Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 1,447,238, an increase of 1.8% compared to HKD 1,430,720 for the same period in 2023[1] - Gross profit for the same period was HKD 221,740, representing a 15.2% increase from HKD 192,502 in the previous year[1] - The company reported a net loss of HKD 51,594 for the six months ended June 30, 2024, compared to a profit of HKD 22,717 in the same period of 2023[2] - Total expenses for the six months ended June 30, 2024, were HKD 1,498,031 thousand, compared to HKD 1,458,188 thousand in 2023, an increase of 2.73%[16] - The basic loss per share for the six months ended June 30, 2024, was calculated based on a weighted average of 574,339,068 shares, consistent with the previous year[21] - No interim dividend was declared for the six months ended June 30, 2024, similar to the previous year[22] Assets and Liabilities - Total assets increased to HKD 2,079,552 as of June 30, 2024, up from HKD 1,952,319 at the end of 2023, reflecting a growth of 6.5%[3] - Current liabilities totaled HKD 901,558, which is a 31% increase compared to HKD 688,225 at the end of 2023[4] - The company’s total equity decreased to HKD 779,774 from HKD 853,934, indicating a decline of 8.7%[5] - Trade receivables from third parties rose to HKD 401,516, an increase of 16.8% from HKD 344,038 in the previous year[3] - Trade payables to third parties as of June 30, 2024, were HKD 391,901,000, compared to HKD 362,667,000 at the end of 2023[26] - Contract liabilities increased to HKD 54,680,000 as of June 30, 2024, from HKD 40,187,000 as of December 31, 2023, representing a growth of 36.5%[28] Revenue Breakdown - Sales of industrial products reached HKD 1,336,116 thousand, compared to HKD 1,331,512 thousand in the previous year, indicating a growth of 0.35%[13] - Technical service revenue increased to HKD 111,122 thousand from HKD 99,208 thousand, reflecting a growth of 12.3%[13] - Revenue from Germany was HKD 472,751 thousand, up from HKD 379,618 thousand, showing a significant increase of 24.5%[13] - Revenue from the United States rose to HKD 338,790 thousand from HKD 295,283 thousand, marking an increase of 14.7%[13] - Revenue from the sale of suspension products was HKD 1,336.1 million for the six months ended June 30, 2024, slightly up from HKD 1,331.5 million for the same period in 2023[34] Expenses - Material costs decreased to HKD 893,963 thousand from HKD 914,348 thousand, a reduction of 2.2%[16] - Employee benefits expenses increased to HKD 289,307 thousand from HKD 263,978 thousand, reflecting a rise of 9.6%[16] - Research and development expenses were HKD 41,214 thousand, down from HKD 47,804 thousand, a decrease of 13.7%[16] - Administrative expenses increased by 25.5% to HKD 83.6 million, attributed to hiring for future business development and annual salary adjustments[37] - Sales and distribution expenses decreased by 1.1% to HKD 11.5 million, reflecting cost management efforts[36] Other Income and Taxation - The company generated other income of HKD 16,306 thousand, compared to HKD 28,036 thousand in the previous year, a decline of 41.9%[17] - The net other income for the six months ended June 30, 2024, was HKD 3,495,000, compared to HKD 677,000 for the same period in 2023, representing a significant increase[18] - The current tax expense for the six months ended June 30, 2024, was HKD 36,681,000, compared to a tax credit of HKD 25,309,000 in 2023[20] - The total tax expense for the period was HKD 9,163,000, a decrease from HKD 28,797,000 in the previous year[20] - Income tax net expenditure was HKD 9.2 million for the period ending June 30, 2024, compared to a net income of HKD 28.8 million for the same period in 2023, influenced by tax refunds and deductions from eligible R&D expenses[42] Shareholding and Corporate Structure - The company is primarily engaged in the manufacturing and sale of automotive parts and components, as well as providing technical services[6] - The company’s ultimate holding company is Zhangjiakou Industrial Investment Holding Group, a state-owned enterprise in the People's Republic of China[6] - The company has undergone significant changes in shareholding structure, with Zhangjiakou Industrial Investment Holding Group holding approximately 62.89% of the shares in its subsidiary, Jingxi Intelligent[6] Strategic Developments - The company plans to raise up to HKD 48,200,000 through a rights issue, offering 287,169,534 shares at HKD 0.168 each[32] - The group aims to maintain a healthy growth trajectory despite pricing pressures from customers and rising commodity prices, while sustaining a certain level of gross margin[54] - The group is committed to optimizing its business structure to improve long-term profitability and enhance shareholder value[54] - The group emphasizes the importance of continuous investment in R&D and engineering activities to maintain and enhance its competitive position in the industry[53] Operational Changes - The group has closed its Luton plant in the UK to optimize operations and increase capacity utilization, focusing production in Poland and the Czech Republic[53] - A new R&D center for automotive braking products has been established in Italy, aimed at enhancing production capabilities in the Czech Republic[53] Workforce and Employment - The total employee cost for the group was HKD 289.3 million for the period ending June 30, 2024, compared to HKD 264.0 million for the same period in 2023, reflecting an increase in workforce from 2,140 to 2,360 employees[55] Economic and Market Conditions - The geopolitical situation remains tense, with uncertainties surrounding the outcomes of elections in Europe and the US, which may impact future global economic conditions[52] - The International Monetary Fund forecasts a 1.5% growth in GDP for the Eurozone in 2025, indicating stable economic development that may benefit the group's business[53] Environmental Commitment - The group is committed to environmental protection and has implemented harmful substance control plans and chemical assessment procedures[50]
京西国际(02339) - 2024 - 中期业绩