Financial Performance - For the six months ended June 30, 2025, the Group's revenue was HK$1,050.3 million, a 4.3% increase from HK$1,007.2 million in the same period of 2024[17]. - Profit for the period reached HK$86.8 million, compared to HK$79.7 million in the first half of 2024, reflecting a growth of 8.5%[11]. - Basic earnings per share increased to 10.5 HK cents, up from 9.6 HK cents year-on-year[11]. - The gross profit margin improved to 25.3%, compared to 24.8% in the previous year[11]. - The gross profit increased by 6.1% to HK$265.4 million, with a gross profit margin of 25.3%, up 0.5 percentage points from 24.8% in the first half of 2024[21]. - Profit attributable to owners of the Company rose by 8.8% year-on-year to HK$86.8 million, with a net profit margin of 8.3%, an increase of 0.4 percentage points from 7.9%[23]. - Operating profit for the first half of 2025 was approximately HK$91.0 million, a decrease of approximately HK$11.0 million or 10.9% compared to approximately HK$102.0 million in the same period of 2024[54]. - Profit for the period for the first half of 2025 was approximately HK$86.8 million, an increase of about HK$7.1 million or 8.8% compared to approximately HK$79.7 million in the same period of 2024[61]. Revenue Breakdown - The mold fabrication business experienced significant growth of 30.4%, while the plastic components manufacturing business declined by 5.2%[17]. - The mold fabrication business generated revenue of approximately HK$350.6 million, a 30.4% increase compared to HK$268.9 million in the same period last year, accounting for 33.4% of total revenue[25]. - Revenue from the plastic components manufacturing segment was approximately HK$699.7 million, representing a 5.2% decrease from HK$738.3 million in the first half of 2024[30]. - The automobile sector saw a revenue increase of 30.3% year-on-year, reaching HK$187.3 million, while the medical and personal health care segment grew by 14.8% to HK$163.6 million[21]. Current Assets and Liabilities - The Group's net current assets as of June 30, 2025, were HK$1,249.4 million, slightly down from HK$1,264.7 million at the end of 2024[11]. - The current ratio was 262.6%, a slight decrease from 263.4% at the end of 2024[11]. - As of June 30, 2025, the Group's cash and bank balances were approximately HK$1,067.2 million, down from HK$1,164.8 million as of December 31, 2024[63]. - Total assets decreased from HK$2,576,743,000 as of December 31, 2024, to HK$2,537,005,000 as of June 30, 2025, representing a decline of approximately 1.5%[171]. - Total liabilities decreased from HK$865,456,000 to HK$854,420,000, reflecting a decline of about 1.5%[172]. Expenses and Income - Selling expenses decreased by approximately HK$9.7 million or 28.3% to approximately HK$24.6 million, representing 2.3% of total revenue[45]. - Administrative expenses increased by approximately HK$25.4 million or 18.8% to approximately HK$160.9 million, representing 15.3% of total revenue[46]. - Other income decreased by approximately HK$6.7 million or 34.4% to approximately HK$12.8 million, mainly due to a decrease in government grants income[43]. - Net finance income increased by approximately HK$1.1 million or 12.9% to approximately HK$9.5 million, primarily due to an increase in interest income[52]. Strategic Initiatives - The Group is actively expanding into high-potential market sectors such as medical, consumer electronics, and smart home, while maintaining a focus on high-precision mold manufacturing capabilities[27]. - The Group entered a strategic partnership with TactoTek, obtaining a patent license for In-Mold Structural Electronics (IMSE®) technology, becoming the first domestic supplier of automotive-grade IMSE® films in China[106]. - The deployment of IMSE® production lines has shortened product development cycles by over 50% and reduced supply chain complexity and transportation costs[106]. - The Group is actively investing in new product R&D and has entered the supply chain of leading companies in the metaverse industry, supporting AR glasses development[108]. - The Group engaged Boston Consulting Group (BCG) to identify improvement areas in strategic planning and organizational structure, developing actionable plans for sustainable growth[112]. Shareholder Information - As of June 30, 2025, Mr. Li Pui Leung holds a 54.90% shareholding in the Company, while Mr. Yung Kin Cheung Michael and Mr. Lee Leung Yiu hold 6.67% and 6.44%, respectively[118]. - The Group's major revenue is primarily denominated in USD, EUR, RMB, and HK$, while major expenses are mainly in RMB, with no RMB hedging agreements in place[87]. Corporate Governance - The Company has complied with all provisions of the Corporate Governance Code during the six months ended June 30, 2025[138]. - The Company has established appropriate corporate governance policies to enhance transparency and accountability[142]. - The Company regularly reviews its corporate governance practices to ensure compliance with the corporate governance code[142]. Dividend Information - The Board declared an interim dividend of HK4.3 cents per share, totaling HK$35,830,180 for the six months ended June 30, 2025[129]. - The interim dividend is expected to be paid on September 17, 2025, to shareholders registered by September 3, 2025[129]. Risk Management - The Group faces various financial risks including market risk (foreign exchange risk, price risk, cash flow and fair value interest rate risk), credit risk, and liquidity risk[199]. - There have been no changes to risk management functions or policies since December 31, 2024[199].
东江集团控股(02283) - 2025 - 中期财报