Financial Performance - For the six months ended June 30, 2023, the company reported revenue of HKD 4,175.4 million, a decrease of 36.8% compared to HKD 6,607.8 million in the same period of 2022[5]. - Gross profit for the same period was HKD 323.7 million, down 76.3% from HKD 1,365.8 million, resulting in a gross margin of 7.8%, a decline of 62.3% year-over-year[5]. - The profit attributable to the company's owners was HKD 20.1 million, a significant drop of 97.5% from HKD 802.1 million, leading to a net profit margin of 0.5%, down 95.9% from the previous year[5]. - Revenue for the six months ended June 30, 2023, was HKD 4,175,441, a decrease of 37% compared to HKD 6,607,825 for the same period in 2022[23]. - The net profit for the period was HKD 19,175, a sharp decrease from HKD 801,876 in the previous year, indicating a decline of approximately 97.6%[24]. - Basic earnings per share for the six months ended June 30, 2023, was HKD 0.052, compared to HKD 2.070 in 2022, representing a decrease of 97.5%[24]. - The total comprehensive income for the period was HKD 15,662, a significant drop from HKD 794,720 in the same period last year[23]. Revenue Breakdown - Revenue from graphics cards was HKD 3,333.9 million, a decrease of 42.4% from HKD 5,781.5 million in the previous year[21]. - Brand business revenue was HKD 2,842.6 million, down from HKD 4,450.1 million, while non-brand business revenue was HKD 1,332.9 million[22]. - Revenue from the Asia-Pacific region decreased to HKD 1,438,821,000 in 2023 from HKD 2,424,655,000 in 2022, representing a decline of 40.7%[50]. - Revenue from the NALA region decreased by 54.7% to HKD 638.0 million from HKD 1,409.6 million, primarily due to declining sales in the U.S. and currency depreciation in Latin America[76]. - Revenue in China for the first half of 2023 was HKD 939.3 million, a decrease of HKD 241.8 million or 20.5% compared to HKD 1,181.1 million in the first half of 2022, attributed to slow economic recovery and RMB depreciation[89]. - ODM/OEM revenue dropped by 38.2% to HKD 1,332.9 million from HKD 2,157.7 million year-on-year, primarily due to geopolitical and economic instability affecting consumer spending[74]. Cost and Expenses - The cost of sales for the six months ended June 30, 2023, was HKD 3,851,689,000, down from HKD 5,242,009,000 in 2022, reflecting a decrease of 26.5%[59]. - Material costs as a percentage of sales increased from 77.3% in the first half of 2022 to 89.3% in the first half of 2023, an increase of 12.0%[115]. - Operating expenses decreased by 14.3% from HKD 358.2 million in the first half of 2022 to HKD 306.8 million in the first half of 2023[115]. - Administrative expenses decreased by 29.9% from HKD 300.0 million in the first half of 2022 to HKD 210.3 million in the first half of 2023[116]. - Research and development expenses for the period were HKD 39,340,000, an increase from HKD 29,016,000 in the previous year, indicating a rise of 35.7%[59]. Assets and Liabilities - Non-current assets, including property, plant, and equipment, totaled HKD 585.6 million as of June 30, 2023, compared to HKD 596.4 million at the end of 2022[8]. - Current assets decreased to HKD 4,346.4 million from HKD 5,421.8 million, with inventory dropping to HKD 1,152.1 million from HKD 1,832.0 million[8]. - Total assets were reported at HKD 5,054.5 million, down from HKD 6,155.4 million at the end of 2022[9]. - Trade receivables decreased by HKD 423.0 million, from HKD 1,184.7 million as of December 31, 2022, to HKD 761.7 million as of June 30, 2023, a decline of 35.7% consistent with the drop in sales[155]. - Trade payables amounted to HKD 798.621 million as of June 30, 2023, down from HKD 965.382 million at the end of 2022[81]. Dividends and Shareholder Returns - The company declared a special dividend of HKD 0.25 per share for the year 2022, compared to HKD 0 for the previous year[44]. - The company plans to pay an interim dividend of HKD 0.10 per share for the six months ended June 30, 2023, compared to HKD 0.80 per share in 2022, totaling HKD 38,788,000 versus HKD 310,147,000 in the prior year[63]. - The board proposed an interim dividend of HKD 0.10 per share, totaling an estimated HKD 38.8 million, reflecting a strong cash position[132]. Inventory and Risk Management - The company adopted a more conservative approach to reduce inventory risks associated with purchasing GPUs, particularly from the previous generation product line[88]. - The group recorded a profit attributable to owners of HKD 20.1 million for the first half of 2023, a significant decrease of HKD 782 million or 97.5% from HKD 802.1 million in the same period of 2022[131]. - The company is tightening inventory control and reducing procurement, especially of older generation GPUs, to mitigate potential inventory risks[93]. - The company's sales return provision decreased from HKD 83.8 million as of December 31, 2022, to HKD 61.4 million as of June 30, 2023, representing a reduction of 26.7% due to declining sales[153]. Financing and Costs - The company reported a financing cost of HKD 35,163 for the current period, significantly higher than HKD 9,387 in the previous year[23]. - Financing costs increased significantly to HKD 35,163,000 in 2023 from HKD 9,387,000 in 2022, marking a rise of 274.5%[58]. - Income tax expense decreased by 93.4% from HKD 160.2 million in the first half of 2022 to HKD 10.5 million in the first half of 2023[118]. Employment and Corporate Governance - The company had 2,327 employees as of June 30, 2023, down from 2,714 employees as of December 31, 2022[158]. - The company has engaged an external auditor to assess its risk management and internal control systems, as it has not established an internal audit function[146]. - The board believes that combining the roles of Chairman and CEO can provide strong leadership and decisive decision-making in a competitive global business environment[168].
栢能集团(01263) - 2023 - 中期业绩