Financial Performance - Revenue for the first half of 2024 reached HK$313,354,000, a slight increase from HK$310,166,000 in 2023, representing a change of 0.7%[2] - Profit before tax for the period was HK$39,259,000, compared to HK$49,483,000 in the previous year, indicating a decrease of 20.5%[2] - The Group's turnover for the six months ended June 30, 2024, was approximately HK$313.4 million, representing an increase of approximately 1.0% compared to HK$310.2 million for the same period last year[14] - Gross profit for the same period was HK$77.5 million, down from HK$86.5 million in 2023, indicating a decrease of 10.4%[29] - Profit attributable to owners of the company for the period was HK$32.8 million, compared to HK$42.6 million in the previous year, reflecting a decline of 23.1%[29] - EBITDA for the six months ended June 30, 2024, was approximately HK$45.5 million, down from approximately HK$59.5 million for the same period last year[15] - The net profit attributable to owners of the Company for the six months ended June 30, 2024, was approximately HK$32.8 million, a decrease of approximately 23.0% from HK$42.6 million for the same period last year[17] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HK$1,130,637,000, up from HK$1,068,718,000 at the end of 2023, reflecting a growth of 5.8%[2] - Total current assets were approximately HK$812.1 million as of June 30, 2024, compared to HK$747.0 million as of December 31, 2023[19] - Total liabilities as of June 30, 2024, were HK$864,763, slightly up from HK$860,836 at the end of 2023[34] - Non-current liabilities totaled HK$139,023, a decrease from HK$140,188 as of December 31, 2023[34] - The current ratio was around 3.1 as of June 30, 2024, down from 3.6 as of December 31, 2023[19] - The gearing ratio was 0.08 as of June 30, 2024, compared to approximately 0.05 as of December 31, 2023[19] Shareholder Information - The company reported no dividends for the period, consistent with the previous year[2] - The Board did not recommend the payment of any interim dividend for the six months ended June 30, 2024, compared to no dividend for the same period in 2023[20] - The final dividend declared for 2023 was HK10 cents per share, down from HK12 cents per share in 2022, with total dividends recognized during the period amounting to HK$24,000,000 compared to HK$28,800,000 in 2023[58] Operational Highlights - The company is focusing on market expansion and new product development strategies to drive future growth[2] - Management expressed optimism about future performance despite current challenges in profitability[2] - The Group is an OEM provider of PCBs, focusing on high-quality production that meets IPC standards and customer requirements[9] - Revenue from automobile electronics has increased significantly, reflecting the growing business opportunities in this sector[9] - The Group has established long-term relationships with major customers, some of whom have been partners for over a decade, enhancing supply chain reliability[9] Cost and Expenses - The Group's gross profit margin for the six months ended June 30, 2024, was approximately 24.7%, a decrease of approximately 3.2% from 27.9% in the previous year, primarily due to increased production costs[15] - Total operating expenses for the six months ended June 30, 2024, were approximately HK$49.7 million, an increase of approximately 0.4% compared to HK$49.5 million for the same period last year[15] - Selling and distribution expenses decreased by approximately HK$0.6 million, or 5.8%, to approximately HK$9.7 million for the six months ended June 30, 2024[17] - General and administrative expenses increased by approximately HK$0.8 million, or 2.0%, to approximately HK$40.0 million for the six months ended June 30, 2024[17] Certification and Compliance - The Group has obtained ISO 13485 certification in 2022, ensuring compliance with quality management systems for medical equipment circuit boards[11] - The Group has passed ISO 45001 certification in 2023, focusing on improving occupational safety and health for staff[11] - The Group's product and process quality are integral to its business, with compliance to various international quality standards including ISO9001 and IATF16949[9] Future Plans and Investments - The Group plans to establish a new production base outside Pingshan District, Shenzhen, to support long-term development due to increased labor costs and changes in the planned use of the current production area[13] - The Group is exploring opportunities for establishing a production base for PCBs in mainland China and/or overseas[23] - The Group's future plans for material investments and capital assets will be disclosed as appropriate under the Listing Rules[23] Employee Information - As of June 30, 2024, the Group had 793 employees, an increase from 739 employees as of December 31, 2023[22] - Total employee benefit expense for the six months ended June 30, 2024, was approximately HK$44.7 million, unchanged from the same period in 2023[22] - The Group's remuneration system is performance-related and reviewed annually[22] Market and Economic Conditions - The high production costs continue to impact the PCB industry in 2024, necessitating increased capital investment in environmental protection measures[11] - The geopolitical conflicts, particularly the ongoing Russia-Ukraine conflict and the Israeli-Palestinian conflict, are expected to impact energy costs and inflation, posing challenges for the PCB industry[24] - The Group maintains a diversified market presence and a strong customer base, allowing for a defensive position amid external challenges[24] Corporate Governance - The audit committee reviewed the unaudited interim condensed consolidated financial statements for the six months ended June 30, 2024, confirming compliance with applicable accounting standards[109] - The interim report will be published on the Stock Exchange and the company's website, ensuring timely disclosure to shareholders[109] - The company has adhered to all code provisions set out in the Corporate Governance Code throughout the reporting period[109]
恩达集团控股(01480) - 2024 - 中期财报