京信通信(02342) - 2024 - 中期财报

Corporate Information Corporate Profile This section provides the company's basic information, including board members, committee members, and registered offices - Key leadership includes the Chairman, Vice Chairman, and President, with Independent Non-executive Directors chairing the Audit, Nomination, and Remuneration Committees[17] Management Discussion and Analysis Financial Performance Review The Group's revenue declined due to a slowdown in telecom capital spending, shifting from profit to a loss of HK$158 million | Metric | H1 2024 (HK$'000) | H1 2023 (HK$'000) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 2,343,455 | 3,228,189 | -27.4% | | Gross Profit | 622,613 | 848,985 | -26.7% | | Gross Profit Margin | 26.6% | 26.3% | +0.3pp | | Profit/(Loss) Attributable to Owners of the Parent | (158,433) | 112,178 | Shifted from profit to loss | | Basic Earnings/(Loss) per Share | (5.73) HK cents | 4.04 HK cents | Shifted from profit to loss | - The Board recommended no interim dividend to preserve financial flexibility, compared to HK 1.2 cents per share in the prior period[32] Revenue Analysis Total revenue fell 27.4% to HK$2.34 billion, driven by a slowdown in telecom spending and mixed performance across key customers and business segments Revenue by Customer (HK$'000) | Customer | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | China Mobile | 426,493 | 623,651 | -31.6% | | China Unicom | 127,338 | 526,620 | -75.8% | | China Telecom | 293,648 | 208,184 | +41.1% | | China Tower | 223,798 | 212,713 | +5.2% | | International Customers & Core Equipment Manufacturers | 974,207 | 1,288,123 | -24.4% | Revenue by Business Segment (HK$'000) | Business Segment | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Base Station Antennas and Subsystems | 995,652 | 1,652,227 | -39.7% | | Network Systems | 372,860 | 500,383 | -25.5% | | Services | 597,687 | 708,722 | -15.7% | | Others (incl. Wireless Transmission) | 294,917 | 282,905 | +4.2% | Profitability and Expense Analysis Gross margin slightly improved to 26.6% despite lower gross profit, while R&D spending increased and other income significantly decreased - Gross profit margin remained stable with a slight increase, attributed to new product competitiveness and effective cost reduction measures[24] - Other income and gains decreased by 65.1% YoY, mainly due to a significant one-off exchange gain of HK$110 million in the prior period from loan portfolio restructuring[25] Key Expense Changes (HK$'000) | Expense Item | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Research & Development Expenses | 229,653 | 213,916 | +7.4% | | Selling & Distribution Expenses | 255,832 | 254,003 | +0.7% | | Administrative Expenses | 207,127 | 208,762 | -0.8% | | Finance Costs | 13,505 | 30,107 | -55.1% | Business Outlook and Strategy The Group will focus on new business development and product innovation, capitalizing on the ongoing global 5G deployment and evolution to 5G-A/6G - The Group anticipates continued growth in global 5G base station deployment, with 5G-A and 6G creating new opportunities in integrated cloud-network-computing, the low-altitude economy, and industrial internet[33] - Product innovation focuses on the new high-efficiency, low-loss "Green Antenna Solution 2.0" and 5G-A antennas supporting the low-altitude economy[34][35] - In 5G vertical industries, the company has developed the FLeX5 platform and established replicable business models in smart mining and warehousing[36] - The Group has achieved breakthroughs in "5G + Composite Navigation Robots" and 5G-A passive IoT technology, with the latter being recognized on a prestigious technology list[39] Liquidity and Capital Management The Group maintained a sound financial position with net current assets of HK$1.77 billion and a gearing ratio of 10.2% Key Working Capital Indicators | Indicator | June 30, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Average Trade Receivables Turnover | 260 days | 218 days | | Average Trade Payables Turnover | 364 days | 305 days | | Average Inventory Turnover | 132 days | 99 days | - As of June 30, 2024, the Group's gearing ratio (total interest-bearing bank borrowings to total assets) was 10.2%, up from 8.5% at the end of 2023[30][41] - Of the net proceeds from the 2020 placement, HK$10.58 million allocated for capacity expansion remains unutilized, with the expected timeline extended to June 30, 2025[44][45] Other Disclosures This section covers employee information, share repurchases, interests of directors and shareholders, and compliance with corporate governance codes - As of June 30, 2024, the Group had approximately 4,800 employees, with total staff costs for the period amounting to HK$555.92 million[50] - During the period, the company repurchased 3.14 million shares on the Hong Kong Stock Exchange for approximately HK$1.77 million to enhance EPS and show confidence in its prospects[52] - The company confirmed compliance with the Corporate Governance Code as set out in Appendix C1 of the Hong Kong Listing Rules during the reporting period[61] Interim Consolidated Financial Statements Interim Consolidated Statement of Profit or Loss The Group's revenue was HK$2.34 billion, resulting in a loss attributable to owners of the parent of HK$158.4 