Financial Performance - For the six months ended September 30, 2020, the company reported revenue of HKD 549,021,000, a decrease of 7.1% compared to HKD 590,957,000 in the same period of 2019[3] - The gross profit for the same period was HKD 121,019,000, slightly up from HKD 120,116,000 year-on-year, resulting in a gross margin of 22.0%[3] - Operating profit significantly increased to HKD 28,859,000 from HKD 1,327,000 in the previous year, indicating a substantial recovery in operational performance[3] - The net profit for the period was HKD 19,875,000, compared to a loss of HKD 7,731,000 in the same period last year, marking a turnaround in profitability[3] - The total comprehensive income for the period was HKD 52,896,000, compared to a loss of HKD 27,364,000 in the previous year, reflecting improved financial health[8] - The company reported a profit of HKD 20,474,000 for the six months ended September 30, 2020, compared to a loss of HKD 6,107,000 for the same period in 2019, indicating a significant turnaround[18] - Total comprehensive income for the six months ended September 30, 2020, was HKD 52,896,000, compared to a total comprehensive loss of HKD 27,364,000 in the previous year, marking a substantial improvement[18] Assets and Liabilities - Non-current assets increased to HKD 373,896,000 from HKD 345,242,000, driven by growth in investment properties[9] - Current assets rose to HKD 638,905,000, up from HKD 530,983,000, with significant increases in accounts receivable and inventory[9] - The company's total equity increased to HKD 714,616,000 from HKD 679,855,000, indicating a stronger balance sheet[10] - Total assets as of September 30, 2020, amounted to HKD 1,012,801,000, an increase of 15.5% from HKD 876,225,000 as of March 31, 2020[46] - Total liabilities increased to HKD 298,185,000 as of September 30, 2020, compared to HKD 196,370,000 as of March 31, 2020, reflecting a rise of 51.8%[50] Revenue Breakdown - Revenue from toy sales for the six months ended September 30, 2020, was HKD 428,309,000, a decrease of 3.77% from HKD 445,144,000 in 2019[32] - Revenue from computer products decreased by 30.3% to HKD 36,157,000 in 2020 from HKD 51,925,000 in 2019[32] - The segment revenue from toys was HKD 428,309,000, accounting for 77.8% of total reported segment revenue[36] - The segment loss for computer products was HKD 4,569,000, indicating challenges in this category[36] - The toy division's revenue decreased by 4% to HKD 428 million, while operating profit increased from HKD 33.8 million to HKD 37.7 million due to improved operational efficiency[79] - The computer products division's revenue fell by 30% to HKD 36 million, with operating losses reduced from HKD 12.6 million to HKD 4.6 million through strict cost control[80] - The household products division's revenue decreased by 15% to HKD 27 million, but operating profit improved to HKD 1.8 million from a loss of HKD 3.6 million in the previous year[80] - The watch division's revenue declined by 7% to HKD 57 million, with operating losses increasing to HKD 3.2 million from HKD 0.9 million in the previous year[80] Dividends and Shareholder Information - The company declared dividends payable to shareholders amounting to HKD 31,041,000, compared to HKD 18,135,000 in the previous period[10] - The interim dividend declared for the period ending September 30, 2020, is HKD 0.03 per share, totaling HKD 18,000,000, an increase from HKD 12,000,000 in 2019[89] - The number of shares held by Dr. Zhang Zengji is 106,489,893, representing 17.62% of the issued shares[91] - Major shareholder Ms. Wu Yaozhi holds 106,489,893 shares, representing 17.62% of the issued shares[103] - The total equity interests of Ms. Zhang Qun and Mr. Tang Shijing are 64,104,057 shares, representing 10.60% each of the total shares[103] Employee and Governance - The total employee count as of September 30, 2020, was 3,469 in Mainland China, 151 in Hong Kong, and 41 in Europe, showing a decrease from 3,937, 157, and 53 respectively in 2019[108] - Total employee costs for the review period amounted to HKD 189,724,000, down from HKD 222,693,000 in 2019, indicating a reduction of approximately 15%[108] - The company has ensured competitive employee compensation based on performance and industry practices[108] - The company has complied with the Corporate Governance Code, with some deviations regarding the appointment of independent non-executive directors[114] - The audit committee consists of three independent non-executive directors, ensuring regular meetings with senior management and external auditors to discuss audit matters[111] Future Outlook - The company plans to continue focusing on market expansion and new product development to drive future growth[3] - The group expressed concerns about the performance in the second half of the fiscal year due to the impact of COVID-19 and a 13% decline in revenue in October 2020 compared to the same month in 2019[82]

