盈利时(06838) - 2024 - 中期财报

Company Information and Important Dates This section provides essential corporate details, governance structure, and key dates for the 2024 interim dividend Company Information and Important Dates This chapter outlines the company's core registration details, board composition, contact information, listing specifics, and key dates for the 2024 interim dividend Key Company Information and Interim Dividend Dates | Item | Details | | :--- | :--- | | Stock Code | 6838 | | Listing Place | Main Board of The Stock Exchange of Hong Kong Limited | | Financial Year End Date | December 31 | | Interim Dividend | HK 0.5 cents per ordinary share | | Book Close Period | September 12 to 16, 2024 | | Interim Dividend Record Date | September 16, 2024 | | Interim Dividend Payment Date | October 4, 2024 | Financial Highlights This section presents a summary of the company's financial performance and position, highlighting significant declines in profitability and a stable gearing ratio Financial Highlights The company experienced significant declines in key financial metrics for the six months ended June 30, 2024, including revenue, gross profit, and profit for the period, while maintaining a low gearing ratio Performance Highlights (For the six months ended June 30) | Performance Highlights (For the six months ended June 30) | 2024 (Unaudited) | 2023 (Unaudited) | Change | | :--- | :--- | :--- | :--- | | Revenue (HK$ thousands) | 322,245 | 384,233 | -16.1% | | Gross Profit (HK$ thousands) | 68,559 | 109,534 | -37.4% | | Profit for the Period (HK$ thousands) | 9,255 | 28,013 | -67.0% | | Basic Earnings Per Share (HK cents) | 1.5 | 4.7 | -68.1% | | Interim Dividend Per Share (HK cents) | 0.5 | 1.5 | -66.7% | Balance Sheet Highlights | Balance Sheet Highlights | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total Assets (HK$ thousands) | 1,153,908 | 1,192,807 | -3.3% | | Total Borrowings (HK$ thousands) | 46,025 | 50,033 | -8.0% | | Net Assets (HK$ thousands) | 982,587 | 1,008,710 | -2.6% | | Gearing Ratio | 0.04 | 0.04 | Unchanged | Management Discussion and Analysis This section provides a comprehensive analysis of the company's operational performance, financial results, liquidity position, and future outlook Business Review The Group's sales were broadly impacted by a slowdown in luxury consumer goods demand amid global economic challenges, with most product segments declining except for mobile phone casings and components - Global economic challenges led to a slowdown in demand for luxury consumer goods, impacting the Group's product sales[16] - Performance varied across business segments: - Watch strap revenue decreased by 19.5% year-on-year - Fashion accessories revenue decreased by 15.6% year-on-year - Smart wearable device casings and components revenue significantly decreased by 57.8% year-on-year - Mobile phone casings and components revenue increased by 32.6% year-on-year[16] Financial Review The Group's total revenue declined by 16.1% to HK$322.2 million, with gross profit and profit for the period significantly impacted by intense market competition and price reductions, despite effective cost control Revenue by Product Segment | Revenue by Product Segment (HK$ thousands) | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Mobile Phone Casings and Components | 152,124 | 114,707 | +32.6% | | Watch Straps | 99,701 | 123,796 | -19.5% | | Smart Wearable Device Casings and Components | 52,564 | 124,577 | -57.8% | | Fashion Accessories | 17,856 | 21,153 | -15.6% | | Total | 322,245 | 384,233 | -16.1% | - Gross profit decreased by 37.4% year-on-year to HK$68.56 million, with gross profit margin declining from 28.5% to 21.3%, primarily due to price reductions from intense domestic market competition[18] - Profit for the period decreased by 67.0% year-on-year to HK$9.26 million, and basic earnings per share decreased by 68.1% to HK 1.5 cents[18] - Other income significantly increased by 142.7% year-on-year to HK$7.83 million due to higher interest from bank fixed deposits[21] - The Group effectively controlled expenses, with sales and distribution costs, administrative and other expenses, and research and development expenses decreasing by 15.8%, 12.2%, and 50.4% year-on-year respectively[22] Liquidity, Debt and Outlook The Group maintained strong liquidity with ample cash and a low gearing ratio, and despite ongoing global economic challenges, it aims to enhance operational efficiency and profitability for sustainable growth - As of June 30, 2024, the Group held bank balances and cash of HK$283 million and net current assets of HK$375 million[27] - Outstanding bank borrowings amounted to HK$46.03 million, an 8.0% decrease from the beginning of the period, with the gearing ratio remaining at 0.04[27][28] - As of June 30, 2024, the Group's total number of employees was approximately 2,408, a decrease from 2,695 at the end of 2023[30] - Looking ahead, in the face of ongoing global economic challenges, the Group will focus on enhancing revenue and prioritizing sustained long-term profitability[31] Review Report on Condensed Consolidated Financial Statements This section presents the auditor's review report on the condensed consolidated financial statements, confirming their preparation in accordance with relevant accounting standards Review Report on Condensed Consolidated Financial Statements Deloitte Touche Tohmatsu issued an unmodified review conclusion on the interim financial statements, affirming their preparation in accordance with Hong Kong Accounting Standard 34 - Auditor Deloitte issued an unmodified review conclusion on the interim financial statements[33] - The scope of a review is significantly narrower than an audit, thus the auditor does not express an audit opinion[33] Interim Financial Information This section presents the unaudited condensed consolidated financial statements for the six months ended June 30, 2024, including key statements and detailed notes on performance, position, and cash flows Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2024, the