龙记集团(00255) - 2025 - 中期业绩

Financial Performance Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, revenue decreased by 12.3% to HK$689 million, but loss significantly narrowed to HK$3.55 million due to cost control and exchange gains, improving basic loss per share from 3.79 HK cents to 0.56 HK cents Key Data from Consolidated Statement of Profit or Loss | Indicator | For the six months ended June 30, 2025 (HK$ Thousand) | For the six months ended June 30, 2024 (HK$ Thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 688,654 | 785,212 | -12.3% | | Loss before tax | (1,865) | (27,757) | -93.3% | | Loss for the period | (3,553) | (23,915) | -85.1% | | Total comprehensive income (expense) for the period | 40,380 | (63,300) | N/A | | Basic loss per share (HK Cents) | (0.56) | (3.79) | -85.2% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets were HK$1.885 billion and net assets were HK$1.600 billion, with a robust financial position, HK$924 million in net current assets, substantial cash, and no bank borrowings Key Data from Statement of Financial Position | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Period Change | | :--- | :--- | :--- | :--- | | Non-current assets | 767,609 | 809,141 | -5.1% | | Current assets | 1,117,440 | 1,162,485 | -3.9% | | Current liabilities | 193,312 | 201,476 | -4.0% | | Net assets (Total equity) | 1,600,452 | 1,673,543 | -4.4% | | Bank balances and cash | 518,076 | 546,648 | -5.2% | Summary of Notes to Financial Statements The notes detail the Group's core business as mould base manufacturing and sales, with revenue primarily from China, which saw a decline, while other income significantly increased due to exchange gains, and an interim dividend of 8 HK cents per share was declared Revenue and Segment Information The Group's core business is manufacturing and selling mould bases and related products, forming a single operating segment, with China as the main revenue source experiencing a 14.4% year-on-year decline, while other regions saw slight growth - The Group is principally engaged in the manufacturing and sale of mould bases and related products, with revenue recognized when control of the goods is transferred to customers[8][9] Revenue by Geographical Region | Region | For the six months ended June 30, 2025 (HK$ Thousand) | For the six months ended June 30, 2024 (HK$ Thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | China | 594,866 | 694,610 | -14.4% | | Other | 93,788 | 90,602 | +3.5% | | Total | 688,654 | 785,212 | -12.3% | Other Income, Gains and Losses Total other income, gains, and losses significantly increased to HK$11.52 million from HK$6.19 million last year, primarily driven by a shift from an exchange loss to an exchange gain of HK$2.68 million Details of Other Income, Gains and Losses | Item | For the six months ended June 30, 2025 (HK$ Thousand) | For the six months ended June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interest income | 3,030 | 4,578 | | Rental income | 2,206 | 1,432 | | Net exchange gain (loss) | 2,675 | (1,705) | | Total | 11,516 | 6,188 | Dividends The Board resolved to declare an interim dividend of 8 HK cents per share for the six months ended June 30, 2025, totaling approximately HK$50.53 million, a significant increase from 5 HK cents per share in the prior year - The Board resolved to declare an interim dividend of 8 HK cents per share, higher than 5 HK cents per share in the prior year[18] Trade, Bills and Other Receivables At the period end, total trade and bills receivables were HK$105 million, slightly down from HK$109 million at the end of 2024, with approximately 75% of receivables aged within 60 days, indicating a healthy structure Ageing Analysis of Trade and Bills Receivables | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 60 days | 79,343 | 86,174 | | 61 to 90 days | 15,609 | 16,495 | | Over 90 days | 10,266 | 6,019 | | Total | 105,218 | 108,688 | Management Discussion and Analysis Business Review Despite a challenging global business environment and weak market demand leading to decreased revenue, the Group improved overall performance by increasing product gross profit margin through higher selling prices, high-value-added orders, and controlled raw material costs, significantly reducing net loss - Despite weak market conditions, the Group's total revenue decreased, but product gross profit margin increased, leading to a reduction in net loss[26] - Profit improvement was attributed to slightly higher product selling prices, undertaking orders with higher processing complexity, and a moderate decrease in raw material procurement prices[27] Financial Review Revenue decreased by 12.3% year-on-year, but cost control was a key improvement, with raw materials and consumables costs as a percentage of revenue falling from 40.0% to 35.2%, leading to an 85.1% reduction in loss for the period to HK$3.55 million - Revenue decreased by 12.3% year-on-year, primarily due to a reduction in total market orders caused by a challenging business environment[28] - Raw materials and consumables costs as a percentage of revenue decreased from 40.0% in the prior year to 35.2%[28] - As a result of the aforementioned factors, loss for the period decreased by 85.1% to HK$3.55 million[29] Liquidity and Financial Resources The Group maintains a robust financial position with ample liquidity, holding HK$518 million in bank balances and cash as of June 30, 2025, with no bank borrowings, sufficient to meet its operating and capital commitments Key Liquidity Indicators | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Total equity | 1,600,452 | 1,673,543 | | Bank balances and cash | 518,076 | 546,648 | | Borrowings | 0 | 0 | Outlook Facing global economic uncertainties in the second half, the Group will cautiously adjust strategies, strengthen marketing, explore new markets like ASEAN, align with China's consumption-boosting policies, focus on high-end tech, and enhance efficiency through intelligent manufacturing for stable development - Facing geopolitical conflicts and trade protectionism, the Group will cautiously adjust marketing strategies and actively explore new markets (e.g., ASEAN) to diversify risks[33] - The Group will align with the Chinese government's measures to boost consumption and investment, expanding market opportunities in new energy vehicles, high-end electronics, and AI products[34] - Future plans include continuous improvement of production equipment and processes, utilizing intelligent and efficient production models to reduce reliance on manual labor and enhance production efficiency[34] Other Disclosures Review of Interim Financial Statements The company's audit committee, along with management and external auditor Deloitte, reviewed the unaudited condensed consolidated financial statements for the period and discussed internal controls and financial reporting matters - The Audit Committee, in conjunction with management and the external auditor, has reviewed the Group's accounting principles, practices, and the unaudited condensed consolidated financial statements[36] Interim Dividend The Board resolved to declare an interim dividend of 8 HK cents per share, a 60% increase from 5 HK cents per share in the prior year, with payment expected on or about September 23, 2025 - The Board resolved to declare an interim dividend of 8 HK cents per share for the six months ended June 30, 2025 (2024: 5 HK cents per share)[37] Corporate Governance Throughout the review period, the company complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules, and no shares were repurchased, sold, or redeemed - Throughout the review period, the Company has complied with all code provisions of the Corporate Governance Code[40] - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares or other securities[39]