连达科技控股(00889) - 2025 - 中期业绩

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The company experienced a 10.80% decrease in turnover but significantly narrowed its loss before tax and net loss, with total comprehensive income turning positive | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Turnover | 86,314 | 96,759 | -10.80% | | Cost of sales | (62,657) | (71,078) | -11.99% | | Gross profit | 23,657 | 25,681 | -7.88% | | Other income and gains, net | 4,463 | 4,195 | 6.39% | | Loss before tax | (4,954) | (13,315) | 62.80% (Loss narrowed) | | Income tax expense | (1,063) | (1,748) | -39.20% | | Loss for the period and attributable to owners of the Company | (6,017) | (15,063) | 60.07% (Loss narrowed) | | Total comprehensive income/(loss) for the period and attributable to owners of the Company | 614 | (21,214) | Turned from loss to profit | | Loss per share - basic and diluted | (HK$0.019) | (HK$0.047) | 59.57% (Loss narrowed) | Condensed Consolidated Statement of Financial Position The company maintained stable non-current and current assets, with a notable increase in trade receivables and a slight decrease in net current assets | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 562,112 | 560,007 | 0.38% | | Current assets | 257,574 | 256,335 | 0.48% | | Inventories | 75,234 | 81,255 | -7.39% | | Trade receivables | 26,072 | 16,424 | 58.75% | | Cash and cash equivalents | 142,509 | 141,733 | 0.55% | | Current liabilities | 29,464 | 25,106 | 17.36% | | Trade and other payables | 25,935 | 22,314 | 16.23% | | Net current assets | 228,110 | 231,229 | -1.35% | | Net assets | 755,260 | 754,646 | 0.08% | | Total equity | 755,260 | 754,646 | 0.08% | Notes This section provides detailed explanations of the accounting policies, financial performance, and position, including segment information and tax expenses 1. Basis of Preparation The interim financial statements are prepared in accordance with HKAS 34 and other relevant HKFRSs, as required by the HKEX Listing Rules - The financial statements are prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants, and other relevant Hong Kong Financial Reporting Standards[6] 2. Accounting Policies Current accounting policies align with the prior year, with new HKFRSs adopted having no material impact on the group's performance or financial position - The accounting policies adopted in the current period are consistent with those followed in the consolidated financial statements for the year ended December 31, 2024[7] - The Group first adopted the revised Hong Kong Financial Reporting Standards effective from January 1, 2025, including amendments to HKAS 21 "Lack of Exchangeability"[7] - The adoption of the revised HKFRSs had no material impact on the results and financial position for the current or prior accounting periods, requiring no retrospective adjustments[7] 3. Turnover and Other Income Turnover represents net invoiced sales of goods, while other income and gains, net, increased due to fair value changes in financial assets and exchange gains - Turnover refers to the net invoiced value of goods sold[8] Other Income and Gains Items | Other Income and Gains Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Bank interest income | 1,832 | 2,035 | -9.98% | | Fair value changes of financial assets at fair value through profit or loss | 179 | - | N/A | | Rental income under operating leases | 1,091 | 1,080 | 1.02% | | Exchange gains, net | 362 | - | N/A | | Dividend income from equity instruments at fair value through other comprehensive income | 684 | 837 | -18.39% | | Dividend income from financial assets at fair value through profit or loss | 141 | - | N/A | | Other income | 174 | 243 | -28.39% | | Total | 4,463 | 4,195 | 6.39% | 4. Segment Information The group operates a single segment of manufacturing and trading electronic components, with varying sales performance across geographical markets - The Group has only one operating segment, primarily engaged in the manufacturing and trading of electronic components in Hong Kong and overseas markets[10] Geographical Sales | Region | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong (place of registration) | 1,385 | 321 | 331.46% | | China | 3,753 | 5,261 | -28.67% | | United States | 76,016 | 84,621 | -10.17% | | European Union | 3,069 | 1,328 | 131.10% | | Other countries | 2,091 | 5,228 | -60.00% | | Total | 86,314 | 96,759 | -10.80% | 5. Loss Before Tax The loss before tax significantly narrowed, primarily driven by reduced cost of inventories recognized as an expense and lower depreciation Loss Before Tax Items | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of inventories recognized as an expense | 62,657 | 71,078 | -11.99% | | Depreciation of property, plant and equipment | 8,545 | 8,884 | -3.81% | | Exchange (gains)/losses, net | (362) | 159 | Turned from loss to profit | | Loss before tax | (4,954) | (13,315) | 62.80% (Loss narrowed) | 6. Income Tax Expense Income tax expense decreased due to adjustments for over-provision in overseas tax and the impact of deferred tax credits Income Tax Expense Items | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Current tax—Hong Kong Profits Tax (provision for the current period) | 1,438 | 928 | 54.96% | | Current tax—Overseas (provision for the current period) | 535 | 1,084 | -50.65% | | Current tax—Overseas (over-provision in prior years) | (688) | (264) | 160.61% | | Deferred tax credit | (222) | - | N/A | | Total income tax expense | 1,063 | 1,748 | -39.20% | - Hong Kong Profits Tax is calculated at 16.5% (8.25% for the first HK$2,000,000 of assessable profits), while overseas