Financial Performance - Revenue for the six months ended June 30, 2024, decreased by 31.2% to HK$389,249,000 compared to HK$565,855,000 for the same period in 2023[2]. - Gross profit for the same period fell by 43.2% to HK$67,642,000, down from HK$119,044,000 in 2023[2]. - The company reported a loss before income tax of HK$28,373,000, compared to a profit of HK$27,688,000 in the previous year, marking a 202.5% decline[2]. - Net loss attributable to owners of the Company for the period was HK$25,852,000, a significant drop from a profit of HK$21,740,000 in 2023, representing a 218.9% decrease[2]. - For the six months ended June 30, 2024, the Group's revenue decreased by approximately HK$176.6 million, a decline of 31.2% compared to the same period in 2023[24][30][32]. - The loss attributable to owners of the Company amounted to approximately HK$25.9 million, compared to a profit of approximately HK$21.7 million for the same period in 2023[28]. - Basic and diluted loss per share was HK$2.59, compared to earnings of HK$2.17 per share in the previous year[105]. - Total comprehensive expense for the period attributable to owners of the Company was HK$26,884,000, compared to a total comprehensive income of HK$19,813,000 in 2023[105]. Assets and Liabilities - Total assets as of June 30, 2024, were HK$671,190,000, a decrease of 1.7% from HK$682,770,000 at the end of 2023[3]. - Total liabilities increased by 5.6% to HK$287,283,000 from HK$272,035,000[3]. - Net assets attributable to owners of the Company decreased by 6.5% to HK$383,907,000 from HK$410,735,000[3]. - As of June 30, 2024, total assets amounted to HK$489,201,000, a decrease from HK$501,371,000 as of December 31, 2023[106]. - Current liabilities increased to HK$189,663,000 from HK$172,866,000, reflecting a rise of approximately 9.2%[106]. - Total equity decreased to HK$383,907,000 from HK$410,735,000, a decline of approximately 6.5%[107]. Cash Flow and Liquidity - Cash and cash equivalents rose significantly to HK$103,591,000 from HK$60,949,000, an increase of approximately 69.9%[106]. - Net cash generated from operating activities for the six months ended June 30, 2024, was HK$55,010,000, compared to HK$20,886,000 in 2023, representing a significant increase[108]. - The company reported a net increase in cash and cash equivalents of HK$42,984,000 for the six months ended June 30, 2024, compared to a decrease of HK$13,704,000 in 2023[108]. - The Group's cash and cash equivalents, along with unutilized bank financing, amounted to approximately HK$120.1 million as of June 30, 2024, up from approximately HK$77.5 million as of December 31, 2023[51]. - The Group's liquidity risk is mitigated through available banking facilities[116]. Operational Developments - The Group has initiated the production and sale of electric vehicle chargers under the "Deltrix" brand, marking a strategic shift towards new energy[16]. - A partnership with Sinooil has led to the establishment of the first electric vehicle charging station in Almaty, Kazakhstan, with plans for over 100 additional sites[16]. - The Group aims to create a "Greater Asia New Energy Business Circle" by expanding its new energy business into Uzbekistan, Hong Kong, and Southeast Asia[16]. - The Group strategically allocated additional resources to explore new opportunities in the new energy sector, including the production of electronic components for solar and wind power applications[25]. - The Group's strategic shift towards new energy not only emphasizes its commitment to environmental sustainability but also positions it as a pioneer in the Central Asian new energy sector[24]. Market and Sales Performance - Sales from smart chargers accounted for 37.8% of total sales in the first half of 2024, compared to 31.7% in 2023, indicating a shift in product demand[4]. - Revenue from electro-mechanical products decreased by 15.1%, totaling HK$147.3 million, while smart chargers saw a significant increase of 63.6%, reaching HK$98.0 million[30]. - Revenue from Europe decreased by 32.3% to HK$335.6 million, accounting for 86.2% of total revenue, while North America saw a 39.3% decline to HK$30.4 million, representing 7.8% of total revenue[33][35]. Expenses and Cost Management - Administrative expenses increased due to the rise in costs associated with the development of the new energy business[25]. - Selling and distribution expenses decreased from approximately HK$9.7 million in the first half of 2023 to approximately HK$8.3 million in the same period of 2024, reflecting lower commissions due to decreased sales[40]. - Employee benefit expenses, including directors' remuneration, amounted to HK$98,965,000, a decrease of 10% from HK$109,654,000 in 2023[141]. Strategic Initiatives and Future Outlook - The outlook for the EMS business remains cautiously optimistic, with anticipated revenue and profitability improvements as global interest rates decline[18]. - The Group expects a gradual recovery in revenue and profitability, driven by increasing demand for its products amid global trends towards health awareness and sustainable energy[28]. - The Group plans to expand its presence in Central Asia, particularly in Kazakhstan, by establishing electric vehicle charging stations[96]. - The Group aims to develop a "Greater Asia New Energy Business Circle" to foster collaboration and sustainable growth across the region[99]. Shareholder Returns - The company did not declare any interim dividends for the period, compared to HK$0.8 per share in 2023, reflecting a 100% decrease[2]. - The Board does not recommend the payment of an interim dividend for the six months ended 30 June 2024[99].
致丰工业电子(01710) - 2024 - 中期财报