Financial Performance - Total revenue for the six months ended September 30, 2025, was $1,833 million, a decrease of 1% compared to the same period last year[2]. - Gross profit was $441 million, representing 24.0% of revenue, up from 23.6% in the previous year[2]. - Adjusted EBITDA was $159 million, or 8.7% of revenue, down from 9.5% in the previous year[2]. - Net profit attributable to shareholders increased by 3% to $133 million, or $0.1421 per share[2]. - Basic net profit decreased by 8% to $123 million after excluding unrealized gains or losses related to exchange rate fluctuations and restructuring costs[2]. - Free cash flow from operations was $174 million, compared to $144 million in the previous year[2]. - The company's operating profit for the first half of the 25/26 fiscal year was $156.2 million, a decrease of $1.7 million compared to the previous year[33]. - Shareholders' profit for the first half of the 25/26 fiscal year was $133.3 million, an increase of 3% from $129.6 million in the previous year[34]. - The gross profit margin improved to 24.0% in the first half of the 25/26 fiscal year, compared to 23.6% in the previous year[33]. - The company reported a profit of $133.3 million for the six months ended September 30, 2025, compared to a profit of $129.6 million for the same period in 2024, reflecting a year-over-year increase of approximately 2.1%[111]. - Total comprehensive income for the six months ended September 30, 2025, amounted to $158.4 million, compared to $136.4 million for the same period in 2024, representing a growth of about 16.1%[112]. Revenue Segmentation - The automotive segment accounted for 84% of total revenue, with a 3% decline in revenue at constant exchange rates[4]. - The industrial products segment represented 16% of total revenue, with stable sales compared to the previous year[8]. - Revenue for the first half of the 25/26 fiscal year decreased by $20.7 million or 1% to $1,833.5 million compared to $1,854.2 million in the previous fiscal year[18]. - Automotive product segment revenue decreased by $41.4 million or 3% (excluding foreign exchange effects), maintaining an 84% share of total revenue[22]. - Total revenue for the automotive products segment was $1,541,991 thousand for the six months ended September 30, 2025, slightly down from $1,564,418 thousand in 2024, reflecting a decrease of 1.4%[122]. - The industrial products segment generated revenue of $291,492 thousand, a marginal increase from $289,750 thousand in the same period last year, showing a growth of 0.6%[122]. Cash Flow and Liquidity - Free cash flow from operations rose from $144 million to $174 million, driven by a decline in working capital, which outweighed the increase in capital expenditures[11]. - Cash and cash equivalents increased by $141.9 million to $932.5 million as of September 30, 2025, compared to $790.6 million on March 31, 2025[55]. - The company reported a net cash from operating activities for the six months ended September 30, 2025, was $290,001 thousand, up from $222,780 thousand in 2024, indicating a year-over-year increase of 30.2%[114]. - The cash and cash equivalents at the end of the period increased to $932,483 thousand, up from $687,658 thousand in 2024, representing a growth of 35.5%[114]. Debt and Financing - Total debt to capital ratio remains stable at 11%, with cash balance of $932 million as of September 30, 2025[12]. - The company has $1,019.8 million in available and undrawn credit facilities as of September 30, 2025[57]. - The company repaid a net amount of $1.7 million in loans, significantly lower than the $203.8 million net repayment in the previous fiscal year[51]. - The total loan amount as of September 30, 2025, was $359,683 thousand, slightly up from $359,335 thousand on March 31, 2025, indicating a marginal increase of 0.1%[158]. - The company secured a $400 million financing agreement in August 2023, which includes $200 million in term loan financing and $200 million in revolving credit financing[158]. Shareholder Information - The board declared an interim dividend of HKD 0.17 per share, equivalent to USD 0.0218 per share, to be distributed on January 6, 2026[13]. - The company paid a final dividend of $52.1 million for the fiscal year 2024/25, maintaining the same amount as the previous year[66]. - The company announced an interim dividend of $20.3 million for the first half of the fiscal year 2025/26, consistent with the previous year's interim dividend[66]. - The company’s shares have a par value of HKD 0.05[92]. - The total number of issued ordinary shares as of September 30, 2025, was 1,760.0 million, unchanged from March 31, 2025, with a par value of HKD 0.05 per share[168]. Operational Efficiency - The management team is focusing on reducing indirect production costs and investing in innovative drive system solutions for high-growth markets such as robotics and data center thermal management[31]. - Operating expenses as a percentage of revenue remained stable at 14.1% compared to 14.0% in the previous year[37]. - The company incurred a loss of $21.6 million related to hedging instruments during the six months ended September 30, 2025[111]. - The company recognized a foreign exchange gain of $45.1 million from the translation of subsidiaries for the six months ended September 30, 2025[111]. Market Outlook - The company expects moderate revenue growth in the second half of the fiscal year despite a highly uncertain macroeconomic outlook, assuming pragmatic agreements in ongoing US-China trade negotiations[14]. - In the Asia-Pacific region, revenue decreased by 6%, primarily due to declining demand for non-local automotive brands in China and pricing measures to maintain competitiveness[26]. - In Europe, the Middle East, and Africa, revenue slightly declined by 1%, with sales of cooling management and visual application systems decreasing, offset by growth in brake system applications and powder metal components[26]. - In the Americas, revenue also slightly declined by 1%, driven by weak demand from several customers and the phase-out of certain product lines, although this was offset by growth in powder metal components and cooling management applications[26]. Corporate Governance - The company has complied with the corporate governance code as of September 30, 2025, except for specific circumstances regarding the rotation of directors[85]. - The roles of the Chairman and CEO are held by the same individual, Dr. Wang Suizhong, which the board believes is in the best interest of the company[86]. - The company has adhered to the standard code for securities trading as outlined in the listing rules[89].
德昌电机控股(00179) - 2026 - 中期业绩