Revenue Performance - Total revenue decreased by approximately HKD 94.6 million or 23.9% to approximately HKD 301.9 million for the six months ended June 30, 2024, compared to approximately HKD 396.5 million for the same period in 2023[57]. - The decline in revenue was primarily due to clients implementing inventory reduction measures, leading to decreased sales of cooking appliances[54]. - Revenue for the six months ended June 30, 2024, was HKD 301,933 thousand, a decrease of 24% compared to HKD 396,551 thousand for the same period in 2023[123]. - Revenue from electric heating appliances sales was HKD 301,847,000, down from HKD 393,749,000 in the previous year, indicating a decline of approximately 23.3%[152]. - Major customer A contributed HKD 84,257,000 to total revenue, down from HKD 164,359,000 in the previous year, representing a decline of 48.7%[151]. Profitability - The group's gross profit decreased by approximately HKD 47.8 million or about 32.2% to approximately HKD 100.7 million for the six months ending June 30, 2024, compared to approximately HKD 148.5 million for the same period in 2023[58]. - The gross profit margin fell by approximately 4.1 percentage points from about 37.4% to approximately 33.3% during the same period, primarily due to a decrease in sales of cooking appliances[58]. - The group's net profit decreased by approximately HKD 38.8 million or about 44.4% to approximately HKD 48.5 million for the six months ending June 30, 2024, compared to approximately HKD 87.3 million for the same period in 2023[65]. - Profit before tax decreased to HKD 57,025 thousand, representing a decline of 46% from HKD 105,805 thousand in the previous year[123]. - Basic and diluted earnings per share were 13.52 HKD cents, down from 24.33 HKD cents in the same period last year[123]. Expenses and Costs - Selling and distribution expenses decreased by approximately HKD 0.8 million to approximately HKD 7.2 million, with advertising and promotion expenses dropping from approximately HKD 1.9 million to approximately HKD 1.0 million[60]. - The cost of goods sold for the six months ended June 30, 2024, was HKD 201,268,000, down from HKD 248,067,000 in 2023, a decrease of 19%[154]. - Total employee costs for the period were approximately HKD 54.4 million, compared to HKD 56.2 million for the six months ended June 30, 2023[80]. Cash Flow and Financial Position - The group's cash and cash equivalents were approximately HKD 157.0 million as of June 30, 2024, down from approximately HKD 187.7 million as of December 31, 2023[74]. - Cash generated from operating activities was HKD 12,472,000 for the six months ended June 30, 2024, down from HKD 144,024,000 in the same period last year[135]. - The net cash outflow from investing activities was HKD 33,485,000 for the six months ended June 30, 2024, compared to HKD 25,106,000 in the previous year[135]. - The company reported a decrease in cash and bank balances to HKD 89,360,000 as of June 30, 2024, from HKD 60,537,000 in the previous year[138]. Strategic Initiatives - The company remains cautiously optimistic about the second half of 2024, driven by replenishment orders from clients who have largely completed their inventory reduction[56]. - New product models, which have received positive feedback from existing and new clients, are expected to be delivered later this year, showcasing significant improvements in design and functionality[56]. - The company is actively seeking opportunities outside Europe to diversify its customer base and expand its global presence[56]. - The company plans to continue its strategic initiatives, including customer diversification, ongoing product innovation, and strict financial discipline[54]. Employee and Management - As of June 30, 2024, the group employed 1,089 full-time employees, an increase from 993 employees as of December 31, 2023[80]. - Total compensation paid to key management personnel increased to HKD 9,366,000 for the six months ended June 30, 2024, compared to HKD 9,211,000 in 2023, reflecting a growth of approximately 1.68%[170]. Corporate Governance and Compliance - The company has adopted corporate governance codes to maintain investor confidence and protect stakeholder interests[84]. - The company recognizes the importance of compliance with regulatory requirements and the risks associated with non-compliance[89]. Dividends and Shareholder Information - The interim dividend declared is HKD 0.11 per share, totaling approximately HKD 39.5 million, compared to HKD 53.9 million for the same period last year[90]. - The company proposed an interim dividend of HKD 0.11 per share for 2024, compared to HKD 0.15 per share in 2023, reflecting a decrease of 26.7%[159]. Risks and Challenges - The group faced significant risks including potential impacts from public health events and geopolitical conflicts, which could adversely affect sales and performance[77].
登辉控股(01692) - 2024 - 中期财报