Financial Performance - Revenue for the reporting period was $366.7 million, a decrease of 9.4% compared to $404.6 million in the first half of 2022, primarily due to reduced customer orders[5] - Net profit for the reporting period was $17.5 million, down from $31.2 million in the first half of 2022[5] - Revenue for the six months ended June 30, 2023, was $366.725 million, a decrease from $404.552 million in the same period in 2022[31] - Gross profit for the six months ended June 30, 2023, was $50.853 million, down from $60.084 million in the same period in 2022[31] - Operating profit for the six months ended June 30, 2023, was $22.391 million, compared to $35.993 million in the same period in 2022[31] - Net profit attributable to equity shareholders for the six months ended June 30, 2023, was $18.034 million, down from $31.391 million in the same period in 2022[31] - Basic earnings per share for the six months ended June 30, 2023, were $0.021, compared to $0.038 in the same period in 2022[31] - The company's comprehensive income for the six months ended June 30, 2023, was a loss of $398,000, compared to a gain of $8.833 million in the same period in 2022[32] - The company's exchange differences on translation of financial statements resulted in a loss of $17.887 million for the six months ended June 30, 2023[32] - Total revenue for the 12 months ending June 30, 2023, was $1.078 billion, up from $906.214 million in the same period in 2022[43] - Gross profit for the 12 months ending June 30, 2023, was $165.216 million, compared to $135.302 million in the same period in 2022[43] - Basic earnings per share (EPS) of $0.0214 for the six months ended June 30, 2023, based on a profit attributable to ordinary equity shareholders of $18,034,000 and a weighted average number of ordinary shares of 842,680,000[47] - Diluted EPS of $0.0206 for the six months ended June 30, 2023, based on a profit attributable to ordinary equity shareholders of $18,034,000 and a weighted average number of ordinary shares of 877,205,000[48] Market and Industry Outlook - The company expects the global economy to remain turbulent in 2023, with challenges in the operating environment, but remains optimistic about the growth opportunities in the optical industry, particularly in smart driving, AR, and VR[6] - The LiDAR market is projected to grow from $1.4 billion in 2023 to $3.7 billion in 2028, with a CAGR of 19.4%, and the company plans to continue investing in this area to capture market opportunities[6] - AR/VR device shipments are expected to reach 10.35 million units in 2023, with a year-on-year growth rate of 20.6%, and the company aims to strengthen its position in this segment[7] Assets and Liabilities - Total assets as of June 30, 2023, were $697.9 million, up from $631.2 million at the end of 2022, with net current assets of $219.9 million and total equity of $373.3 million[8] - The company reported $245.9 million in unencumbered cash and cash equivalents as of June 30, 2023, down from $287.0 million a year earlier, but management believes this is sufficient to support operational needs[8] - Total bank financing as of June 30, 2023, was approximately $396.5 million, with $209.3 million utilized, and the company had no other significant outstanding liabilities[9] - The company's debt-to-equity ratio increased to 77.0% as of June 30, 2023, up from 42.0% at the end of 2022[9] - The company had no contingent liabilities as of June 30, 2023, except for the guarantees provided for subsidiary bank financing[12] - Total assets increased to $387,805 thousand as of June 30, 2023, compared to $378,839 thousand at the end of 2022[33] - Cash and cash equivalents surged to $245,886 thousand, up from $44,508 thousand at the end of 2022[33] - Inventory decreased significantly to $52,820 thousand from $138,339 thousand at the end of 2022[33] - Bank deposits increased to $142,545 thousand from $101,944 thousand at the end of 2022[33] - Net current assets stood at $219,892 thousand, slightly down from $228,322 thousand at the end of 2022[33] - Total equity increased to $373,266 thousand as of June 30, 2023, compared to $360,597 thousand at the end of 2022[34] - Retained earnings grew to $314,001 thousand from $298,284 thousand at the start of 2023[36] - Non-controlling interests increased significantly to $4,938 thousand from $608 thousand at the end of 2022[34] - Profit for the period was $18,034 thousand, contributing to the overall equity increase[36] - Other comprehensive income showed a loss of $17,435 thousand, primarily due to exchange rate fluctuations[36] - Trade receivables (net of impairment allowance) decreased to $72,648,000 as of June 30, 2023, from $181,674,000 as of December 31, 2022[53] - Trade