创科实业(00669) - 2025 - 中期业绩

Company Overview Key Financial Highlights Techtronic Industries demonstrated strong performance in H1 2025, achieving double-digit growth in sales and net profit, significant improvements in gross margin and EPS, and robust free cash flow | Metric | H1 2025 (million USD) | H1 2024 (million USD) | Change | | :--- | :--- | :--- | :--- | | Revenue | 7,833 | 7,312 | +7.1% | | Gross Margin | 40.3% | 39.9% | +34 basis points | | Profit Before Interest and Tax | 709 | 626 | +13.3% | | Profit Attributable to Shareholders | 628 | 550 | +14.2% | | Basic EPS (US cents) | 34.37 | 30.12 | +14.1% | | Interim Dividend Per Share (approx. US cents) | 16.09 | 13.90 | +15.7% | - Sales grew by 7.5% to $7.8 billion in local currency, with net profit increasing by 14.2% to $628 million[4] - Flagship brand MILWAUKEE's sales grew by 11.9% in local currency, while RYOBI increased by 8.7%[4] - Free cash flow reached $468 million, with the company in a net cash position at period-end[4] Interim Dividend The Board resolved to declare an interim dividend of HK$125.00 cents (approximately US$16.09 cents) per share, representing a 15.7% increase from the prior year, payable around September 19, 2025 - The Board resolved to declare an interim dividend of HK$125.00 cents (approximately US$16.09 cents) per share for the six months ended June 30, 2025[5] - The interim dividend for the same period in 2024 was HK$108.00 cents (approximately US$13.90 cents), marking a 15.7% increase this period[3][5] - The dividend will be paid to shareholders whose names appear on the company's register of members on September 5, 2025, with an expected payment date on or about September 19, 2025[5] Management Discussion and Analysis Business Review Techtronic Industries achieved record sales in H1, driven by strong growth in MILWAUKEE and RYOBI brands, while optimizing product mix and operational efficiency improved gross margin and profit before interest and tax, leading to positive free cash flow - Record sales of $7.8 billion were recorded in H1 2025, representing a 7.5% increase in local currency and 7.1% in reported currency[6] - MILWAUKEE business grew by 11.9% in local currency, and RYOBI grew by 8.7%[6] - Sales in North America increased by 8.1%, Europe by 10.4%, while other regions saw a 3.4% decrease[6] - Gross margin rose by 34 basis points to 40.3%, primarily due to improved profitability of consumer brands, enhanced operational efficiency, and MILWAUKEE's business growth[6] - Total selling and general administrative expenses as a percentage of sales decreased by 18 basis points to 31.3%, reflecting the company's investment in R&D and new product development while reducing non-strategic administrative expenses[6] - Profit before interest and tax was $709 million, a 13.3% year-on-year increase, with the profit margin improving by 49 basis points to 9.1%[7] - Net profit increased by 14.2% to $628 million, and EPS grew by 14.1% to 34.37 US cents[8] - Working capital as a percentage of sales improved by 190 basis points to 16.8%, and inventory days shortened by 1 day to 103 days[8] - Capital expenditure was $96 million, a 4.1% year-on-year decrease, primarily invested in new products, production network adjustments, automation, and productivity initiatives[8] - Positive free cash flow of $468 million was recorded, with the company in a net cash position at period-end, indicating a robust financial standing[8] - The company actively recruits, retains, and invests in top global talent to solidify its foundation for success and achieve its mission of dominating the cordless product market[9] Business Summary Techtronic Industries' power tools business showed strong performance with significant growth in MILWAUKEE and RYOBI brands, particularly in cordless tools and outdoor power equipment, while the floor care and cleaning business saw increased operating profit despite a slight revenue decline, actively transitioning to cordless cleaning products - Power tools business sales grew by 8.3% in local currency to $7.4 billion[10] - RYOBI power tools achieved low double-digit growth, and outdoor power equipment saw mid-single-digit growth[14] - The RYOBI ONE+ 18V battery platform continues to deliver value to cordless tool users, with the introduction of the RYOBI 40V series and RYOBI USB Lithium platform[14] - RYOBI's growth strategy focuses on strengthening its existing user base, attracting new users, and driving strong growth in both new and established regional markets