[Management Discussion and Analysis](index=1&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's financial performance and operational highlights across its key business segments, including property, toys, and investments [Overview](index=1&type=section&id=Overview) In H1 2024, the Group's total revenue increased by 23.3% to HK$527 million, driven by strong performance in the toy business, but a significant HK$250 million revaluation loss on investment properties led to a net loss of HK$160 million attributable to owners, despite maintaining an interim dividend of HK$0.015 per share Key Financial Indicators for H1 2024 | Indicator | 2024 H1 (HK$ Thousand) | 2023 H1 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Group Revenue | 526,666 | 427,006 | +23.3% | | Gross Profit | 324,137 | 259,934 | +24.7% | | Net (Loss)/Gain on Revaluation of Investment Properties | (249,529) | 4,123 | N/A | | Operating (Loss)/Profit | (121,081) | 120,219 | N/A | | (Loss)/Profit Attributable to Owners of the Company | (159,880) | 96,291 | N/A | | (Loss)/Earnings Per Share (HK Cents) | (7.72) | 4.65 | N/A | | Interim Dividend Per Share (HK Cents) | 1.50 | 1.50 | Unchanged | [Property Investment and Management](index=2&type=section&id=Property%20Investment%20and%20Management) The Property Investment and Management segment's revenue slightly increased by 3.3% to HK$79.3 million, but a HK$249.5 million net revaluation loss on investment properties (compared to a HK$4.1 million gain last year) resulted in an operating loss of HK$190 million for the segment Property Investment and Management Segment Performance | Indicator | 2024 H1 (HK$ Thousand) | 2023 H1 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 79,339 | 76,792 | | Net (Loss)/Gain on Revaluation of Investment Properties | (249,529) | 4,123 | | Segment Operating (Loss)/Profit | (190,320) | 58,800 | [Property Investment](index=3&type=section&id=(a)%20Property%20Investment) The Group's investment property portfolio, primarily Hong Kong commercial, residential, and industrial properties, has a total fair value of HK$4.7 billion, with total rental income increasing 3.9% to HK$68.5 million, though overall occupancy decreased from 74% to 68% - Key investment properties include Star Group Centre on Canton Road, several residential units in Mid-Levels on Macdonnell Road, and Star Industrial Building in Tuen Mun. Overseas properties constitute **8.3%** of the portfolio's fair value[3](index=3&type=chunk) - Total rental income amounted to **HK$68.5 million**, representing a **3.9% increase** compared to the same period last year[3](index=3&type=chunk) - The overall occupancy rate for investment properties was approximately **68%**, a decrease from **74%** at the end of 2023[3](index=3&type=chunk) [Property Management](index=5&type=section&id=(b)%20Property%20Management) Property management services, handled by Savills, generated HK$10.8 million in revenue during the period, a slight decrease of 0.9% from the prior year - Property management business revenue was **HK$10.8 million**, a **0.9% year-on-year decrease**[7](index=7&type=chunk) [Playmates Toys](index=5&type=section&id=Playmates%20Toys) Playmates Toys demonstrated strong performance with global revenue surging 28% year-on-year to HK$445 million, primarily driven by the successful launch of "Godzilla x Kong" toys offsetting a decline in "Teenage Mutant Ninja Turtles" sales due to high base effects, while gross margin improved from 54% to 56% and operating profit grew 21.7% to HK$68.4 million Playmates Toys Segment Performance | Indicator | 2024 H1 (HK$) | 2023 H1 (HK$) | | :--- | :--- | :--- | | Global Revenue | 445 million | 347 million | | Gross Margin | 56% | 54% | | Operating Profit | 68.4 million | 56.2 million | - The second half of the year is expected to face challenges from tight household budgets and a high comparative base from last year's "Teenage Mutant Ninja Turtles" movie release, but the company remains optimistic about the long-term prospects of "Teenage Mutant Ninja Turtles" and new brands under development for 2025/2026[9](index=9&type=chunk) [Brand Overview](index=6&type=section&id=Brand%20Overview) Core brands continue to evolve with expanding product lines, including Paramount's ongoing production of a "Teenage Mutant Ninja Turtles: Mutant Mayhem" movie sequel and animated series, sustained toy sales driven by the successful "Godzilla x Kong: The New Empire" film, and a new agreement with Hasbro for "Power Rangers" toys launching in Fall 2025 - "Teenage Mutant Ninja Turtles": A movie sequel and the spin-off animated series "Tales of The Teenage Mutant Ninja Turtles" are in production, with the latter set to premiere in **August 2024**[10](index=10&type=chunk) - "Godzilla x Kong": As a major global licensee, the product line is being expanded to meet strong sales driven by the movie[11](index=11&type=chunk) - "Power Rangers": A global licensing agreement has been signed with Hasbro, with plans to launch a new series of toy products in **Fall 2025**[12](index=12&type=chunk) [Portfolio Investments](index=7&type=section&id=Portfolio%20Investments) The portfolio investment business primarily invests in highly liquid listed equities, with a fair value of HK$98.4 million at period-end, representing 1.5% of the Group's total assets, and recorded a net investment gain of HK$18.5 million and dividend and interest income of HK$32.2 million during the period - As of June 30, 2024, the fair value of the investment portfolio was **HK$98.4 million**, a slight increase from **HK$95.3 million** at the end of 2023[13](index=13&type=chunk) - The investment portfolio includes Hong Kong and overseas listed securities, with top ten holdings comprising technology and consumer giants such as NVIDIA, Amazon, Apple, Microsoft, and Tencent Holdings[13](index=13&type=chunk) Portfolio Investment Income | Item | 2024 H1 (HK$ Thousand) | 2023 H1 (HK$ Thousand) | | :--- | :--- | :--- | | Net Investment Gain | 18,500 | 17,400 | | Dividend and Interest Income | 32,200 | 18,900 | [Condensed Consolidated Financial Information](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Information) This section presents the Group's condensed consolidated financial statements, including the income statement, comprehensive income, balance sheet, cash flow, equity changes, and related notes [Condensed Consolidated Income Statement](index=7&type=section&id=Condensed%20Consolidated%20Income%20Statement) For the six months ended June 30, 2024, the Group reported revenue of HK$527 million, a 23.3% year-on-year increase, but a significant HK$250 million revaluation loss on investment properties led to an operating loss of HK$121 million and a net loss attributable to owners of HK$160 million, with a basic loss per share of HK$0.0772 Summary of Condensed Consolidated Income Statement | Item (HK$ Thousand) | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Revenue | 526,666 | 427,006 | | Gross Profit | 324,137 | 259,934 | | Net (Loss)/Gain on Revaluation of Investment Properties | (249,529) | 4,123 | | Operating (Loss)/Profit | (121,081) | 120,219 | | (Loss)/Profit for the Period | (114,899) | 139,039 | | (Loss)/Profit Attributable to Owners of the Company | (159,880) | 96,291 | [Condensed Consolidated Statement of Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Building on a period loss of HK$115 million, the total comprehensive loss for the period amounted to HK$126 million after accounting for a HK$10.94 million exchange loss arising from the translation of overseas subsidiaries Summary of Condensed Consolidated Statement of Comprehensive Income | Item (HK$ Thousand) | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | (Loss)/Profit for the Period | (114,899) | 139,039 | | Other Comprehensive Income | (10,936) | 915 | | Total Comprehensive (Loss)/Income for the Period | (125,835) | 139,954 | [Condensed Consolidated Statement of Financial Position](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets decreased to HK$6.387 billion from HK$6.778 billion at the end of 2023, primarily due to investment property revaluation losses, with total liabilities at HK$544 million, net assets at HK$5.843 billion, and cash and bank balances increasing to HK$1.15 billion Summary of Condensed Consolidated Statement of Financial Position | Item (HK$ Thousand) | 2024 H1 | 2023 H2 | | :--- | :--- | :--- | | Non-current Assets | 4,878,545 | 5,139,842 | | Current Assets | 1,508,301 | 1,637,763 | | **Total Assets** | **6,386,846** | **6,777,605** | | Current Liabilities | 488,951 | 650,665 | | Non-current Liabilities | 54,750 | 60,853 | | **Total Liabilities** | **543,701** | **711,518** | | **Net Assets** | **5,843,145** | **6,066,087** | [Condensed Consolidated Statement of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) During the period, net cash generated from operating activities significantly improved to HK$169 million from HK$40.49 million in the prior year, cash flow from investing activities remained largely stable, while financing activities resulted in a net cash outflow of HK$148 million due to loan repayments and dividend payments, with cash and cash equivalents at period-end totaling HK$504 million Summary of Condensed Consolidated Statement of Cash Flows | Item (HK$ Thousand) | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 168,952 | 40,487 | | Net Cash Generated from Investing Activities | 3,429 | 38,858 | | Net Cash Used in Financing Activities | (147,886) | (86,030) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 24,495 | (6,685) | [Condensed Consolidated Statement of Changes in Equity](index=13&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2024, total equity attributable to owners of the company decreased by HK$233 million to HK$5.261 billion from HK$5.494 billion at the beginning of the year, primarily due to a total comprehensive loss of HK$171 million for the period and dividend payments and share repurchases totaling HK$62.27 million - Equity attributable to owners of the company decreased from **HK$5.494 billion** at the beginning of the year to **HK$5.261 billion** at period-end[21](index=21&type=chunk) - Key factors contributing to the decrease in equity include a total comprehensive loss of **HK$171 million** for the period, dividend payments of **HK$62.09 million**, and share repurchases of **HK$0.174 million**[21](index=21&type=chunk) [Notes to the Condensed Consolidated Financial Information](index=15&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the financial statements, covering specific explanations and data breakdowns for key items such as basis of preparation, accounting policies, segment information, revenue, dividends, commitments, and related party transactions [Revenue and Segment Information](index=15&type=section&id=III.