Group 1 - Key Point 1: 基石药业-B (02616) rose over 5% after its drug for lung cancer,舒格利单抗, received long-term survival data recognition in The Lancet Oncology, reinforcing its position as a first-line treatment in Europe [2] - Key Point 2: 海昌海洋公园 (02255) increased by over 4% as a major shareholder, 祥源控股, is set to acquire a 38.6% stake for HKD 22.95 billion, potentially alleviating liquidity pressures [2] - Key Point 3: 冠忠巴士 (00306) surged 27% with a projected 143% increase in annual pre-tax profit to HKD 165 million, driven by revenue growth, reduced fuel costs, and autonomous driving licenses [2] Group 2 - Key Point 1: 东方表行 (00398) fell over 5% due to a 5.2% decline in revenue and a 20% drop in net profit, attributed to weak luxury goods demand amid geopolitical conflicts and interest rate fluctuations [2] - Key Point 2: 北森控股 (09669) plummeted over 17% as its adjusted annual EBITDA was only HKD 28.9 million, with Everbright Securities lowering revenue forecasts by 10%-15% due to growth challenges [3] - Key Point 3: 顺丰控股 (06936) rose over 6% to a new high, with May express delivery revenue increasing by 13.4%, and the scaling of unmanned delivery vehicles potentially opening up future profit opportunities [3] Group 3 - Key Point 1: 中国中免 (01880) increased by over 5% as it accelerates the expansion of its duty-free stores, with 4 already opened and 9 more in preparation, benefiting from favorable policies [3] - Key Point 2: 华虹半导体 (01347) rose over 7% with a capacity utilization rate of 102.7%, and Tianfeng Securities optimistic about future contributions of USD 1.28 billion from its 9th factory [3] - Key Point 3: 网龙 (00777) increased over 3% after showcasing AI digital human presentation technology at a UN conference, launching the "EDA Education Metaverse" strategy, which catalyzed a revaluation of AI [4]

Group 1 - The Hang Seng Index rose by 0.84% to close at 24,366.94 points on June 11 [1] - Derlin International (01126.HK) closed at HKD 9.0 per share, up 44.0%, with a trading volume of 20.24 million shares and a turnover of HKD 166 million, showing a volatility of 55.2% [1] - Over the past month, Derlin International has seen a cumulative increase of 4.02%, and a year-to-date increase of 33.68%, outperforming the Hang Seng Index's increase of 20.45% [1] Group 2 - For the fiscal year ending December 31, 2024, Derlin International reported total revenue of HKD 5.047 billion, a year-on-year increase of 1.82%, and a net profit attributable to shareholders of HKD 684 million, a decrease of 11.01% [1] - The gross profit margin for Derlin International is 23.01%, and the debt-to-asset ratio is 20.13% [1] - Currently, there are no institutional investment ratings for Derlin International [1] Group 3 - The average price-to-earnings (P/E) ratio for the household appliances and goods industry is 13.06 times, with a median of 3.73 times [1] - Derlin International has a P/E ratio of 5.73 times, ranking 10th in the industry [1] - Other companies in the industry include Lian International (09918.HK) with a P/E of 1.52 times, Kaifushan Group Holdings (08512.HK) at 1.55 times, Huaxun (00833.HK) at 3.3 times, Kuangshi Fragrance (01925.HK) at 3.73 times, and Shengnuo Group (01418.HK) at 3.8 times [1] Group 4 - Derlin International Limited has expanded its business from plush toy development and production to other areas such as plastic hand models, injection-molded products, textiles, waterproof tarpaulins, and doll toys [2] - The group currently operates 30 subsidiaries across Hong Kong, Vietnam, China, the United States, Singapore, and South Korea, with one overseas branch in Japan [2]

Business Performance - The company maintained a stable business growth and solid profitability despite a complex operating environment, with a focus on strategic deployment and competitive advantages [13]. - For the fiscal year ending December 31, 2024, the company's revenue increased to HKD 5,450,000,000, up from HKD 5,352,500,000 in 2023, reflecting a growth driven by plush toy sales and increased orders for plastic model kits [22]. - Gross profit for the year was HKD 1,253,900,000, with a gross margin of 23.0%, down from 25.1% in the previous year [22]. - Net profit attributable to shareholders was HKD 738,500,000, resulting in a net profit margin of 13.6%, compared to 15.5% in 2023 [22]. - The plush toy segment generated revenue of HKD 2,765,500,000, accounting for 50.7% of total revenue, with growth primarily driven by the Asian market [24]. - The plastic model segment saw revenue rise to HKD 2,311,200,000, representing 42.4% of total revenue, benefiting from strong demand in North America and Japan [25]. - The waterproof cover segment reported revenue of HKD 373,300,000, which is 6.9% of total revenue, impacted by reduced orders in the U.S. market [28]. - North America remains the largest regional market, contributing 42.3% of total revenue, followed by Japan at 24.6% and mainland China at 18.8% [29]. Production and Efficiency - The company improved production efficiency and cost control by accelerating automation and investing in advanced production technologies, which helped streamline processes and reduce labor dependency [15]. - The company is expanding its production capabilities to Indonesia, in addition to existing bases in China and Vietnam, to enhance flexibility and respond to international clients seeking cost-effective solutions [18]. - The company plans to enhance production efficiency and capacity by increasing automation levels across production lines and is establishing a new production base in Indonesia, expected to be operational by mid-2025 [32]. Customer Relations and Market Strategy - In 2024, the company plans to enhance customer relationships through active collaboration and flexible production arrangements, resulting in multiple large orders and extended partnerships [14]. - The company aims to capture emerging opportunities in the entertainment industry, such as immersive retail models and virtual gaming experiences, as part of its growth strategy [18]. Financial Management and Dividends - The company plans to distribute a final dividend, reflecting confidence in its ability to create value for shareholders [13]. - The board proposed a final dividend of HKD 0.40 per share, up from HKD 0.35 per share in 2023, reflecting the company's commitment to rewarding shareholders [23]. - The total distributable reserves available for shareholders as of December 31, 2024, amounted to HKD 1,188,775,000, an increase from HKD 1,120,854,000 in 2023 [74]. Sustainability and ESG Commitment - The company is committed to sustainable development by integrating ESG principles into its business strategy, including the use of recycled materials and investment in automated production lines [17]. - The company is committed to environmental sustainability and corporate social responsibility, integrating these principles into daily operations [45]. - The company has implemented sufficient environmental controls to minimize operational impacts, focusing on reducing resource usage, particularly energy and water [176]. - The company has received multiple certifications for social compliance standards, including ICTI Care Program and Disney International Labor Standards, addressing various environmental, social, and governance issues [175]. Governance and Compliance - The board consists of four executive directors and three independent non-executive directors, ensuring a diverse governance structure [107]. - The independent non-executive directors have confirmed their independence according to the listing rules [99]. - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance by all directors for the year ending December 31, 2024 [100]. - The audit committee reviewed the accounting policies and discussed risk management and internal control systems, focusing on the annual performance for the year ending December 31, 2024 [102]. Risk Management - The risk management framework is guided by a "three lines of defense" model, ensuring effective risk control considerations by the board [149]. - The audit committee believes that the internal control work of the risk management working group is adequate given the group's operational scale and complexity [151]. Shareholder Communication - The company has established multiple channels for communication with shareholders, including annual general meetings and special meetings [159]. - The board of directors regularly reviews the shareholder communication policy to ensure its effectiveness [158]. - The company emphasizes the importance of effective and timely communication with shareholders and investors [163].