globally[14] - RYOBI collaborates with leading distribution partners such as The Home Depot, Bunnings, and key European retail partners[15] Power Tools MILWAUKEE Brand - MILWAUKEE business recorded double-digit sales growth of 11.9% in local currency[11] - North American sales grew by 12.9%, European sales by 11.6%, and other regions by 2.6%[11] - Outdoor Power Equipment (OPE) and Personal Protective Equipment (PPE) businesses outperformed the overall product portfolio average[11] - Growth is driven by a steadfast commitment to the technical industry and a user-first approach[11] - Three key initiatives are being pursued: developing existing businesses and vertical segments, opening new businesses and vertical segments, and expanding global market coverage[11] - Successful expansion from the transportation maintenance sector into mining, with products like the M18 FUEL Brushless 1-inch D-Handle Short Head High Torque Impact Wrench gaining favor in the mining sector[12][13] - Mining operations in Australia and Latin America have global influence, helping to accelerate expansion into relevant regional markets[13] RYOBI Brand - RYOBI brand grew by 8.7% in local currency[14] - Power tools achieved low double-digit growth, while outdoor power equipment saw mid-single-digit growth[14] - The RYOBI ONE+ 18V battery platform continues to deliver value to cordless tool users, with the introduction of the RYOBI 40V series and RYOBI USB Lithium platform[14] - The growth strategy focuses on strengthening the existing user base, attracting new users, and driving strong growth in both new and established regional markets globally[14] - Collaboration with top distribution partners including The Home Depot, Bunnings, and key European retail partners[15] Floor Care and Cleaning - Operating profit for the Floor Care and Cleaning business increased by 3.6% to $9.7 million compared to H1 2024, while revenue decreased by 4.8% in local currency to $408 million[16] - RYOBI's innovative cleaning products achieved strong global results, with double-digit sales growth[16] - The VAX brand in the UK and Australia was affected by a slowdown in non-essential consumer spending[16] - Across all brands and regional markets in the floor care business, the company is driving a transition from AC to cordless cleaning products while focusing on improving overall business profitability[16] Financial Review Techtronic Industries' H1 financial performance was robust, with growth in both revenue and profit attributable to shareholders. Gross margin increased due to high-margin businesses and operational efficiency, while operating expenses were primarily for strategic investments. The company maintains a strong financial position with ample cash flow and effective management of working capital and debt - Revenue for the reporting period was $7.833 billion, a 7.1% year-on-year increase[17] - Profit attributable to shareholders was $628 million, a 14.2% year-on-year increase[18] - Basic EPS was 34.37 US cents, a 14.1% year-on-year increase[18] - Total shareholders' funds amounted to $6.7 billion, an increase of 4.6% from December 31, 2024[21] - Net asset value per share was $3.63, an increase of 4.6% from $3.47 as of December 31, 2024[21] - As of June 30, 2025, the Group held cash and cash equivalents totaling $1.608 billion, an increase from $1.232 billion as of December 31, 2024[22] - Free cash flow generated during the period was $468 million, compared to $508 million in the prior year period[22] - The net debt-to-equity ratio was a net cash position, compared to 9.2% as of June 30, 2024[22] - Long-term borrowings accounted for 50.7% of total debt, a decrease from 59.8% as of December 31, 2024[23] - Fixed-rate debt, after interest rate hedging, accounted for 60.7% of total bank borrowings[24] - Working capital as a percentage of sales was 16.8%, compared to 18.7% in the prior year period[28] - Total capital expenditure for the period was $96 million, representing 1.2% of revenue[29] Financial Performance | Metric | H1 2025 (million USD) | H1 2024 (million USD) | Change | | :--- | :--- | :--- | :--- | | Revenue | 7,833 | 7,312 | +7.1% | | Profit Before Interest and Tax | 709 | 626 | +13.3% | | Profit Attributable to Shareholders | 628 | 550 | +14.2% | | Basic EPS (US cents) | 34.37 | 30.12 | +14.1% | Performance Analysis - Gross margin increased to 40.3% from 39.9% in the prior year period, primarily attributable to high-margin businesses, improved profitability of consumer brands, and enhanced global