Financial Performance - Revenue for the Period is approximately US$30.8 million, a decrease of approximately 6.9% compared to US$33.1 million for the Preceding Period[18]. - Gross profit for the Period is approximately US$2.4 million, with a gross profit margin of approximately 7.7%, down from 8.5% in the Preceding Period[19]. - Cost of sales for the Period is approximately US$28.4 million, a decrease of approximately 6.3% from US$30.3 million in the Preceding Period[18]. - Selling and distribution expenses decreased to US$1.2 million from US$1.6 million, a reduction of approximately US$0.4 million due to decreased sales[20]. - General and administration expenses decreased to US$2.5 million from US$3.1 million, primarily due to a reduction in staff costs by approximately US$0.9 million[21]. - Finance costs increased to approximately US$1.3 million from US$1.0 million, accounting for approximately 4.2% of total revenue compared to 3.0% in the Preceding Period[22]. - The Group's loss after tax changed from US$2.8 million in the Preceding Period to a net loss of US$2.7 million for the Period[28]. - Revenue for the six months ended June 30, 2024, was $30,775,000, a decrease of 7.9% compared to $33,087,000 for the same period in 2023[73]. - Gross profit for the same period was $2,377,000, down from $2,818,000, reflecting a gross margin decline[73]. - Loss for the period attributable to the owners of the Company was $2,834,000, compared to a loss of $2,713,000 in the previous year[75]. - Total comprehensive loss for the period attributable to the owners of the Company was $2,837,000, compared to $2,789,000 in the prior year[75]. Market Conditions - The Group's short-term results were challenged by a contraction in industry demand in the first half of 2024[14]. - The semiconductor industry has entered a downward cycle due to weak demand in the consumer market, leading to increased pressure on chip manufacturers to reduce inventory[14]. - The post-pandemic recovery of the domestic economy has been slower than expected, impacting overall business performance[14]. - The uncertainties in the global supply chain and economic conditions have created a challenging business environment[14]. - Demand for chips in high-power renewable energy, energy storage, industrial automation, and artificial intelligence remains high, presenting new development opportunities for semiconductor enterprises[14]. Business Strategy - The Group focuses on five major product categories: mobile devices and smart charging, motor control, sensors and automation, LED lighting, and RF power[17]. - The Group is actively exploring new growth areas to strengthen future development despite current market challenges[17]. - The Group provides IC application solutions and value-added services tailored to customer needs, emphasizing environmentally-friendly and energy-saving solutions[13]. - The Group's business is primarily focused on fast-growing and emerging market categories[13]. - The Group remains committed to being a stable supplier of integrated circuit products and solutions[17]. Financial Position - Current assets decreased to $41,704,000 as of June 30, 2024, from $43,143,000 as of December 31, 2023[77]. - Net assets as of June 30, 2024, were $19,760,000, down from $22,597,000 at the end of 2023[78]. - Total equity decreased to $19,760,000 from $22,597,000, reflecting a decline in reserves[78]. - The company's cash flows from operating activities resulted in a net cash used of $4,452,000 for the six months ended June 30, 2024, compared to a net cash generated of $2,870,000 in 2023[80]. - Cash and cash equivalents at the end of the period were $1,667,000, a decrease from $3,382,000 at the end of June 2023[82]. Employee and Management Information - Total number of employees as of 30 June 2024 is approximately 87, down from approximately 91 as of 31 December 2023[37]. - Total compensation paid to key management personnel was US$153,000 for the six months ended June 30, 2024, down from US$202,000 in the same period of 2023[144]. - The company’s short-term employee benefits amounted to US$145,000 for the six months ended June 30, 2024, compared to US$191,000 in the same period of 2023[144]. Shareholder Information - The interests of Mr. Lam Keung and Mr. Qing Haodong in the shares of the Company are 746,746,000 shares each, representing approximately 68.00% of the shareholding[52]. - As of June 30, 2024, P. Grand (BVI) Ltd. holds 662,746,000 shares, representing 60.35% of the total shares[57]. - Ms. Feng Tao has an interest in a controlled corporation with 746,746,000 shares, accounting for 68.00% of the total shares[57]. - The issued and fully paid ordinary shares remained at 1,098,122,380 shares as of June 30, 2024, unchanged from the same date in 2023[142]. - The total authorized share capital remained at 2,000,000,000 shares as of June 30, 2024, unchanged from the previous year[142]. Compliance and Governance - The Company has complied with the Corporate Governance Code since its listing on July 16, 2019[42]. - The Group has not purchased, sold, or redeemed any of its listed securities since the Listing Date[45]. - The roles of chairman and chief executive officer are held by the same individual, Mr. Lam, which the Board believes ensures consistent leadership[42]. - The Group has adopted the Model Code for securities transactions by Directors and all Directors confirmed compliance[44]. - There are no significant events after the reporting period that need to be disclosed[39]. Debt and Liabilities - As of 30 June 2024, bank borrowings amounted to approximately US$9.0 million, up from US$5.0 million as of 31 December 2023[29]. - Bank borrowings increased to $16,795,000 as of June 30, 2024, from $12,715,000 as of December 31, 2023, representing an increase of approximately 32.5%[137]. - The total borrowings from discounted bills with recourse were approximately US$3,355,000 as of June 30, 2024, compared to US$2,504,000 as of December 31, 2023, reflecting a 34% increase[141]. - The Group's asset-backed financial liabilities increased significantly to approximately US$8,976,000 as of June 30, 2024, compared to US$4,933,000 as of December 31, 2023, reflecting a rise of approximately 82.69%[121]. - The Group's allowance for expected credit loss on trade receivables increased to US$1,277,000 as of June 30, 2024, from US$1,180,000 as of December 31, 2023, which is an increase of approximately 8.24%[117].
康特隆(01912) - 2024 - 中期财报