Financial Performance - For the fiscal year ending March 31, 2020, the company's revenue increased by 6% to HKD 1,012,000,000 from HKD 952,000,000 in the previous year[12]. - The net profit attributable to shareholders was HKD 8,800,000, a significant recovery from a net loss of HKD 26,200,000 in the prior year[12]. - Total revenue for the year ended March 31, 2020, was HKD 1,011,870,000, representing a 6.2% increase from HKD 952,465,000 in 2019[185]. - Gross profit for the same period was HKD 211,799,000, up from HKD 140,264,000, indicating a significant improvement in profitability[185]. - The company reported a net profit of HKD 7,376,000 for the year, a recovery from a loss of HKD 28,129,000 in the previous year[185]. - Total comprehensive income for the year was HKD 7,606,000, compared to a loss of HKD 24,346,000 in the prior year[189]. - The company declared a dividend of HKD 12,090,000 for the current year, which is a decrease from HKD 18,135,000 in the previous year[200]. Revenue by Division - The toy division saw a revenue surge of 29%, reaching HKD 709,000,000, compared to HKD 548,000,000 the previous year[13]. - The computer products division experienced a 37% decline in revenue, dropping to HKD 109,000,000 due to decreased sales of smart connected devices amid trade uncertainties[14]. - The household products division's revenue fell by 17% to HKD 66,000,000, with an operating loss reduced from HKD 18,700,000 to HKD 9,500,000[15]. - The watch division turned a profit with an operating income of HKD 3,900,000, despite a 16% drop in revenue to HKD 129,000,000[16]. Financial Position - The total assets of the company as of March 31, 2020, were HKD 876,225,000, down from HKD 954,942,000 the previous year[8]. - The total liabilities decreased to HKD 196,370,000 from HKD 236,503,000, indicating improved financial stability[8]. - The company's total liabilities decreased from HKD 214,627,000 to HKD 173,460,000, indicating improved financial stability[193]. - The company's net asset value decreased to HKD 679,855,000 from HKD 718,439,000, reflecting a reduction of about 5.4%[196]. - The total equity attributable to shareholders was HKD 672,436,000, down from HKD 708,751,000, representing a decline of approximately 5.1%[196]. Cash and Dividends - Cash reserves increased to HKD 191,000,000 from HKD 187,000,000, reflecting a stable liquidity position[20]. - The company declared a dividend of HKD 30,225,000, up from HKD 18,135,000 in the previous year, with earnings per share improving to HKD 1.46 from a loss of HKD 4.33[7]. - The total proposed final dividend is HKD 18.1 million, with a total annual dividend of HKD 0.05 per share, resulting in a return rate of 7.4%[30][31]. Shareholding and Management - Dr. Zhang Zengji holds 106,489,893 shares, representing 17.62% of the issued shares[67]. - Mr. Robert Dorfman owns 51,471,000 shares, accounting for 8.51% of the issued shares[67]. - The company has a share option plan in place to incentivize eligible participants to enhance performance and efficiency[73]. - The board of directors consists of 3 executive directors and 3 independent non-executive directors, with independent directors accounting for more than one-third of the board[135]. Environmental and Social Responsibility - The group aims to reduce environmental impact and has set annual reduction targets for resource consumption[108]. - The company has identified three key environmental, social, and governance issues: environment, employment and labor practices, and operational practices[106]. - Charitable donations for the fiscal year amounted to HKD 137,000, an increase from HKD 25,000 in the previous year[51]. - The company encourages employees to participate in charitable activities to support the community[128]. Audit and Compliance - The independent auditor's report confirms that the consolidated financial statements reflect the group's financial position as of March 31, 2020, in accordance with Hong Kong Financial Reporting Standards[163]. - The audit committee held three meetings during the fiscal year to review the accounting principles adopted by the group and discuss audit, risk management, internal control, and financial reporting matters, including the review of interim and annual performance[147]. - The company has engaged an independent professional firm to annually review its internal control and risk management systems, which are deemed effective and sufficient by the board[155]. - The board is responsible for maintaining an effective internal control and risk management system, ensuring adequate resources, staff qualifications, and training for financial reporting functions[154].