manufacturing operations[19] - Total operating expenses for the period were $2.452 billion, an increase of 6.5% from $2.302 billion in the prior year period, mainly due to strategic investments in new products and technologies[20] - Research and development expenses were $359 million, representing 4.6% of revenue (2024: 4.1%), reflecting the company's continuous focus on innovation[20] - Net interest expense was $27.8 million, a 14.5% decrease from $32.5 million in the prior year period, a result of effective financial resource management[20] - The effective tax rate for the period increased to 7.8% (2024: 7.3%)[20] Liquidity and Financial Resources - Total shareholders' funds amounted to $6.7 billion, an increase of 4.6% from December 31, 2024[21] - Net asset value per share was $3.63, an increase of 4.6% from $3.47 as of December 31, 2024[21] - As of June 30, 2025, the Group held cash and cash equivalents totaling $1.608 billion, with 37.9% in USD, 33.9% in Euro, 16.0% in AUD, and 12.2% in other currencies[22] - Free cash flow generated during the period was $468 million, compared to $508 million in the prior year period[22] - The net debt-to-equity ratio was a net cash position, compared to 9.2% as of June 30, 2024[22] - Long-term borrowings accounted for 50.7% of total debt (December 31, 2024: 59.8%)[23] - Fixed-rate debt, after interest rate hedging, accounted for 60.7% of total bank borrowings[24] - Total inventory was $4.293 billion, with inventory turnover days decreasing by 1 day to 103 days[25] - Finished goods inventory increased by 6 days, raw materials inventory decreased by 6 days to 13 days, and work-in-progress inventory decreased by 1 day to 3 days[25] - Trade receivables turnover days remained at 60 days[26] - Trade payables turnover days were 102 days, compared to 96 days as of June 30, 2024[27] - Working capital as a percentage of sales was 16.8%, compared to 18.7% in the prior year period[28] - Total capital expenditure for the period was $96 million, representing 1.2% of revenue[29] Capital Commitments and Pledges - As of June 30, 2025, total capital commitments contracted but not provided for in respect of the acquisition of property, plant and equipment and equity investments amounted to $153 million (December 31, 2024: $167 million)[30] - The Group has no significant guarantees or off-balance sheet commitments[30] - None of the Group's assets are pledged or subject to any encumbrances[31] Human Resources - The Group employed a total of 47,539 employees globally (June 30, 2024: 49,778 employees)[32] - Total staff costs for the review period were $1.436 billion, compared to $1.359 billion in the prior year period[32] - The company is committed to enhancing the quality, competence, and technical skills of all employees, providing job-related training and leadership development programs[32] - Share options, share awards, and bonuses are granted to eligible employees at the discretion of the Group, based on Group performance and individual employee performance[32] Outlook Techtronic Industries is satisfied with its H1 performance and has invested over $1.9 billion to enhance capacity and strengthen its global manufacturing footprint. Looking ahead to H2, the company is well-positioned to navigate macroeconomic and geopolitical challenges, will continue R&D investment to maintain market leadership, and remains focused on improving profitability, confident in achieving its 2026 sales growth targets for MILWAUKEE and RYOBI, and committed to its medium-term goal of 10% profit before interest and tax as a percentage of sales - The company is satisfied with its H1 total sales growth, substantial free cash flow, growth in profit before interest and tax, and improved net profit margin[39] - Over $1.9 billion has been invested since 2015 to enhance production capacity and strengthen the global manufacturing footprint[39] - Looking ahead to H2 2025, the company is very well-positioned to address challenges arising from the macroeconomic and geopolitical environment, as well as evolving global trade policies[39] - The company will continue its commitment to R&D investment to maintain market leadership in innovative and technologically advanced cordless products[39] - The focus for H2 2025 is on enhancing profitability[39] - Confidence remains high for MILWAUKEE's double-digit sales growth and RYOBI's mid-single-digit sales growth in 2026[40] - The team will continue efforts to achieve the medium-term internal target of 10% profit before interest and