Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 13,639,486 thousand, representing a 46.9% increase compared to HKD 9,283,390 thousand in 2023[3] - Profit attributable to owners of the company for the same period was HKD 330,288 thousand, up 21.7% from HKD 271,351 thousand in 2023[4] - Basic earnings per share increased to HKD 52.78, a rise of 21.7% from HKD 43.36 in the previous year[6] - Gross profit for the six months was HKD 804,243 thousand, compared to HKD 700,456 thousand in 2023, indicating a positive trend[4] - Total comprehensive income for the period was HKD 442,720 thousand, compared to HKD 403,233 thousand in the previous year[5] - The company reported a total comprehensive income of HKD 3,257,220,000 for the six months ended June 30, 2024, compared to HKD 2,591,413,000 for the same period in 2023, indicating an increase of approximately 25.7%[10] - The company reported a profit of HKD 330,288,000 for the period, compared to HKD 271,351,000 in the same period last year, marking a growth of 21.7%[26] Dividends and Shareholder Returns - The interim dividend per share was raised to HKD 15.00, reflecting a 50.0% increase from HKD 10.00 in 2023[3] - The company plans to distribute an interim dividend of HKD 0.15 per share, up from HKD 0.10 per share in 2023[34] Assets and Liabilities - Non-current assets as of June 30, 2024, included investment properties valued at HKD 662,660 thousand, unchanged from December 31, 2023[7] - Current assets included inventories of HKD 2,052,555 thousand, an increase from HKD 1,780,168 thousand in 2023[8] - Cash and cash equivalents decreased to HKD 1,041,839 thousand from HKD 1,580,146 thousand in the previous year[8] - As of June 30, 2024, the total assets amounted to HKD 4,421,366,000, a decrease from HKD 4,872,046,000 as of December 31, 2023, representing a decline of approximately 9.2%[9] - The company reported a total equity of HKD 2,935,147,000 as of June 30, 2024, up from HKD 2,828,886,000 at the end of 2023, reflecting an increase of approximately 3.8%[9] - The company’s total liabilities increased to HKD 1,820,982,000 as of June 30, 2024, compared to HKD 1,708,246,000 at the end of 2023, representing an increase of approximately 6.6%[9] - The company’s retained earnings stood at HKD 2,236,349,000 as of June 30, 2024, compared to HKD 2,351,241,000 at the end of 2023, showing a decrease of approximately 4.9%[10] - The company’s non-controlling interests decreased to HKD 123,762,000 as of June 30, 2024, down from HKD 191,487,000 at the end of 2023, reflecting a decline of approximately 35.3%[9] Cash Flow and Financing - The net cash flow from operating activities for the six months ended June 30, 2024, was a negative HKD 898,414,000, compared to a positive HKD 2,371,858,000 for the same period in 2023, indicating a significant decrease in operational cash flow[11] - The financing activities generated a net cash inflow of HKD 365,518,000 for the six months ended June 30, 2024, down from HKD 720,686,000 in the same period of 2023, indicating a decline of about 49%[11] - The cash and cash equivalents decreased to HKD 1,041,839,000 as of June 30, 2024, down from HKD 4,560,907,000 at the end of June 2023, marking a decline of about 77%[11] - The group recorded a net operating cash outflow of HKD 898,414,000 for the six months ended June 30, 2024, compared to a net inflow of HKD 2,371,858,000 in the same period last year[44] Revenue Sources - Customer contract revenue reached HKD 13,630,638,000, up 47.5% from HKD 9,272,878,000 in the previous year[19] - Sales of electronic components and semiconductors amounted to HKD 13,569,461,000, a significant increase from HKD 9,207,622,000, representing a growth of 47.5%[15] - Major customer A contributed HKD 6,684,525,000 to revenue, up from HKD 3,709,691,000, representing an increase of 80.5%[20] - The company incurred tax expenses of HKD 82,614,000, compared to HKD 75,525,000 in the previous year, an increase of 9.1%[21] - Other income for the period was HKD 26,086,000, down from HKD 34,627,000, reflecting a decrease of 24.8%[24] Operational Metrics - The company’s trade receivables decreased to HKD 752,508,000 as of June 30, 2024, from HKD 839,379,000 as of December 31, 2023[29] - The total amount of trade and other receivables was HKD 849,663,000, down from HKD 983,047,000 in the previous period[29] - The company’s major customers accounted for 66.1% of total revenue, an increase from 61.5% as of December 31, 2023[31] - The accounts receivable turnover period was approximately 39 days, up from 32 days in the previous year[44] - The inventory turnover period was approximately 29 days, down from 52 days in the previous year, while the average accounts payable turnover period was 22 days, down from 77 days[44] Market Outlook and Strategy - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[18] - The company anticipates challenges from ongoing trade tensions between the US and China, low demand visibility, currency fluctuations, and high interest rates[42] Compliance and Governance - The audit committee reviewed the accounting principles, internal controls, and risk management for the six months ended June 30, 2024[58] - The company has adopted the standard code for securities trading by directors as per the listing rules, confirming compliance by all directors for the six months ending June 30, 2024[59] Employee and Shareholder Information - The group employed approximately 450 employees in the Greater China region, ensuring competitive compensation and benefits[47] - The major shareholder, Hon Hai Precision Industry Co., Ltd., held 124,000,000 shares, representing 19.81% of the issued share capital[53] New Developments - The company has a 46.3% stake in the newly appointed subsidiary, Shiteng Technology, which will be consolidated into the company's financial statements from July 1, 2024[60] - The group has considered entering into foreign exchange forward contracts to hedge against foreign currency risks related to payables[45]
S.A.S. DRAGON(01184) - 2024 - 中期财报