Revenue and Profitability - Revenue for the six months ended June 30, 2023, was approximately US$33.1 million, a decrease of approximately 54.5% compared to US$72.8 million for the same period in 2022[20]. - The decline in revenue was primarily attributed to a drop in business within the mobile devices and smart charging category[20]. - The Group recorded a gross profit of approximately US$2.8 million for the Period, down from US$5.7 million in the Preceding Period, with gross profit margins of 8.5% and 7.9% respectively[25][29]. - The company reported a loss before income tax of US$2,710,000, compared to a profit of US$1,601,000 in the previous year[97]. - Loss attributable to the owners of the Company for the period was $2,713,000, compared to a profit of $1,404,000 in 2022[99]. - Basic and diluted loss per share was (1.91) HK cents, a decline from earnings of 1.35 HK cents per share in the prior year[97]. - Total comprehensive loss for the period attributable to the owners of the Company was $2,789,000, compared to a total comprehensive income of $1,064,000 in 2022[100]. Expenses and Costs - Cost of sales for the same period was approximately US$30.3 million, representing a decrease of approximately 54.8% from US$67.0 million in the previous period[21]. - Selling and distribution expenses increased to US$1.6 million from US$1.4 million, primarily due to staff costs rising to approximately US$1.0 million (from US$923,000) in the Preceding Period[26][30]. - General and administration expenses rose to US$3.1 million from US$2.0 million, with staff costs increasing to approximately US$1.4 million (from US$1.1 million), and exchange losses increasing to approximately US$0.4 million (from US$0.1 million)[27][31]. - Finance costs increased to approximately US$1.0 million from US$0.8 million, accounting for 3.1% of total revenue compared to 1.1% in the Preceding Period[28][32]. Financial Position - Current assets decreased to $44,532,000 as of June 30, 2023, from $53,259,000 at the end of 2022[102]. - Net current assets were $18,176,000, down from $22,040,000 at the end of 2022[102]. - Total equity decreased to $31,689,000 as of June 30, 2023, from $34,478,000 at the end of 2022[104]. - As of June 30, 2023, bank borrowings amounted to approximately US$3.3 million, slightly down from US$3.4 million at the end of 2022[36][41]. - Lease liabilities decreased to approximately US$280,000 from US$489,000 as of December 31, 2022[37][42]. Market and Industry Trends - The semiconductor industry is experiencing a downward cycle due to weak demand in the consumer market, but high demand remains in high-power renewable energy, energy storage, industrial automation, and artificial intelligence sectors[11]. - The ongoing systematic destocking cycle in the semiconductor industry presents new development opportunities for semiconductor enterprises[11]. - The Group is actively exploring new growth areas to strengthen future development despite short-term challenges in industry demand[12]. - The Group's proactive approach to market challenges aims to build strength for future growth[12]. Corporate Governance and Shareholding - The company has adopted good corporate governance practices to ensure transparency and accountability to shareholders[60]. - The board believes that the current arrangement of having the same person as CEO and Chairman is beneficial for consistent leadership[61]. - The Company maintained sufficient public float as required under the Listing Rules throughout the reporting period[92]. - The Board resolved not to declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[49][55]. Employee and Operational Metrics - The total number of employees increased to approximately 113 from 107 as of December 31, 2022, with remuneration aligned to market trends and individual performance[45][51]. - Employee benefit expenses decreased to US$2,138,000 in 2023 from US$2,572,000 in 2022, reflecting a reduction of approximately 17%[167]. Trade Receivables and Financial Liabilities - The Group's trade receivables, net, decreased to US$15,513,000 as of June 30, 2023, from US$20,261,000 as of December 31, 2022[184]. - The total amount of trade and bills receivables was US$18,435,000 as of June 30, 2023, compared to US$24,099,000 as of December 31, 2022[184]. - The Group's allowance for expected credit loss on trade receivables was US$858,000 as of June 30, 2023, slightly down from US$939,000 as of December 31, 2022[184]. - The asset-backed financial liabilities amounted to approximately US$3,192,000 as of June 30, 2023, down from US$3,240,000 as of December 31, 2022[190]. Other Financial Information - The Group has only one operating segment, which is the sale of IC products and electronic components, including bundled services[134]. - The financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 and applicable disclosure provisions[118]. - The Group's functional currency is Hong Kong dollars, while subsidiaries in the BVI and Hong Kong use US dollars, and those in the PRC use Renminbi[116]. - The Group's accounting policies remain consistent with those adopted in the annual financial statements for the year ended December 31, 2022[120].
康特隆(01912) - 2023 - 中期财报