tax is calculated at the rates applicable in the respective jurisdictions[13] 7. Interim Dividend The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 (2024: nil)[14] 8. Loss Per Share Basic and diluted loss per share significantly narrowed due to a substantial reduction in the loss attributable to owners of the Company Loss Per Share Data | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to owners of the Company (HK$ Thousand) | 6,017 | 15,063 | | Number of ordinary shares in issue | 320,000,000 | 320,000,000 | | Basic and diluted loss per share | (HK$0.019) | (HK$0.047) | - As there were no dilutive potential ordinary shares in existence during both reporting periods, the diluted loss per share is equal to the basic loss per share[16] 9. Trade Receivables The group's credit terms range from 30 to 90 days, with a significant increase in total trade receivables, particularly in the 30-60 day ageing categories - The Group generally grants credit periods of 30 to 90 days to its customers and closely monitors overdue trade receivables[17] Trade Receivables Ageing | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Within 30 days | 15,244 | 9,584 | 59.05% | | 31 to 60 days | 8,825 | 4,472 | 97.34% | | 61 to 90 days | 2,064 | 2,390 | -13.64% | | Over 90 days | 627 | 666 | -5.86% | | Less: Loss allowance | (688) | (688) | 0.00% | | Total trade receivables | 26,072 | 16,424 | 58.75% | 10. Trade and Other Payables Total trade and other payables increased, driven by higher trade payables and other payables, while accrued charges for production plant decreased Trade and Other Payables Breakdown | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 8,936 | 5,740 | 55.68% | | Other payables and accrued expenses | 16,999 | 16,177 | 5.08% | | Accrued charges for production plant | - | 397 | -100.00% | | Total trade and other payables | 25,935 | 22,314 | 16.23% | Trade Payables Ageing | Trade Payables Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Within 30 days | 4,206 | 2,571 | 63.59% | | 31 to 60 days | 2,572 | 1,600 | 60.75% | | 61 to 90 days | 1,737 | 1,122 | 54.81% | | Over 90 days | 421 | 447 | -5.82% | | Total trade payables | 8,936 | 5,740 | 55.68% | 11. Share Capital The company's authorized and issued share capital remained unchanged during the period, with ordinary shares having a par value of HK$0.1 each Share Capital Structure | Share Capital Type | Number of Shares | Amount (HK$ Thousand) | | :--- | :--- | :--- | | Authorised ordinary shares of HK$0.1 each | 1,000,000,000 | 100,000 | | Issued and fully paid ordinary shares of HK$0.1 each | 320,000,000 | 32,000 | - The authorised and issued share capital remained unchanged as at January 1, 2025 and June 30, 2025[20] Management Discussion and Analysis This section reviews the group's business, market, and financial performance, highlighting liquidity, capital structure, and future prospects Business Review Revenue declined due to US tariff uncertainties, but gross margin improved, and operating and net losses significantly narrowed, with the group maintaining a strong cash position - The announcement of additional reciprocal tariffs by the US government created uncertainty, disrupting sales channels and affecting operational delays and customer decision-making processes[22] Key Financial Performance Indicators | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 86,300 | 96,759 | -10.81% | | Gross profit margin | 27.4% | 26.5% | 0.9 percentage points increase | | Operating loss | (5,000) | (13,300) | 62.41% (Loss narrowed) | | Net loss | (6,000) | (15,100) | 60.26% (Loss narrowed) | - As at June 30, 2025, the Group's cash amounted to HK$142,500,000 with no bank borrowings[24] Market Review Overall sales decreased, but the Industrial Applications segment grew by 15% to become the largest contributor, while Data Processing sales significantly declined Communications and Networking Sales in the communications market segment experienced a slight decrease, contributing 21% to the group's total sales | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Sales | 18,400 | 18,900 | -2.65% | | % of total sales | 21% | - | - | Data Processing The data processing segment saw a substantial 46% decrease in sales, accounting for 10% of the group's total sales | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Sales | 9,000 | 16,800 | -46.43% | | % of total sales | 10% | - | - | Industrial Applications Sales in the industrial applications segment increased by 15%, making it the largest contributor to the group's total sales at 43% | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Sales | 36,900 | 32,200 | 14.60% | | % of total sales | 43% | - | - | High Reliability Products Segment Sales in the high reliability products segment decreased, contributing 26% to the group's total sales | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Sales | 22,000 | 28,900 | -23.88% | | % of total sales | 26% | - | - | Financial Review Turnover decreased by 11%, but gross margin improved, and both operating and net losses significantly narrowed, leading to a better loss per share Financial Performance Summary | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Turnover | 86,300 | 96,700 | -10.75% | | Gross profit | 23,700 | 25,700 | -7.78% | | Gross profit margin | 27.4% | 26.5% | 0.9 percentage points increase | | Operating results (loss) | (5,000) | (13,300) | 62.41% (Loss narrowed) | | Net loss | (6,000) | (15,100) | 60.26% (Loss narrowed) | | Loss per share | HK$0.019 | HK$0.047 | 59.57% (Loss narrowed) | Liquidity, Financial Resources and Capital Structure The group maintains a strong financial