恩达集团控股(01480) - 2025 - 中期业绩

Company Information and Financial Highlights This section provides an overview of the company and its key interim financial performance highlights Company Overview Yan Tat Group (Stock Code: 1480), a Cayman Islands-incorporated company listed on the HKEX Main Board, presents its unaudited interim results for the six months ended June 30, 2025 - Yan Tat Group Holdings Limited (Stock Code: 1480) is a company incorporated in the Cayman Islands, with its shares listed on the Main Board of The Stock Exchange of Hong Kong Limited[2] - This report discloses the unaudited interim results for the six months ended June 30, 2025[2][3] Interim Results Highlights For H1 2025, Yan Tat Group's revenue decreased by 15.9% to HK$263,526 thousand, profit before tax fell 60.3% to HK$15,604 thousand, and EPS declined 56.9% to 5.9 HK cents Interim Results Highlights for the Six Months Ended June 30, 2025 | Indicator | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 263,526 | 313,354 | (15.9) | | Profit before tax | 15,604 | 39,259 | (60.3) | | Profit attributable to owners of the parent | 14,198 | 32,803 | (56.7) | | Basic and diluted earnings per share (HK cents) | 5.9 | 13.7 | (56.9) | Condensed Interim Consolidated Financial Statements This section presents the Group's condensed interim consolidated statements of profit or loss, comprehensive income, and financial position Condensed Interim Consolidated Statement of Profit or Loss For H1 2025, the Group's revenue was HK$263,526 thousand, gross profit HK$60,798 thousand, and profit for the period HK$12,908 thousand, with HK$14,198 thousand attributable to owners of the parent Key Data from Condensed Interim Consolidated Statement of Profit or Loss | Indicator | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 263,526 | 313,354 | | Cost of sales | (202,728) | (235,835) | | Gross profit | 60,798 | 77,519 | | Other income and gains | 12,557 | 13,159 | | Selling and distribution expenses | (9,885) | (9,733) | | General and administrative expenses | (44,442) | (39,951) | | Other expenses | (2,132) | (1,082) | | Finance costs | (1,292) | (653) | | Profit before tax | 15,604 | 39,259 | | Income tax expense | (2,696) | (6,456) | | Profit for the period | 12,908 | 32,803 | | Profit attributable to owners of the parent | 14,198 | 32,803 | | Non-controlling interests | (1,290) | – | | Basic and diluted earnings per share (HK cents) | 5.9 | 13.7 | Condensed Interim Consolidated Statement of Comprehensive Income For H1 2025, the Group's profit was HK$12,908 thousand, with net other comprehensive income of HK$9,256 thousand mainly from foreign currency translation, leading to total comprehensive income of HK$22,164 thousand Key Data from Condensed Interim Consolidated Statement of Comprehensive Income | Indicator | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit for the period | 12,908 | 32,803 | | Other comprehensive income/(loss) | | | | - Exchange differences on translation of foreign operations | 9,375 | (3,667) | | - Fair value changes of financial assets at fair value through other comprehensive income | (44) | (119) | | Other comprehensive income/(loss) for the period | 9,256 | (3,711) | | Total comprehensive income for the period | 22,164 | 29,092 | | Total comprehensive income attributable to owners of the parent | 23,128 | 29,092 | | Total comprehensive income attributable to non-controlling interests | (964) | – | Condensed Interim Consolidated Statement of Financial Position As of June 30, 2025, the Group reported total non-current assets of HK$434,866 thousand, total current assets of HK$819,788 thousand, and total equity of HK$745,229 thousand Key Data from Condensed Interim Consolidated Statement of Financial Position | Indicator | As at June 30, 2025 (HK$ thousand) | As at December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Non-current assets | | | | Property, plant and equipment | 273,290 | 276,700 | | Investment properties | 22,062 | 20,276 | | Right-of-use assets | 5,788 | 4,859 | | Goodwill | 1,449 | – | | Total non-current assets | 434,866 | 328,844 | | Current assets | | | | Inventories | 68,356 | 63,927 | | Trade and bills receivables | 163,426 | 158,975 | | Cash and cash equivalents | 555,873 | 533,295 | | Total current assets | 819,788 | 794,925 | | Current liabilities | | | | Trade payables | 82,762 | 79,295 | | Interest-bearing bank borrowings | 26,996 | 62,024 | | Total current liabilities | 260,379 | 208,283 | | Non-current liabilities | | | | Interest-bearing bank borrowings | 32,397 | 100,997 | | Total non-current