【For immediate release】
(Stock Code: 1305.HK)
Wai Chi Holdings Announces Interim Results
Approximately 17.3% Increase in Overall Gross Profit
Order Volume for Automobile Display Backlights Remained High
(Hong Kong, 23 August 2024)-Wai Chi Holdings Company Limited ("Wai Chi Holdings", together with its subsidiaries collectively known as the "Group") (Stock code: 1305.HK) is pleased to announce its interim results for the six months ended 30 June 2024 ("the period under review"). The total revenue for the period under review was approximately HK$1,166,073,000, representing an increase of approximately 36.0% compared to approximately HK$857,538,000 for the corresponding period in 2023, mainly due to the increased revenue from its core business. Revenue from the core sector of LED business was approximately HK$948,630,000, representing an increase of approximately 26.5% compared to that of the corresponding period in 2023. For the period under review, the Group's overall gross profit was approximately HK$132,255,000, which increased by approximately 17.3% from approximately HK$112,740,000 in the corresponding period in 2023. The overall gross profit margin was approximately 11.3%, having decreased by approximately 1.8 percentage points from approximately 13.1% in the corresponding period in 2023. Gross profit from the sales of the Group's LED segments of backlight products and lighting services was approximately HK$128,438,000, representing an increase of approximately 16.6% from approximately HK$110,151,000 for the corresponding period in 2023. The gross profit margin for these two segments decreased by approximately 1.2 percentage points from approximately 14.7% in the first half of 2023 to approximately 13.5% in the period under review.
Revenue from the sales of LED backlight products was approximately HK$899,515,000 (six months ended 30 June 2023: approximately HK$698,617,000), representing an increase of approximately 28.8%, mainly due to the increased sales from automobile onboard display backlights. Benefiting from the thriving development of the automobile onboard display technology and the increasing popularity of new energy vehicles, the order volume for the Group's automobile display backlight products has consistently remained at a high level.
Revenue from the sales of LED lighting products was approximately HK$49,115,000 (six months ended 30 June 2023: approximately HK$51,190,000), representing a slight decrease of approximately 4.1%.
The revenue from the semiconductor memory chip business was approximately
HK$217,443,000, presenting an increase of 101.8% compared to the approximately HK$107,731,000 from the corresponding period last year, driven by a surge in order volume during a market uptrend. However, this growth is subject to significant fluctuations and may not be sustainable.
The Group's R&D centre is located at its production plant in Huizhou, providing strong technical and R&D support for its business. The Group has achieved a number of technological advancements and breakthroughs over the years, and, as at 30 June 2024, the Group held 282 patents registered in the PRC.
Mr. Chen Chung Po, Chairman, Executive Director and CEO of the Group said, "The LED backlight industry is currently at a pivotal juncture where opportunities are as abundant as the challenges we face. The booming sales of new energy vehicles have significantly driven up the demand for LED backlight products, while the market's competitive nature imposes pressure on profit margins and requires constant adaptation. In the first half of 2024, our focus on innovation, quality, and strategies enabled us to achieve a 36.0% revenue increase. Moving forward, we are strategically planning to expand our production capabilities and explore potential collaborations, ensuring that we continue to capitalise on these opportunities and deliver sustained value to our shareholders."
About Wai Chi Holdings Company Limited (Stock Code: 1305.HK)
Wai Chi Holdings Company Limited is a top high-quality LED products manufacturer established in Hong Kong over 30 years ago with comprehensive production facilities in Shenzhen and Huizhou in the Guangdong province. The Group's operations cover research and development ("R&D"), design, manufacturing, sales, etc. It was recognised as the world's largest manufacturer of LED backlights for automobile onboard displays, in terms of product shipment. It also offers comprehensive lighting energy management solutions for sizeable business corporations and public utilities. The Group recently expanded its business into sourcing semiconductor memory chips to capture the growing demand and help facilitate the development of the industry. The Group was listed on the Main Board of The Stock Exchange of Hong Kong Limited in November 2014 and its stock code is 1305.HK.
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