Financial Performance - Revenue for the six months ended June 30, 2025, increased to HK$646,247,000, up 5.2% from HK$614,102,000 in the same period of 2024[18]. - Gross profit for the same period rose to HK$89,149,000, representing a 5.3% increase compared to HK$84,721,000 in 2024[18]. - Loss from operations improved to HK$31,687,000, a reduction of 28.2% from HK$44,066,000 in the previous year[18]. - Loss before tax decreased to HK$39,181,000, down 20.0% from HK$48,969,000 in 2024[18]. - Loss for the period narrowed to HK$42,285,000, compared to HK$53,095,000 in the same period last year, reflecting a 20.4% improvement[18]. - Basic loss per share improved to HK$0.12 in 2025 compared to HK$0.44 in 2024[20]. - Total comprehensive income for the period was a loss of HK$21,271,000 in 2025, significantly better than the loss of HK$64,565,000 in 2024, indicating an improvement of approximately 67%[21]. - The total comprehensive income for the period ended June 30, 2025, was a loss of HK$39,361,000, compared to a loss of HK$50,097,000 for the period ended June 30, 2024[26]. Expenses and Costs - Selling and distribution expenses increased to HK$23,060,000, up 25.4% from HK$18,370,000 in 2024[18]. - General and administrative expenses decreased to HK$98,530,000, down 18.3% from HK$120,581,000 in the previous year[18]. - Finance costs rose to HK$7,198,000, an increase of 27.5% from HK$5,642,000 in the previous year[18]. - The Group's loss for the period included a cost of inventories sold of HK$512,638,000 for the six months ended June 30, 2025, compared to HK$486,843,000 in 2024, representing an increase of approximately 5.3%[104]. - Research and development expenditure increased to HK$10,168,000 for the six months ended June 30, 2025, compared to HK$8,893,000 in 2024, indicating a rise of about 14.3%[104]. - The impairment for allowance for inventories increased to HK$10,342,000 for the six months ended June 30, 2025, compared to HK$1,808,000 in 2024, indicating a significant rise of approximately 471%[104]. Assets and Liabilities - Non-current assets totaled HK$890,211,000 as of June 30, 2025, an increase from HK$863,191,000 as of December 31, 2024[23]. - Current assets decreased to HK$962,257,000 as of June 30, 2025, down from HK$1,025,106,000 as of December 31, 2024[23]. - Net current assets were HK$376,526,000 as of June 30, 2025, compared to HK$401,875,000 as of December 31, 2024[23]. - Total equity decreased to HK$1,167,985,000 as of June 30, 2025, from HK$1,189,256,000 as of December 31, 2024[24]. - Non-current liabilities increased to HK$98,752,000 as of June 30, 2025, compared to HK$75,810,000 as of December 31, 2024[24]. - Trade and bills receivables decreased to HK$429,943,000 as of June 30, 2025, down from HK$504,510,000 as of December 31, 2024, representing a decline of approximately 15%[90]. - Current liabilities for bank borrowings due within one year increased to HK$205,711,000 from HK$187,396,000[125]. Cash Flow - For the six months ended June 30, 2025, the net cash generated from operating activities was HK$41,237,000, a significant improvement compared to a net cash used of HK$15,654,000 in the same period of 2024[27]. - The Group's net cash used in investing activities for the six months ended June 30, 2025, was HK$20,890,000, a decrease from HK$55,865,000 in the same period of 2024[27]. - The Group's net cash generated from financing activities for the six months ended June 30, 2025, was HK$6,303,000, a decrease from HK$129,168,000 in the same period of 2024[27]. - As of June 30, 2025, cash and cash equivalents at the end of the period amounted to HK$268,034,000, an increase from HK$251,147,000 at the end of June 2024[27]. Segment Performance - The segment profit for the motor vehicle power systems division reported a loss of HK$21,220,000 for the first half of 2025, compared to a profit of HK$3,895,000 in the same period of 2024[82]. - Revenue from die casting products increased significantly to HK$401,556,000 in 2025 from HK$306,633,000 in 2024, marking a growth of approximately 30.9%[89]. - The segment loss for the overall reportable segments decreased to HK$26,061,000 in 2025 from HK$36,696,000 in 2024, indicating an improvement in performance[83]. - Revenue from plastic products decreased to HK$207,834,000 in 2025 from HK$234,670,000 in 2024, representing a decline of approximately 11.4%[89]. Share Options and Equity - The Group's outstanding share options at the end of the period were 36,960,000, with a weighted average exercise price of HK$0.39[150]. - The estimated fair value of the share options granted on October 31, 2022, was approximately HK$5,569,000[145]. - The Group aims to motivate eligible participants through the share option scheme to enhance performance and maintain business relationships[133]. - The Group did not declare an interim dividend for the six months ended June 30, 2025, consistent with the previous year[106]. Market and Industry Insights - The global magnesium alloy market is projected to expand from 1.65 million tons in 2025 to 2.18 million tons by 2030, representing a CAGR of 5.7%[181][183]. - The average magnesium price dropped to RMB16,441 per tonne in the first half of 2025, representing a decline of 8.3% year-on-year[181][183]. - The Group is focusing on R&D for high-strength magnesium alloy solutions targeting new energy vehicles, with sales expected to reach 16.0 million units in China by 2026[185]. - The low-altitude economy in China is projected to reach RMB 1.5 trillion by the end of 2025 and exceed RMB 3.5 trillion by 2035, with the Group developing lightweight materials compliant with FAA standards for aerial vehicles[188][190].
嘉瑞国际(00822) - 2025 - 中期财报