liabilities | 170,257 | 239,165 | | Equity | | | | Equity attributable to owners of the parent | 745,229 | 753,957 | | Non-controlling interests | – | 1,153 | | Total equity | 745,229 | 755,110 | Notes to the Financial Statements This section provides detailed explanations and disclosures on the Group's financial statements, accounting policies, and operational specifics Company Information and Principal Activities Yan Tat Group, incorporated in the Cayman Islands on July 8, 2014, primarily manufactures and sells PCBs, with its shares listed on the HKEX Main Board - The Company was incorporated as an exempted company in the Cayman Islands on July 8, 2014[8] - During the period, the Group was principally engaged in the manufacture and sale of printed circuit boards (PCBs)[9] - The Company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange"), with Million Pearl Holdings Ltd. as its ultimate holding company[9] Basis of Preparation and Accounting Policies The condensed interim consolidated financial information is prepared under HKAS 34, consistent with prior annual statements, with new HKFRS amendments having no material impact - The condensed interim consolidated financial information has been prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34 'Interim Financial Reporting'[10] - The accounting policies adopted in the preparation of the condensed interim consolidated financial information are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2024, except for the adoption of revised Hong Kong Financial Reporting Standards ("HKFRSs") for the first time in the current period[11] - HKAS 21 (Amendments) on Lack of Exchangeability has no impact on the condensed interim consolidated financial information[12] Operating Segments and Geographical Information The Group, focused on PCB manufacturing, reports HK$107,599 thousand revenue from Mainland China and HK$66,314 thousand from Asia (ex-China/HK), with non-current assets concentrated in Mainland China and Malaysia - The Group was principally engaged in the manufacture and sale of printed circuit boards during the period, with no separate operating segment financial information to be presented[13] Revenue from External Customers (by Geographical Location) | Region | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Mainland China | 107,599 | 124,409 | | Hong Kong | 4,119 | 1,945 | | Europe | 51,249 | 58,656 | | Asia (excluding Mainland China and Hong Kong) | 66,314 | 98,557 | | North America | 34,134 | 29,542 | | Africa | 77 | 154 | | Oceania | 34 | 91 | | Total | 263,526 | 313,354 | Non-current Assets (by Geographical Location) | Region | As at June 30, 2025 (HK$ thousand) | As at December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong | 2,723 | 3,895 | | Mainland China | 300,759 | 300,655 | | Malaysia | 114,147 | – | | Total | 417,629 | 304,550 | Major Customers Information As of June 30, 2025, Customer B became the largest contributor with HK$49,414 thousand in revenue, while Customer A's contribution decreased, and Customer C emerged as a new major contributor Revenue Contribution from Major Customers | Customer | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Customer A | 47,342 | 69,915 | | Customer B | 49,414 | 35,155 | | Customer C | 41,211 | N/A | Revenue, Other Income and Gains Analysis For H1 2025, sales revenue decreased 15.9% to HK$263,526 thousand, with total other income and gains at HK$12,557 thousand, mainly from bank interest and recycling Revenue, Other Income and Gains Analysis | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue from sales of goods under customer contracts | 263,526 | 313,354 | | Bank interest income | 8,348 | 8,643 | | Rental income | 229 | 239 | | Government grants | 1,108 | 986 | | Recycling-related income | 2,624 | 1,643 | | Net exchange gains | 248 | 1,648 | | Total | 276,083 | 326,513 | Components of Profit Before Tax Profit before tax for H1 2025 was impacted by HK$202,728 thousand cost of sales, HK$13,258 thousand depreciation, HK$528 thousand investment property fair value loss, and a HK$860 thousand inventory write-down reversal Items Deducted From/Credited to Profit Before Tax | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 202,728 | 235,835 | | Depreciation of property, plant and equipment | 13,258 | 14,513 | | Depreciation of right-of-use assets | 962 | 977 | | Write-down/(reversal of write-down) of inventories to net realisable value | (860) | 280 | | Impairment of trade receivables | 1,025 | 120 | | Fair value loss on investment properties | 528 | 2,106 | | Write-off of property, plant and