Revenue and Profit - Revenue for the six months ended June 30, 2023, was HKD 16,960,784 thousand, a decrease of 5.3% compared to HKD 17,906,448 thousand in the same period of 2022[7] - Profit attributable to owners of the company for the period was HKD 164,478 thousand, down 6.1% from HKD 175,190 thousand in the prior year[7] - Basic and diluted earnings per share were HKD 6.40, compared to HKD 6.82 in the same period last year[7] - The group's revenue for the six months ended June 30, 2023, was approximately HKD 16,960.78 million, a decrease of 5.28% compared to the same period last year[89] - The group's profit for the same period was approximately HKD 164.48 million, down 6.11% year-on-year, primarily due to fluctuations in the RMB exchange rate[92] Gross Profit and Margins - Gross profit increased to HKD 591,937 thousand, up 6.9% from HKD 553,499 thousand year-on-year[7] - The overall gross profit margin for the first half of 2023 was 3.49%, an increase of approximately 0.40 percentage points year-on-year[84] - The group reported a gross profit of HKD 591,937 for the six months ended June 30, 2023, compared to HKD 554,499 in the same period of 2022[36] Expenses - Research and development expenses decreased to HKD 13,789 thousand from HKD 17,939 thousand, reflecting a reduction of 23.8%[7] - Administrative and research expenses decreased compared to the same period last year, while distribution and sales expenses increased due to higher labor costs and market expenses[84] - The cost of goods sold was HKD 16,368,847, down from HKD 17,352,949 in the same period last year[36] Cash Flow and Financial Position - Net cash used in operating activities was HKD (2,530,034) thousand, compared to HKD (2,479,323) thousand in the previous year[16] - Net cash generated from investing activities was HKD 1,627,423 thousand, significantly up from HKD 843,894 thousand year-on-year[16] - Cash and cash equivalents at the end of the period increased to HKD 936,150 thousand from HKD 90,000 thousand in the previous year[16] - As of June 30, 2023, the total interest-bearing borrowings amounted to HKD 2,320.89 million, while cash and bank balances were HKD 4,439.54 million[42] - The company's net asset liability ratio was 4.42 times as of June 30, 2023[42] Revenue Segmentation - Revenue from ICT consumer products was HKD 8,052,248, down 15.2% from HKD 9,504,415 year-on-year[24] - Revenue from ICT enterprise products increased to HKD 5,550,778, up 8.1% from HKD 5,138,700 in the previous year[24] - The ICT consumer products distribution segment's revenue decreased by 15.28% to HKD 8,052.25 million, with profit declining by 6.76% to HKD 159.62 million[85] - The ICT enterprise products distribution segment's revenue increased by 8.02% to HKD 5,550.78 million, with profit rising by 5.27% to HKD 191.63 million[85] - Other businesses saw a revenue increase of 2.89% to HKD 3,357.76 million, with profit up 36.45% to HKD 35.54 million, driven by smartphone sales growth[85] Shareholder Information - Major shareholder Sichuan Changhong holds 874,650,000 shares, representing 60.13% of the ordinary shares[122] - The board of directors did not recommend any dividend distribution for the six months ended June 30, 2023[103] - The company reported a dividend of HKD 0.05 per share, consistent with the previous year[134] - The company has not granted any share options to directors or their associates during the six months ending June 30, 2023[121] Management and Corporate Governance - The company has strengthened its basic management and enhanced its digital system construction and business process optimization during the reporting period[84] - The company established an audit committee to review and monitor financial reporting procedures and internal control systems[109] - The audit committee consists of three members, including Mr. Chen Ming Shen as the chairman[109] Employee Information - The total number of employees as of June 30, 2023, was 1,408, an increase from 1,316 employees a year earlier[102] Taxation - The tax rate for the subsidiary operating in China was 25% for the six months ended June 30, 2023, compared to 15% for the same period in 2022[24] - The company's subsidiaries in the Philippines benefit from a reduced corporate tax rate of 15% under the CREATE Act[140] Trade Receivables and Payables - The company's trade receivables amounted to HKD 164,478,000 as of June 30, 2023[131] - Trade payables and notes payable amounted to 8,214,901 thousand HKD as of June 30, 2023, down from 10,103,065 thousand HKD as of December 31, 2022[145] - The aging analysis of trade receivables showed a total of 4,224,190 thousand HKD as of June 30, 2023[155] - The credit period for trade customers ranges from 30 to 180 days, with annual reviews of credit limits[154]
长虹佳华(03991) - 2023 - 中期财报