position with increased total equity and cash, no bank borrowings, and sufficient working capital Liquidity and Capital Structure | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total equity | 755,300 | 754,600 | 0.09% | | Cash and cash equivalents | 142,500 | 141,700 | 0.56% | | Capital expenditure | 3,400 (Current period) | 4,200 (Prior period) | -19.05% | | Bank borrowings | Nil | Nil | - | - The Group's cash is primarily held in US dollars, Hong Kong dollars, and Renminbi, with sufficient resources to meet working capital needs for the foreseeable future[31] Employees and Remuneration Policy The group employs approximately 810 people globally and provides a staff training sponsorship scheme covering various operational and technical courses Employee Headcount by Region | Region | Number of Employees | | :--- | :--- | | Global | 810 | | Hong Kong | 40 | | People's Republic of China | 340 | | Overseas | 430 | - The Group has a staff training sponsorship scheme and provides employees with courses on operating systems, product and technology development, and product safety[33] Capital Commitments Capital commitments for property, plant, and equipment decreased during the period, reflecting reduced future investment obligations Capital Commitments for Property, Plant and Equipment | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Capital commitments for property, plant and equipment | 1,000 | 1,600 | -37.50% | Contingent Liabilities The group had no significant contingent liabilities as of June 30, 2025 - As at June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: nil)[35] Prospects The impact of US tariffs has stabilized, sales activities are recovering, and the group is expanding its market presence through new sales representatives in key regions - The impact of US tariffs is temporary and has stabilized, with sales activities gradually beginning to recover[36] - The Group has appointed new sales representatives in Europe, Japan, and Southeast Asia to strengthen its market presence and enhance customer interaction, preparing for future growth[36] Purchase, Sale or Redemption of the Company's Listed Securities The company and its subsidiaries did not engage in any purchase, sale, or redemption of its listed securities during the six months ended June 30, 2025 - The Company or any of its subsidiaries did not purchase, sell or redeem any of the Company's listed securities during the six months ended June 30, 2025[37] Audit Committee The Audit Committee reviewed the unaudited interim results and discussed financial reporting procedures and internal control systems with the Board - The Audit Committee has reviewed the unaudited interim results and discussed the Group's financial reporting procedures and internal control systems with the Board[38] Corporate Governance This section addresses the company's adherence to corporate governance code provisions, including deviations regarding the roles of Chairman and CEO and directors' retirement by rotation Code Provision C.2.1 The roles of Chairman and Chief Executive Officer are held by the same individual, deviating from the code but deemed to provide sufficient power balance by the Board - The positions of Chairman and Chief Executive Officer of the Company are held by Mr. Siu Yau Chung, which deviates from Code Provision C.2.1[39] - The Board believes that all major decisions are made after discussion by the Board (including independent non-executive directors), providing sufficient balance of power and maintaining strong management and leadership[39] Code Provision B.2.2 The company's Chairman is not subject to retirement by rotation, which deviates from the code provision requiring directors to retire at least once every three years - According to Code Provision B.2.2, every director should be subject to retirement by rotation, at least once every three years[40] - Pursuant to the Company's Articles of Association, the Chairman of the Company is not required to retire by rotation or be counted in the number of directors subject to retirement each year, constituting a deviation[41] Model Code for Securities Transactions by Directors The company adopted and all directors confirmed full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules, and all Directors confirmed full compliance with the Model Code during the review period[42] Publication of Interim Results Announcement and Interim Report The interim results announcement is published on the HKEX and company websites, with the interim report to follow for shareholders - This interim results announcement has been published on the website of Hong Kong Exchanges and Clearing Limited and the Company's website[43] - The Company's interim report will be despatched to shareholders later and will be available on the HKEX website and the Company's website[43] Directors The Board comprises executive directors Mr. Siu Yau Chung (Chairman), Ms. Tsui Wai Mei (Vice Chairman), Mr. Shang Cheng Fai, and Ms. Siu Lena, along with independent non-executive directors Mr. Li Kit Wah, Mr. Wong Wah Sang, and Mr. Wan Chit Kai - As of the date of this announcement, the members of the Board include Executive Directors Mr. Siu Yau Chung (Chairman), Ms. Tsui Wai Mei (Vice Chairman), Mr. Shang Cheng Fai and Ms. Siu Lena, and Independent Non-executive Directors Mr. Li Kit Wah, Mr. Wong Wah Sang and Mr. Wan Chit Kai[44] By Order of the Board This announcement is issued by the Chairman, Mr. Siu Yau Chung, on behalf of the Board on August 13, 2025 - This announcement is issued by the Chairman, Mr. Siu Yau Chung, on behalf of the Board on August 13, 2025[45]