Financial Performance - For the six months ended June 30, 2023, the company's revenue was approximately HKD 1,601,552,000, an increase of HKD 173,060,000 or 12.1% compared to HKD 1,428,492,000 for the same period in 2022[2] - The gross profit for the same period was approximately HKD 867,319,000, representing an increase of HKD 171,985,000 or 24.7%, with a gross margin of 54.2% compared to 48.7% in the previous year[2] - EBITDA for the six months ended June 30, 2023, was approximately HKD 369,754,000, an increase of HKD 153,825,000 or 71.2% from HKD 215,929,000 in the same period of 2022[2] - The net profit for the period was approximately HKD 210,276,000, an increase of HKD 109,833,000 or 109.3% compared to HKD 100,443,000 for the same period in 2022[2] - Profit before tax increased to HKD 274,958, a significant rise of 102.5% from HKD 135,395 in the previous year[7] - Total comprehensive income for the period was HKD 198,189, recovering from a loss of HKD 16,659 in the same period last year[8] - The company reported a profit attributable to equity holders of HKD 211,201,000 for the six months ended June 30, 2023, compared to HKD 99,851,000 for the same period in 2022, representing a significant increase of 111.1%[25] - The total tax expense for the period was HKD 64,682,000, significantly higher than HKD 34,952,000 in the previous year[23] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.06 per share for the six months ended June 30, 2023, up from HKD 0.037 for the same period in 2022[2] - The interim dividend declared for the six months ended June 30, 2023, is HKD 0.06 per share, up from HKD 0.037 per share in the same period last year, reflecting a 62.2% increase[28] - The company repurchased a total of 2,048,000 shares at a total cost of approximately HKD 5,523,000 (before expenses) during the six months ended June 30, 2023[93] - The repurchase of shares was executed under the authorization received at the annual general meetings held on May 24, 2022, and May 30, 2023, aimed at enhancing the net asset value per share and earnings per share for shareholders[93] Market and Operational Insights - The company is experiencing a steady and continuous increase in demand for its products, primarily driven by global digitalization trends, which are accelerating consolidation in the dental industry[1] - The number of digital solution cases produced in mainland China increased to approximately 373,985, a rise of 50.9% compared to 247,887 cases in the same period of 2022, driven by continued adoption of intraoral scanners by customers[5] - The company continues to focus on expanding its product offerings and market presence, particularly in the dental equipment sector[12] - The company aims to fully leverage future opportunities to further strengthen its fundamentals[1] - The company aims to establish a new business unit in Vietnam to serve mid to large dental clinic chains in the North American market[52] - The company continues to focus on digitalization trends in the dental industry to capture market share and enhance customer experience[50] Assets and Liabilities - Non-current assets as of June 30, 2023, totaled HKD 2,289,553, slightly up from HKD 2,273,309 at the end of 2022[9] - Current assets increased to HKD 1,408,230 from HKD 1,265,746 at the end of 2022, driven by higher trade receivables[9] - The company reported a net asset value of HKD 2,484,207, an increase from HKD 2,333,533 at the end of 2022[10] - The company's property, plant, and equipment value increased to HKD 656,109,000 as of June 30, 2023, from HKD 651,079,000 at the end of 2022, indicating a slight growth[29] - Goodwill increased to HKD 1,147,444,000 as of June 30, 2023, compared to HKD 1,132,420,000 at the end of 2022, showing a growth of 1.3%[30] - Trade receivables rose to HKD 615,708,000 as of June 30, 2023, from HKD 565,828,000 at the end of 2022, marking an increase of 8.8%[32] - Trade payables decreased to HKD 69,342,000 as of June 30, 2023, from HKD 75,598,000 at the end of 2022, reflecting a decline of 8.2%[34] - The company reported bank borrowings of HKD 647,404,000 as of June 30, 2023, compared to HKD 630,180,000 at the end of 2022, indicating an increase of 2.9%[36] Costs and Expenses - Selling and distribution expenses increased by about 6.0% to approximately HKD 201,369,000, accounting for about 12.6% of total group revenue[63] - Administrative expenses rose by approximately 3.6% to about HKD 376,054,000, representing about 23.5% of total group revenue[64] - The company’s financing costs rose to HKD 20,783, compared to HKD 8,895 in the previous year, indicating increased borrowing costs[7] - Financing costs increased by approximately 133.6% to about HKD 20,783,000, accounting for about 1.3% of total group revenue[66] Employee and Governance - The total employee cost for the six months ended June 30, 2023, was approximately HKD 725,358,000, compared to HKD 703,475,000 for the same period in 2022[88] - As of June 30, 2023, the company employed a total of 6,860 staff, an increase from 6,830 as of December 31, 2022[87] - The company has complied with the corporate governance code as per the Listing Rules during the six months ended June 30, 2023[95] - The audit committee, consisting of independent non-executive directors, reviewed the interim results for the six months ended June 30, 2023[96] Risks and Future Outlook - The company faces various business risks, including global economic fluctuations and geopolitical risks, which may adversely affect its financial condition and operating performance[80] - The company is optimistic about the long-term prospects in the Greater China market, driven by government procurement measures and digitalization trends[54] - The company aims to strengthen its global leadership position through strategic collaborations, acquisitions, and partnerships to expand its product offerings and distribution networks[58]
现代牙科(03600) - 2023 - 中期业绩