%20Revenue%20and%20Segment%20Information) The Group's revenue is categorized into three business segments: toy business, property investment and management, and investment business, with the toy business being the primary revenue source, accounting for 84.5% of total revenue, and the Americas being the largest market, contributing over 63% of revenue Revenue by Business Segment (HK$ Thousand) | Segment | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Toy Business | 445,141 | 347,231 | | Property Investment and Management | 79,339 | 76,792 | | Investment Business | 2,186 | 2,983 | | **Total** | **526,666** | **427,006** | Revenue by Geographical Region (HK$ Thousand) | Region | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Hong Kong | 81,629 | 79,072 | | Americas | 335,288 | 240,952 | | Europe | 90,536 | 80,498 | | Other Asia Pacific | 18,825 | 25,678 | | Others | 388 | 806 | | **Total** | **526,666** | **427,006** | [Dividends](index=24&type=section&id=VII.%20Dividends) The Board resolved to declare an interim dividend of HK$0.015 per share for 2024, consistent with the prior year, totaling approximately HK$31.05 million, payable on September 27, 2024 - An interim dividend of **HK$0.015 per share** was declared, consistent with the same period in 2023[38](index=38&type=chunk) [Share Capital](index=30&type=section&id=XV.%20Share%20Capital) For the six months ended June 30, 2024, the company repurchased and cancelled 310,000 of its own shares on the Stock Exchange for a total consideration of HK$0.174 million, reducing the issued share capital to 2,069,690,000 shares - During the period, the company repurchased **310,000 shares** for a total consideration of **HK$0.174 million**, at a price of **HK$0.56 per share**[50](index=50&type=chunk) - All repurchased shares have been cancelled, reducing the number of issued shares to **2,069,690,000**[49](index=49&type=chunk)[50](index=50&type=chunk) [Information Required by Listing Rules](index=35&type=section&id=Information%20Required%20by%20Listing%20Rules) This section provides disclosures mandated by the Listing Rules, including details on liquidity, share-based incentive plans, director and major shareholder interests, and corporate governance compliance [Liquidity and Financial Resources](index=35&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintains a sound financial position, with its gearing ratio (total bank borrowings/total tangible assets) decreasing to 2.8% as of June 30, 2024, from 3.4% at the year-end, and the current ratio improving from 2.5 to 3.1, supported by ample cash and bank balances of HK$1.15 billion, predominantly in USD Key Financial Ratios | Ratio | 2024 H1 | 2023 H2 | | :--- | :--- | :--- | | Gearing Ratio | 2.8% | 3.4% | | Current Ratio | 3.1 | 2.5 | - As of June 30, 2024, cash and bank balances totaled **HK$1.15 billion**, with approximately **93%** (**HK$1.068 billion**) denominated in USD[63](index=63&type=chunk) [Share Award Scheme](index=36&type=section&id=Share%20Award%20Scheme) The Company itself has not adopted any share award scheme, but its non-wholly owned subsidiary, Playmates Toys, adopted one in May 2023 with an authorized limit of 118 million shares, though no awards have been granted under the scheme since its adoption - The Company had no share award scheme during the period[64](index=64&type=chunk) - No share awards have been granted, vested, cancelled, or lapsed under the subsidiary Playmates Toys' share award scheme since its adoption[66](index=66&type=chunk) [Share Options](index=38&type=section&id=Share%20Options) The Company itself has no share option scheme; its subsidiary Playmates Toys' "2018 Playmates Toys Scheme" terminated in May 2023, ceasing new grants, but existing options remain valid, with no options granted, exercised, cancelled, or lapsed during the period - The Company had no share option scheme during the period[68](index=68&type=chunk) - The subsidiary Playmates Toys' 2018 Share Option Scheme has terminated, with no changes to any share options during the period[71](index=71&type=chunk)[73](index=73&type=chunk) [Directors' and Major Shareholders' Interests](index=40&type=section&id=Directors%27%20and%20Major%20Shareholders%27%20Interests) The report discloses directors' and major shareholders' interests in the company's shares, with Mr. Chan Chun Hoo, Thomas, considered a controlling shareholder, holding a combined 65.25% of the company's shares personally and through his company, TGC Assets Limited - Major shareholder Mr. Chan Chun Hoo, Thomas, is deemed to be interested in **1,350,400,000 shares** of the company, representing **65.25%** of the issued share capital[76](index=76&type=chunk) - TGC Assets Limited beneficially holds **1,078,400,000 shares**, representing **52.10%** of the issued share capital[76](index=76&type=chunk) [Repurchase, Sale or Redemption of Shares](index=42&type=section&id=Repurchase%2C%20Sale%20or%20Redemption%20of%20Shares) During the reporting period, the company repurchased and cancelled **310,000** of its own shares on the Stock Exchange for a total consideration of **HK$0.174 million**, at a repurchase price of **HK$0.56 per share** - The company repurchased **310,000 shares** at a price of **HK$0.56 per share** during the period[77](index=77&type=chunk) [Compliance with Corporate Governance Code](index=43&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company complied with most provisions of the Corporate Governance Code during the reporting period, with one deviation from Code Provision C.2.1 regarding the separation of Chairman and Chief Executive Officer roles, as no CEO position exists and daily operations are jointly managed by executive directors, which the Board deems appropriate - There is a deviation from Code Provision C.2.1, where the roles of Chairman and Chief Executive Officer are not segregated, and no Chief Executive Officer has been appointed[78](index=78&type=chunk) [Company Information](index=44&type=section&id=Company%20Information) This section provides essential company details, including board members, company secretary, registered and principal office addresses, auditors, legal advisors, principal bankers, share registrars, and the company's stock code (635) and official website [Basic Company Information](index=44&type=section&id=Company%20Information) This section provides essential company details, including board members, company secretary, registered and principal office addresses, auditors, legal advisors, principal bankers, share registrars, and the company's stock code (635) and official website - The Chairman and Executive Director is **Chan Kwong Fai**[83](index=83&type=chunk) - The company's shares are listed on The Stock Exchange of Hong Kong Limited under stock code **635**[83](index=83&type=chunk)

[Management Discussion and Analysis](index=1&type=section&id=管理層討論及分析) [Overview](index=1&type=section&id=概覽) For the six months ended June 30, 2024, the Group's revenue increased by 23.3% year-on-year, but a significant deficit from investment property revaluation led to an operating loss, with loss attributable to owners of the Company reaching HKD 160 million, basic loss per share of 7.72 HK cents, and interim dividend maintained at 1.50 HK cents per share Key Financial Data for the Six Months Ended June 30 | Metric | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Group Revenue | 526,666 | 427,006 | | Toys Business Revenue | 445,141 | 347,231 | | Property Investment and Management Business Revenue | 79,339 | 76,792 | | Investment Business Revenue | 2,186 | 2,983 | | Gross Profit | 324,137 | 259,934 | | Net (Deficit)/Surplus from Investment Property Revaluation | (249,529) | 4,123 | | Operating (Loss)/Profit | (121,081) | 120,219 | | (Loss)/Profit Before Income Tax | (80,414) | 144,531 | | (Loss)/Profit Attributable to Owners of the Company | (159,880) | 96,291 | | (Loss)/Earnings Per Share (HK cents) | (7.72) | 4.65 | | Interim Dividend Per Share (HK cents) | 1.50 | 1.50 | [Property Investment and Management](index=1&type=section&id=物業投資及管理) The property investment and management segment's turnover increased by 3.3% year-on-year to HKD 79.3 million, but a net deficit of HKD 249.5 million from investment property revaluation resulted in an operating loss of HKD 190.3 million for the segment, reversing last year's profit, while the Group remains optimistic about long-term property investment prospects - Property investment and management segment turnover increased by **3.3% to HKD 79.3 million** (2023: HKD 76.8 million)[2](index=2&type=chunk) - Net deficit from investment property revaluation was **HKD 249.5 million** (2023: net surplus of HKD 4.1 million)[2](index=2&type=chunk) - Segment operating loss (including property revaluation) was **HKD 190.3 million** (2023: profit of HKD 58.8 million)[2](index=2&type=chunk) [Property Investment](index=2&type=section&id=(a)%20物業投資) The Group's investment property portfolio includes commercial, residential, and industrial properties in Hong Kong, along with overseas properties accounting for 8.3% of total fair value, with total rental income growing 3.9% to HKD 68.5 million, but overall occupancy rate decreased to 68% - Total investment property rental income was **HKD 68.5 million**, a **3.9% increase** year-on-year (2023: HKD 65.9 million)[3](index=3&type=chunk) - Overall occupancy rate for investment properties was approximately **68%** (December 31, 2023: 74%)[3](index=3&type=chunk) - Overseas investment properties accounted for **8.3%** of the Group's total investment property portfolio fair value (December 31, 2023: 8.1%)[3](index=3&type=chunk) [Commercial Properties](index=2&type=section&id=(i)%20商業) Hong Kong's retail sector faced challenges in the first half of 2024, impacting commercial property demand, though Canton Road is still considered a long-term prime shopping district - Hong Kong's retail sector faced significant challenges in the first half of 2024 due to changing spending patterns of inbound tourists and increased outbound travel by local consumers[4](index=4&type=chunk) - Canton Road is expected to remain one of Hong Kong's prime shopping districts in the long term[4](index=4&type=chunk) [Residential Properties](index=2&type=section&id=(ii)%20住宅) Hong Kong's residential property market was affected by high interest rates and economic downturn, but renovation work on Mid-Levels units is expected to enhance their long-term value - In the first half of 2024, Hong Kong's residential property market was impacted by high interest rates and a sluggish economic environment[5](index=5&type=chunk) - Internal renovation and refurbishment works for Mid-Levels units, commenced in 2021, are expected to enhance property value in the long term[5](index=5&type=chunk) [Industrial Properties](index=2&type=section&id=(iii)%20工業) Playmates Industrial Building received conditional approval for conversion to commercial use in January 2020, and the Group is monitoring economic conditions to determine project scale - Playmates Industrial Building received conditional planning approval for conversion to commercial use on January 3, 2020[6](index=6&type=chunk) - The Group will continue to monitor the