Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 527,492 thousand, a decrease of 27.7% compared to HKD 729,248 thousand in the same period of 2023[1] - Gross profit for the same period was HKD 99,086 thousand, down 27.3% from HKD 136,241 thousand year-on-year[1] - Operating profit decreased to HKD 53,570 thousand, representing a decline of 43.8% from HKD 95,133 thousand in the previous year[1] - Profit attributable to owners of the company was HKD 36,131 thousand, down 30.7% from HKD 52,219 thousand in the prior year[1] - Basic and diluted earnings per share were HKD 7.6, compared to HKD 11.0 in the same period last year, reflecting a decrease of 30.9%[1] - The company reported a total profit for the period of HKD 40,502,000, compared to HKD 55,239,000 for the same period in 2023, representing a decline of 26.7%[19] - The group's profit before tax for the six months ended June 30, 2024, was HKD 293,837,000, down from HKD 449,686,000 in the same period of 2023, representing a decline of 34.7%[26] Comprehensive Income and Equity - Total comprehensive income for the period was HKD 44,394 thousand, slightly up from HKD 43,971 thousand in the previous year[2] - Total equity increased to HKD 723,674 thousand from HKD 688,741 thousand, reflecting a growth of 5.1%[4] - The company’s retained earnings decreased by HKD 9,461,000 during the reporting period[6] Assets and Liabilities - Non-current assets totaled HKD 267,967 thousand, down from HKD 280,626 thousand as of December 31, 2023[3] - Current assets increased to HKD 945,224 thousand from HKD 899,296 thousand at the end of 2023, indicating a growth of 5.1%[4] - The company’s total liabilities decreased from HKD 620,497,000 to HKD 609,031,000, reflecting a reduction of approximately 2%[6] - The total assets as of June 30, 2024, amounted to HKD 1,213,191,000, compared to HKD 1,179,922,000 as of December 31, 2023, indicating an increase of 2.8%[19] Cash Flow and Financing - The company reported a net cash position of HKD 453,857 thousand, up from HKD 426,043 thousand at the end of the previous year[3] - The operating cash flow for the first half of 2024 was HKD 55,208,000, significantly lower than HKD 151,849,000 in the previous year, indicating a decrease of about 64%[7] - The net cash flow from investing activities was HKD (13,205,000) for the first half of 2024, compared to HKD (2,465,000) in the previous year, indicating a significant increase in cash outflow[8] - The group’s cash flow from financing activities showed a net outflow of HKD 10,502,000, compared to a net outflow of HKD 57,049,000 in the previous year, indicating an improvement in financing cash flow[8] Segment Performance - For the six months ended June 30, 2024, the total revenue from the electronic products segment was HKD 527,492,000, a decrease of 27.7% compared to HKD 729,248,000 for the same period in 2023[18] - The operating profit before interest and tax for the electronic products segment was HKD 57,628,000, down from HKD 88,141,000 in the previous year, reflecting a decline of 34.6%[19] - Revenue from the United States for the six months ended June 30, 2024, was HKD 322,730,000, a decrease of 32.6% from HKD 479,294,000 in the same period of 2023[20] Inventory and Receivables - As of June 30, 2024, the total inventory amounted to HKD 232,805,000, a decrease of 10% from HKD 258,661,000 as of December 31, 2023[37] - Trade receivables, net of expected credit loss provisions, increased to HKD 189,474,000 as of June 30, 2024, up 15.5% from HKD 163,971,000 as of December 31, 2023[39] - The aging analysis of trade receivables showed that amounts overdue for more than three months increased to HKD 34,270,000 as of June 30, 2024, compared to HKD 15,676,000 as of December 31, 2023[39] Dividends and Share Capital - The proposed interim dividend per ordinary share increased to HKD 0.03 for the six months ended June 30, 2024, compared to HKD 0.02 for the same period in 2023, reflecting a 50% increase[9] - The group’s issued and fully paid share capital remained unchanged at 473,058,180 shares as of June 30, 2024[47] Corporate Governance - The company has adopted the Corporate Governance Code and has complied with its provisions during the reporting period[87] - The board of directors will regularly review and update current practices to ensure compliance with the latest corporate governance standards[87] - The Audit Committee has reviewed the interim condensed consolidated financial statements and confirmed compliance with applicable accounting standards and legal requirements[89] Future Outlook and Strategic Initiatives - The group anticipates continued challenges in the second half of 2024 due to geopolitical tensions and potential sanctions affecting business operations[77] - The group is considering establishing production facilities in Vietnam and Malaysia to mitigate potential tariffs on goods manufactured in China[79] - The group aims to expand its revenue base and strengthen growth momentum by developing new electronic products with existing and potential customers[79]
华讯(00833) - 2024 - 中期财报