Revenue Performance - The company's revenue for the six months ended June 30, 2025, was HKD 2,199,166,000, a decrease of 6.2% compared to HKD 2,343,455,000 for the same period in 2024[5] - Revenue from the three major domestic telecom operators and China Tower decreased by 23.7% to HKD 817,621,000, accounting for 37.2% of total revenue, down from 45.6% in the previous year[6] - Revenue from international customers increased by 13.5% to HKD 1,106,059,000, representing 50.3% of total revenue, up from 41.6% in the previous year[6] - Revenue for the six months ended June 30, 2025, was HKD 2,199,166, a decrease of 6.1% from HKD 2,343,455 for the same period in 2024[69] - Revenue from domestic customers in China was HKD 1,381,507, down from HKD 1,576,903 in 2024, representing a decline of 12.3%[69] - Revenue from major customers accounted for 16.5%, 8.0%, and 7.3% of total group revenue, with amounts of HKD 362,206,000, HKD 176,906,000, and HKD 159,616,000 respectively[71] Profitability - The company reported a net profit attributable to shareholders of HKD 61,781,000, compared to a net loss of HKD 158,433,000 in the same period last year[16] - The company reported a profit of HKD 71,335 thousand for the period, a significant recovery from a loss of HKD 157,282 thousand in the previous year[48] - Basic and diluted earnings per share for the period were HKD 0.0209, compared to a loss per share of HKD 0.0573 in the prior year[47] - The group recorded a net loss of HKD 2,167,000 from equity investments designated at fair value through profit or loss, a significant decrease from a loss of HKD 21,371,000 in the previous year[79] - The total comprehensive loss for the period amounted to HKD 320,725,000, highlighting challenges in the current market environment[51] Expenses and Costs - Gross profit increased by 4.2% to HKD 648,782,000, with a gross profit margin of 29.5%, up 2.9 percentage points from 26.6% in the previous year[8] - Research and development expenses decreased by 29.5% to HKD 161,891,000, representing 7.4% of total revenue, down from 9.8% in the previous year[10] - Financing costs increased by 47.3% to HKD 19,897,000, while interest income rose by 30.8% to HKD 17,086,000[13] - Other income and gains decreased by 22.6% to HKD 50,510,000, accounting for 2.3% of total revenue, down from 2.8% in the previous year[9] - The total employee cost for the period was HKD 325,973,000, a decrease from HKD 555,920,000 in the same period last year[31] Financial Position - As of June 30, 2025, the group's net current assets amounted to HKD 2,301,943,000, including inventories of HKD 872,150,000 and trade receivables of HKD 2,264,157,000[19] - The total financial leverage ratio as of June 30, 2025, was 12.7%, up from 11.3% as of December 31, 2024[21] - The company’s net asset value rose to HKD 3,252,001 thousand, compared to HKD 2,713,354 thousand at the end of 2024, indicating strong financial health[50] - The total assets as of June 30, 2025, amounted to HKD 5,698,855 thousand, an increase from HKD 5,568,608 thousand at the end of 2024[49][50] - The total liabilities as of June 30, 2025, were HKD 4,446,854, a decrease from HKD 4,726,254 as of December 31, 2024[68] Shareholder Information - The board proposed an interim dividend of HKD 0.006 per share, with a total payout ratio of 28.7% based on basic earnings, compared to no interim dividend in the previous year[17] - Mr. Huo holds a total of 694,417,468 shares, representing approximately 22.37% of the issued share capital[33] - Mr. Zhang holds 228,225,410 shares, representing approximately 7.35% of the issued share capital[33] - Mr. Yi holds 310,407,322 shares, representing approximately 9.99% of the issued share capital[33] - Prime Choice Investments Limited, owned by Mr. Huo, holds 678,115,129 shares, representing approximately 21.84% of the issued share capital[40] Cash Flow and Investments - Cash generated from operating activities for the six months ended June 30, 2025, was HKD 451,370,000, compared to HKD 157,372,000 in the prior year, representing an increase of approximately 187%[54] - The net cash flow from investing activities was a negative HKD 109,884,000 for the six months ended June 30, 2025, compared to a positive cash flow of HKD 97,504,000 in the same period of 2024[55] - The net cash flow from financing activities was HKD 334,213,000 for the six months ended June 30, 2025, a substantial increase from HKD 34,585,000 in the same period of 2024[55] - The company completed the acquisition of approximately 10.7% equity in Kyson Network Systems Co., Ltd. for a total consideration of RMB 331,128,000, increasing its ownership to 100%[23] Stock Options and Share Awards - The company has a stock option plan and a share award plan, with specific details outlined in the financial statements[38] - The company has terminated the 2013 share option plan, with no further options to be granted, maintaining the effectiveness of previously granted options[99] - The company’s shareholders adopted a new stock option plan on May 22, 2023, which will be effective for ten years and expire on May 22, 2033[107] - The total number of options granted under the 2023 stock option plan and the 2023 share award plan cannot exceed 1% of the total issued shares at any time[109] - The total number of rewards granted under the 2023 Share Award Plan is capped at 1% of the total issued shares of the company at any time[117] Compliance and Governance - The board has confirmed compliance with all code provisions during the reporting period[43] - The company has adopted a code of conduct for securities transactions by directors, ensuring adherence to standards[44] - The financial statements were approved and authorized for issue by the board of directors on August 19, 2025[140] - The chairman of the board is Ho Tung Ling, who oversees the operations of the group[141]
京信通信(02342) - 2025 - 中期财报