equipment items | 232 | 25 | | Net exchange differences | (1,648) | (248) | Finance Costs For H1 2025, finance costs increased 85.7% to HK$1,292 thousand, mainly due to HK$1,234 thousand in bank loan interest reflecting higher borrowings Components of Finance Costs | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Interest on bank loans | 1,234 | 610 | | Lease liabilities | 58 | 43 | | Total | 1,292 | 653 | Income Tax Total income tax expense for H1 2025 significantly decreased to HK$2,696 thousand, with Hong Kong profits tax at 16.5% and Mainland China corporate income tax at 25% (or 15% for high-tech subsidiaries) - Hong Kong profits tax is provided at a rate of 16.5% (8.25% for the first HK$2,000,000)[21] - The standard corporate income tax rate in Mainland China is 25%, while subsidiaries qualifying as high-tech enterprises are taxed at 15%[22] Components of Income Tax Expense | Item | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current Hong Kong tax for the period | 1,107 | 2,154 | | Current Mainland China tax for the period | 1,187 | 2,671 | | Underprovision in prior years | – | 883 | | Deferred | 402 | 748 | | Total tax expense for the period | 2,696 | 6,456 | Earnings Per Share Basic EPS for H1 2025 was 5.9 HK cents, a decrease from 13.7 HK cents in the prior period, with no dilution adjustments as no potentially dilutive shares were in issue - Basic earnings per share attributable to ordinary equity holders of the parent for the six months ended June 30, 2025 was 5.9 HK cents, compared to 13.7 HK cents for the prior period[24] - Earnings per share is calculated based on the profit for the period attributable to ordinary equity holders of the parent of HK$14,198,000 and the weighted average number of ordinary shares of the parent in issue during the period of 240,000,000 shares[24] - No adjustment has been made to the basic earnings per share amounts presented as the Group had no potentially dilutive ordinary shares in issue during the period[24] Trade and Bills Receivables As of June 30, 2025, net trade and bills receivables increased to HK$163,426 thousand, with credit terms of one to four months and strict monitoring of overdue balances Trade and Bills Receivables | Item | As at June 30, 2025 (HK$ thousand) | As at December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables | 144,746 | 151,825 | | Bills receivables | 17,079 | 14,615 | | Impairment | (2,850) | (3,014) | | Net | 158,975 | 163,426 | - The Group generally grants credit terms of one to four months from the invoice date to its customers and maintains strict control over outstanding receivables[25] Aging Analysis of Trade and Bills Receivables | Aging | As at June 30, 2025 (HK$ thousand) | As at December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 1 month | 64,506 | 66,727 | | 1 to 2 months | 41,593 | 36,573 | | 2 to 3 months | 37,380 | 29,394 | | Over 3 months | 19,947 | 26,281 | | Total | 163,426 | 158,975 | Trade Payables As of June 30, 2025, total trade payables decreased to HK$79,295 thousand, being unsecured, interest-free, and typically settled within three months Aging Analysis of Trade Payables | Aging | As at June 30, 2025 (HK$ thousand) | As at December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 3 months | 58,925 | 65,883 | | 3 to 6 months | 10,590 | 9,453 | | Over 6 months | 9,780 | 7,426 | | Total | 79,295 | 82,762 | - Trade payables are unsecured, interest-free and are normally settled within three months from the invoice date[27] Dividends The Group declared a HK$14,400 thousand final dividend for 2024 (6 HK cents per share), but the Board recommends no interim dividend for H1 2025 - A final dividend of HK$14,400 thousand (HK6 cents per ordinary share) for 2024 was declared during the period[29] - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[29] Management Discussion and Analysis This section provides an in-depth review of the Group's business operations, financial performance, and future outlook Business Review and Development Yan Tat Group, an OEM PCB supplier with over 35 years of experience, focuses on high-quality PCBs for diverse sectors, actively addressing industry challenges through automation and strategic expansion into Malaysia to enhance supply chain resilience and market reach - The Group is a Printed Circuit Board ("PCB") original equipment manufacturer ("OEM") supplier, focusing on manufacturing high-quality PCBs primarily for automotive, communication equipment, medical equipment, industrial automation equipment, and consumer electronics[30] - The Group has established a solid