Financial Highlights
Corporate Information
Management Discussion and Analysis
Other Information
Report on Review of Interim
Financial Information
Condensed Consolidated Statement of
Financial Position
Condensed Consolidated Income
Statement
Condensed Consolidated Statement of
Comprehensive Income
Condensed Consolidated Statement of
Changes in Equity
Condensed Consolidated Statement of
Cash Flows
Notes to the Condensed Consolidated
Interim Financial Information
FINANCIAL HIGHLIGHTS
(Unaudited) | |||
Six months ended 30 September | |||
2022 | 2021 | Change | |
HK$'000 | HK$'000 | % | |
Operating results: | |||
Revenue | 2,860,238 | 2,773,518 | 3.1% |
Gross profit | 786,158 | 805,456 | -2.4% |
Gross profit margin | 27.5% | 29.0% | -1.5% |
Operating profit | 343,164 | 415,114 | -17.3% |
Operating profit margin | 12.0% | 15.0% | -3.0% |
Profit attributable to owners of the Company | 271,193 | 323,845 | -16.3% |
Net profit margin | 9.5% | 11.7% | -2.2% |
HK cents | HK cents | ||
Basic and diluted earnings per share | 19.7 | 23.7 | -16.9% |
(Unaudited) | (Audited) | ||
At 30 September | At 31 March | ||
2022 | 2022 | Change | |
HK$'000 | HK$'000 | % | |
Financial position: | |||
Total assets | 7,747,910 | 7,599,524 | 2.0% |
Net assets | 3,559,470 | 3,702,999 | -3.9% |
Net current assets | 1,278,139 | 1,343,572 | -4.9% |
Cash and cash equivalents | 610,977 | 576,790 | 5.9% |
Total borrowings | 1,479,108 | 1,088,637 | 35.9% |
L.K. Technology Holdings Limited
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CORPORATE INFORMATION
BOARD OF DIRECTORS
Executive Directors
Ms. Chong Siw Yin (Chairperson)
Mr. Liu Zhuo Ming (Chief Executive Officer) Mr. Tse Siu Sze
Independent Non-executive Directors
Dr. Low Seow Chay
Dr. Lui Ming Wah, SBS, JP
Mr. Tsang Yiu Keung, Paul
Mr. Look Andrew
COMPANY SECRETARY
Miss Chung Wing Man
AUTHORISED REPRESENTATIVES
Ms. Chong Siw Yin
Miss Chung Wing Man
AUDIT COMMITTEE
Mr. Tsang Yiu Keung, Paul
Dr. Lui Ming Wah, SBS, JP
Dr. Low Seow Chay
Mr. Look Andrew
NOMINATION COMMITTEE
Mr. Look Andrew
Dr. Low Seow Chay
Dr. Lui Ming Wah, SBS, JP
Mr. Tsang Yiu Keung, Paul
REMUNERATION COMMITTEE
Dr. Lui Ming Wah, SBS, JP
Mr. Tsang Yiu Keung, Paul
Dr. Low Seow Chay
Mr. Look Andrew
AUDITOR
PricewaterhouseCoopers
Certified Public Accountants
Registered Public Interest Entity Auditor
REGISTERED OFFICE
Cricket Square
Hutchins Drive, P.O. Box 2681
Grand Cayman, KY1-1111
Cayman Islands
PRINCIPAL PLACE OF BUSINESS IN
HONG KONG
Unit A, 8th Floor
Mai Wah Industrial Building 1-7 Wah Sing Street Kwai Chung
New Territories Hong Kong
HONG KONG BRANCH SHARE REGISTRAR AND TRANSFER OFFICE
Computershare Hong Kong Investor Services Limited
Shops 1712-1716, 17th Floor
Hopewell Centre
183 Queen's Road East
Wanchai
Hong Kong
PRINCIPAL BANKERS
China Construction Bank (Asia) Corporation Limited
Bank of China
Intesa Sanpaolo Spa
STOCK CODE
558
WEBSITE
www.lk.world
Interim Report 2022/23
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MANAGEMENT DISCUSSION AND ANALYSIS
L.K. Technology Holdings Limited
BUSINESS REVIEW
For the six months ended 30 September 2022 (the "Period under Review"), the Group recorded a revenue of HK$2,860,238,000, representing an increase of approximately 3.1% as compared to the same period last year. The profit attributable to owners of the Company was HK$271,193,000, representing a decrease of 16.3% as compared to the corresponding period last year.
T h e G r o u p ' s r e v e n u e f r o m t h e P R C m a r k e t w a s HK$2,395,488,000, representing an increase of 7.5% as compared to the same period last year.
Since 2022, China's alternative fuel vehicles have shown a good momentum of "double improvement" in both market size and development quality, and the scale of production and sales has reached a new high. According to the data provided by China Association of Automobile Manufacturers, from January to September 2022, the production and sales volume of alternative fuel vehicles saw a significant increase and reached 4.717 million and 4.567 million, respectively, representing an increase of 1.2 times and 1.1 times, respectively as compared to the same period last year. The rapid development of alternative fuel vehicles has strongly promoted the demand for die-casting machines. China's alternative fuel vehicle industry has responded enthusiastically to advanced die-casting solutions with a strong market demand. The development of alternative fuel vehicles has driven the industry trend, with alternative fuel vehicles-related large die-casting machines growing over 40%. However, due to the decline in China's exports as a result of the global economic impact and the continued weak consumption due to the recurring pandemic in the China, the market demand for plastic injection moulding machines has declined significantly and the market competition is intense.
The Group's revenue from the overseas market amounted to HK$464,750,000, representing a year-on-year decrease of 14.6%. Due to severe global inflation, the rate and pace of interest rate hikes in major economies have exceeded market expectations since 2022, reversing the extremely loose global liquidity situation since the outbreak of the epidemic, restraining the global economic recovery, and the demand for industrial equipment in major economies has declined significantly.
FINANCIAL REVIEW
During the Period under Review, the overall gross profit margin of the business of the Group was 27.5%, representing a decrease of 1.5% as compared to the same period last year, which was mainly due to high raw material prices and insufficient utilization of production capacity of plastic injection moulding machine.
S e l l i n g a n d d i s t r i b u t i o n e x p e n s e s a m o u n t e d t o HK$268,311,000, accounting for 9.4% of revenue, representing an increase of 0.9% as compared to the same period last year, mainly due to the increase in labor costs.
General and administrative expenses amounted to HK$241,116,000, accounting for 8.4% of revenue, which represent an increase of 1.1% as compared to the same period last year, mainly due to the increase in labor costs.
Net finance costs amounted to HK$18,913,000, representing an increase of 25.9% as compared to the same period last year, which was mainly due to an increase in interest expense stemming from an increase in bank loans.
PROSPECTS
China's alternative fuel vehicles are currently developing vigorously, and the scale of production and sales in 2022 has reached a new high. China's local brands continue to innovate in technology and achieve new results while developing internationally, and the vehicle exports to overseas markets increased significantly as compared to the same period last year. China's alternative fuel vehicles have entered a new stage of accelerated development, ushering in new development opportunities.
At present, the Group continues to make contributions to the innovation of the alternative fuel vehicle manufacturing process. With the rapid development of the global alternative fuel vehicle industry, the Group has strong level of orders on hand currently, and its production is intense yet orderly. Unless unforeseen circumstances arise, the Group is optimistic about the sustainable development of its business operation.
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L.K. Technology Holdings Limited published this content on 09 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 December 2022 12:14:02 UTC.