Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 14,996,092 thousand, a decrease of 12.7% compared to HKD 17,180,654 thousand in 2021[2] - Profit attributable to owners of the company was HKD 300,663 thousand, down 29.5% from HKD 426,571 thousand in the previous year[2] - Basic earnings per share decreased to HKD 48.04, a decline of 29.5% from HKD 68.16 in 2021[2] - Total comprehensive income for the period was HKD 391,192 thousand, down from HKD 546,446 thousand in 2021[5] - Gross profit for the period was HKD 723,126 thousand, compared to HKD 847,486 thousand in the same period last year[3] - The company reported a net loss of HKD 36,741 thousand from other gains and losses, compared to a gain of HKD 35,690 thousand in the previous year[3] - The company incurred a total tax expense of HKD 70,339 thousand for the six months ended June 30, 2022, compared to HKD 110,419 thousand in the same period of 2021, representing a decrease of approximately 36.3%[22] - The group recorded a net cash outflow from operating activities of HKD 1,169,795,000 for the six months ended June 30, 2022, compared to a net cash outflow of HKD 124,531,000 in the same period last year[46] Dividends - The interim dividend per share was HKD 10.00, down 33.3% from HKD 15.00 in the previous year[2] - The company declared an interim dividend of HKD 0.10 per share for 2022, down from HKD 0.15 per share in 2021[34] Assets and Liabilities - Current assets as of June 30, 2022, totaled HKD 7,739,244 thousand, compared to HKD 7,836,642 thousand at the end of 2021[7] - Current liabilities decreased to HKD 5,967,391 thousand as of June 30, 2022, from HKD 6,216,080 thousand at the end of 2021, showing a reduction of about 4%[8] - The company's total liabilities were HKD 5,967,391 thousand as of June 30, 2022, down from HKD 6,216,080 thousand at the end of 2021, indicating a decrease of approximately 4%[8] - The company's total assets less current liabilities amounted to HKD 3,249,577 thousand as of June 30, 2022, an increase from HKD 3,117,869 thousand at the end of 2021, marking a growth of about 4.22%[8] - Total equity increased to HKD 2,984,228 thousand as of June 30, 2022, up from HKD 2,843,287 thousand at the end of 2021, representing a growth of approximately 4.95%[8] Cash Flow - The net cash increase for the period was HKD 103,925 thousand, a significant drop from HKD 928,943 thousand in the same period of the previous year[11] - Financing activities generated a net cash inflow of HKD 1,278,913 thousand for the six months ended June 30, 2022, compared to HKD 1,055,541 thousand in the previous year, reflecting a growth of approximately 21.1%[11] - The cash and cash equivalents at the end of the period were HKD 1,862,902 thousand, down from HKD 2,095,925 thousand at the end of 2021, reflecting a decrease of approximately 11.1%[11] Revenue Breakdown - Customer contract revenue for the six months ended June 30, 2022, was HKD 14,982,682 thousand, down from HKD 17,167,897 thousand in the previous year, indicating a decrease of about 12.5%[20] - Revenue from the sale of electronic components and semiconductors was HKD 14,919,387 thousand for the six months ended June 30, 2022, compared to HKD 17,111,032 thousand in 2021, reflecting a decline of approximately 12.9%[16] - The company reported a significant contribution from a major customer, with revenue of HKD 5,845,034 thousand for the six months ended June 30, 2022, down from HKD 9,200,559 thousand in the same period of 2021, a decrease of about 36.5%[21] - Revenue from LED lighting and display products was HKD 30,855 thousand for the six months ended June 30, 2022, compared to HKD 20,053 thousand in the previous year, indicating an increase of approximately 53.5%[16] - The company reported a rental income of HKD 1,397 thousand from LED lighting and display products for the six months ended June 30, 2022, up from HKD 692 thousand in the same period of 2021, reflecting an increase of about 102.6%[20] Inventory and Receivables - Inventory increased to HKD 2,892,841 thousand from HKD 2,654,073 thousand in the previous year[7] - Trade and other receivables decreased to HKD 1,554,732 thousand from HKD 2,125,160 thousand in 2021[7] - Trade receivables as of June 30, 2022, amounted to HKD 1.443 billion, a decrease from HKD 1.851 billion as of December 31, 2021[28] - The total amount of trade and other receivables was HKD 1.555 billion as of June 30, 2022, down from HKD 2.125 billion at the end of 2021[30] Corporate Governance and Compliance - The company has complied with the corporate governance code, with specific deviations noted regarding insurance arrangements for directors and the separation of the roles of chairman and CEO[60] - The audit committee has reviewed the accounting principles, internal controls, risk management, and the unaudited interim financial statements for the six months ended June 30, 2022[61] - The company has adopted the standard code for securities transactions by directors, confirming that all directors complied with the code during the six-month period[62] Market and Strategic Outlook - The global smartphone shipment is expected to decline by 5.8% year-on-year in 2022, impacting demand for mobile phones[37] - The company plans to expand its semiconductor supplier base and regional sales network to provide comprehensive design and supply chain services to target customers in Greater China[36] - The group is monitoring inventory levels and managing operating costs in response to challenges such as high inflation and supply chain disruptions, aiming to maintain competitiveness in the Greater China region[42] - The group ranked as the 9th largest semiconductor distributor globally and the largest in China and Hong Kong based on revenue, according to Gartner data[42] Employee and Community Engagement - The board expresses gratitude to all employees for their contributions during challenging times and thanks shareholders, customers, suppliers, and business partners for their continued support[63] - The group employed approximately 450 employees in the Greater China region as of June 30, 2022, ensuring competitive compensation and benefits[49]
S.A.S. DRAGON(01184) - 2022 - 中期财报