged from its lowest point, but the outlook remains uncertain due to intense competition and shifting consumer preferences[66] - The company plans to strengthen its core competitiveness in three key areas: sports and outdoor, home living, and health care, while establishing new business relationships with major consumer brands[66] - The company aims to optimize its business portfolio and improve production processes to ensure long-term sustainable growth and effectively release asset value[67]
通达集团(00698) - 2024 - 中期业绩