Financial Performance - Revenue for the six months ended September 30, 2019, was HKD 590,957,000, an increase of 12.3% compared to HKD 526,133,000 for the same period in 2018[4]. - Gross profit for the same period was HKD 120,116,000, representing a gross margin of 20.3% compared to 13.1% in 2018[4]. - The net loss for the six months ended September 30, 2019, was HKD 7,731,000, a significant improvement from a net loss of HKD 43,706,000 in the previous year[6]. - Basic and diluted loss per share for the period was HKD 1.01, compared to HKD 6.90 in the same period last year[6]. - The company reported a total comprehensive loss of HKD 25,607,000 for the six months ended September 30, 2019, compared to a total comprehensive loss of HKD 27,364,000 for the same period in 2018[19]. - Reported segment profit was HKD 13,015,000, a significant improvement from a loss of HKD 27,486,000 in the previous year[71]. - The group recorded a loss attributable to shareholders of HKD 6.1 million, significantly reduced from a loss of HKD 41.7 million in the previous year[116]. Revenue Breakdown - For the six months ended September 30, 2019, revenue from toys was HKD 445,144,000, an increase from HKD 310,923,000 in 2018, representing a growth of approximately 43%[59]. - Revenue from computer products decreased to HKD 51,925,000 from HKD 108,497,000, a decline of about 52%[59]. - The group reported a decrease in revenue from household products to HKD 31,957,000 from HKD 36,650,000, a decline of about 13%[59]. - Revenue from North America was HKD 323,037,000, an increase from HKD 293,796,000 in 2018, showing a growth of approximately 10%[59]. - The toy division's revenue increased by 43% to HKD 445 million, driven by strong sales of toys related to several popular movies[116]. - The computer products division experienced a 52% decline in revenue, dropping to HKD 52 million, with smart connected device sales down 58% to HKD 21 million[117]. - The household goods division's revenue decreased by 13% to HKD 32 million, but the operating loss was reduced from HKD 15.1 million to HKD 3.6 million due to cost savings[117]. - The watch division's revenue fell by 11% to HKD 62 million, with operating losses reduced from HKD 13.2 million to HKD 0.9 million through cost control measures[117]. Assets and Liabilities - Total assets as of September 30, 2019, were HKD 636,526,000, an increase from HKD 573,229,000 as of March 31, 2019[12]. - Current liabilities increased to HKD 296,749,000 from HKD 214,627,000, indicating a rise in financial obligations[14]. - The group’s total assets as of September 30, 2019, were HKD 993,797,000, compared to HKD 954,942,000 at the end of March 2019, showing a growth of approximately 4.1%[74]. - The total liabilities, including accounts payable and other payables, amounted to HKD 222,729,000 as of September 30, 2019, compared to HKD 158,291,000 as of March 31, 2019, showing an increase in obligations[94]. - The group’s non-current liabilities increased to HKD 27,433,000, reflecting an increase in lease liabilities[50]. - The group's debt-to-asset ratio as of September 30, 2019, was 32%, up from 25% on March 31, 2019[124]. Cash Flow and Investments - Cash used in operating activities for the six months ended September 30, 2019, was HKD 19,652,000, an improvement from HKD 39,262,000 in the previous year[26]. - The net cash generated from investing activities was HKD 672,000 for the six months ended September 30, 2019, compared to HKD 85,398,000 in the same period of 2018[26]. - The company’s cash and cash equivalents decreased to HKD 156,813,000 from HKD 186,606,000, reflecting cash flow challenges[12]. - Total cash and cash equivalents as of September 30, 2019, amounted to HKD 156,813,000, an increase from HKD 118,845,000 as of the same date in 2018[26]. - As of September 30, 2019, the group held cash reserves of HKD 158 million, down from HKD 187 million as of March 31, 2019[122]. Cost Management and Efficiency - The company reported a decrease in administrative expenses to HKD 105,742,000 from HKD 112,369,000 year-over-year[4]. - The company plans to continue focusing on operational efficiency and cost management to improve profitability in the future[4]. - The company reported a decrease in employee costs to HKD 222,693,000 from HKD 200,941,000, reflecting a rise of about 10.8%[75]. - The company’s financing costs decreased slightly to HKD 1,396,000 from HKD 1,296,000, indicating a marginal increase of about 7.7%[75]. Shareholder Information - The company declared dividends of HKD 18,135,000 for the previous fiscal year, reflecting a commitment to returning value to shareholders[19]. - The company declared an interim dividend of HKD 12,090,000, equivalent to HKD 0.02 per share, compared to no dividend in the previous year[80]. - Major shareholder Ms. Wu Yaozhi holds 103,854,893 shares, representing 17.18% of the issued shares[151]. - Major shareholder Ms. Zhang Yi has a total of 69,504,057 shares, accounting for 11.50% of the issued shares[151]. - Major shareholder Mr. Zhang Qin holds 64,104,057 shares, which is 10.60% of the issued shares[151]. Compliance and Governance - The company has adopted a set of conduct rules for directors regarding securities trading, which are not less stringent than the standard code[169]. - The audit committee consists of three independent non-executive directors and meets regularly to discuss audit matters[163]. - The company has complied with the Corporate Governance Code during the six-month period ending September 30, 2019, except for the specific term appointment of independent non-executive directors[168].