foundation and strong customer relationships, providing direct and indirect services to OEM customers across Asia, Europe, Africa, North America, South America, and Oceania[31] - The Group strictly adheres to multiple international quality standards and systems, having obtained various certifications including ISO9001, ISO14001, IATF16949, AS9100, and ISO 13485[32] - To address challenges such as cost pressures, environmental measures, and rising labor costs in the PCB industry, the Group has accelerated production process automation, promoted the flow of production information, and implemented measures to optimize costs and enhance quality[33][34] - The Group's long-term plan is to develop another production base outside Shenzhen Pingshan, gradually relocating production to the new base thereafter[35] - The Group completed the acquisition of a controlling stake in Denshi Maruwa, Malaysia, and entered into a property acquisition agreement to establish a more resilient and flexible supply chain, leveraging Malaysia's strategic geographical location to explore the ASEAN market[36] Financial Review For H1 2025, turnover decreased 15.9% to HK$263.5 million, gross profit margin fell to 23.1%, and profit attributable to owners of the parent declined 56.7% to HK$14.2 million, while bank borrowings increased to HK$163.0 million for Malaysian investments, and capital commitments rose to HK$71.5 million Financial Performance Overview | Indicator | For the six months ended June 30, 2025 (HK$ thousand) | For the six months ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Turnover | 263,526 | 313,354 | | Gross profit | 60,798 | 77,519 | | EBITDA | 24,038 | 45,489 | | Profit attributable to owners of the parent | 14,198 | 32,803 | - Turnover decreased by 15.9%, primarily due to a decline in sales order volume and average selling prices caused by global economic slowdown and intense price competition in the PCB market[37] - Gross profit margin decreased by approximately 6.5% to 23.1%, mainly due to rising raw material costs and other production costs[38] - Total operating expenses increased by 9.3% to HK$54.3 million, primarily driven by an increase in general and administrative expenses[38] - Other income and gains decreased by 4.5% to HK$12.6 million, mainly due to reduced exchange gains[39] - Selling and distribution expenses increased by 2.1% to HK$9.9 million, primarily due to higher consultancy fees[40] - General and administrative expenses increased by 11.0% to HK$44.4 million, mainly due to higher legal and professional fees, research and development expenses, and staff wages[41] - Other expenses increased by 90.9% to HK$2.1 million, primarily due to an approximate HK$1.6 million increase in fair value loss on investment properties[42] - Finance costs increased by 85.7% to HK$1.3 million, mainly due to higher bank loan interest resulting from increased bank borrowings[43] - Profit attributable to owners of the parent decreased by 56.7% to HK$14.2 million, primarily due to the net effect of reduced gross profit, increased selling and distribution expenses, higher general and administrative expenses, and lower income tax expense[44] - The net book value of property, plant and equipment decreased by HK$3.4 million to HK$273.3 million, mainly due to depreciation offsetting some additions and exchange adjustment gains[45] - Trade and bills receivables increased by HK$4.5 million, primarily due to higher sales in the second quarter of 2025[46] - Total bank borrowings increased by HK$103.6 million to HK$163.0 million, primarily for capital investments in Malaysia[47] Liquidity and Capital Structure | Indicator | As at June 30, 2025 | As at December 31, 2024 | | :--- | :--- | :--- | | Total current assets | HK$819.8 million | HK$794.9 million | | Total current liabilities | HK$260.4 million | HK$208.3 million | | Current ratio | 3.1 | 3.8 | | Gearing ratio | 0.22 | 0.08 | - The Group is exposed to foreign currency risk but did not engage in any derivative activities or hedge foreign currency risk for the six months ended June 30, 2025[51] - Capital commitments significantly increased to HK$71.5 million (December 31, 2024: HK$27.7 million), primarily due to new investments and equipment purchases in Malaysia[53] - As of June 30, 2025, the Group had 870 employees, with total employee benefit expenses of approximately HK$49.3 million, an increase from the prior period[54] - The Group completed the acquisition of 60.39% of the issued share capital of Denshi Maruwa, Malaysia, during the period[60] - As of June 30, 2025, certain assets