Group reported a 16.1% decrease in revenue to HK$322.2 million and a 67.0% decline in profit for the period to HK$9.255 million Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Highlights | Item (HK$ thousands) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue | 322,245 | 384,233 | | Gross Profit | 68,559 | 109,534 | | Profit Before Tax | 12,583 | 32,258 | | Profit for the Period | 9,255 | 28,013 | Condensed Consolidated Statement of Financial Position As of June 30, 2024, the Group's total assets slightly decreased to HK$1.154 billion, with total liabilities at HK$171 million and net current assets of HK$375 million, indicating sound liquidity Condensed Consolidated Statement of Financial Position Highlights | Item (HK$ thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Assets | 1,153,908 | 1,192,807 | | Total Liabilities | 171,321 | 184,097 | | Net Assets | 982,587 | 1,008,710 | | Net Current Assets | 374,512 | 381,265 | Condensed Consolidated Statement of Changes in Equity Total shareholders' equity decreased from HK$1.009 billion to HK$983 million, primarily due to comprehensive expenses including exchange losses and declared dividends - Total equity at the beginning of the period was HK$1,008,710 thousand[36] - Total comprehensive expenses for the period amounted to HK$14,123 thousand, comprising HK$9,255 thousand in profit and a HK$23,378 thousand decrease in translation reserve (exchange differences)[36] - Dividends declared during the period totaled HK$12,000 thousand[36] - Total equity at the end of the period was HK$982,587 thousand[36] Condensed Consolidated Statement of Cash Flows Net cash generated from operating activities significantly decreased to HK$3.266 million, while investing activities generated HK$33.676 million, and financing activities resulted in a net outflow of HK$18.734 million, with cash and cash equivalents at period-end at HK$248 million Condensed Consolidated Statement of Cash Flows Highlights | Cash Flow Item (HK$ thousands) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 3,266 | 95,315 | | Net Cash Generated from (Used in) Investing Activities | 33,676 | (34,993) | | Net Cash Used in Financing Activities | (18,734) | (81,546) | | Net Increase (Decrease) in Cash and Cash Equivalents | 18,208 | (21,224) | | Cash and Cash Equivalents at End of Period | 247,683 | 246,862 | Notes to the Condensed Consolidated Financial Statements This section provides detailed explanations and supplementary information for financial statement items, including revenue segmentation, tax basis, dividend distribution, and capital commitments Note 3. Revenue and Segment Information The Group manufactures and sells fine steel products, with mobile phone casings, watch straps, and smart wearable device components as key offerings, and Mainland China and Switzerland as primary markets Revenue by Geographical Region | Revenue by Geographical Region (HK$ thousands) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | China | 138,145 | 190,696 | | Switzerland | 94,669 | 113,026 | | Hong Kong | 45,734 | 41,803 | | Others | 44,197 | 38,708 | Note 7. Dividends The Board declared an interim dividend of HK 0.5 cents per ordinary share for the six months ended June 30, 2024, totaling approximately HK$3 million, payable on October 4, 2024 - An interim dividend of HK 0.5 cents per share for 2024 was declared, totaling HK$3,000,000[48] - The final dividend of HK 2.0 cents per share for the year ended December 31, 2023, totaling HK$12,000,000, was paid during the period[48] Note 15. Capital Commitments As of June 30, 2024, contracted but unprovided capital expenditure significantly increased to HK$51.014 million, primarily for property, plant, equipment, and land use rights - Contracted but unprovided capital expenditure amounted to HK$51,014 thousand, a significant increase from HK$23,731 thousand at the end of 2023[60] Corporate Governance and Other Information This section covers the company's corporate governance practices, disclosures on directors' and major shareholders' interests, and other relevant information Corporate Governance The company maintains high corporate governance standards, largely complying with the Corporate Governance Code, with details on the Audit, Remuneration, and Nomination Committees - The company has adopted and complied with the Corporate Governance Code, with no deviations except for Code Provision C.1.6[63] - The Audit Committee has reviewed the Group's interim results, accounting principles, and internal controls[63] - All directors confirmed compliance with the Model Code for securities transactions by directors during the reporting period[65] Interests of Directors, Chief Executive, and Major Shareholders in Securities This section discloses the interests of directors, the chief executive, and major shareholders in the company's securities, noting the controlling shareholder and spouse's deemed joint holding of approximately 66.34% of shares - Controlling shareholder Mr. Yiu Hon Ming and his spouse Ms. Law Wai Ping (Executive Director) are deemed to collectively own 66.34% of the company's issued share capital through controlled corporations and personal holdings[67][68] - Major shareholders Ming Fung Investment Limited and Success Hero Holdings Limited hold 66.00% and 8.50% of the company's shares respectively[72] Other Information During the period, the company had no share transactions or schemes, disclosed a bank financing arrangement with a controlling shareholder's shareholding covenant, and reconfirmed interim dividend distribution and review by auditor and audit committee - During the reporting period, neither the company nor its subsidiaries engaged in any purchase, sale, or redemption of the company's listed securities[75] - The company has a bank financing arrangement requiring controlling shareholder Mr. Yiu Hon Ming and his family to hold no less than 50% of the company's issued shares[76] - The Board declared an interim dividend of HK 0.5 cents per share, payable on October 4, 2024[77]