tax as a percentage of sales[40] Corporate Governance and Compliance Compliance with Listing Rules' Corporate Governance Code The company complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Hong Kong Stock Exchange Listing Rules throughout H1 2025, except for directors not having a specific term of appointment, but they are subject to retirement by rotation and re-election under the company's articles of association - The company complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited throughout the six months ended June 30, 2025[33] - Directors are not appointed for a specific term but are subject to retirement by rotation and re-election in accordance with the company's Articles of Association[33] Compliance with Listing Rules' Model Code The Board adopted the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules, and all directors confirmed full compliance with the relevant standards in H1 2025 - The Board adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules[34] - All directors confirmed their full compliance with the relevant standards set out in the Model Code during the six months ended June 30, 2025[34] Review of Accounts The Audit Committee, with independent auditor Deloitte Touche Tohmatsu and senior management, reviewed the H1 2025 unaudited financial statements, accounting principles, and practices, and discussed internal controls and financial reporting matters. The Board confirmed its responsibility for preparing the Group's accounts - The Audit Committee, together with the company's independent auditor Deloitte Touche Tohmatsu and the Group's senior management, reviewed the company's unaudited financial statements for the six months ended June 30, 2025[35] - The review included the accounting principles and practices adopted by the Group, and discussions on internal controls and financial reporting matters[35] - The Board confirmed its responsibility for preparing the Group's accounts[35] Purchase, Sale or Redemption of Securities The company repurchased a total of 1,250,000 ordinary shares in H1 2025 for approximately $15.521 million, aiming to enhance net asset value and EPS. The repurchased shares were settled and cancelled, reducing the issued share capital accordingly. No other listed securities were purchased, sold, or redeemed by the company or its subsidiaries - The company repurchased a total of 1,250,000 ordinary shares during the period, at prices ranging from HK$83.55 to HK$106.20 per share[36] - The consideration paid for the repurchased shares, approximately $15.521 million, was deducted from retained earnings[36] - The share repurchases aimed to enhance the company's net asset value per share and EPS, benefiting all shareholders[36] - 750,000 shares were settled and cancelled during the period, and 500,000 shares were cancelled on July 2, 2025[36] - Save as disclosed above, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[36] Closure of Register of Members The company's register of members will be closed from September 4 to September 5, 2025, to determine eligibility for the interim dividend. To qualify, all transfer documents must be lodged with the share registrar by 4:00 p.m. on September 3, 2025 - The company's register of members will be closed from September 4, 2025, to September 5, 2025 (both dates inclusive)[37] - To qualify for the interim dividend, all transfer documents, together with the relevant share certificates, must be lodged with the company's share registrar by 4:00 p.m. on September 3, 2025[37] Publication of Interim Results and Interim Report This results announcement has been published on the company's website and the HKEXnews website. The 2025 Interim Report, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the aforementioned websites in due course - This results announcement is published on the company's website (www.ttigroup.com) and the HKEXnews website (www.hkexnews.hk)[38](index=38&type=chunk) - The company's 2025 Interim Report, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the aforementioned websites in due course[38] Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income In H1 2025, the company reported revenue of $7.833 billion, gross profit of $3.156 billion, and profit attributable to shareholders of $628 million. Other comprehensive loss was primarily impacted by fair value losses on foreign exchange forward contracts and cross-currency interest rate swaps in hedge accounting | Metric | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :--- | :--- | :--- | | Revenue | 7,833,083 | 7,311,988 | | Cost of Sales | (4,677,276) | (4,391,271) | | Gross Profit | 3,155,807 | 2,920,717 | | Profit Before Tax | 681,496 | 593,706 | | Profit Attributable to Shareholders for the Period | 628,339 | 550,365 | | Total Comprehensive Income for the Period | 600,883 | 515,282 | | Basic EPS (US cents) | 34.37 | 30.12 | | Diluted EPS (US cents) | 34.29 | 29.98 | - Fair value loss on foreign exchange forward contracts and cross-currency interest rate swaps in hedge accounting was $191 million, compared to a gain of $11.532 million in the prior year period[45] - Exchange differences on translation of overseas operations resulted in a gain of $164 million, compared to a loss of $43.785 million in the prior year period[45] Consolidated Statement of Financial Position As of June 30, 2025, the company's total non-current assets were $5.137 billion, total current assets were $8.758 billion, including inventory of $4.293 billion and bank balances, deposits, and cash of $1.608 billion. Total current liabilities were $5.676 billion, and total non-current liabilities were $1.563 billion. Total equity attributable to shareholders was $6.655 billion | Metric | June 30, 2025 (thousand USD) | December 31, 2024 (thousand USD) | | :--- | :--- | :--- | | Non-current Assets | | | | Property, Plant and Equipment | 2,215,563 | 2,248,541 | | Intangible Assets | 1,388,139 | 1,369,494 | | Current Assets | | | | Inventories | 4,293,010 | 4,076,210 | | Trade and Other Receivables | 2,587,042 | 1,993,138 | | Bank Balances, Deposits and Cash | 1,608,391 | 1,232,347 | | Current Liabilities | | | | Trade and Other Payables | 4,248,273 | 3,849,627 | | Unsecured Borrowings - Due within one year | 680,914 | 509,850 | | Non-current Liabilities | | | | Unsecured Borrowings - Due after one year | 751,692 | 763,650 | | Equity | | | | Total Equity Attributable to Shareholders | 6,655,351 | 6,363,597 | - Net current assets increased to $3.082 billion from $2.780 billion as of December 31, 2024[46] Consolidated Statement of Cash Flows In H1 2025, net cash from operating activities was $719 million, net cash used in investing activities was $218 million, and net cash used in financing activities was $178 million. Cash and cash equivalents at period-end totaled $1.608 billion, an increase of $323 million from the beginning of the period | Metric | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :--- | :--- | :--- | | Net Cash From Operating Activities | 719,108 | 774,916 | | Net Cash Used In Investing Activities | (218,086) | (234,591) | | Net Cash Used In Financing Activities | (177,831) | (246,845) | | Net Increase in Cash and Cash Equivalents | 323,191 | 293,480 | | Cash and Cash Equivalents at End of Period | 1,608,391 | 1,226,545 | - Net cash from operating activities was primarily influenced by profit before tax, depreciation and amortization, and changes in working capital[48] - Net cash used in investing activities was mainly for additions to intangible assets and purchases of property, plant and equipment[49] - Net cash used in financing activities was primarily affected by proceeds from and repayment of unsecured borrowings, dividends paid, and payments for share repurchases[49] Notes to the Condensed Consolidated Financial Statements Basis of Preparation The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited - These condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[50] - Comparative information is derived from the statutory annual consolidated financial statements for the year ended December 31, 2024[50] Significant Accounting Policies The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value. The application of amendments to Hong Kong Financial Reporting Standards during this interim period had no significant impact on the financial position and performance - These condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[50] - The accounting policies and methods of computation adopted in the condensed consolidated financial statements for the six months ended June 30, 2025, are consistent with those presented in the Group's annual financial statements for the year ended December 31, 2024[50] - The application of amendments to Hong Kong Financial Reporting Standards (such as the amendment to HKAS 21 "Lack of Exchangeability") had no significant impact on the Group's financial position and performance for the current and prior periods[51] Segment Information The Group's revenue and results are analyzed across two reportable operating