economic environment to determine the building's conversion and project scale[6](index=6&type=chunk) [Property Management](index=2&type=section&id=(b)%20物業管理) Property management business revenue slightly decreased by 0.9% to HKD 10.8 million, with comprehensive management services provided by Savills, and the Group remains optimistic about long-term property investment prospects, balancing its portfolio for capital appreciation and recurring income growth - Property management business segment revenue decreased by **0.9% to HKD 10.8 million** (2023: HKD 10.9 million)[7](index=7&type=chunk) - Savills Property Management Limited manages Playmates Group Building and Playmates Industrial Building[7](index=7&type=chunk) - The Group remains optimistic about the long-term prospects of property investment and will balance its investment property portfolio to achieve capital appreciation and recurring income growth[7](index=7&type=chunk) [Playmates Toys](index=3&type=section&id=彩星玩具) Playmates Toys' global turnover increased by 28% year-on-year to HKD 445 million, driven by the successful relaunch of "Godzilla x Kong: The New Empire" movie-related products, partially offset by declining "Teenage Mutant Ninja Turtles" toy sales, with gross margin improving to 56%, operating profit growing to HKD 68.4 million, and net profit reaching HKD 91.5 million - Global turnover was **HKD 445 million**, a **28% increase** from the same period last year (2023: HKD 347 million)[8](index=8&type=chunk) - The successful relaunch of the "Godzilla x Kong" series partially offset the decline in "Teenage Mutant Ninja Turtles" toy sales[8](index=8&type=chunk) - Toy sales gross margin improved to **56%** (2023: 54%), primarily due to increased sales proportion in the US market, reduced inventory discounts, and lower product development expenses as a percentage of sales[8](index=8&type=chunk) - Operating profit was **HKD 68.4 million** (2023: HKD 56.2 million), and net profit was **HKD 91.5 million** (2023: HKD 87 million)[8](index=8&type=chunk) - Global household spending budgets are expected to be tight in the second half, but the "Tales of The Teenage Mutant Ninja Turtles" animated series and "Godzilla x Kong" product lines are anticipated to provide support[8](index=8&type=chunk) [Brand Overview](index=3&type=section&id=品牌概覽) The Group actively develops new products to align with major brand content releases, including "Teenage Mutant Ninja Turtles" movie sequels and animated series, "Godzilla x Kong" movie-driven product expansion, and a global licensing agreement with Hasbro for "Power Rangers" toys - "Teenage Mutant Ninja Turtles": Paramount Pictures and Nickelodeon Movies are producing a movie sequel and two seasons of "Tales of The Teenage Mutant Ninja Turtles" (premiering August 2024), and the Group is actively developing new products to complement these releases[9](index=9&type=chunk) - "Godzilla x Kong": The movie, released in Spring 2024, achieved impressive global box office results, driving strong toy sales, and the Group is developing and expanding its current product line[10](index=10&type=chunk) - "Power Rangers": A global licensing agreement with Hasbro grants the Group rights to produce and distribute "Power Rangers" toys, with plans to launch "Mighty Morphin Power Rangers" toy products in Fall 2025[11](index=11&type=chunk) [Portfolio Investments](index=4&type=section&id=組合投資) The Group engages in portfolio investments in listed shares, aiming for returns through capital appreciation, dividends, and interest income, with prudent guidelines and monitoring, recording a net investment gain of HKD 18.5 million and dividend and interest income of HKD 32.2 million in the first half of 2024 - The Group recorded a net investment gain of **HKD 18.5 million** in the first half of 2024[13](index=13&type=chunk) - Dividend and interest income from the investment portfolio amounted to **HKD 32.2 million** in the first half of 2024[13](index=13&type=chunk) - The Group will continue to exercise caution, monitor and adjust its investment portfolio, and observe developments in major global economies and securities markets[13](index=13&type=chunk) [Condensed Consolidated Financial Information](index=5&type=section&id=簡明綜合財務資料) [Condensed Consolidated Income Statement](index=5&type=section&id=簡明綜合收益表) For the six months ended June 30, 2024, Group revenue increased to HKD 527 million and gross profit to HKD 324 million, but a net deficit of HKD 249.5 million from investment property revaluation resulted in an operating loss of HKD 121 million, with loss attributable to owners of the Company at HKD 160 million Condensed Consolidated Income Statement (For the six months ended June 30) | Metric | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 526,666 | 427,006 | | Cost of sales | (202,529) | (167,072) | | Gross profit | 324,137 | 259,934 | | Marketing and license expenses | (91,651) | (59,278) | | Selling and distribution expenses | (31,725) | (24,856) | | Administrative expenses | (72,313) | (59,704) | | Net (deficit)/surplus from investment property revaluation | (249,529) | 4,123 | | Operating (loss)/profit | (121,081) | 120,219 | | Net other income | 48,651 | 33,309 | | Finance costs | (7,984) | (8,997) | | (Loss)/Profit before income tax | (80,414) | 144,531 | | Income tax expense | (34,485) | (5,492) | | (Loss)/Profit for the period | (114,899) | 139,039 | | (Loss)/Profit attributable to owners of the Company | (159,880) | 96,291 | | (Loss)/Profit attributable to non-controlling interests | 44,981 | 42,748 | | Basic (loss)/earnings per share (HK cents) | (7.72) | 4.65 | | Diluted (loss)/earnings per share (HK cents) | (7.72) | 4.65 | [Condensed Consolidated Statement of Comprehensive Income](index=6&type=section&id=簡明綜合全面收益表) For the six months ended June 30, 2024, the Group recorded a loss for the period of HKD 114.9 million, with negative other comprehensive income due to exchange differences on translation of overseas subsidiaries, resulting in a total comprehensive loss attributable to owners of the Company of HKD 170.8 million Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | (Loss)/Profit for the period | (114,899) | 139,039 | | Other comprehensive income: | | | | - Exchange differences on translation of overseas subsidiaries | (10,936) | 915 | | Total comprehensive income for the period | (125,835) | 139,954 | | Total comprehensive income attributable to owners of the Company | (170,816) | 97,206 | | Total comprehensive income attributable to non-controlling interests | 44,981 | 42,748 | [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=簡明綜合財務狀況表) As of June 30, 2024, the Group's total assets less current liabilities decreased to HKD 5.898 billion from HKD 6.127 billion on December 31, 2023, primarily due to a reduction in investment property value, while net current assets increased, and total equity stood at HKD 5.843 billion Condensed Consolidated Statement of Financial Position (As at June 30) | Metric | June 30, 2024 (HKD thousands) | December 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | **Non-current assets** | | | | Investment properties | 4,675,356 | 4,933,614 | | Other property, plant and equipment | 135,017 | 139,337 | | Right-of-use assets | 6,970 | 8,789 | | Goodwill | 5,976 | 5,976 | | Prepayments | 9,130 | - | | Deferred tax assets | 46,096 | 52,126 | | **Current assets** | | | | Inventories | 51,932 | 58,886 | | Trade receivables | 135,613 | 330,521 | | Deposits paid, other receivables and prepayments | 64,528 | 45,759 | | Tax recoverable | 7,892 | 12,340 | | Financial assets at fair value through profit or loss | 98,438 | 95,324 | | Cash and bank balances | 1,149,898 | 1,094,933 | | **Current liabilities** | | | | Bank loans | 172,200 | 217,175 | | Trade payables | 58,478 | 91,390 | | Deposits received, other payables and accrued charges | 169,353 | 218,908 | | Provisions | 47,183 | 65,413 | | Lease liabilities | 4,159 | 3,987 | | Tax payable | 37,578 | 53,792 | | **Net current assets** | **1,019,350** | **987,098** | | **Total assets less current liabilities** | **5,897,895** | **6,126,940** | | **Non-current liabilities** | | | | Bank loans | 6,800 | 10,400 | | Lease liabilities | 4,117 | 6,250 | | Long service payment obligations | 2,087 | 1,938 | | Deferred tax liabilities | 41,746 | 42,265 | | **Net assets** | **5,843,145** | **6,066,087** | | **Total equity** | **5,843,145** | **6,066,087** | [Notes to the Condensed Consolidated Financial Information](index=9&type=section&id=簡明綜合財務資料附註) [1. Basis of Preparation and Accounting Policies](index=9&type=section&id=一、%20編製基準及會計政策) These condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and applicable disclosure provisions of the HKEX Listing Rules, consistent with accounting policies used in the 2023 annual financial statements - These condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and the applicable disclosure provisions of the Listing Rules of the Stock Exchange[18](index=18&type=chunk) - The accounting policies adopted in the preparation of these condensed consolidated financial statements are consistent with those applied in the annual financial statements for the year ended December 31, 2023[18](index=18&type=chunk) [2. Changes in Accounting Policies](index=9&type=section&id=二、%20會計政策之變動) Certain HKFRS amendments issued by the HKICPA became effective for the first time in the current accounting period but had no significant impact on the Group's results or financial position for current or prior periods, and the Group has not applied any new standards or interpretations not yet effective - Certain amendments to Hong Kong Financial Reporting Standards issued by the HKICPA had no significant impact on the Group's results or financial position for the current or prior periods[19](index=19&type=chunk) - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[19](index=19&type=chunk) [3. Revenue and Segment Information](index=9&type=section&id=三、%20收入及分部資料) The Group identifies three reportable segments: property investment and management, investment, and toys, with total revenue of HKD 526.7 million in the first half of 2024, primarily from toy sales and stable growth in property investment rental income, while segment results show a loss for property investment and management and a profit for the toys business - The Group presents three reportable segments: property investment and management business, investment business, and toys business[20](index=20&type=chunk) Revenue by Source (For the six months ended June 30) | Revenue Source | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Toy sales | 445,141 | 347,231 | | Property management income | 10,804 | 10,882 | | Investment property rental income | 68,535 | 65,910 | | Dividend income | 507 | 1,036 | | Interest income | 1,679 | 1,947 | | **Total revenue** | **526,666** | **427,006** | [3.1 Segment Results, Assets and Liabilities](index=10&type=section&id=三．