Financial Performance - Revenue for the six months ended June 30, 2023, was HK$565,855,000, representing a 35.6% increase compared to HK$417,416,000 for the same period in 2022[4] - Gross profit increased by 63.1% to HK$119,044,000 from HK$72,984,000 year-on-year[4] - Profit before income tax surged to HK$27,688,000, a significant increase of 1,884.8% from HK$1,395,000 in the previous year[4] - Profit attributable to owners of the Company rose to HK$21,740,000, marking a 2,381.7% increase compared to HK$876,000 in the same period last year[4] - Basic and diluted earnings per share increased to 2.17 HK cents, up 2,311.1% from 0.09 HK cents[4] - Gross profit margin improved by 3.5 percentage points to 21.0% for the six months ended June 30, 2023, up from 17.5% in the previous year[57] - Profit from operations significantly improved to HK$32,879,000, compared to HK$5,282,000 in the prior year, marking a substantial increase[190] - Total comprehensive income for the period attributable to owners of the Company was HK$19,813,000, compared to HK$22,000 in the same period of 2022[190] Assets and Liabilities - Total assets as of June 30, 2023, were HK$770,473,000, reflecting a 6.5% increase from HK$723,516,000 at the end of 2022[4] - Total liabilities increased by 11.5% to HK$378,739,000 from HK$339,651,000[4] - Net assets attributable to owners of the Company increased by 2.0% to HK$391,734,000 from HK$383,865,000[5] - The Group's net current assets were HK$316.8 million as of June 30, 2023, an increase from HK$306.3 million as of December 31, 2022[97] - The company’s trade and other payables increased to HK$204,386,000 from HK$158,895,000, representing a rise of about 28.6%[192] Operational Developments - The company strategically leased two buildings adjacent to its existing production base in the PRC, operational since May 2023, to enhance operational capacity[36] - The new production factory is equipped with advanced automation and digitization equipment, improving efficiency to meet rising demand for high-value products[36] - The Group is expanding its operational capacity by leasing two additional buildings in the PRC, which became operational in May 2023, enhancing logistics and production efficiency[55] - The company plans to further expand production capabilities in Thailand based on the satisfactory performance of its production plant there[36] - The company has completed the renovation of two factory buildings, which commenced operations in May 2023, enhancing production capacity to meet growing customer demand[159] Market and Product Strategy - Trio Group is actively exploring markets including Europe, Singapore, Hong Kong, and Kazakhstan for its electric vehicle chargers under the brand name Deltrix[38] - The European market has shown significant growth, validating Trio Group's strategic initiatives[35] - The demand for OEM products, particularly in the European market, has surged due to increased health consciousness and digital transformation[49] - The Group's product range includes applications in renewable energy, telecommunications, and healthcare, reflecting a broad market presence[47] - The Group is actively exploring markets in Europe, Singapore, Hong Kong, and Kazakhstan for new energy products[173] Challenges and Economic Outlook - Economic conditions are expected to remain challenging, with downside risks due to higher interest rates and geopolitical instability[38] - The ongoing geopolitical tensions and rising interest rates present challenges, but the Group continues to identify positive business opportunities[48] - The Group's plan for the development of a new production base in the PRC has been deferred due to uncertain economic conditions and geopolitical uncertainties[167] Employee and Administrative Expenses - The total number of employees increased to approximately 1,700 as of June 30, 2023, compared to approximately 1,600 as of December 31, 2022[139] - The Group's total employee benefit expenses for the six months ended June 30, 2023, were HK$109.7 million, an increase from HK$95.5 million for the same period in 2022[140] - Administrative expenses grew to HK$81.3 million, mainly due to rising employee benefit expenses[79] - Administrative expenses increased from HK$66.4 million in the first half of 2022 to HK$81.3 million in the same period of 2023, primarily due to rising employee benefits for directors and management[84] Dividends - The interim dividend per share remained unchanged at 0.8 HK cents[4] - The Board declared an interim dividend of HK0.8 cent per ordinary share for the six months ended June 30, 2023[174] - A final dividend of HK1.2 cents per ordinary share for the year ended December 31, 2022, totaling HK$12.0 million, was approved and paid[175] - The interim dividend declared is HK$0.8 per share for the six months ended June 30, 2023, consistent with the previous year[178] Cash Flow and Financial Position - Cash generated from operating activities was HK$12,374,000 for the six months ended June 30, 2023, a turnaround from a cash used of HK$25,715,000 in the previous year[195] - The company experienced a net cash decrease of HK$13,704,000 in cash and cash equivalents for the six months ended June 30, 2023, compared to an increase of HK$7,591,000 in the same period of 2022[195] - The Group's cash and bank balances, including restricted deposits, were HK$73.7 million as of June 30, 2023, down from HK$79.0 million as of December 31, 2022[90] - The Group had undrawn banking facilities of HK$231.5 million as of June 30, 2023, up from HK$191.4 million as of December 31, 2022[90]
致丰工业电子(01710) - 2023 - 中期财报