Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 4,944.2 million, an increase of 18.4% compared to HKD 4,175.4 million in 2023[2] - Gross profit rose to HKD 558.4 million, reflecting a significant increase of 72.5% from HKD 323.7 million in the previous year[2] - Net profit attributable to shareholders surged to HKD 194.1 million, marking an impressive increase of 865.7% from HKD 20.1 million in 2023[2] - The gross profit margin improved to 11.3%, up 44.9% from 7.8% in the prior year[2] - The company reported a net profit margin of 3.9%, a substantial increase of 680.0% compared to 0.5% in the previous year[2] - Basic and diluted earnings per share for the period were HKD 0.500, compared to HKD 0.052 in the same period last year[4] - Basic and diluted earnings per share for the six months ended June 30, 2024, were based on a profit attributable to shareholders of HKD 194,060,000, a significant increase from HKD 20,102,000 for the same period in 2023[27] Revenue Breakdown - The Asia-Pacific region generated HKD 2,167,457,000 in revenue, up 50.7% from HKD 1,438,821,000 year-over-year[14] - Sales of graphics cards grew by 22.6% to HKD 4,088.7 million, driven by an increase in ODM/OEM orders, which rose by 87.4% to HKD 1,055.4 million[39] - Non-branded business revenue increased by 38.8% to HKD 1,849.9 million, primarily due to higher sales in the ODM/OEM graphics card segment[40] - Sales of self-branded graphics cards increased by 9.5% to HKD 3,033.3 million, supported by the popularity of new products using NVIDIA's "SUPER" series GPUs[39] - Brand business revenue grew from HKD 2,842.5 million in the first half of FY2023 to HKD 3,094.3 million in the first half of FY2024, an 8.9% increase[45] Expenses and Costs - Research and development expenses amounted to HKD 37,416,000 for the six months ended June 30, 2024, slightly down from HKD 39,340,000 in the previous year[22] - Sales and distribution expenses decreased by 10.1% from HKD 60.3 million in the first half of FY2023 to HKD 54.2 million in the first half of FY2024, primarily due to reduced advertising and marketing expenses[55] - Administrative expenses increased by 35.7% from HKD 210.3 million in the first half of FY2023 to HKD 285.4 million in the first half of FY2024, with employee costs rising by 45.8% to HKD 221.3 million[56] - Financing costs decreased by 49.4% from HKD 35.2 million in the first half of FY2023 to HKD 17.8 million in the first half of FY2024, mainly due to reduced bank borrowings[58] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 5,409.5 million, compared to HKD 5,295.4 million as of December 31, 2023[5] - Current assets increased to HKD 4,765.7 million, up from HKD 4,627.9 million at the end of 2023[5] - The company's net current assets stood at HKD 2,298.1 million, an increase from HKD 2,175.8 million in the previous year[6] - Total liabilities as of June 30, 2024, were reported at HKD 1,300,429,000, slightly up from HKD 1,280,048,000 as of December 31, 2023[32] - Total current liabilities rose by 0.6% to HKD 2,467.6 million, mainly due to bank borrowings and a decrease in product warranty and return provisions[68] Cash Flow and Financing - Net cash generated from operating activities for the first half of the fiscal year 2024 was HKD 558.5 million, significantly lower than the previous year's HKD 228.5 million pre-tax profit[73] - Net cash used in financing activities for the first half of fiscal year 2024 was HKD 817.6 million, primarily for repaying import loans of HKD 797.5 million[75] - The net cash to equity ratio decreased from 50.8% on December 31, 2023, to 41.8% on June 30, 2024, due to a reduction in cash and bank balances and an increase in total equity[78] Strategic Developments - The company is establishing a new global headquarters in Singapore and a manufacturing facility in Indonesia, expected to be operational by the end of 2024, as part of its strategy to expand into Southeast Asia[42] - The company has launched a new GPU server product line specifically for AI and machine learning applications to capitalize on rapid growth opportunities[42] - The group plans to apply for a listing on the Singapore Exchange and will establish a global headquarters in Singapore, along with a new manufacturing facility in Indonesia[84] Governance and Compliance - The company has complied with the corporate governance code, except for deviations regarding the separation of roles between the chairman and CEO, and the establishment of an internal audit function[90] - The audit committee, consisting of four independent non-executive directors, reviewed the group's unaudited interim results for the six months ending June 30, 2024[92]
栢能集团(01263) - 2024 - 中期业绩