一%20分部業績、資產及負債) Segment results show the property investment and management business recorded an operating loss of HKD 190.3 million in the first half of 2024, while the toys business achieved an operating profit of HKD 68.21 million, with property investment and management assets and liabilities, though still the largest portion of total assets, both decreasing Segment Operating (Loss)/Profit (For the six months ended June 30) | Segment | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Property investment and management business | (190,320) | 58,760 | | Investment business | 2,161 | 2,958 | | Toys business | 68,210 | 55,888 | | **Total segment operating (loss)/profit** | **(119,949)** | **117,606** | Reportable Segment Assets (As at June 30) | Segment | 2024 (HKD thousands) | December 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | Property investment and management business | 4,850,717 | 5,093,657 | | Investment business | 58,552 | 105,254 | | Toys business | 1,427,864 | 1,518,396 | | **Total reportable segment assets** | **6,337,133** | **6,717,307** | Reportable Segment Liabilities (As at June 30) | Segment | 2024 (HKD thousands) | December 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | Property investment and management business | 216,365 | 272,871 | | Toys business | 256,063 | 352,957 | | **Total reportable segment liabilities** | **472,428** | **625,828** | [3.2 Geographical Segment Information](index=15&type=section&id=三．二%20地區分部資料) The Group's revenue from external customers primarily originates from the Americas, followed by Europe and Hong Kong, while designated non-current assets are mainly concentrated in Hong Kong Revenue from External Customers (For the six months ended June 30) | Region | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong | 81,629 | 79,072 | | Americas | 335,288 | 240,952 | | Europe | 90,536 | 80,498 | | Other Asia Pacific (excluding Hong Kong) | 18,825 | 25,678 | | Others | 388 | 806 | | **Total** | **526,666** | **427,006** | Specified Non-current Assets (As at June 30) | Region | 2024 (HKD thousands) | December 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong | 4,381,865 | 4,629,707 | | Americas (USA) | 183,320 | 185,413 | | Europe | 198,159 | 190,739 | | Other Asia Pacific (excluding Hong Kong) | 69,105 | 81,857 | | **Total** | **4,832,449** | **5,087,716** | [3.3 Major Customers](index=15&type=section&id=三．三%20主要客戶) In the first half of 2024, two customers each accounted for over 10% of the Group's total revenue, a decrease from four major customers in the same period of 2023 - Two customers accounted for over **10%** each of the Group's total revenue, approximately **HKD 157,994,000** and **HKD 102,552,000** respectively[31](index=31&type=chunk) - In the same period of 2023, four customers each accounted for over **10%** of total revenue[31](index=31&type=chunk) [4. Net Other Income](index=16&type=section&id=四、%20其他收入淨額) Net other income significantly increased to HKD 48.651 million in the first half of 2024, primarily driven by a substantial rise in interest income from Playmates Toys treasury and net gains from financial assets at fair value through profit or loss Net Other Income (For the six months ended June 30) | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Net gains from financial assets at fair value through profit or loss | 18,516 | 17,357 | | Playmates Toys treasury — Interest income | 29,811 | 15,692 | | Playmates Toys treasury — Dividend income | 240 | 217 | | Others | 84 | 43 | | **Total** | **48,651** | **33,309** | [5. (Loss)/Profit Before Income Tax](index=16&type=section&id=五、%20除所得稅前（虧損）╱溢利) The loss before income tax was primarily impacted by cost of inventories sold, marketing and license expenses, administrative expenses, and the deficit from investment property revaluation, with overall expenses increasing despite a decrease in interest expenses, leading to a pre-tax loss (Loss)/Profit Before Income Tax Deducted/(Credited) Items (For the six months ended June 30) | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Cost of inventories sold | 184,619 | 147,480 | | Product development and tooling expenses | 10,638 | 11,656 | | Royalty expenses | 58,936 | 50,149 | | Directors' and employees' remuneration | 39,857 | 30,558 | | Depreciation | 6,336 | 6,636 | | Interest expenses | 6,565 | 7,952 | | Net exchange gains | (315) | (3,953) | [6. Income Tax Expense](index=17&type=section&id=六、%20所得稅支出) Income tax expense significantly increased to HKD 34.485 million in the first half of 2024, primarily due to higher Hong Kong profits tax and overseas taxes, partially offset by deferred tax movements, and the Group holds unrecognized accumulated tax losses with no expiry date Income Tax Expense (For the six months ended June 30) | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong profits tax | 15,565 | 9,377 | | Overseas tax | 12,897 | 5,716 | | Underprovision in prior years — overseas | - | 243 | | Current period tax | 28,462 | 15,336 | | Deferred tax | 6,023 | (9,844) | | **Income tax expense** | **34,485** | **5,492** | - As of June 30, 2024, the Group's accumulated unrecognized tax losses amounted to **HKD 4,368,000** (December 31, 2023: HKD 6,869,000), and these tax losses have no expiry date[34](index=34&type=chunk) [7. Dividends](index=17&type=section&id=七、%20股息) The Board resolved to pay an interim dividend of 1.5 HK cents per share, consistent with last year, payable on September 27, 2024, and the Group also paid a second interim dividend and a special interim dividend for the previous financial year during the interim period, totaling HKD 62.091 million Interim Dividends (For the six months ended June 30) | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Interim dividend of 1.5 HK cents per share | 31,045 | 31,050 | - The Board resolved to pay an interim dividend of **1.5 HK cents per share**, payable on **September 27, 2024**, to shareholders whose names appear on the register of members on **September 10, 2024**[35](index=35&type=chunk) Dividends Paid for the Previous Financial Year During the Interim Period (For the six months ended June 30) | Item | 2024 (HKD thousands) | 2023 (HKD thousands) | | :--- | :--- | :--- | | Second interim dividend of 1.5 HK cents per share | 31,046 | 31,072 | | Special interim dividend of 1.5 HK cents per share | 31,045 | 31,071 | | **Total** | **62,091** | **62,143** | [8. (Loss)/Earnings Per Share](index=18&type=section&id=八、%20每股（虧損）╱盈利) For the six months ended June 30, 2024, both basic and diluted loss per share were 7.72 HK cents, reflecting the loss attributable to owners of the Company of HKD 159.88 million and the weighted average number of ordinary shares outstanding during the period, with no significant dilutive effect due to the absence of potential ordinary shares - Basic (loss)/earnings per share was **(7.72) HK cents** (2023: profit of 4.65 HK cents)[37](index=37&type=chunk) - Basic (loss)/earnings per share is calculated based on the loss attributable to owners of the Company of **HKD 159,880,000** and the weighted average number of ordinary shares outstanding during the period of **2,069,760,000** shares[37](index=37&type=chunk) - Diluted (loss)/earnings per share is equal to basic (loss)/earnings per share, as there were no potential ordinary shares during the period[37](index=37&type=chunk) [9. Trade Receivables](index=19&type=section&id=九、%20應收貿易賬項) As of June 30, 2024, net trade receivables significantly decreased to HKD 135.6 million from HKD 330.5 million on December 31, 2023, with the largest portion of receivables aged zero to sixty days Trade Receivables (As at June 30) | Item | 2024 (HKD thousands) | December 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | Trade receivables | 165,398 | 353,732 | | Less: Provision for customer discounts | (29,785) | (23,211) | | **Net** | **135,613** | **330,521** | Ageing Analysis of Trade Receivables (As at June 30) | Ageing | 2024 (HKD thousands) | December 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | 0 to 60 days | 105,528 | 254,223 | | 61 to 90 days | 29,057 | 71,745 | | 91 to 180 days | 525 | 4,250 | | Over 180 days | 503 | 303 | | **Total** | **135,613** | **330,521** | - The Group typically transacts with toys business customers on an open account basis with credit terms of **60 to 90 days**, or by sight or usance letters of credit[38](index=38&type=chunk) [10. Trade Payables](index=19&type=section&id=十、%20應付貿易賬項) As of June 30, 2024, total trade payables decreased to HKD 58.478 million from HKD 91.39 million on December 31, 2023, with the majority of payables aged zero to thirty days Ageing Analysis of Trade Payables (As at June 30) | Ageing | 2024 (HKD thousands) | December 31, 2023 (HKD thousands) | | :--- | :--- | :--- | | 0 to 30 days | 57,407 | 91,315 | | 31 to 60 days | 259 | 66 | | Over 60 days | 812 | 9 | | **Total** | **58,478** | **91,390** | [11. US Dollar Equivalents](index=19&type=section&id=十一、%20美元等值) US dollar equivalent figures provided in the report are for reference only, calculated using an exchange rate of HKD 7.8 to USD 1 as of June 30, 2024 - US dollar equivalent figures are for reference purposes only[40](index=40&type=chunk) - The exchange rate used is **HKD 7.8 to USD 1** as of June 30, 2024[40](index=40&type=chunk) [Financial Review](index=20&type=section&id=財務分析) The Group's property investment and management business provided stable income, though overall occupancy decreased, while the seasonal toys business saw reduced trade receivables and inventories at period-end, and the Group's gearing ratio and liquidity ratio both improved, with ample cash and bank balances primarily denominated in USD - The property investment and management business provided a relatively stable source of income for the period, with an overall occupancy rate of **68%** (December 31, 2023: 74%)[41](index=41&type=chunk) - The toys business is subject to industry seasonality, with trade receivables of **HKD 133,954,000** (December 31, 2023: HKD 328,827,000) and inventories of **HKD 51,932,000** (December 31, 2023: HKD 58,886,000)[41](index=41&type=chunk) - The gearing ratio was **2.8%** (December 31, 2023: 3.4%), and the liquidity ratio was **3.1** (December 31, 2023: 2.5)[41](index=41&type=chunk) - Cash and bank balances amounted to **HKD 1,149,898,000** (December 31, 2023: HKD 1,094,933,000), of which **HKD 1,068,200,000** was denominated in US dollars[41](index=41&type=chunk) [Repurchase, Sale or Redemption of Shares](index=20&type=section&id=購回、出售或贖回股份) The Company repurchased 310,000 shares on the Stock Exchange at HKD 0.56 per share during the period, holding no treasury shares for the six months ended June 30, 2024 - The Company repurchased **310,000 shares** on the Stock Exchange at a price of **HKD 0.56 per share**[42](index=42&type=chunk) - As of June 30, 2024, the Company held no treasury shares for the six months ended[42](index=42&type=chunk) [Corporate Governance](index=20&type=section&id=企業管治) For the six months ended June 30, 2024, the Company adopted and