Financial Performance - For the six months ended June 30, 2023, the company's revenue was approximately $50.2 million, a decrease of about 22.7% compared to approximately $65.0 million for the same period in 2022[11]. - The adjusted net profit for the six months ended June 30, 2023, was approximately $0.5 million, down from approximately $3.2 million for the same period in 2022[11]. - The company's gross profit for the six months ended June 30, 2023, was approximately $11.3 million, down from $14.6 million for the same period in 2022[20]. - The pre-tax loss for the six months ended June 30, 2023, was approximately $1.8 million, a decrease of about $6.0 million compared to a pre-tax profit of approximately $4.2 million for the same period in 2022[27]. - The net loss after tax for the six months ended June 30, 2023, was approximately $1.5 million, compared to a net profit of approximately $3.2 million for the same period in 2022[29]. - Basic and diluted loss per share for the six months ended June 30, 2023, was $0.30[30]. - The company reported a net loss of $1,489,000 for the six months ended June 30, 2023, compared to a profit of $3,193,000 in the same period of 2022[109]. - The company incurred a loss before tax of $1,833,000, compared to a profit of $4,174,000 in the prior year[105]. Revenue Breakdown - Revenue from North America decreased by approximately $3.6 million (20.6%), while revenue from Europe decreased by approximately $12.0 million (44.6%); however, revenue from Asia increased by approximately $2.4 million (22.1%)[14]. - Revenue from North America was $14,013 thousand, down from $17,652 thousand in the previous year, representing a decline of 20.0%[130]. - Revenue from Europe decreased significantly to $14,907 thousand from $26,931 thousand, a drop of 44.5%[130]. - Revenue from Asia increased to $13,251 thousand, up from $10,850 thousand, marking a growth of 22.1%[130]. - Revenue from Latin America was $8,075 thousand, down from $9,565 thousand, a decrease of 15.6%[130]. - Major customer 1 contributed $12,267 thousand in revenue, compared to $6,963 thousand in the previous year, indicating a growth of 76.5%[133]. Expenses and Cost Management - The sales cost for the six months ended June 30, 2023, was approximately $39.0 million, accounting for about 77.5% of total revenue, consistent with the previous year[18]. - Sales and distribution expenses for the six months ended June 30, 2023, decreased by approximately $1.0 million compared to the same period in 2022, primarily due to a reduction in distribution costs[22]. - Administrative expenses increased from approximately $5.0 million for the six months ended June 30, 2022, to approximately $6.1 million for the same period in 2023, mainly due to the absence of a reversal of IT service accruals that occurred in the prior period[24]. - Other expenses rose from approximately $1.1 million for the six months ended June 30, 2022, to approximately $3.2 million for the same period in 2023, primarily due to an increase in restructuring and severance costs of about $2.0 million[25]. - The company is focused on cost management through automation to safeguard shareholder value amid macroeconomic challenges[11]. Cash Flow and Financial Position - Cash and cash equivalents as of June 30, 2023, were approximately $12.8 million, indicating a decrease in cash flow[35]. - Net cash generated from operating activities for the six months ended June 30, 2023, was approximately $6.0 million, primarily due to a decrease in inventory of about $3.2 million[37]. - Net cash used in investing activities was approximately $0.5 million, mainly related to the purchase of property, plant, and equipment[38]. - Net cash used in financing activities was approximately $8.0 million, primarily due to the repayment of interest-bearing bank loans of about $6.8 million[39]. - As of June 30, 2023, the group's bank loans amounted to approximately $17.8 million, down from approximately $24.5 million as of December 31, 2022[43]. - The debt ratio as of June 30, 2023, was approximately 28.9%, a decrease from approximately 35.7% as of December 31, 2022[46]. - The company reported a financing cost of $923,000 for the period, an increase from $448,000 in the previous year[105]. Research and Development - The company continues to invest in research and development, expanding its sales team to explore multiple business-related areas and improve its existing supply chain[13]. - Research and development expenses rose to $3,053,000, up from $2,711,000 in the previous year, with employee benefits accounting for $2,220,000[143]. Shareholder Information - The board of directors does not recommend declaring any interim dividend for the six months ending June 30, 2023[67]. - The company has not provided any financial assistance or guarantees to associated companies that require disclosure as of June 30, 2023[78]. - The share incentive plan allows for a maximum issuance of 7,524,504 shares, approximately 1.50% of the total shares issued as of the adoption date[83]. - A total of 5,016,337 incentive shares were granted, representing about 1.00% of the total shares issued at the grant date[84]. - As of June 30, 2023, no incentive shares have vested and been issued[84]. - The company has not violated any loan agreements that would significantly impact its business operations as of June 30, 2023[77]. Corporate Governance - Keet Yee Lai was appointed as an independent non-executive director effective February 10, 2023[91]. - The company has not disclosed any additional information required under Listing Rule 13.51B(1) regarding director changes[89]. - As of June 30, 2023, there are no other interests or short positions held by directors or senior management in the company's shares or related securities[93].
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