中电华大科技(00085) - 2024 - 中期财报

Financial Performance - Revenue for the six months ended June 30, 2024, was HK$1,360,635,000, a decrease of 24.7$1,807,007,000 in the same period of 2023[7] - Gross profit for the period was HK$567,368,000, down 32.4$840,667,000 year-on-year[7] - Operating profit decreased to HK$354,569,000, representing a decline of 44.4$636,615,000 in the previous year[7] - Profit for the period attributable to owners of the Company was HK$309,545,000, a significant drop of 44.0$552,885,000 in 2023[7] - Basic earnings per share decreased to 15.25 HK cents, down 44.0% from 27.24 HK cents in the same period last year[7] - Total comprehensive income for the period was HK$293,128,000, a decrease of 38.6$477,164,000 in 2023[9] Expenses and Costs - Selling and marketing costs were HK$26,815,000, slightly up from HK$26,116,000 in 2023[7] - Administrative expenses rose to HK$238,040,000, compared to HK$207,794,000 in the same period last year[7] - The company reported finance costs of HK$19,530,000, down from HK$21,736,000 in the previous year[7] - Research and development costs for the six months ended June 30, 2024, amounted to HK$183,250,000, an increase of 12.5$162,991,000 in 2023[38] - Employee costs within R&D were HK$108,473,000, up from HK$97,079,000 in 2023, while material costs rose to HK$36,413,000 from HK$24,458,000[39] Assets and Liabilities - Total assets increased to HK$4,458,193, up from HK$4,326,786 as of December 31, 2023, representing a growth of 3.05%[11] - Total equity attributable to owners of the Company rose to HK$2,225,212, up from HK$2,146,221, reflecting an increase of 3.7%[13] - Non-current liabilities decreased significantly to HK$170,637 from HK$425,914, a reduction of 60.0%[13] - Trade and other receivables increased to HK$738,861, compared to HK$574,285 as of June 30, 2023, indicating a growth of 28.7%[11] - Inventories decreased to HK$712,178, down from HK$848,621, a decline of 16.0%[11] Cash Flow and Financial Position - Cash and cash equivalents at the end of the period reached HK$1,375,327, compared to HK$1,216,178 for the same period in 2023, marking an increase of 13.1%[19] - Net cash flows generated from operating activities were HK$146,006, a decrease of 62.3$387,497 in the previous year[17] - Cash flows from investing activities generated a net cash flow of HK$134,059, a significant improvement from a net outflow of HK$290,044 in the previous year[17] - The Group's net current assets decreased to HK$1,199.5 million as of June 30, 2024, from HK$1,459.9 million as of December 31, 2023, reflecting a decline of approximately 17.8%[86] Market and Operational Insights - Nearly 100% of the Group's revenue is attributed to the Mainland China market, indicating a strong regional focus[32] - The Group's non-current assets are over 90% located in Mainland China, emphasizing its operational concentration in this market[32] - The global demand for smart cards and secure element chips is expected to continue in a downward cycle, with intensified competition and declining product prices[83] Governance and Compliance - The Company did not purchase, sell, or redeem any of its shares during the six months ended 30 June 2024[95] - The Company has complied with all applicable code provisions in the Corporate Governance Code throughout the six months ended 30 June 2024, except for code provision C.1.6[96] - An independent non-executive director was unable to attend the special general meeting and the annual general meeting held on 28 June 2024 due to other engagements[97] Shareholder Information - China Electronics Corporation holds 40.03% of the shares in the Company, while (BVI) Holdings Company Limited holds 59.42%[93] - Huada Semiconductor has a 100% equity interest in (BVI) Holdings Company, which is deemed to hold 812,500,000 shares of the Company[93] - China Electronics Limited holds 58.07% equity interest in Huada Semiconductor, and CEC holds 81.66% equity interest in China Electronics Limited[93]