payables decreased to $74,036,000 as of June 30, 2023, from $196,146,000 as of December 31, 2022[56] Capital Expenditure and Investments - The company's capital expenditure for the reporting period was $44.0 million, compared to $51.3 million for the six months ended June 30, 2022, primarily for purchasing additional equipment to produce more advanced flip-chip camera modules[10] - Acquisition of property, plant, and equipment with a cost of $45,804,000 for the six months ended June 30, 2023, compared to $55,088,000 for the same period in 2022[50] - Capital commitments of $17,085,000 as of June 30, 2023, compared to $13,877,000 as of December 31, 2022[58] Shareholder and Equity Information - The company's major shareholder, LiJing Innovation Technology Co., Ltd., holds a 72.25% beneficial interest and 64.89% controlled corporate interest in the company's shares as of June 30, 2023[18] - The company has issued a total of 849,486,800 ordinary shares as of June 30, 2023[19] - 551,229,760 shares, representing approximately 64.89% of the total issued share capital, were pledged as collateral for bank financing[19] - The total number of shares available for issuance under the share option plan is 83,436,880, accounting for 9.82% of the total issued shares[20] - 10,302,000 share options were exercised during the six months ended June 30, 2023, compared to 822,000 in the same period last year[23] - The weighted average closing price of shares before the exercise date for the 10,302,000 share options was HKD 17.7799[23] - The total number of shares available for issuance under the share option plan, after deducting exercised, canceled, and expired options, is 60,628,880, representing approximately 7.14% of the issued share capital[23] - The potential number of shares to be issued under the share option plan divided by the weighted average number of issued shares during the period is 4.76%[23] - The company's directors and CEO hold beneficial interests in the company's shares, with the largest being 0.37% held by the Executive Chairman, Mr. Meng Yan[15] Cash Flow - Operating cash flow increased to $98.523 million in H1 2023, up from $83.795 million in H1 2022[37] - Net cash used in investing activities rose to $86.335 million in H1 2023, compared to $50.052 million in H1 2022[37] - Net cash generated from financing activities surged to $193.106 million in H1 2023, up from $70.424 million in H1 2022[37] Revenue and Market Segments - Revenue from the largest customer accounted for 96.5% of total revenue in H1 2023, down from 99.7% in H1 2022[41] - Revenue from China (including Hong Kong) decreased to $340.222 million in H1 2023, compared to $402.448 million in H1 2022[42] - Revenue from India reached $21.414 million in H1 2023, a new market entry compared to no revenue in H1 2022[42] - Sales of goods to non-controlling interests amounted to $10,962,000 for the six months ended June 30, 2023, compared to $0 for the same period in 2022[60] Research and Development - Research and development costs (excluding depreciation and amortization) increased to $20.323 million in H1 2023, up from $18.726 million in H1 2022[44] Taxation - Income tax expense decreased to $1.673 million in H1 2023, down from $3.109 million in H1 2022[45] - Hong Kong profits tax provision calculated at an estimated annual effective tax rate of 16.5% for the six months ended June 30, 2023, with a subsidiary subject to a two-tiered profits tax rate system (8.25% for the first HK$2 million and 16.5% for the remainder)[46] Employee and Compensation - The company had 2,906 full-time employees as of June 30, 2023, down from 3,405 as of December 31, 2022, with total employee costs (excluding directors' remuneration) of $23.7 million for the reporting period, compared to $26.0 million for the same period in 2022[13] - The company terminated its share option plan adopted on February 4, 2015, and adopted a new share option plan on May 5, 2021, to incentivize employees[13] Corporate Governance and Compliance - The company did not hold any significant investments, make major acquisitions, or sell subsidiaries or associates during the six months ended June 30, 2023[11] - The company did not use any forward foreign exchange contracts or other derivative instruments to hedge currency fluctuations as of June 30, 2023[11] - The company did not recommend any interim dividend for the reporting period, citing the need to retain more cash for future expansion plans[24] - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[24] - The company's audit committee reviewed the unaudited consolidated financial statements and was satisfied that they were prepared in accordance with applicable accounting standards[25]
高伟电子(01415) - 2023 - 中期财报