of the Group were pledged as collateral for bank financing, including investment properties, pledged deposits, leasehold land and buildings, and right-of-use assets for leasehold land in Mainland China[62] - The Group had no significant contingent liabilities as of June 30, 2025[63] Prospects For 2025, geopolitical instability, high energy costs, inflation, and exchange rate volatility are expected, yet PCB demand remains strong, with the Group leveraging its diversified markets and flexible business model to adapt strategies - The global landscape in 2025 is expected to remain subject to significant geopolitical instability, leading to high energy costs, persistent inflationary pressures, and exchange rate volatility[64] - Despite macroeconomic headwinds, PCB demand remains strong, particularly from the telecommunications and automotive electronics sectors, with key raw material costs stabilizing[64] - Benefiting from diversified markets and industry segments, a broad and high-quality customer base, and a flexible business model, the Group will closely monitor external developments and adjust its strategies in a timely manner[64] Events After the Reporting Period This section details significant events occurring after the reporting period, including a major property acquisition in Malaysia - On August 1, 2025, the Group completed the acquisition of a parcel of land and buildings thereon in Selangor, Malaysia, for a total consideration of MYR43,750,000 (equivalent to approximately HK$76,562,500)[65] - Upon completion of the property acquisition, the Group became the beneficial owner of the property, holding all rights, title, and interests therein[65] Corporate Governance and Other Information This section covers the Company's corporate governance code compliance, directors' securities trading standards, audit committee and auditor reviews, dividend recommendations, and report publication Compliance with Corporate Governance Code For H1 2025, the Company confirmed full compliance with all code provisions of the Corporate Governance Code in Appendix C1 to the Listing Rules - The Company confirms that it has complied with all the code provisions in the Corporate Governance Code as set out in Appendix C1 to the Listing Rules throughout the six months ended June 30, 2025[68] Standard Code for Securities Transactions by Directors The Company adopted the Standard Code for directors' securities transactions, with all Directors confirming compliance for the six months ended June 30, 2025 - The Company has adopted the Standard Code as its code of conduct for securities transactions[69] - Following specific enquiries made to all Directors, all Directors confirmed that they have complied with the required dealing standards set out in the Standard Code for the six months ended June 30, 2025[69] Audit Committee The Audit Committee, composed of three independent non-executive directors, reviewed and approved the Group's unaudited condensed interim consolidated financial statements for H1 2025, confirming compliance and proper disclosures - The Audit Committee comprises three independent non-executive Directors, Mr. Yau Wing Yiu (Chairman), Mr. Lau Shun Chuen, and Mr. Chung Yuk Ming[70] - The Audit Committee has reviewed the Group's unaudited condensed interim consolidated financial statements for the six months ended June 30, 2025, and is of the opinion that such statements were prepared in compliance with applicable accounting standards, rules, and regulations, and that appropriate disclosures have been duly made[70] Auditor's Review Ernst & Young, the Company's auditor, reviewed the unaudited consolidated interim results for H1 2025 in accordance with HKSAE 2410 - The Company's auditor, Ernst & Young, has reviewed the unaudited consolidated interim results for the six months ended June 30, 2025, in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[71] Interim Dividend Recommendation 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 (for the six months ended June 30, 2024: nil)[72] Publication of Interim Results and Report The interim results announcement is published on the HKEX and Company websites, with the full interim report for H1 2025 to follow - The interim results announcement has been published on the Stock Exchange's website (www.hkexnews.hk) and the Company's website (www.yantat.com)[73](index=73&type=chunk) - The Company's interim report for the six months ended June 30, 2025, containing all information required by Appendix D2 to the Listing Rules, will be published on the aforementioned websites in due course[73]