Financial Performance - For the six months ended June 30, 2024, the revenue was approximately HKD 1,701,831,000, an increase of about HKD 100,279,000 or 6.3% compared to HKD 1,601,552,000 for the same period in 2023[2]. - The gross profit for the same period was approximately HKD 913,991,000, reflecting an increase of about HKD 46,672,000 or 5.4% from HKD 867,319,000 in the previous year, with a gross margin of 53.7%[2]. - The EBITDA for the six months ended June 30, 2024, was approximately HKD 375,571,000, an increase of about HKD 5,817,000 or 1.6% compared to HKD 369,754,000 in the prior year[2]. - The adjusted EBITDA for the same period was approximately HKD 388,584,000, representing an increase of about HKD 18,698,000 or 5.1% from HKD 369,886,000 in 2023[2]. - The net profit for the six months ended June 30, 2024, was approximately HKD 214,355,000, an increase of about HKD 4,079,000 or 1.9% compared to HKD 210,276,000 in the previous year[2]. - Basic and diluted earnings per share for the period were both HKD 0.2259, compared to HKD 0.2213 in the same period of 2023, marking an increase of 2.1%[7]. - The company declared an interim dividend of HKD 0.08 per share for the six months ended June 30, 2024, compared to HKD 0.06 per share for the same period in 2023[2]. Market Performance - The European market accounted for 48.4% of the total revenue, with sales growth of 16.2% compared to the previous year[2]. - Revenue from the European market was HKD 822,914,000, up from HKD 710,045,000 in the previous year, indicating a growth of approximately 15.8%[17]. - The North American market generated revenue of HKD 385,325,000, a slight decrease from HKD 393,656,000 in the previous year[17]. - Revenue from the Greater China market was approximately HKD 335,752,000, a decrease of about HKD 15,451,000 compared to the six months ended June 30, 2023, accounting for 19.7% of total group revenue[53]. - The Australian market recorded revenue of approximately HKD 127,902,000, an increase of about HKD 3,645,000 compared to the six months ended June 30, 2023, representing 7.5% of total group revenue[55]. Operational Highlights - The core business profit for the six months ended June 30, 2024, was approximately HKD 225,549,000, an increase of about HKD 15,141,000 or 7.2% from HKD 210,408,000 in the previous year[2]. - For the six months ended June 30, 2024, the group produced approximately 602,485 digital solution cases in mainland China, representing a 61.1% increase from approximately 373,985 cases in the same period of 2023[5]. - The fixed dental equipment segment generated revenue of HKD 1,045,387,000, with a gross profit of HKD 584,174,000, showing a slight increase from HKD 572,769,000 in the previous year[16]. - The removable dental equipment segment recorded revenue of approximately HKD 393,546,000, representing about 24.9% of total revenue, an increase of approximately HKD 42,970,000 compared to the previous period[40]. - The other custom equipment segment, which includes orthodontic devices, generated revenue of approximately HKD 143,622,000, accounting for about 9.0% of total revenue, with a year-on-year increase of approximately HKD 4,368,000[41]. Investments and Expansion - The company has made investments in production facilities in Vietnam and Dongguan to strengthen its market positioning[1]. - The company aims to establish a new business unit in Vietnam to serve mid to large dental clinic chains in the North American market[50]. - Investment in production facilities in Dongguan Phase II and Vietnam is expected to enhance R&D capabilities and improve production solutions[58]. - The company has established a large production facility in Vietnam to mitigate risks associated with its production bases in Shenzhen and Dongguan, China[82]. Financial Position - Trade receivables increased to HKD 658,725 as of June 30, 2024, from HKD 590,220 as of December 31, 2023, reflecting a growth of 11.6%[9]. - Total assets less current liabilities amounted to HKD 3,445,818 as of June 30, 2024, compared to HKD 3,397,873 as of December 31, 2023, showing an increase of 1.4%[10]. - Non-current liabilities decreased to HKD 733,557 as of June 30, 2024, from HKD 754,772 as of December 31, 2023, a reduction of 2.8%[10]. - The total bank borrowings as of June 30, 2024, amounted to HKD 701,844,000, compared to HKD 676,191,000 as of December 31, 2023, reflecting an increase of about 3.8%[34]. - The company's debt ratio was approximately 15% as of June 30, 2024, down from 16% as of December 31, 2023, indicating a stable financial condition[76]. Employee and Governance - The company employed a total of 7,182 full-time employees as of June 30, 2024, an increase from 7,035 employees as of December 31, 2023[86]. - Total employee costs for the six months ended June 30, 2024, amounted to approximately HKD 786,274,000, compared to HKD 725,358,000 for the same period in 2023, reflecting an increase of about 8.4%[87]. - The company maintained stable relationships with employees during the review period, with no significant strikes or labor disputes affecting business operations[87]. - The company has complied with the corporate governance code as per the listing rules during the six months ended June 30, 2024[94]. - The audit committee reviewed the interim results for the six months ended June 30, 2024, ensuring adherence to accounting principles and practices[95].
现代牙科(03600) - 2024 - 中期业绩