Financial Performance - The group's revenue reached $1,770 million, an increase of 6% compared to the same period last year. Excluding the impact of currency fluctuations and acquisitions, revenue grew by 11%[3] - Gross profit was $355 million, representing 20.0% of revenue, down from 21.3% ($357 million) in the same period last year[3] - Adjusted EBITDA was $111 million, compared to $138 million in the same period last year[3] - Net profit attributable to shareholders decreased by 40% to $56 million, or $0.0621 per share, fully diluted[3] - Free cash flow from operations was $80 million, compared to a cash outflow of $56 million in the same period last year[3] - The net profit attributable to shareholders for the first half of the fiscal year 22/23 was $55.9 million, a decrease from $93.2 million in the same period of the previous year[12] - The operating profit for the six months ended September 30, 2022, was USD 69,031 thousand, down from USD 116,926 thousand in the previous year, reflecting a decline of approximately 41%[85] - The profit attributable to shareholders for the six months ended September 30, 2022, was $55,884 thousand, down from $93,179 thousand in the same period of 2021[186] Revenue Segmentation - The automotive products segment accounted for 79% of total revenue, with a fixed exchange rate revenue increase of 16%[5] - Revenue from the Americas automotive products segment increased by 23% at fixed exchange rates, while Europe saw an 8% increase, and Asia (mainly China) increased by 17%[5] - The industrial products segment represented 21% of total revenue, with a fixed exchange rate revenue decline of 5%[6] - The automotive product segment's revenue reached $1,472.2 million, reflecting a 16% increase from $1,268.7 million in the previous year, while the industrial product segment's revenue decreased by 5% to $384.1 million[14] - Revenue for the first half of the fiscal year 22/23 increased by $182.2 million compared to the first half of the fiscal year 21/22, with the automotive segment contributing an increase of $203.5 million and the industrial segment decreasing by $21.3 million[16] Acquisitions and Investments - The company completed the acquisition of Halla Stackpole Corporation, increasing its stake to 100%, which is expected to enhance operational synergies in the powder metal business[9] - The company also acquired 80% of Pendix GmbH, a key player in the electric bicycle industry, aiming to leverage its technology and expertise to strengthen its position in the European market[9] - The company acquired 80% of Pendix GmbH on October 13, 2022, which had a revenue of €17.4 million ($17.1 million) for the year ending December 31, 2021[21] - The acquisition of an additional 50% stake in Halla Systech increased the company's ownership from 30% to 80%, with a purchase price of $83.2 million (939 billion KRW)[164] - The company completed the acquisition of the remaining 20% stake in Halla Systech for 50.8 million USD (703 billion KRW) on September 19, 2022, making it a wholly-owned subsidiary[164] Cash Flow and Liquidity - As of September 30, 2022, the total debt-to-capital ratio was 17%, with cash reserves of $298 million[7] - The company reported a net cash flow change in working capital of $13.3 million, with total working capital amounting to $755.0 million as of September 30, 2022[30] - The company reported cash and cash equivalents of USD 298,165 thousand as of September 30, 2022, down from USD 345,404 thousand[83] - The company reported cash generated from operations for the six months ended September 30, 2022, was $212,578 thousand, significantly higher than $118,693 thousand in the same period of 2021[190] Debt and Financial Ratios - The total debt as of September 30, 2022, was $471.7 million, slightly reduced from $490.8 million as of March 31, 2022[12] - The company's market capitalization as of September 30, 2022, was $911.8 million, down from $1,239.4 million as of March 31, 2022[12] - The debt-to-capital ratio rose from 16% on March 31, 2022, to 17% on September 30, 2022[49] - The interest coverage ratio was 10.7 times as of September 30, 2022, down from 11.9 times on March 31, 2022[49] Shareholder Information - The company announced an interim dividend of HKD 0.17 per share, equivalent to USD 0.0218 per share, with a scrip dividend option available[8] - The company declared an interim dividend of HKD 0.17 per share for the first half of the 22/23 fiscal year, totaling $19.7 million, consistent with the previous year's interim dividend[49] - The company reported a total of 526,627,622 shares held by major shareholder Wang Guo Yizhen, representing 57.478% of the total equity[71] - Major shareholders include Deltec Bank & Trust Limited with 225,703,430 shares (24.63%) and HSBC International Trustee Limited with 211,488,543 shares (23.08%) as of September 30, 2022[74] Operational Challenges - The company anticipates challenges in the global manufacturing outlook due to high inflation and geopolitical tensions, prompting a focus on cash flow generation and cost control[10] - The industrial segment's revenue decreased by 5% compared to the first half of the fiscal year 21/22, impacted by COVID-19 lockdowns and semiconductor shortages[20] - The company faced challenges from rising raw material prices and semiconductor shortages, which were partially offset by cost-saving measures[28] Foreign Exchange and Commodity Risks - Foreign exchange fluctuations negatively impacted revenue by $89.8 million, primarily due to the weakening of the Euro and Renminbi against the US dollar[16] - The euro weakened against the US dollar by 13%, impacting the company's hedging strategies[54] - The US dollar strengthened against the Chinese yuan by 12%, resulting in a decrease in the fair value of RMB contracts by $90.1 million to a liability of $0.7 million as of September 30, 2022[57] - The company continues to manage commodity price risks through cash flow hedging contracts with various expiration dates ranging from 1 to 30 months[62] Employee Compensation and Governance - The total remuneration for directors for the six months ended September 30, 2022, was $1.993 million, a decrease from $4.021 million in the same period of 2021[196] - Senior management compensation for six months ended September 30, 2022, was $3.517 million, down from $6.063 million in the prior year[197] - The company has complied with the standard code for securities transactions as per the listing rules, with all directors confirming adherence for the six months ending September 30, 2022[68] Market Position and Strategy - The company continues to invest in automation to standardize operations and improve product quality and reliability[33] - The company has not changed its risk management policies since March 31, 2022, which include market risk, credit risk, liquidity risk, and capital risk[198] - The company plans to utilize the net proceeds from the bond issuance for general corporate purposes, refinancing, and extending debt maturities[150]
德昌电机控股(00179) - 2023 - 中期财报