Financial Performance - Revenue for the six months ended June 30, 2024, increased by 5.6% to HKD 2,471.0 million compared to HKD 2,339.4 million in the same period last year[8]. - Operating profit rose by 21.1% to HKD 200.1 million, up from HKD 165.3 million year-on-year[8]. - Profit attributable to owners of the company increased by 28.6% to HKD 175.8 million, compared to HKD 136.7 million in the previous year[8]. - Gross profit margin improved by 2.8 percentage points to 20.3% from 17.5%[8]. - Basic earnings per share increased from HKD 0.13 to HKD 0.17[8]. - Gross profit for the same period was HKD 501,850,000, compared to HKD 408,835,000 in 2023, reflecting a year-over-year increase of about 22.7%[39]. - Operating profit increased to HKD 200,111,000, up from HKD 165,253,000 in the previous year, marking a growth of approximately 21.1%[39]. - Net profit attributable to the owners of the company for the period was HKD 175,830,000, compared to HKD 136,712,000 in 2023, indicating an increase of around 28.7%[39]. - Basic and diluted earnings per share for the period were HKD 0.17, up from HKD 0.13 in the same period last year, representing a growth of 30.8%[39]. Dividends and Shareholder Information - The company declared an interim dividend of HKD 0.052 per share, up from HKD 0.028 in the previous year[9]. - The board has declared an interim dividend of HKD 0.052 per ordinary share, an increase from HKD 0.028 per share in 2023[24]. - The interim dividend declared was HKD 0.052 per share, totaling HKD 53,600,000, compared to HKD 0.028 per share and HKD 28,900,000 in the previous year, reflecting an 85.7% increase[97]. - As of June 30, 2024, the total number of ordinary shares held by directors and senior management amounts to 687,745,521, representing approximately 66.75% of the issued share capital[28]. - Major shareholders include Tong Yat Holdings Limited with 354,883,279 shares (34.44%) and Tian Ying Investment Limited with 313,614,262 shares (30.44%) as of June 30, 2024[29]. Asset and Liability Management - The asset-liability ratio decreased significantly by 27.5 percentage points to 12.2% from 39.7%[8]. - The current ratio remained stable at 1.14 times for both June 30, 2024, and December 31, 2023[13]. - The debt-to-equity ratio decreased to 12.2% as of June 30, 2024, from 39.7% as of December 31, 2023, primarily due to net repayment of bank borrowings[13]. - As of June 30, 2024, total bank borrowings were HKD 207.9 million, a decrease from HKD 654.9 million as of December 31, 2023[17]. - The company has strategically built up inventory of raw materials to improve supply chain flexibility and reduce logistics costs[10]. Cash Flow and Investments - Net cash generated from operating activities was HKD 332.9 million for the period, significantly up from HKD 21.7 million for the same period last year[13]. - Cash used in investing activities was HKD 183.9 million, an increase from HKD 111.6 million in the previous year, mainly due to increased purchases of property, plant, and equipment[13]. - Operating cash generated for the six months ended June 30, 2024, was HKD 347,777, compared to HKD 32,588 for the same period in 2023, representing a significant increase[52]. - The company incurred a net cash outflow from investing activities of HKD 183,880 for the six months ended June 30, 2024, compared to HKD 111,567 in 2023, primarily due to increased capital expenditures[52]. - The company raised HKD 140,879 from bank borrowings during the six months ended June 30, 2024, compared to HKD 116,495 in the same period of 2023, indicating increased leverage[53]. Business Segments and Growth - The performance in the new energy business was strong, contributing to the overall revenue growth[9]. - The industrial power division's revenue increased by 16.1% year-on-year, accounting for 40.0% of the group's total revenue[10]. - The new energy division's revenue rose by 15.5% year-on-year, representing 17.0% of total business revenue[10]. - The company anticipates continued strong growth in its new energy business in the second half of the year due to rising demand for energy storage products[10]. - The company is focusing on developing smart chargers and fully digital power products for various applications, including electric forklifts and industrial robots[11]. Research and Development - Research and development expenses amounted to HKD 93,417, up from HKD 83,032 in the previous year, indicating a focus on innovation[90]. Financial Risk Management - The company maintained a prudent liquidity risk management strategy, ensuring sufficient cash and bank balances to meet financial obligations[64]. - The company’s financial risk factors include market risk, credit risk, and liquidity risk, which are essential for assessing overall financial health[63]. - The financial risk management policies have remained unchanged since December 31, 2023[63]. Inventory and Receivables - The inventory balance as of June 30, 2024, was HKD 783,018,000, an increase of 7.6% from HKD 727,329,000 as of December 31, 2023[113]. - Trade receivables increased to HKD 1,235,318,000 as of June 30, 2024, compared to HKD 1,176,536,000 as of December 31, 2023, representing a growth of 5%[115]. - The provision for trade receivables increased to HKD 6,884,000 as of June 30, 2024, from HKD 5,844,000 as of December 31, 2023[115]. Share Incentive Plan - The Tianbao Electronics (Huizhou) share incentive plan aims to establish a long-term incentive mechanism and attract suitable talent for the group's development[32]. - The stock options granted to Yang Bingbing and Hong Guangdai on February 28, 2024, are 8,700,000 and 2,000,000 respectively, both with an exercise price of 1.00[32]. - The company confirmed an expense of HKD 1,698,000 related to the share reward plan for the six months ended June 30, 2024, compared to no expenses in the same period of 2023[128].
天宝集团(01979) - 2024 - 中期财报