complied with the principles of the Corporate Governance Code in Appendix C1 of the Listing Rules, except for the non-segregation of Chairman and Chief Executive roles, which the Board deems appropriate for effective management and oversight of the Group's business and operations - The Company has adopted the principles of Part 2 of the Corporate Governance Code set out in Appendix C1 of the Listing Rules and has complied with all applicable code provisions[43](index=43&type=chunk) - Code Provision C.2.1 stipulates that the roles of chairman and chief executive should be separate, and while the Company has no designated chief executive, the Board considers the current structure appropriate to ensure effective management and oversight of the Group's business and operations[43](index=43&type=chunk) - Further information on the Company's corporate governance practices will be included in the Corporate Governance Report in the Company's annual report for the year ended December 31, 2024[44](index=44&type=chunk) [Audit Committee](index=21&type=section&id=審核委員會) The Audit Committee has reviewed the Group's accounting standards and practices with management, discussing matters related to internal controls and financial reporting, including the unaudited condensed consolidated financial information for the six months ended June 30, 2024 - The Audit Committee has reviewed the Group's accounting standards and practices with management[45](index=45&type=chunk) - Discussions covered matters related to internal controls and financial reporting, including the review of the unaudited condensed consolidated financial information for the six months ended June 30, 2024[45](index=45&type=chunk) [Closure of Register of Members](index=21&type=section&id=暫停辦理股份過戶登記) The Company will suspend its register of members from September 9 to September 10, 2024, to determine eligible shareholders for the interim dividend, requiring transfer documents to be submitted by 4:30 p.m. on September 6, 2024, with the interim dividend payable on September 27, 2024 - The Company's register of members will be closed from **September 9, 2024, to September 10, 2024** (both dates inclusive)[46](index=46&type=chunk) - To ensure eligibility for the declared dividend, all transfer documents, accompanied by the relevant share certificates, must be lodged with the Company's share registrar by **4:30 p.m. on September 6, 2024**[46](index=46&type=chunk) - The interim dividend will be paid on **September 27, 2024**, to shareholders whose names appear on the Company's register of members on **September 10, 2024**[46](index=46&type=chunk) [Board of Directors and Representatives](index=21&type=section&id=董事會成員及代表) As of the announcement date, the Company's Board of Directors comprises Mr. Chan Kwong Fai as Chairman, two executive directors, one non-executive director, and three independent non-executive directors - Board members include: Chairman Mr. Chan Kwong Fai, Executive Directors Ms. Chan Hoi Lun and Mr. Chan Kwong Keung, Non-executive Director Mr. Li Ka Sze, Independent Non-executive Directors Mr. Law Kai Yiu, Dr. Ko Ching Fai, and Mr. Tang Wing Yung[46](index=46&type=chunk)

Corporate Governance - The board of directors consists of three executive directors and four non-executive directors, with three being independent non-executive directors[4]. - The audit committee held two meetings during the fiscal year to review the company's financial performance and internal control systems[16]. - All directors participated in continuous professional development programs to enhance their knowledge and skills[9]. - The remuneration committee provides advice on the overall remuneration policy and structure for the board and senior management[17]. - The audit committee reviewed the company's accounting standards and practices, as well as the independence of external auditors[16]. - The board held four meetings during the year, with all directors attending at least 75% of the meetings[12]. - The company has established a three-year service contract for all directors, subject to re-election at the annual general meeting[8]. - The board ensures timely handling of all important matters and provides sufficient information for informed decision-making[12]. - The company emphasizes the importance of independent professional advice for directors to fulfill their responsibilities[9]. - The board continuously reviews and improves corporate governance practices to ensure proper regulation of business activities and decision-making processes[31]. - The audit committee consists of four non-executive directors, with Mr. Lo Kai Yiu serving as the chairman[171]. - The board has reviewed the implementation of the board diversity policy to ensure compliance with regulatory requirements[195]. - The company has adopted the standard code for securities transactions by directors, confirming compliance throughout the year[199]. - The board is responsible for maintaining a comprehensive risk management and internal control system[200]. - The board is committed to implementing an effective and sound risk management and internal control system to protect shareholder interests and company assets[200]. Financial Performance - The overall revenue and operating profit before property revaluation increased by 77% and 60% respectively compared to 2022[38]. - For the fiscal year ending December 31, 2023, the company's global revenue was HKD 1.2716 billion, an increase of 76.7% compared to HKD 719.6 million in 2022[42]. - The operating profit, excluding investment property revaluation losses, was HKD 324.7 million, up from HKD 206 million in 2022[42]. - The company recorded an operating profit of HKD 210 million in 2023, compared to HKD 34.5 million in 2022[83]. - Net profit for 2023 was HKD 224 million, a significant increase from HKD 9.7 million in 2022[83]. - The company recorded a net investment income of HKD 12.9 million in 2023, a recovery from a net loss of HKD 45.9 million in 2022[65]. - Dividend and interest income from the investment portfolio amounted to HKD 43.7 million in 2023, up from HKD 17 million in 2022[65]. - The fair value of the company's investment properties was HKD 4.9 billion, down from HKD 5.1 billion in 2022[56]. - The fair value of the investment portfolio as of December 31, 2023, was HKD 95.3 million, down from HKD 132.2 million in 2022, representing 1.4% of total assets[86]. - The group's cash and bank deposits as of December 31, 2023, were HKD 1,094,933,000, compared to HKD 1,083,324,000 in 2022, with HKD 1,000,777,000 held in USD[144]. - The company's available reserves for distribution as of December 31, 2023, amounted to HKD 1,513,787,000, compared to HKD 1,504,050,000 in 2022[141]. Market Performance - The largest market, the US toy market, experienced an 8% decline in both overall sales volume and revenue compared to the previous year[38]. - The company faced challenges in the operating environment due to slow recovery in cross-border travel between mainland China and Hong Kong, alongside significant interest rate increases affecting retail and real estate sectors[38]. - The global revenue for the toy segment reached HKD 1.109 billion, a significant increase of 120% from HKD 540 million in the previous year, driven by the successful re-launch of the "Teenage Mutant Ninja Turtles" toy line[61]. - The United States remains the largest market for the toy segment, accounting for 69% of total revenue, while Europe contributes 20%, other regions in the Americas 6%, and the Asia-Pacific region 5%[61]. - The company anticipates challenges and opportunities in the coming year, with new content for the "Teenage Mutant Ninja Turtles" franchise expected to drive sales in 2024[62]. - The "Godzilla x Kong" series has shown positive initial retail responses, with expectations for further growth following the global release of "Godzilla x Kong: The New Empire" in March 2024[62]. Investment and Property Management - Total rental income from investment properties was HKD 133.6 million, a decrease of 29.5% from HKD 189.6 million in the previous year, primarily due to a significant lease renewal at lower market rates[43]. - The overall occupancy rate improved to 74% as of December 31, 2023, compared to 63% in 2022[43]. - The company anticipates stable rental income from investment properties in 2024 despite a challenging market environment in Hong Kong[39]. - The property management segment reported revenue of HKD 21.7 million, an increase of 2.4% compared to HKD 21.2 million in the previous year[61]. - The long-term outlook for the property investment in Tsim Sha Tsui is positive, with expectations for continued demand in Hong Kong's premium shopping areas following the full reopening with mainland China[58]. Remuneration and Share Options - The remuneration committee held two meetings during the year to determine the remuneration policy for directors and assess the performance of executive directors and senior management[27]. - The company emphasizes fair remuneration to attract and retain high-quality and experienced directors, considering various factors including financial performance and market conditions[28]. - Independent non-executive directors are not granted equity-based performance-related remuneration, such as stock options or share grants[30]. - The maximum number of shares that can be issued under the share incentive plan is capped at 10% of the total shares issued as of the adoption date, which is 118,000,000 shares, representing 9.99% of the total shares issued as of the report date[149]. - No share awards were granted under the share incentive plan since its adoption, and there were no unvested awards at the beginning or end of the year[134]. - The company has not adopted any share option schemes during the year[154]. - The total number of ordinary shares issued by the company as of the report date is 40,296,000, representing 3.41% of the issued share capital[155]. - The total number of share options granted under the 2018 Share Option Scheme is 57,784,000[160]. - The highest-paid five individuals in the company hold a total of 5,600,000 share options at an exercise price of HKD 0.826[182]. - The company has a total of 40,296,000 unexercised share options available for issuance under the 2018 share option plan as of December 31, 2023[184]. Compliance and Risk Management - The company is committed to compliance with applicable laws and regulations, ensuring product safety and minimizing financial and reputational risks[116]. - The company has implemented internal controls to protect critical data, including customer and financial information, to mitigate risks associated with data fraud or theft[78]. - The group maintains a sufficient level of cash for ongoing operations and future growth[144]. - The group reported a total of 77 employees in Hong Kong, the US, and the UK, unchanged from 2022[109]. - The company has maintained sufficient public float as required by listing rules throughout the year[192].