Financial Performance - The company's revenue for the fiscal year ended March 31, 2019, was HKD 952 million, a decrease of 25% from HKD 1,272 million in the previous year[9]. - The net loss attributable to shareholders for the year was HKD 26.2 million, compared to a net loss of HKD 26.8 million in the previous year[9]. - Total revenue for the year 2019 was HKD 952,465,000, a decrease of 25.1% compared to HKD 1,271,606,000 in 2018[151]. - Gross profit for 2019 was HKD 140,264,000, down 44.8% from HKD 254,223,000 in the previous year[151]. - The company reported a net loss of HKD 28,129,000 for 2019, slightly improved from a loss of HKD 29,892,000 in 2018[153]. - Basic and diluted loss per share for 2019 was HKD 4.33, compared to HKD 4.43 in 2018[151]. Division Performance - The toy division's revenue decreased by 29% to HKD 548 million, down from HKD 775 million in the previous year, resulting in an operating loss of HKD 100,000[10]. - The computer products division's revenue fell by 8% to HKD 173 million, down from HKD 189 million, with an operating loss of HKD 12.7 million[11]. - The household products division's revenue decreased by 35% to HKD 79 million, down from HKD 122 million, with an operating loss of HKD 18.7 million[12]. - The watch division's revenue declined by 17% to HKD 153 million, down from HKD 185 million, but managed to reduce its operating loss to HKD 5.2 million from HKD 23.6 million[13]. Assets and Liabilities - The total assets as of March 31, 2019, were HKD 955 million, down from HKD 1,079 million in the previous year[16]. - The total liabilities decreased to HKD 236.5 million from HKD 311.9 million, while the net asset value was HKD 718.4 million, down from HKD 766.9 million[6]. - As of March 31, 2019, the group's current liabilities decreased from HKD 302 million to HKD 215 million[18]. - The group's debt-to-asset ratio improved to 25% from 29% year-on-year, while the current ratio increased to 2.67 times from 2.24 times[19]. Cash Flow - Cash and cash equivalents increased to HKD 187 million from HKD 142 million in the previous year[17]. - The company reported a net cash outflow from operating activities of HKD 4,902,000 compared to an outflow of HKD 31,038,000 in the previous year, indicating an improvement[164]. - Cash generated from investing activities was HKD 129,449,000, a significant increase from a cash outflow of HKD 21,032,000 in the prior year[164]. - The company experienced a net cash decrease of HKD 87,505,000 from financing activities, compared to a net cash inflow of HKD 10,059,000 in the previous year[164]. Shareholder Information - The board proposed a final dividend of HKD 0.03 per share, with a total payout of HKD 18.1 million, resulting in an annual return rate of 3.4%[25][26]. - The largest customer accounted for 40% of total sales, while the top five customers combined represented 59% of total sales[38]. - The largest supplier contributed 5% to total procurement, with the top five suppliers together accounting for 17%[38]. - The company did not declare an interim dividend for the year, but recommended a final dividend of HKD 0.03 per share, consistent with the previous year[39]. Governance and Management - The board of directors includes Robert Dorfman, who has been with the company since 1983, and other experienced members with extensive backgrounds in finance and management[46][49][50][51][52][53]. - The company has maintained a consistent approach to governance, with independent non-executive directors serving without specific term appointments[45]. - The board of directors held four regular meetings during the fiscal year, with full attendance from all executive directors[110]. - The remuneration committee, consisting of two independent non-executive directors and one executive director, met once to discuss the company's remuneration policies[115]. Environmental Impact - Greenhouse gas emissions decreased to 16,363.3 tons CO2 equivalent in 2019 from 23,475.2 tons in 2018, representing a reduction of approximately 30%[89]. - Industrial wastewater emissions significantly dropped to 398.0 cubic meters in 2019 from 18,472.4 cubic meters in 2018, indicating a reduction of over 97%[89]. - Electricity consumption decreased to 18,264,612 kWh in 2019 from 26,202,926 kWh in 2018, reflecting a reduction of approximately 30%[92]. - The group utilized 3,340.0 tons of packaging materials in 2019, down from 4,863.8 tons in 2018, marking a decrease of about 31%[92]. Internal Controls and Audit - The audit committee held three meetings during the fiscal year to review the group's accounting principles and practices, discussing audit, risk management, internal control, and financial reporting matters, including the review of interim and annual results[120]. - The company plans to continue evaluating its internal controls and accounting policies to address any significant deficiencies identified during the audit[148]. - The board has established a dividend policy that requires board approval and considers factors such as past and expected financial performance, retained earnings, cash flow, and operational needs before declaring dividends[130]. Accounts Receivable - As of March 31, 2019, the total accounts receivable for the group amounted to HKD 146,841,000, with a provision for losses of HKD 55,741,000[139]. - The management calculates the loss provision based on the expected loss rate for each category of accounts receivable, which reflects the expected credit losses over the entire duration[139]. - The assessment of the loss provision involves significant management judgment and estimation, identifying it as a key audit matter due to inherent uncertainties[140].