segments: Power Tools and Floor Care and Cleaning. The Power Tools segment contributes the vast majority of revenue and results, with inter-segment sales calculated at prevailing market prices | Segment | H1 2025 Revenue (thousand USD) | H1 2024 Revenue (thousand USD) | H1 2025 Segment Results (thousand USD) | H1 2024 Segment Results (thousand USD) | | :--- | :--- | :--- | :--- | :--- | | Power Tools | 7,425,059 | 6,884,453 | 699,588 | 616,850 | | Floor Care and Cleaning | 408,024 | 427,535 | 9,664 | 9,325 | | Consolidated Total | 7,833,083 | 7,311,988 | 709,252 | 626,175 | - Inter-segment sales are calculated at prevailing market prices[53] - Segment results represent the profit earned by each segment before interest income and finance costs, which is the basis reported to the executive directors[54] - The Group does not disclose an analysis of assets and liabilities by operating segment, as such information is not regularly provided to the chief operating decision-makers for their review[55] Revenue Total revenue for H1 2025 was $7.833 billion, primarily from the sale of goods, with commissions and royalty income contributing a smaller portion. Geographically, North America accounted for the majority of revenue, followed by Europe, while other countries saw a decrease | Revenue Source | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :--- | :--- | :--- | | Sale of Goods | 7,826,450 | 7,306,377 | | Commission and Royalty Income | 6,633 | 5,611 | | Total Revenue | 7,833,083 | 7,311,988 | - Revenue from the sale of goods is recognized at a point in time, while commission and royalty income are recognized over time[56] | Region (Customer Location) | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :--- | :--- | :--- | | North America | 5,871,986 | 5,461,455 | | Europe | 1,400,825 | 1,251,320 | | Other Countries | 560,272 | 599,213 | | Total Revenue | 7,833,083 | 7,311,988 | Tax Expense Tax expense for H1 2025 was $53.157 million, primarily comprising overseas taxation. Hong Kong profits tax is calculated at 16.5%. The Group recognized current top-up tax under Pillar Two legislation and applied the temporary mandatory exception, not recognizing or disclosing deferred tax assets and liabilities | Tax Type | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :--- | :--- | :--- | | Hong Kong Profits Tax | (815) | (790) | | Overseas Taxation | (53,601) | (40,653) | | Deferred Tax | 1,259 | (1,898) | | Total Tax Expense | (53,157) | (43,341) | - Hong Kong profits tax is calculated at a rate of 16.5%, while taxes in other jurisdictions are calculated at their respective applicable rates[57] - The Group is subject to global minimum top-up tax under Pillar Two legislation and has recognized the expected current tax expense[58] - The Group has applied the temporary mandatory exception regarding the impact of Pillar Two legislation, not recognizing or disclosing deferred tax assets and liabilities[58] Profit for the Period Profit for H1 2025 is stated after deducting (crediting) intangible asset amortization of $109 million, depreciation of property, plant and equipment of $137 million, and depreciation of right-of-use assets of $83.407 million, totaling $329 million in depreciation and amortization. Additionally, it includes impairment loss on trade receivables of $8.983 million, net exchange gain of $59.292 million, and inventory write-downs of $39.007 million | Item | H1 2025 (thousand USD) | H1 2024 (thousand USD) | | :--- | :--- | :--- | | Amortization of Intangible Assets | 109,262 | 94,643 | | Depreciation of Property, Plant and Equipment | 136,866 | 142,561 | | Depreciation of Right-of-Use Assets | 83,407 | 88,436 | | Total Depreciation and Amortization | 329,535 | 325,640 | | Fair Value (Gain) Loss on Listed Equity Securities | (569) | 6,444 | | Impairment Loss on Trade Receivables | 8,983 | 23,568 | | Net Exchange Gain | (59,292) | (6,106) | | Inventory Write-downs | 39,007 | 31,214 | | Staff Costs | 1,436,495 | 1,359,469 | Dividends A final dividend of $278 million (HK$118.00 cents per share) for 2024 was paid to shareholders on June 27, 2025. The Board resolved to declare an interim dividend of $295 million (HK$125.00 cents per share), an increase from the prior year period - A final dividend for 2024 of HK$118.00 cents (approximately US$15.19 cents) per share, totaling approximately $278 million, was paid to shareholders on June 27, 2025[60] - The Directors resolved to declare an interim dividend of HK$125.00 cents (approximately US$16.09 cents) per