Financial Performance - The group's revenue for the six months ended June 30, 2023, was HKD 427,006,000, an increase of 12.7% compared to HKD 378,717,000 in the same period of 2022[5]. - The toy business generated revenue of HKD 347,231,000, up 30% from HKD 267,462,000 year-on-year, primarily driven by the global release of the "Teenage Mutant Ninja Turtles: Mutant Mayhem" movie[13]. - The group's operating profit for the first half of 2023 was HKD 120,219,000, a significant recovery from an operating loss of HKD 3,214,000 in the same period of 2022[5]. - Net profit attributable to the company's owners was HKD 96,291,000, compared to a net loss of HKD 58,222,000 in the previous year[5]. - The group’s total comprehensive income for the six months ended June 30, 2023, was HKD 139.9 million, compared to a loss of HKD 91.8 million in the same period of 2022[36]. - The group reported a pre-tax profit of HKD 144,531,000, compared to a loss of HKD 58,222,000 in the same period last year[119]. - The company reported a net loss before tax of HKD 49,869,000, compared to a loss of HKD 39,767,000 in the previous year[97]. Investment Properties - The group's investment properties' fair value was appraised at HKD 5.1 billion, with a revaluation surplus of HKD 4,123,000 recognized in the consolidated income statement[19]. - The property investment and related business revenue decreased by 30% to HKD 76,792,000, down from HKD 109,704,000 in the same period last year[19]. - Total rental income from investment properties was HKD 65.9 million, a decrease of 33.5% compared to HKD 99.2 million in the same period last year[44]. - The fair value of the group's investment portfolio was HKD 1.194 billion as of June 30, 2023, down from HKD 1.322 billion as of December 31, 2022[33]. - The fair value of investment properties as of June 30, 2023, is HKD 5,105,766,000, reflecting a slight increase from HKD 5,096,744,000 at the end of 2022[139]. - The company remains optimistic about the long-term prospects of its property investment and related businesses, while closely monitoring global economic risks[23]. Cash Flow and Dividends - For the six months ended June 30, 2023, the company reported a cash generated from operations of HKD 45,127,000, a decrease from HKD 160,026,000 in the same period last year[85]. - The company paid dividends to equity holders amounting to HKD 62,143,000, slightly down from HKD 62,400,000 in the previous year[87]. - The interim dividend declared was HKD 31,050,000, consistent with the previous year's HKD 31,200,000[126]. - The company reported a net cash generated from investment activities was HKD 38,858,000, compared to a net cash outflow of HKD 25,783,000 in the same period last year[85]. Shareholder Information - As of June 30, 2023, major shareholders included Chen Junhao with 1,345,400,000 shares (65.00%) and TGC Assets Limited with 1,073,400,000 shares (51.86%) of the company[64]. - The company repurchased 3,340,000 shares at prices ranging from HKD 0.58 to HKD 0.63 per share during the period[66]. - As of June 30, 2023, the company had 41,116,000 shares available for issuance under the 2018 Playmates Toys Plan, with 57,784,000 share options available at the beginning of the period[61]. - The company has not granted, exercised, or cancelled any share options during the reporting period[60]. Corporate Governance - The company has complied with the corporate governance code principles and has adhered to all applicable code provisions during the reporting period[68]. - The board of directors oversees the management, business, strategy, and financial performance of the group, with daily operations handled by executive directors[63]. - The company will continue to review and monitor its corporate governance practices to ensure compliance with the corporate governance code[63]. - The company confirmed compliance with the standards set forth in the code of conduct during the period ending June 30, 2023[195]. Market Performance - The "Miraculous: Tales of Ladybug & Cat Noir" series continues to perform well globally, airing in over 120 countries, with the fifth season released on Disney platforms in 2023[15]. - Revenue from external customers in the Americas reached HKD 240,952,000, significantly up from HKD 182,168,000 in the previous year, marking a growth of 32.3%[104]. - The company plans to expand its market presence in the Americas and Europe, focusing on increasing sales in these regions[104]. Operational Metrics - The overall occupancy rate of the investment properties increased to approximately 69% as of June 30, 2023, up from 63% as of December 31, 2022[44]. - Operating expenses increased by 20% year-on-year, reflecting higher variable costs, particularly distribution expenses[45]. - The company is focusing on expanding its property investment and related services to enhance rental income and long-term property value[79]. - The company is actively involved in the design, development, marketing, and distribution of toys and family entertainment products, indicating a strategic focus on this segment[80].

1 本集團的商業物業投資包括位於香港九龍尖沙咀廣東道 100 號的彩星集團大廈。 長遠而言，我們預期廣東道仍為香港高級購物區之一。隨著香港與中國內地於 二零二三年二月全面通關，零售及商業活動已受惠於旅遊業復甦，並提高附近 地區對商業物業的需求。 本集團的主要住宅物業投資包括香港半山麥當勞道半山樓內的單位。半山樓單 位的內部裝修及翻新工程已自二零二一年起相繼動工。長遠而言，我們預期工 程能提升半山樓的價值。 本集團委任第一太平戴維斯物業管理有限公司（「第一太平戴維斯」）管理彩星集團 大廈及彩星工業大廈。第一太平戴維斯提供完善之物業管理服務，包括處理維修及保 養、大廈保安、公共地方之一般清潔、物業交收以及監察復修及翻新工程。 本集團仍然對物業投資及相關業務長遠前景保持樂觀，並將適當地平衡投資物業組合，以達致 資本增值及經常性收入增長的策略性目標。同時，我們將密切注視不穩之環球經濟和市況所帶 來的風險和不確定因素。 彩星玩具 「忍者龜」 由 Paramount Animation 發行並由 Seth Rogen 的 Point Grey Pictures 製作之 Paramount Pictures 動畫 電影—「 ...

Corporate Governance - The company maintains sufficient public float as required by the listing rules throughout the year[19]. - The company has implemented various corporate policies to ensure ethical and responsible behavior, including a business conduct code and anti-corruption policy[22]. - The company’s board of directors is committed to maintaining independence and integrity in governance practices[25]. - The company has a structured approach to providing monthly performance updates to all directors[28]. - The company’s governance policies and practices are regularly reviewed to ensure compliance with legal and regulatory requirements[38]. - The board consists of seven members, with three being independent non-executive directors, exceeding the requirement of at least one-third independence as per listing rules[52]. - The board aims to maintain a minimum of 14.3% female representation over the next five years, with currently one female director out of seven[36]. - The company maintains a gender ratio of 45:55 among employees as of December 31, 2022, and aims to continue this balance[37]. - The audit committee reviewed the annual report and accounts for the year ending December 31, 2022, and recommended approval to the board[60]. - The remuneration committee held one meeting this year to determine the remuneration policy for directors and assess the performance of executive directors and senior management[33]. - The nomination committee is tasked with reviewing the board's composition and identifying suitable candidates for board membership[35]. - The company has committed to ongoing professional development for all directors to enhance their knowledge and skills[55]. - The company secretary has undergone annual professional training to stay updated on regulatory changes and corporate governance practices[66]. - The company has adopted the standard code for securities transactions by directors, confirming compliance for the year ending December 31, 2022[65]. Risk Management and Compliance - The board is responsible for maintaining a comprehensive risk management and internal control system to protect shareholder interests and company assets[40]. - The internal control system is evaluated based on the COSO framework, focusing on risk management and compliance with applicable laws and regulations[67]. - The board meets quarterly to review risk assessment frameworks and discuss environmental, social, and governance risks[80]. - The board has conducted an annual review of the risk management and internal control systems, finding them effective and sufficient without identifying significant issues affecting financial, operational, compliance, and risk management functions[97]. - The company has adopted an anti-corruption policy to prevent and report any suspected corruption and related illegal activities, enhancing awareness among directors and employees[98]. - The company has established strict guidelines to ensure employees act with integrity in their dealings[86]. - The company has not been aware of any significant violations of anti-bribery laws or related regulations during the reporting period[90]. - The company has implemented a whistleblowing policy to provide channels for reporting serious misconduct or illegal activities, with the audit committee overseeing its implementation[43]. Environmental, Social, and Governance (ESG) Initiatives - The company has identified 27 significant environmental, social, and governance issues through an online survey involving key stakeholders[83]. - The company aims to build long-term trust with stakeholders through its ESG initiatives and reporting[104]. - The company reported a significant focus on climate-related risks, identifying physical risks and disaster recovery plans as key environmental, social, and governance risks during the reporting period[173]. - The company has implemented a business contingency plan to address identified climate-related risks, aiming to reduce operational and supply chain impacts from climate-related events[173]. - The group aims to reduce carbon emission intensity by 20% before 2027[142]. - The group plans to increase waste recycling rates by 5% annually[142]. - The company is committed to addressing greenhouse gas emissions, with specific calculations based on established protocols for direct and indirect emissions[175]. Financial Performance - The company reported a total comprehensive loss of HKD 240,514,000 for the year ended December 31, 2022, compared to a loss of HKD 208,000,000 in the previous year[169]. - The company had a total equity of HKD 6,059,899,000 as of December 31, 2022, down from HKD 6,410,385,000 at the beginning of the year[169]. - The company recognized a foreign exchange loss of HKD 27,735,000 from overseas subsidiaries during the reporting period[169]. - The company paid a total of HKD 31,183,000 in interim dividends for the first half of 2022[169]. - The company’s accumulated losses amounted to HKD 47,986,000 as of December 31, 2022[169]. - The company’s total assets decreased to HKD 6,059,899,000 from HKD 6,410,385,000 at the beginning of the year[169]. - The company’s total liabilities were HKD 485,039,000 as of December 31, 2022[169]. - The company’s loss attributable to owners for the year was HKD 212,779,000[169]. - For the year ended December 31, 2022, the company reported revenue of $92.26 million, a decrease from $860.76 million in 2021, representing a decline of approximately 89.3%[193]. - The gross profit for the year was $56.16 million, down from $523.88 million in the previous year, indicating a decrease of about 89.3%[193]. - The company incurred a total annual loss of $26.67 million, compared to a loss of $26.59 million in 2021, reflecting a slight increase in losses[193]. - Basic and diluted loss per share for the year was $1.31, compared to $2.36 in the previous year, showing a worsening in per-share performance[193]. - Operating loss for the year was $16.36 million, compared to an operating profit of $13.83 million in 2021, indicating a significant operational downturn[193]. - The company reported a net loss before tax of $22.68 million, compared to a loss of $4.78 million in the previous year, highlighting a substantial increase in pre-tax losses[193]. - Marketing and licensing expenses were $12.49 million, down from $137.65 million in 2021, showing a reduction of approximately 90.9%[193]. - The company recognized other income of $3.75 million, compared to no other income reported in the previous year[193]. - The net revaluation loss on investment properties was $42.34 million, compared to a loss of $204.13 million in 2021, indicating an improvement in property valuations[193]. - The total comprehensive loss for the year was $3.46 million, compared to a total comprehensive loss of $26.59 million in 2021, reflecting a reduction in overall losses[198]. Operational Efficiency - The company has established strict supplier evaluation and management procedures to ensure operational efficiency and maintain product and service quality[116]. - The company is focused on the design, research and development, marketing, and distribution of toys and family entertainment products as its main revenue source[153]. - The company has implemented measures to ensure compliance with the Children's Online Privacy Protection Act regarding the collection of information from children[118]. - The company has no issues obtaining water sources in 2022, indicating stable operational conditions[175]. - The company has no gas consumption in 2022 due to the sale of the restaurant business, indicating a shift in operational focus[175].