million for the period | Item (HK$'000) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Revenue | 2,343,455 | 3,228,189 | | Gross Profit | 622,613 | 848,985 | | (Loss)/Profit Before Tax | (142,672) | 179,869 | | (Loss)/Profit for the Period | (157,282) | 123,349 | | (Loss)/Profit Attributable to Owners of the Parent | (158,433) | 112,178 | Interim Consolidated Statement of Comprehensive Income Including other comprehensive losses, the total comprehensive loss for the period was HK$330.9 million, an increase from the prior year | Item (HK$'000) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | (Loss)/Profit for the Period | (157,282) | 123,349 | | Other Comprehensive Loss, Net of Tax | (173,616) | (184,248) | | Total Comprehensive Loss for the Period | (330,898) | (60,899) | Interim Consolidated Statement of Financial Position As of June 30, 2024, the Group's total assets were HK$8.73 billion, with net assets of HK$3.48 billion | Item (HK$'000) | June 30, 2024 (Unaudited) | Dec 31, 2023 (Audited) | | :--- | :--- | :--- | | Total Non-current Assets | 2,222,996 | 2,578,197 | | Total Current Assets | 6,507,240 | 6,830,828 | | Total Assets | 8,730,236 | 9,409,025 | | Total Current Liabilities | 4,734,022 | 5,267,009 | | Total Non-current Liabilities | 515,441 | 315,650 | | Total Liabilities | 5,249,463 | 5,582,659 | | Net Assets | 3,480,773 | 3,826,366 | | Cash and Cash Equivalents | 1,438,319 | 1,188,457 | Interim Consolidated Statement of Changes in Equity Total equity attributable to owners of the parent decreased from HK$3.58 billion to HK$3.27 billion, mainly due to the period's comprehensive loss - Equity attributable to owners of the parent decreased from HK$3,581.5 million at the beginning of the period to HK$3,274.3 million at the end[72] - The decrease in equity was primarily driven by a total comprehensive loss of HK$320.7 million and the impact of share repurchases and cancellations[72] Interim Consolidated Statement of Cash Flows The Group generated net cash from operating activities of HK$157.4 million, resulting in a net increase in cash of HK$289.5 million | Item (HK$'000) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Net Cash Flows From Operating Activities | 157,372 | 526,217 | | Net Cash Flows From Investing Activities | 97,504 | 62,929 | | Net Cash Flows From/(Used in) Financing Activities | 34,585 | (461,363) | | Net Increase in Cash and Cash Equivalents | 289,461 | 127,783 | | Cash and Cash Equivalents at End of Period | 1,438,319 | 1,564,275 | Notes to the Interim Condensed Consolidated Financial Statements 4. Operating Segment Information The Group operates in two main segments, with the 'Radio Telecommunication Network System Equipment and Services' segment being the primary revenue source By Operating Segment (HK$'000) | For the six months ended June 30, 2024 | Radio Telecommunication Network System Equipment and Services | Operator Telecommunication Services | Total | | :--- | :--- | :--- | :--- | | Revenue | 2,261,115 | 82,340 | 2,343,455 | | Loss Before Tax | (120,415) | (22,257) | (142,672) | Revenue by Geographical Location (HK$'000) | Region | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Mainland China | 1,576,903 | 2,125,601 | | Other APAC Countries/Regions | 291,351 | 475,562 | | Americas | 309,124 | 284,957 | | European Union | 152,320 | 304,206 | 12. Trade Receivables Total trade receivables decreased to HK$3.18 billion, with an impairment provision of HK$786.7 million Aging Analysis of Trade Receivables (HK$'000) | Aging | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Within 3 months | 1,159,033 | 1,503,441 | | 4 to 6 months | 373,704 | 472,277 | | 7 to 12 months | 827,302 | 673,858 | | Over 1 year | 1,604,512 | 1,610,065 | | Gross Total | 3,964,551 | 4,259,641 | | Impairment Provision | (786,740) | (755,186) | | Net Amount | 3,177,811 | 3,504,455 | 14. Interest-bearing Bank Borrowings Total interest-bearing bank borrowings increased to HK$892.2 million, with interest rates ranging from 1.2% to 6.94% | Item (HK$'000) | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Due within 1 year | 579,644 | 707,980 | | Due after 1 year | 312,586 | 87,961 | | Total | 892,230 | 795,941 | 16. Share Option Schemes and Share Award Scheme The 2013 Share Option Scheme has been terminated, with 47.8 million options outstanding under this scheme as of the period end - The 2013 Share Option Scheme was terminated on May 22, 2023, with no new options to be granted, though existing options remain valid[113] - As of June 30, 2024, 47,810,000 share options under the 2013 Scheme remained outstanding[120] - As of June 30, 2024, 300,000 share options under the 2023 Scheme remained outstanding[127] 21. Related Party Transactions Total remuneration for key management personnel was approximately HK$17.8 million, with no other significant related party transactions Key Management Personnel Remuneration (HK$'000) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Short-term employee benefits | 15,757 | 7,532 | | Equity-settled share option expenses | 356 | 1,175 | | Awarded share expenses | 1,623 | 1,626 | | Total | 17,794 | 10,440 | - The Group established a share incentive plan for its indirect subsidiary, Comba Network, recognizing an expense of HK$13.41 million for this plan in H1 2024[145][147][150]