share, totaling approximately $295 million, to shareholders whose names appear on the register of members on September 5, 2025[60] - The interim dividend for the same period in 2024 was HK$108.00 cents (approximately US$13.90 cents) per share, totaling approximately $255 million[60] Earnings Per Share Basic EPS for H1 2025 was 34.37 US cents, and diluted EPS was 34.29 US cents. Diluted EPS calculations did not assume the exercise of share options and vesting of share awards because their exercise prices were higher than the average market price of shares | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit Attributable to Shareholders for the Period (thousand USD) | 628,339 | 550,365 | | Weighted Average Number of Ordinary Shares for Basic EPS | 1,828,073,756 | 1,827,109,617 | | Weighted Average Number of Ordinary Shares for Diluted EPS | 1,832,691,734 | 1,835,526,768 | | Basic EPS (US cents) | 34.37 | 30.12 | | Diluted EPS (US cents) | 34.29 | 29.98 | - The exercise prices of the company's share options and the adjusted exercise prices of the company's share awards were higher than the average market price of shares for both six-month periods ended June 30, 2025, and 2024, thus the exercise of these share options and vesting of share awards were not assumed in the calculation of diluted EPS[61] Additions to Property, Plant and Equipment / Intangible Assets / Right-of-Use Assets During the period, the Group spent $95.815 million on property, plant and equipment and $156 million on intangible assets. Additionally, right-of-use assets and lease liabilities of $42.294 million were recognized due to new lease agreements - During the period, the Group spent approximately $95.815 million (H1 2024: $99.885 million) on the acquisition of property, plant and equipment[62] - Approximately $156 million (H1 2024: $170 million) was spent on the acquisition of intangible assets[62] - Right-of-use assets of $42.294 million (H1 2024: $102 million) and lease liabilities of $42.294 million were recognized[62] Trade and Other Receivables / Bills Receivable As of June 30, 2025, total trade receivables were $2.492 billion, with the zero to sixty-day aging category being the largest. Other receivables amounted to $94.555 million. All bills receivable were aged within one hundred and twenty days | Aging | June 30, 2025 (thousand USD) | December 31, 2024 (thousand USD) | | :--- | :--- | :--- | | 0 to 60 days | 2,013,132 | 1,514,752 | | 61 to 120 days | 393,682 | 314,890 | | 121 days or more | 85,673 | 54,489 | | Total Trade Receivables | 2,492,487 | 1,884,131 | | Other Receivables | 94,555 | 109,007 | | Total | 2,587,042 | 1,993,138 | - The Group's policy grants credit terms to customers ranging from 30 to 120 days[63] - All bills receivable of the Group as of June 30, 2025, and December 31, 2024, were aged within 120 days[63] Trade Receivables from Associates As of June 30, 2025, and December 31, 2024, trade receivables from associates were all aged within one hundred and twenty days - Trade receivables from associates as of June 30, 2025, and December 31, 2024, were aged within 120 days[64] Trade and Other Payables / Bills Payable As of June 30, 2025, total trade payables were $2.193 billion, with the zero to sixty-day aging category being the largest. Other payables amounted to $2.133 billion, primarily representing accrued selling, general, and administrative expenses. All bills payable were aged within one hundred and twenty days | Aging | June 30, 2025 (thousand USD) | December 31, 2024 (thousand USD) | | :--- | :--- | :--- | | 0 to 60 days | 1,154,696 | 1,202,460 | | 61 to 120 days | 894,314 | 585,127 | | 121 days or more | 143,729 | 63,270 | | Total Trade Payables | 2,192,739 | 1,850,857 | | Other Payables | 2,133,383 | 2,086,767 | | Total | 4,326,122 | 3,937,624 | | Non-current Portion of Other Payables | (77,849) | (87,997) | - Other payables primarily represent accrued selling, general, and administrative expenses of $1.886 billion (2024: $1.884 billion)[66] - Non-current other payables primarily represent accrued supplier expenses and accrued long-term incentive benefits provided to certain senior management personnel of the Group[66] - All bills payable of the Group as of June 30, 2025, and December 31, 2024, were aged within 120 days from the invoice date[65] Unsecured Borrowings During the period, the Group obtained $3.258 billion in new unsecured borrowings and repaid $3.108 billion. As of June 30, 2025, unsecured borrowings had a carrying value of $752 million, and