Revenue and Profitability - The group's revenue for the six months ended June 30, 2022, was HKD 378.7 million, an increase of 15.7% compared to HKD 327.1 million in the same period last year[11]. - The toy business generated revenue of HKD 267.5 million, up 25% from HKD 214.0 million year-on-year, driven by the expansion of the "Miraculous: Tales of Ladybug & Cat Noir" toy series[20]. - The property investment and related business revenue decreased by 1.9% to HKD 109.7 million, compared to HKD 111.8 million in the previous year[12]. - The gross profit for the group was HKD 236.4 million, compared to HKD 216.0 million in the previous year, reflecting a positive trend despite operational losses[11]. - The group recorded an operating loss of HKD 18.4 million, an improvement from a loss of HKD 37.1 million in the same period last year[11]. - The net loss attributable to shareholders was HKD 58.2 million, compared to a loss of HKD 64.6 million in the previous year[11]. - The total comprehensive loss for the period was HKD 91.8 million, compared to a comprehensive income of HKD 46.4 million in the same period of 2021[30]. - The company reported a total loss before tax of HKD 49,869,000 for the six months ended June 30, 2022, compared to a loss of HKD 41,374,000 in the same period of 2021[57]. - The group reported a pre-tax loss of HKD 58,222,000 for the six months ended June 30, 2022, compared to a loss of HKD 64,610,000 in the same period of 2021[79]. Cash Flow and Financial Position - Operating cash generated for the six months ended June 30, 2022, was $20,649,000, an increase from $19,793,000 in the previous year, representing a growth of 8.5%[37]. - Net cash generated from operating activities amounted to $19,793,000, compared to $106,080,000 in the same period last year, indicating a significant decrease of 81.3%[37]. - Cash used in investing activities was $(3,326,000), a notable decline from cash generated of $40,319,000 in the prior year, reflecting a change of 108.2%[37]. - Cash used in financing activities totaled $(15,713,000), compared to $(81,255,000) in the same period last year, showing an improvement of 80.7%[39]. - The net increase in cash and cash equivalents was $754,000, a significant drop from $65,144,000 in the same period last year, representing a decline of 98.8%[39]. - As of June 30, 2022, cash and cash equivalents stood at $188,505,000, down from $1,539,395,000 a year earlier, indicating a decrease of 87.7%[39]. - The group’s total assets as of June 30, 2022, were HKD 6.5 billion, a decrease from HKD 6.7 billion as of December 31, 2021[33]. - The net asset value was HKD 6.2 billion as of June 30, 2022, compared to HKD 6.4 billion at the end of 2021[35]. - The group’s total liabilities were HKD 1,085,572,000 as of June 30, 2022, compared to HKD 1,127,726,000 at the end of 2021, indicating a reduction of 3.7%[62]. Investment and Market Conditions - The company anticipates a challenging operating environment in the second half of the year due to high inflation and reduced consumer spending, impacting toy sales[23]. - The company plans to take decisive measures to reduce inventory levels, despite the short-term increase in costs, to seize future opportunities[23]. - The group plans to continue monitoring and adjusting its investment portfolio cautiously in response to global economic developments[26]. - The group recorded a net investment loss of HKD 41.3 million in the first half of 2022, compared to a net gain of HKD 6.3 million in the same period of 2021[26]. - The fair value of the investment portfolio was HKD 135.1 million, a decrease from HKD 161 million as of December 31, 2021, representing 1.8% of total assets[25]. Shareholder and Corporate Governance - The company paid dividends to shareholders amounting to $(8,052,000), a decrease of 35.0% from $(12,200,000) in the previous year[39]. - The interim dividend declared was HKD 31,200,000, maintaining the same rate of HKD 0.015 per share as in 2021[75]. - The company has adopted the corporate governance code and complied with all applicable provisions, with no exceptions noted[137]. - The audit committee has reviewed the accounting standards and practices adopted by the group, discussing internal controls and financial reporting matters[138]. - The company has adopted the standard code for securities trading by directors as per the listing rules, confirming compliance during the period ending June 30, 2022[139]. Assets and Liabilities Management - Current liabilities amounted to HKD 840.7 million, down from HKD 873.1 million at the end of 2021[33]. - The group’s trade receivables, net of customer discount provisions, were HKD 64,732,000 as of June 30, 2022, compared to HKD 128,879,000 as of December 31, 2021, reflecting a decrease of 49.8%[83]. - The group’s total accrued expenses and other payables amounted to HKD 196,524,000 as of June 30, 2022, down from HKD 212,262,000 as of December 31, 2021, indicating a decrease of approximately 7.4%[94]. - The group’s bank credit facilities were HKD 980,675,000 as of June 30, 2022, down from HKD 990,775,000 at the end of 2021, indicating a decrease of about 1.1%[91]. - The actual annual interest rate on bank loans increased to 1.68% as of June 30, 2022, from 1.49% at the end of 2021[90].

Financial Performance - The global revenue for Playmates Holdings Limited for the year ended December 31, 2021, was HKD 860.8 million, an increase of 60.5% compared to HKD 536.3 million in 2020[11]. - The operating profit before property revaluation was HKD 213.5 million, up from HKD 164.9 million in the previous year[11]. - The net loss attributable to shareholders, after accounting for property revaluation losses, was HKD 49.4 million, compared to a loss of HKD 507.6 million in 2020[11]. - The basic loss per share was HKD 0.0236, a significant improvement from HKD 0.2409 in 2020[11]. - The fair value of the group's investment properties was HKD 5.4 billion, down from HKD 5.5 billion in 2020[12]. - Total rental income from investment properties was HKD 207.4 million, a decrease of 0.4% from HKD 283 million in the previous year[13]. - The overall occupancy rate of the investment properties was 62%, down from 68% in 2020[13]. - The group's global revenue for the toy segment reached HKD 625 million, a 116% increase compared to HKD 289 million in the previous year[20]. - The operating profit for the toy segment was HKD 37.8 million, recovering from an operating loss of HKD 32.5 million in the previous year[21]. - The property management segment reported revenue of HKD 20 million, a decrease of 4.3% from HKD 20.9 million in the previous year[18]. Future Outlook - The company plans to expand the "Miraculous: Tales of Ladybug & Cat Noir" toy line, which is expected to be a major driver of performance in 2022[9]. - Supply chain challenges are anticipated to continue into 2022, affecting operations and costs[9]. - The company will launch a new product line inspired by "Star Trek: Prodigy" in 2022[9]. - The company anticipates ongoing challenges in 2022 due to the COVID-19 pandemic, including global supply chain disruptions and rising production costs[21]. Investment and Asset Management - The fair market value of the investment portfolio as of December 31, 2021, was HKD 161 million, up from HKD 85.2 million a year earlier, representing 2.1% of total assets[24]. - The investment portfolio generated a net loss of HKD 4.4 million in 2021, compared to a net gain of HKD 5.6 million in 2020[25]. - The investment properties constitute a major portion of the company's total asset value, and any significant changes in fair value could impact financial performance, despite not affecting operational cash flow[44]. - The company plans to continue monitoring economic conditions and adjusting its investment portfolio accordingly[26]. Risk Management - The company faces various financial risks, including currency, pricing, credit, and liquidity risks, which are detailed in the financial statements[47]. - Compliance with product safety regulations is a top priority, and any violations could lead to financial losses and reputational damage[45]. - The company has established a risk management and internal control system to identify current risks and has taken necessary measures to mitigate them[47]. - The company has significant exposure to economic and political risks that could affect its strategic execution capabilities[44]. - The company has experienced a major turnover in key personnel, which could impact its strategic execution[47]. Corporate Governance - The company’s board of directors includes experienced professionals with extensive backgrounds in finance and law, enhancing governance and oversight[40]. - The board consists of three executive directors, including the chairman, and five non-executive directors, with three being independent non-executive directors[102]. - The company has adopted the corporate governance code principles as per the Hong Kong Stock Exchange, ensuring high standards of corporate governance[101]. - The audit committee is composed of five non-executive directors, ensuring effective oversight of the company's audit and risk management processes[94]. - The board is committed to regularly reviewing and improving corporate governance practices to ensure prudent decision-making processes[101]. Employee and Workplace Policies - The total number of employees at the end of the reporting period was 71, with a turnover rate of 22.54%[179]. - The company provided a total of 48 hours of anti-corruption training for employees in the Hong Kong office[172]. - The company is committed to maintaining a safe and healthy work environment, with no reported serious violations of safety regulations[186]. - Flexible work arrangements are provided to employees, including options for remote work and flexible hours, to minimize the risk of virus transmission[192]. - Employees are encouraged to participate in external training programs with tuition subsidies and paid leave to enhance their skills related to job responsibilities[200]. Environmental, Social, and Governance (ESG) Initiatives - The report covers the company's environmental, social, and governance (ESG) management policies and performance for the year 2021, from January 1 to December 31[142]. - The company has established a corporate social responsibility (CSR) policy focusing on four pillars: business, employees, community, and environment[148]. - The company has identified climate physical risks, effectiveness of disaster recovery plans, disease transmission, and information security as significant ESG risks during the reporting period[152]. - The company emphasizes the importance of stakeholder feedback on its sustainability performance and encourages communication through designated channels[147]. - The company maintains a high standard of product quality and safety, with no significant violations related to health and safety laws reported during the period[164].

