Financial Performance - Revenue for the six months ended June 30, 2022, was HK$969,182,000, a decrease of 5.1% from HK$1,020,829,000 in 2021[21]. - Profit attributable to owners of the Company was HK$58,452,000, down 49.3% from HK$115,191,000 in the previous year[21]. - Basic earnings per share decreased to 7.0 HK cents, compared to 13.9 HK cents in 2021[21]. - Proposed interim dividend per share is 2.8 HK cents, down from 5.4 HK cents in the prior year[21]. - Gross profit margin decreased to 18.7%, down from 23.7% in 2021[21]. - Net profit margin fell to 6.0%, compared to 11.3% in the previous year[21]. - Return on equity decreased to 3.8%, down from 7.9% in 2021[21]. - Gross profit decreased by 25.3% to HK$180.9 million, with a gross profit margin of 18.7%, down 5.0 percentage points from 23.7% in the first half of 2021[34]. - Profit attributable to owners of the Company was HK$58.5 million, a decrease of approximately 49.3% compared to HK$115.2 million in the first half of 2021[36]. - Basic earnings per share was HK7.0 cents, down 49.6% from HK13.9 cents in the same period last year[36]. - Other income for the first half of 2022 was approximately HK$26.0 million, a decrease of approximately HK$1.2 million or 4.3% from HK$27.2 million in the same period of 2021[67]. - Selling expenses for the first half of 2022 were approximately HK$33.0 million, a decrease of approximately HK$6.2 million or 15.9% compared to HK$39.2 million in the corresponding period of 2021[72]. - Administrative expenses increased to approximately HK$129.0 million, an increase of approximately HK$5.4 million or 4.4% from HK$123.6 million in the first half of 2021[74]. - Net finance income for the first half of 2022 was approximately HK$10.7 million, an increase of approximately HK$1.3 million or 14.1% from HK$9.4 million in the same period of 2021[78]. - Total comprehensive loss for the period amounted to HK$10,994,000, contrasting with a total comprehensive income of HK$137,235,000 in the previous period[193]. - Operating profit fell to HK$54,673,000, down from HK$118,085,000, indicating a decrease of approximately 53.7%[193]. Revenue Breakdown - Revenue from the mold fabrication business decreased by 32.4%, while revenue from plastic components manufacturing increased by 10.2%[29]. - The revenue from the mold fabrication business for the first half of 2022 was approximately HK$247.2 million, a decrease of 32.4% compared to HK$365.5 million in the same period last year, accounting for 25.5% of the Group's total revenue[41][44]. - The revenue from the plastic components manufacturing business segment was approximately HK$722.0 million, representing a year-on-year increase of 10.2%, and accounted for 74.5% of the Group's total revenue[47][49]. - Revenue from the smart home segment increased by 25.3% year-on-year, driven by strong demand from leading global brand customers[53][55]. - The electronic atomizers segment saw a revenue increase of 57.4% year-on-year, supported by the booming overseas e-cigarette market[53][55]. - The Group maintained stable revenue growth in the mobile phones and wearable devices segments, with increases of 2.0% and 1.1% respectively over the same period last year[52][55]. Assets and Liabilities - Net current assets as of June 30, 2022, were HK$1,060,327,000, a decrease from HK$1,162,975,000 at the end of 2021[23]. - Total assets decreased to HK$2,631,865,000 from HK$2,851,160,000, reflecting a decline of about 7.7%[199]. - Total equity attributable to owners of the Company decreased to HK$1,535,951,000 from HK$1,621,919,000, a decrease of approximately 5.3%[199]. - Cash and cash equivalents decreased to HK$884,132,000 from HK$1,027,568,000, indicating a decline of about 13.9%[199]. - Trade and other receivables decreased to HK$350,930,000 from HK$417,060,000, reflecting a decline of approximately 15.8%[199]. Operational Efficiency - Inventory turnover days increased by 4 days to 123 days, and trade receivable turnover days increased by 7 days to 63 days due to logistics issues[40]. - The current ratio remained stable at 219.7%, slightly down from 220.7% at the end of 2021[23]. - Gearing ratio improved to 19.7%, down from 20.9% in the previous year[23]. - Trade payable turnover days decreased to 66 days, down by 10 days compared to 2021, attributed to a slowdown in global economic recovery and reduced procurement[103][110]. - The Group is implementing various cost control measures and promoting process optimization and automation to enhance operational efficiency amid macroeconomic challenges[145][146]. Future Outlook - The Group expects semiconductor shortages to alleviate in the second half of the year, which is anticipated to improve gross profit margins[65]. - The Group's revenue is expected to be higher in the second half of the year due to seasonal demand patterns, with 42% of revenue accumulated in the first half of the previous financial year[87][89]. - The Group anticipates a less volatile business environment in the second half of 2022, supporting normal growth despite global inflation pressures[133]. - The Group is optimistic about its five-year plan to double sales in the injection business through consistent resource input[133]. - The Group plans to invest in capacity expansion and investment projects to capitalize on potential business growth, primarily funded by internal resources[122]. Shareholder Information - As of June 30, 2022, Mr. Li Pui Leung holds a 53.08% interest in the Company, indicating significant insider ownership[152]. - FMR LLC holds an interest in 42,186,899 shares through subsidiaries, representing 5.06% of the company's issued shares[165]. - FIL Limited and its associated entities collectively hold 67,024,000 shares, representing 8.04% of the company's issued shares[165]. - Eastern Mix is the largest shareholder with 352,936,000 shares, accounting for 42.36% of the company[163]. - The company declared an interim dividend of HK2.8 cents per share, totaling approximately HK$23,331,000[166]. - The interim dividend is expected to be paid on September 28, 2022, to shareholders registered by the close of business on September 15, 2022[166]. Corporate Governance - The Company complied with all code provisions set out in the Corporate Governance Code during the period[174]. - The Audit Committee reviewed accounting policies, risk management, internal controls, and financial reporting matters during the Period[190]. - The Company has implemented a written guideline for employees regarding securities trading compliance[182]. - All directors confirmed compliance with the Model Code, except for a one-off non-compliance incident involving the acquisition of 100,000 shares[182]. - The Company has undergone training on directors' duties and corporate governance following the non-compliance incident[182].
东江集团控股(02283) - 2022 - 中期财报