the company complied with financial ratio covenants linked to the consolidated statement of profit or loss - During the period, the Group obtained new unsecured borrowings of $3.258 billion (2024: $2.252 billion)[67] - The Group also repaid unsecured borrowings of $3.108 billion (2024: $2.387 billion)[67] - For unsecured borrowings with a carrying value of $752 million as of June 30, 2025 (December 31, 2024: $764 million), the Group is required to comply with certain financial ratios linked to the consolidated statement of profit or loss for the relevant period[67] - The Group complied with the relevant covenants at each testing date on or before the end of the reporting period and classified the related bank loan balances as non-current[67] Share Capital As of June 30, 2025, issued and fully paid share capital was $689.991 million, with 1,831,094,941 ordinary shares. During the period, the company repurchased and cancelled 1,250,000 ordinary shares, paying $15.521 million in consideration | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Ordinary Shares (shares) | 1,831,094,941 | 1,832,304,941 | | Share Capital (thousand USD) | 689,991 | 689,684 | - During the period, 40,000 shares were issued due to the exercise of share options, and 1,250,000 shares were repurchased[68] - 750,000 shares were repurchased in March 2025 for $10.013 million; 500,000 shares were repurchased in June 2025 for $5.508 million[68] - The consideration paid for the repurchased shares, approximately $15.521 million, was deducted from retained earnings[68] - Of the 1,250,000 ordinary shares repurchased in 2025, 750,000 shares were cancelled during the six months ended June 30, 2025, and the remaining 500,000 shares were cancelled in July 2025[68] Fair Value Measurement of Financial Instruments The Group's financial assets and liabilities are measured at fair value on a recurring basis and categorized into Level 1 to 3 based on the observability of input data. Key financial instruments include derivative financial instruments (e.g., foreign exchange forward contracts, cross-currency interest rate swaps) and financial assets at fair value through profit or loss (e.g., listed equity securities, club debentures, unlisted equity securities) - The fair value of the Group's financial assets and financial liabilities is measured on a recurring basis[70] - Fair value measurement inputs are categorized into Level 1 (quoted prices in active markets), Level 2 (observable input data), and Level 3 (unobservable input data)[72] | Financial Instrument | Fair Value (June 30, 2025) | Level | Valuation Techniques and Key Inputs | | :--- | :--- | :--- | :--- | | Rights to acquire certain property, plant and equipment (derivative financial instruments) | $8.785 million | Level 2 | Valued by independent third-party valuers, measured at fair value of the underlying land and buildings | | Foreign exchange forward contracts (derivative financial instruments) (assets/liabilities) | $19.707 million / $113.015 million | Level 2 | Discounted cash flow, estimated based on forward exchange rates and contract rates | | Listed equity securities | $24.174 million | Level 1 | Quoted prices in active markets | | Club debentures | $4.958 million | Level 2 | Reference to recent transaction prices of similar transactions under comparable circumstances | | Unlisted equity securities | $3.8 million | Level 2 | Reference to recent per-share purchase prices of privately placed equity investments | | Cross-currency interest rate swaps (derivative financial instruments) (assets) | $7.504 million | Level 2 | Estimated and discounted based on the present value of future cash flows using applicable yield curves from interest rate quotations | - The Directors of the company believe that the carrying amounts of financial assets and financial liabilities recognized at amortized cost in the condensed consolidated financial statements approximate their fair values[71] Capital Commitments As of June 30, 2025, total capital expenditures contracted but not provided for in the condensed consolidated financial statements, related to the acquisition of property, plant and equipment and equity investments, amounted to $153 million | Item | June 30, 2025 (thousand USD) | December 31, 2024 (thousand USD) | | :--- | :--- | :--- | | Capital expenditure contracted but not provided for in the condensed consolidated financial statements in respect of the acquisition of property, plant and equipment and equity investments | 153,077 | 166,875 |