Revenue Performance - Group revenue for the six months ended June 30, 2021, was HKD 327,075,000, a 56.5% increase from HKD 209,024,000 in the same period of 2020[3] - Toy business revenue reached HKD 213,988,000, up 154.5% from HKD 83,988,000 year-on-year[3] - Total revenue for the six months ended June 30, 2021, was HKD 327.1 million, up from HKD 209.0 million in the same period of 2020, reflecting a significant increase in sales[23] - Revenue from external customers for the six months ended June 30, 2021, was HKD 488,905,000, an increase of 83.5% compared to HKD 266,507,000 for the same period in 2020[61] - The revenue from the Americas, particularly the US, was HKD 187,359,000, up 196.5% from HKD 63,168,000 in 2020[61] Profit and Loss - The group reported a net loss attributable to shareholders of HKD 64,610,000, an improvement from a loss of HKD 264,505,000 in the same period last year[3] - The operating loss for the first half of 2021 was HKD 37.1 million, a significant reduction from HKD 272.8 million in the same period of 2020[23] - The total comprehensive income for the first half of 2021 was HKD 46.4 million, compared to a total comprehensive loss of HKD 306.0 million in the same period of 2020[24] - The company reported a total loss before tax of HKD 41,374,000 for the six months ended June 30, 2021[50] - The company reported a pre-tax loss of HKD 64,610,000 for the six months ended June 30, 2021, compared to a loss of HKD 264,505,000 in the same period of 2020[72] Gross Profit and Margins - The gross profit margin for toy sales increased to 52% from 46% year-on-year, attributed to reduced R&D and packaging costs[14] - The gross profit for the first half of 2021 was HKD 216.0 million, compared to HKD 154.6 million in the same period of 2020, indicating a gross margin improvement[23] Investment and Property - Property investment and related business revenue decreased by 7.8% to HKD 111,837,000 compared to HKD 121,335,000 in the previous year[4] - Total rental income from investment properties was HKD 96,200,000, down 7.7% from HKD 104,200,000 year-on-year, with an overall occupancy rate of 67%[6] - The fair value of the group's investment properties was assessed at HKD 5,500,000,000, with a revaluation loss of HKD 142,880,000 recorded[4] - The group plans to balance its investment property portfolio to achieve capital appreciation and recurring income growth[12] - The company’s investment properties had a net book value of HKD 5,499,727,000 as of June 30, 2021, down from HKD 5,797,618,000 as of June 30, 2020[75] Cash Flow and Financing - Operating cash generated for the six months ended June 30, 2021, was $14,487,000, an increase from $67,881,000 in the same period of 2020[31] - Net cash generated from operating activities was $13,688,000, compared to $35,780,000 in the prior year[31] - Cash and cash equivalents increased by $8,406,000, resulting in a total of $198,632,000 as of June 30, 2021, compared to $1,476,738,000 in the previous year[33] - The company reported a net cash outflow from financing activities of $10,484,000, compared to an outflow of $84,705,000 in the same period of 2020[33] - The company received $76,000 from the sale of subsidiaries, a decrease from $5,490,000 in the previous year[31] Assets and Liabilities - The group’s total assets as of June 30, 2021, were HKD 6.68 billion, slightly down from HKD 6.75 billion as of December 31, 2020[27] - The net asset value as of June 30, 2021, was HKD 6.42 billion, compared to HKD 6.50 billion as of December 31, 2020[29] - The company’s total liabilities were HKD 1,089,472,000, with property investment liabilities at HKD 827,745,000[55] - The company’s debt-to-asset ratio was 10.5%, up from 10.0% on December 31, 2020[114] - The current ratio as of June 30, 2021, was 2.2, compared to 2.4 on December 31, 2020[114] Shareholder Information - The company paid dividends to shareholders amounting to $16,181,000, which is a significant increase from $63,495,000 in the same period of 2020[33] - The company declared an interim dividend of HKD 31,350,000 for the six months ended June 30, 2021, slightly down from HKD 31,635,000 in 2020[69] - The company repurchased 2,500,000 shares at an average price of HKD 0.92, resulting in a total cost of HKD 2,319,000, which has been deducted from the share premium account[90] - Chen Junhao holds 1,345,400,000 shares, representing 64.37% of the company's total issued shares[136] - TGC Assets Limited owns 1,073,400,000 shares, accounting for 51.36% of the company's total issued shares[136] Corporate Governance - The company has adopted the corporate governance code principles and complied with all applicable code provisions, except for the role of Chairman and CEO being held by one individual[140] - The company has not designated a CEO, with the board overseeing management and operations collectively[140] - The company’s board structure will be reviewed regularly to ensure robust corporate governance[140] - The company has confirmed compliance with the standard code for securities trading by its directors during the reporting period[143]

Financial Performance - The total revenue for Playmates Holdings Limited for the year ended December 31, 2020, was HKD 536.3 million, a decrease of 13.9% compared to HKD 622.6 million in 2019[11]. - The operating profit, excluding revaluation losses/gains on investment properties, was HKD 164.9 million, down from HKD 180.4 million in the previous year[11]. - The net loss attributable to shareholders was HKD 507.6 million, compared to a profit of HKD 416.7 million in 2019, resulting in a basic loss per share of HKD 0.2409[11]. - Revenue from property investment and related businesses was HKD 242.1 million, a decrease of 4.0% from HKD 252.3 million in 2019[12]. - The restaurant business revenue decreased by 35.2% to HKD 12.9 million, down from HKD 19.9 million in the previous year[12]. - Global revenue for the toy segment was HKD 289 million, a decrease of 19% from HKD 359 million in the previous year, attributed to reduced sales of "Teenage Mutant Ninja Turtles" and "Ben 10" products[21]. - The gross profit margin for toy sales was 49%, down from 51% in the previous year, mainly due to increased mold and development costs associated with new products[21]. - The group recorded a net loss of HKD 30 million for the toy segment, compared to a net loss of HKD 37 million in the previous year[22]. Investment Properties - The fair value of the group's investment properties was HKD 5.5 billion, down from HKD 6.1 billion in 2019, reflecting a revaluation loss of HKD 647.5 million[12]. - The overall occupancy rate of the investment properties remained stable at 68%[13]. - The group's property management segment reported revenue of HKD 20.9 million, a decrease of 1.9% compared to HKD 21.3 million in the previous year[19]. - The overall occupancy rate for property investments was 68% as of December 31, 2020, unchanged from 2019[68]. Cash and Reserves - As of December 31, 2020, the company's cash and bank balances amounted to HKD 1,475,511,000, a decrease from HKD 1,541,334,000 in 2019[69]. - The company's asset-liability ratio was 10% as of December 31, 2020, compared to 9.3% in 2019[69]. - The company's distributable reserves as of December 31, 2020, were HKD 1,398,723,000, an increase from HKD 1,343,096,000 in 2019[65]. Share Options and Dividends - The company declared an interim dividend of HKD 0.015 per share, totaling HKD 31,577,000, and a special interim dividend of HKD 0.03 per share, totaling HKD 125,400,000[63]. - The company has a total of 8,246,500 share options available under the 2008 plan, representing 0.70% of the issued share capital of the subsidiary[83]. - The company has a total of 48,332,000 share options available under the 2018 plan, representing 4.10% of the issued share capital of the subsidiary[83]. Risk Management - The company has implemented internal controls and systems to protect critical data, including customer and financial information[52]. - The company has a risk management and internal control system in place to identify and mitigate current risks[52]. - Financial risks related to currency, pricing, credit, and liquidity are present in the company's general operations[51]. - The company has faced economic and political risks that could affect its strategic execution capabilities[48]. Corporate Governance - The audit committee, consisting of five non-executive directors, is responsible for reviewing external audit work and internal controls[100]. - The company has adopted the corporate governance code principles and complied with all applicable code provisions as of December 31, 2020[104]. - The board consists of three executive directors, including the chairman, and six non-executive directors, with four being independent non-executive directors[105]. - The company has established a governance structure to ensure effective management and oversight of operations[107]. Environmental Commitment - The total greenhouse gas emissions for 2020 were 1,604,424 kg CO2 equivalent, a decrease of 20.4% from 2,015,693 kg CO2 equivalent in 2019[155]. - The total amount of non-hazardous waste generated in 2020 was 96 tons, a reduction from 120 tons in 2019, indicating a decrease of 20%[156]. - The company aims to reduce its carbon footprint and improve resource efficiency through various environmental measures[152]. - The company has implemented waste management principles of "reduce, reuse, and recycle" in its operations[154]. Compliance and Ethics - The company adheres to ethical business practices and complies with all applicable laws in its operating regions, including anti-corruption measures[176]. - The company has established internal controls and training measures to ensure compliance with relevant regulations and updates[177]. - The company has not faced any legal actions related to bribery or money laundering during the reporting year[177]. Community Engagement - The total amount of charitable and other donations for the year was HKD 371,000, down from HKD 518,000 in 2019[74]. - The company supports community initiatives through charitable donations and encourages employee participation in social services[147].