Financial Performance - Revenue for the six months ended June 30, 2025, was approximately $62,943,000, an increase of about 9.9% compared to the same period last year[2]. - Net profit for the same period was approximately $21,665,000, representing a year-on-year increase of about 13.4%[2]. - Basic earnings per share for the six months ended June 30, 2025, was approximately 1.96 cents, an increase of about 12.6% year-on-year[2]. - Gross profit for the six months was approximately $34,963,000, compared to $31,745,000 in the previous year, reflecting a strong performance[3]. - The company reported a pre-tax profit of $26,577,000, up from $22,710,000 in the same period last year[3]. - The total pre-tax profit for the six months ended June 30, 2025, was $26,577 thousand, compared to $22,710 thousand in 2024, showing an increase of 17.0%[23]. - The company's profit attributable to owners for the six months ended June 30, 2025, was approximately $21,665,000, reflecting a year-on-year growth of about 13.4%[59]. Dividends and Shareholder Returns - The board declared an interim dividend of 12.34 HK cents per share to shareholders listed on August 15, 2025[2]. - The interim dividend for the six months ended June 30, 2025, is set at 12.34 HK cents per share, up from 10.83 HK cents per share in 2024, reflecting a 13.98% increase[26]. - The board declared an interim dividend of HK$0.1234 per share for the period ending June 30, 2025, with payment expected on August 26, 2025[77]. Revenue Breakdown - Total revenue from customer contracts for the six months ended June 30, 2025, was $62,943 thousand, representing an increase of 9.5% compared to $57,298 thousand for the same period in 2024[19]. - Revenue from SD-WAN router sales was $44,447 thousand for the six months ended June 30, 2025, up from $40,946 thousand in 2024, marking a growth of 12.2%[20]. - Revenue from North America decreased to $34,394 thousand in 2025 from $36,761 thousand in 2024, a decline of 6.4%[17]. - Revenue from Europe, the Middle East, and Africa increased significantly to $20,497 thousand in 2025 from $14,725 thousand in 2024, reflecting a growth of 39.1%[17]. - Sales from fixed network priority connections slightly decreased to approximately $7,616,000, while mobile network priority connections increased to approximately $36,831,000, a year-over-year growth of about 14.4%[38]. - Warranty and support services grew by approximately 6.9% to about $13,441,000, and software license sales increased by approximately 33.8% to about $5,055,000[38]. - The sales breakdown for the six months ended June 30, 2025, showed that one-time sales accounted for 71.9% of total revenue, while recurring sales accounted for 28.1%[43]. Expenses and Costs - The cost of goods sold for the six months ended June 30, 2025, was $26,771 thousand, up from $24,450 thousand in 2024, representing an increase of 9.5%[23]. - Total operating expenses for the six months ended June 30, 2025, were approximately $10,151,000, an increase of about 4.2% year-on-year[56]. - Sales and distribution expenses slightly decreased to approximately $1,821,000 for the six months ended June 30, 2025[50]. - General and administrative expenses increased slightly to approximately $3,710,000 for the six months ended June 30, 2025[52]. - Research and development, consulting, and other expenses grew by 9.9% to approximately $4,620,000 for the six months ended June 30, 2025, mainly due to increased salaries[53]. Assets and Liabilities - Cash and cash equivalents at the end of the period were $55,666,000, down from $65,933,000 at the end of the previous year[7]. - Total assets less current liabilities amounted to $66,977,000, compared to $68,996,000 at the end of the previous year[5]. - The company’s total equity was $51,557,000 as of June 30, 2025, down from $56,299,000 at the end of the previous year[5]. - Trade receivables increased to $25,891,000 as of June 30, 2025, from $15,519,000 as of December 31, 2024, marking a growth of 66.8%[30]. - Inventory decreased to $13,619,000 as of June 30, 2025, from $16,160,000 as of December 31, 2024, indicating a reduction of 15.4%[29]. - Trade payables amounted to $5,434,000 as of June 30, 2025, compared to $4,321,000 as of December 31, 2024, showing an increase of 25.8%[32]. - As of June 30, 2025, the company's bank borrowings amounted to approximately $3,085,000, down from $8,516,000 as of December 31, 2024[69]. - The capital-to-debt ratio as of June 30, 2025, was approximately 6.0%, a decrease from 15.1% as of December 31, 2024[69]. Employee and Corporate Governance - The company had 196 full-time employees as of June 30, 2025, an increase from 180 full-time employees as of December 31, 2024[72]. - The company has adopted a corporate governance code to maintain high levels of corporate governance and transparency[89]. - The company has complied with all applicable provisions of the corporate governance code during the reporting period[89]. - The board's remuneration is determined based on the company's operational performance, individual performance, and market data[73]. Strategic Initiatives - The company plans to develop more targeted regional strategies and new products for the EMEA and Asia-Pacific markets to better meet customer needs[62]. - The collaboration with Starlink has expanded to include all Starlink devices, opening up a larger potential market[64]. - The company launched the SpeedFusion Connect application on iOS and Android, enhancing connectivity for mobile users[66]. Stock Options and Shareholder Information - The company has granted a total of 13,321,000 stock options as of June 30, 2025, with 12,274,000 options remaining after accounting for forfeitures and cancellations[82]. - The exercise price for stock options granted on July 20, 2016, is HKD 0.483, with a total of 25% of these options exercisable one year after the grant date[85]. - The stock options granted on December 11, 2023, have an exercise price of HKD 1.99, with 100,000 options granted and fully vested[82]. - As of June 30, 2025, the company's major shareholder holds 756,000,000 shares, representing 68.6% of the total shares[79]. Other Information - The company has no significant investments or investment plans as of June 30, 2025[74]. - There were no significant acquisitions or disposals of subsidiaries or associates during the period ending June 30, 2025[75]. - The company has not conducted any significant subsequent events after June 30, 2025, up to the date of this interim report[86]. - The company does not currently have a foreign exchange hedging policy but monitors foreign exchange risks closely[71]. - The company has not purchased, redeemed, or sold any of its listed securities during the reporting period[88]. - The audit committee has reviewed the group's interim performance and discussed audit, internal control, and financial reporting matters with management[91].
珩湾科技(01523) - 2025 - 中期财报