Financial Performance - The company recorded revenue of approximately HKD 343.1 million for the six months ended September 30, 2022, an increase of approximately HKD 79.6 million or 30.2% compared to HKD 263.5 million in the same period last year[10]. - Gross profit increased to approximately HKD 63.2 million, up about HKD 18.1 million or 40.1% from approximately HKD 45.1 million in the previous year, with an overall gross margin rising from 17.1% to 18.4%[13]. - The net profit for the period was approximately HKD 33.0 million, a turnaround from a net loss of HKD 65.7 million in the previous year, primarily due to increased demand from clients in the internet and data storage sectors[13]. - Revenue from continuing operations for the six months ended September 30, 2022, was HKD 343,073,000, an increase of 30.2% compared to HKD 263,453,000 for the same period in 2021[84]. - Gross profit for the same period was HKD 63,237,000, representing a 40.3% increase from HKD 45,069,000 in 2021[84]. - Profit before tax increased significantly to HKD 39,550,000, up 282.5% from HKD 10,339,000 in the previous year[84]. - The net profit attributable to owners of the company was HKD 32,953,000, compared to a loss of HKD 65,718,000 in the same period last year[87]. - Basic and diluted earnings per share from continuing and discontinued operations were HKD 5.49, a recovery from a loss of HKD 10.96 in the previous year[87]. Revenue Breakdown - Revenue by region showed that Southeast Asia accounted for approximately 45.0%, China 37.2%, Europe 11.6%, and North America 4.6% of total revenue[14]. - Revenue breakdown by region for the six months ended September 30, 2022: Southeast Asia HKD 154,412,000, China HKD 127,701,000, Europe HKD 39,721,000, North America HKD 15,837,000, and others HKD 5,402,000[135]. Costs and Expenses - Sales costs increased by approximately HKD 61.4 million or 28.1% to HKD 279.8 million, mainly due to the rise in revenue[18]. - General and administrative expenses increased from approximately HKD 30.7 million in the same period last year to about HKD 33.7 million, primarily due to higher employee and R&D costs, aligning with revenue growth[24]. - Financial expenses rose to approximately HKD 4.6 million during the reporting period, compared to about HKD 1.7 million in the previous year, mainly due to an increase in average bank borrowings and lease liabilities[25]. - Income tax expenses increased to approximately HKD 6.6 million from about HKD 2.2 million in the same period last year, primarily due to an increase in taxable profits[26]. - The cost of goods sold for the six months ended September 30, 2022, was 279,836,000 HKD, compared to 218,384,000 HKD in 2021, reflecting an increase of about 28%[149]. Cash Flow and Assets - Current assets totaled approximately HKD 596.9 million as of September 30, 2022, compared to HKD 567.2 million as of March 31, 2022, representing 76.1% and 73.0% of total assets, respectively[31]. - The company reported a cash and cash equivalents balance of HKD 57,910,000, down from HKD 82,841,000 as of March 31, 2022[90]. - For the six months ended September 30, 2022, the company reported a net cash outflow from operating activities of HKD (36,769) thousand, compared to a net cash inflow of HKD 5,990 thousand in the same period of 2021[102]. - The company experienced a significant decrease in cash and cash equivalents, with a net decrease of HKD (22,255) thousand, compared to a net decrease of HKD (113,659) thousand in the prior year[104]. - As of September 30, 2022, the company's cash and cash equivalents stood at HKD 57,910 thousand, down from HKD 128,573 thousand a year earlier[104]. - Total assets as of September 30, 2022, amounted to HKD 784,835,000, a slight increase from HKD 776,494,000 as of March 31, 2022[90]. - Total liabilities decreased to HKD 265,949,000 from HKD 271,831,000 as of March 31, 2022[93]. Shareholder Information - The total number of shares that can be issued under the new share option scheme is 60,000,000 shares, accounting for 10% of the company's issued share capital[57]. - The major shareholder, Massive Force Limited, holds 449,999,012 shares, representing 75% of the company's equity[63]. - The company did not recommend any interim dividend during the reporting period[67]. - No share options were granted, exercised, cancelled, lapsed, or unexercised during the reporting period[57]. Strategic Focus and Future Plans - The company plans to diversify and restructure its supply chain strategy to mitigate political risks arising from US-China trade disputes and aims to establish new production bases outside of China, particularly in Southeast Asia[47]. - The company is focused on developing new customers in response to increased demand from the data and internet sectors, driven by the digitalization of business processes since the pandemic[50]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[85]. - The company plans to continue its focus on precision metal stamping products, aiming for market expansion and potential new product development[107]. Compliance and Governance - The audit committee reviewed the interim financial information and confirmed compliance with the relevant standards and regulations[69]. - The company confirmed compliance with the corporate governance code during the reporting period[65]. - The company did not conduct any purchases, sales, or redemptions of its own securities during the reporting period[72]. - There were no acquisitions or disposals of subsidiaries or associated companies during the reporting period[70]. - The company has not reported any significant impacts from the application of revised Hong Kong Financial Reporting Standards during the period[115]. Employee Information - As of September 30, 2022, the total number of employees was 1,024, a decrease from 1,555 employees a year earlier, with ongoing training provided to enhance skills and product knowledge[51].
KFM金德(03816) - 2023 - 中期财报