Financial Performance - Revenue for the six months ended 30 September 2023 was HK$552,266,000, a decrease of 20.8% compared to HK$697,224,000 for the same period in 2022[6]. - Gross profit before impairment was HK$74,811,000, down from HK$88,448,000, reflecting a decline of 15.4%[6]. - Operating profit for the period was HK$64,784,000, a significant recovery from an operating loss of HK$150,566,000 in the previous year[7]. - Profit attributable to equity holders of the Company was HK$36,725,000, compared to a loss of HK$155,607,000 in the same period last year[7]. - Other income and gains increased to HK$73,270,000 from HK$11,722,000, marking a growth of 524.5%[6]. - Total comprehensive loss attributable to equity holders of the Company was HK$7,292,000, a substantial improvement from a loss of HK$326,410,000 in the previous year[12]. - Basic and diluted earnings per share were HK8.37 cents, compared to a loss of HK35.45 cents per share in the prior period[12]. - The company recognized no impairment losses on properties held for sale during the current period, contrasting with HK$175,695,000 in the previous year[12]. - Finance costs increased to HK$8,813,000 from HK$4,590,000, reflecting a rise of 91.5%[7]. - The company reported a deferred tax credit of HK$4,491,000 related to asset revaluation, which was not present in the previous year[12]. Assets and Liabilities - Total assets decreased from HK$2,096,213,000 as of March 31, 2023, to HK$2,005,700,000 as of September 30, 2023, representing a decline of approximately 4.34%[15]. - Total equity attributable to equity holders decreased from HK$1,104,685,000 to HK$1,097,393,000, a reduction of about 0.66%[16]. - Current liabilities decreased from HK$836,697,000 to HK$786,401,000, reflecting a decrease of approximately 6.00%[16]. - Non-current liabilities decreased from HK$154,831,000 to HK$121,906,000, a decline of about 21.24%[16]. - Cash and cash equivalents decreased from HK$203,372,000 to HK$139,029,000, a reduction of approximately 31.65%[15]. - Accounts receivable increased from HK$210,742,000 to HK$247,869,000, an increase of about 17.59%[15]. - The total non-current assets decreased from HK$1,001,611,000 to HK$932,884,000, a decline of approximately 6.87%[15]. Cash Flow - Cash flows from operating activities showed a significant decline, with a net outflow of HK$468,000 compared to an inflow of HK$62,106,000 in the same period last year[20]. - The net cash outflow from investing activities was HK$1,462,000, a decrease from HK$21,518,000 in the previous year, indicating improved cash management[20]. - Financing activities resulted in a net cash outflow of HK$60,901,000, compared to HK$26,008,000 in the prior period, primarily due to higher repayments of bank borrowings[20]. - Cash and cash equivalents at the end of the period decreased to HK$139,029,000 from HK$265,022,000, reflecting a decrease of 47.5% year-over-year[20]. - The Group's total cash outflow for the six months ended 30 September 2023 was HK$62,831,000, contrasting with an increase of HK$14,580,000 in the same period last year[20]. Segment Performance - The electrical and electronic products segment includes the manufacture and sale of robotics, juvenile products, and healthcare products, which are key growth areas for the Group[36]. - The motors segment focuses on the development and sale of electric motor drives, aligning with market trends towards electrification[36]. - The real estate development segment remains a critical part of the Group's diversified business model, contributing to overall revenue stability[36]. - Revenue from electrical and electronic products was HK$231,320,000, down 25.6% from HK$310,919,000 in the previous year[53]. - Revenue from motors decreased by 16.9% to HK$319,956,000 from HK$384,987,000[53]. - The segment results showed a profit of HK$75,452,000, compared to a loss of HK$142,189,000 in the same period last year[44]. - The juvenile and baby care products sector is showing gradual signs of recovery, with demand steadily picking up and normalized inventory levels encouraging new orders[119]. - The healthcare sector is experiencing active inquiries for new model introductions, indicating growth potential despite a low revenue base[119]. Future Outlook - The Group anticipates that the application of new accounting standards will have no material impact on its financial results[34]. - Management continues to monitor segment performance closely to optimize resource allocation and enhance profitability[37]. - The Group plans to actively reach out to existing customers to secure orders and enhance client acquisition efforts, particularly in Malaysia[157]. - The Group will continue to focus on product development, particularly in EPB motors and new products in the juvenile, baby care, and healthcare sectors to drive margin enhancement[157]. - The Group anticipates a challenging second half of the year but expects gradual recovery in 2024, with real consumption spending projected to increase by 1.1% in 2024 and 2.0% in 2025 in the U.S.[156]. Shareholding and Corporate Governance - As of September 30, 2023, the total number of issued ordinary shares of the Company is 438,960,000[192]. - Mr. Cheng Chor Kit holds 283,254,000 shares, representing approximately 64.52% of the total shareholding[185]. - Mr. Liu Tat Luen holds 2,000,000 shares, representing approximately 0.45% of the total shareholding[185]. - The Company’s 2012 Share Option Scheme expired on August 19, 2022, but previously granted options remain valid and exercisable[200]. - Dr. Sun Kwai Yu resigned as an independent non-executive Director on August 28, 2023, and her share option lapsed[198].
广和通(00638) - 2024 - 中期财报