2022-09-01 09:19Financial Performance - The company reported a revenue of $7,034 million for the first half of 2022, representing a 10.0% increase compared to $6,394 million in 2021[7]. - Net profit attributable to shareholders rose by 10.4% to $578 million, compared to $524 million in 2021[7]. - Earnings before interest and taxes (EBIT) increased by 10.7% to $633 million, up from $572 million in the prior year[7]. - Earnings per share (EPS) increased by 10.4% to 31.59 cents, up from 28.62 cents in the previous year[7]. - The company’s total comprehensive income for the period amounted to $663,840 thousand, compared to $589,258 thousand for the same period last year, indicating an increase of approximately 12.6%[38]. - The group’s profit before tax for the six months ended June 30, 2022, was $621,467, compared to $563,022 for the same period in 2021, indicating an increase of about 10.4%[47]. Dividends - The company declared an interim dividend of approximately 12.23 cents per share, reflecting an increase of 11.8% from 10.94 cents in 2021[7]. - The interim dividend declared was HK$0.95 per share (approximately $0.1223), an increase from HK$0.85 per share (approximately $0.1094) in the previous year[30]. - The group announced an interim dividend of HKD 0.95 per share, totaling approximately $224,317,000, compared to $200,627,000 in the previous year, which is an increase of about 11.8%[54]. Gross Margin and Operating Profit - Gross margin reached 39.1%, an increase of 50 basis points from 38.6% in the previous year, marking the 14th consecutive half-year of growth[4][7]. - Gross profit for the same period was $2,746,745 thousand, up from $2,465,045 thousand, reflecting a gross margin improvement[35]. - Operating profit before interest and tax grew by 10.7% to $633,000,000, while net profit increased by 10.4% to $578,000,000[9]. Capital Expenditures - Capital expenditure for the first half was $229,000,000, a decrease of 6.4% from the previous year, focusing on new products and capacity expansion[10]. - Capital expenditures totaled $229,000,000, down from $245,000,000 in the same period last year[27]. - The group invested approximately $229,397,000 in property, plant, and equipment during the period, compared to $245,071,000 in the same period of 2021[56]. Employee and Workforce - The company employs over 47,000 people as of the first half of 2022, supporting its global operations[2]. - The company employed a total of 47,568 employees, down from 49,934 employees in the same period last year, with total employee costs amounting to $1,260,000,000[29]. Inventory and Supply Chain - The inventory days for finished goods decreased by 3 days to 115 days, with expectations for further decline in the second half of 2022[11]. - Total inventory was $5,232,000,000, an increase from $4,471,000,000, with inventory turnover days increasing from 136 to 138 days[26]. - The company experienced a decrease in inventory increase to $487,681 thousand from $1,299,307 thousand, a reduction of 62.5%[39]. Research and Development - Research and development expenses for the period were $231,780 thousand, compared to $196,133 thousand in the previous year, reflecting an increase of 18.2%[35]. - The company plans to continue investing in innovative products, including the Milwaukee personal protective equipment (PPE) line, to drive future growth[10]. Market Performance - Sales growth in local currency was reported at 12.1%, contributing to a total sales increase of 67% over the past two years[3]. - The Milwaukee business recorded a sales growth of 25.8% in local currency, contributing significantly to overall performance[10]. - The revenue from power tools was $6,561,632, while floor care and cleaning generated $471,974, with total external sales contributing to the overall revenue[45]. Debt and Liabilities - The net debt to equity ratio was 40.5%, compared to 14.8% as of June 30, 2021[24]. - The company’s total liabilities decreased significantly, with the repayment of unsecured loans amounting to $2,137,061 thousand compared to $1,916,998 thousand in the previous year[40]. Shareholder Information - The company’s total equity attributable to shareholders increased to $4,489,001 thousand as of June 30, 2022, up from $4,265,576 thousand at the end of 2021, reflecting a growth of about 5.3%[38]. - The company’s board members and key executives held a total of 363,284,294 shares, representing approximately 19.80% of the total equity[71]. - The company’s major shareholders include various entities under JPMorgan Chase & Co., indicating a strong institutional ownership structure[88]. Governance and Compliance - The board confirmed compliance with the Corporate Governance Code during the six months ending June 30, 2022[90]. - The audit committee reviewed the financial statements in accordance with the listing rules and confirmed adherence to accounting principles[93]. - The company has adopted a strict code of conduct for employees involved in securities trading to prevent misuse of sensitive information[91].