Financial Performance - Revenue for the year ended December 31, 2024, was HKD 5,449,987, an increase of 1.8% compared to HKD 5,352,473 in 2023[2] - Gross profit decreased to HKD 1,253,869, down 6.7% from HKD 1,344,744 in the previous year[2] - Operating profit for the year was HKD 932,272, a decline of 10.3% from HKD 1,039,548 in 2023[2] - Net profit for the year was HKD 738,497, down 11% from HKD 829,847 in 2023[2] - Basic and diluted earnings per share decreased to HKD 109.11 from HKD 122.60 in the previous year[2] - Other income increased to HKD 124,582, up from HKD 90,307, marking a significant rise of 38%[2] - Pre-tax profit for 2024 was HKD 738,497,000, a decrease of 11% from HKD 829,847,000 in 2023[28] - Basic earnings per share for 2024 were HKD 1.09, down from HKD 1.22 in 2023, representing a decline of 10.7%[28] - Net profit attributable to shareholders was HKD 738,500,000, resulting in a net margin of 13.6%, compared to 15.5% in 2023[40] Revenue Breakdown - Revenue from the plush toy segment was HKD 2,765,513 in 2024, compared to HKD 2,737,208 in 2023, reflecting a growth of about 1.0%[21] - The plastic model segment generated revenue of HKD 2,311,164 in 2024, up from HKD 2,222,130 in 2023, indicating an increase of approximately 4.0%[21] - The waterproof cover segment reported revenue of HKD 373,310 in 2024, down from HKD 393,135 in 2023, showing a decline of about 5.0%[21] - The plush toy segment generated revenue of HKD 2,765,500,000, accounting for 50.7% of total revenue, with growth primarily driven by the Asian market[42] - The plastic model segment's revenue rose to HKD 2,311,200,000, representing 42.4% of total revenue, benefiting from strong demand in North America and Japan[43] - North America remained the largest regional market, contributing 42.3% of total revenue, followed by Japan at 24.6% and mainland China at 18.8%[45] Assets and Liabilities - Total assets less current liabilities increased to HKD 3,992,191 from HKD 3,715,883 in 2023, reflecting a growth of 7.4%[5] - Total assets for the group as of December 31, 2024, were HKD 4,959,341, an increase from HKD 4,612,546 in 2023[23] - The group's total liabilities as of December 31, 2024, were HKD 998,423, compared to HKD 933,802 in 2023, reflecting an increase of approximately 6.9%[23] - The group’s reportable segment assets decreased to HKD 3,162,174 in 2024 from HKD 3,510,121 in 2023, a decline of approximately 9.9%[23] - The group’s reportable segment liabilities decreased to HKD 739,292 in 2024 from HKD 947,935 in 2023, a reduction of about 22.0%[23] Employee and Operational Costs - Employee costs increased to HKD 1,491,087,000 in 2024, up 12.6% from HKD 1,324,278,000 in 2023[24] - Total employee costs for the year amounted to HKD 1,491,100,000, up from HKD 1,324,300,000 in the previous year[49] - Inventory costs rose to HKD 4,196,118,000 in 2024, compared to HKD 4,007,729,000 in 2023, reflecting an increase of 4.7%[24] Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.40 per share for 2024, an increase from HKD 0.35 per share in 2023, totaling HKD 406,119,000 in dividends for the year[41] - The proposed final dividend is HKD 0.40 per share, an increase from HKD 0.35 per share in 2023, totaling HKD 270,746,000 if approved[58] Strategic Initiatives and Market Outlook - The company plans to enhance production efficiency and capacity by increasing automation levels across production lines and is establishing a new production base in Indonesia, expected to be operational by mid-2025[48] - The company aims to focus on sustainable development by using recycled materials and encouraging customers to reduce packaging, aligning with stricter ESG standards[48] - Despite global inflation easing, geopolitical conflicts pose uncertainties, but the company is prepared to leverage opportunities in the recovering toy markets in the U.S. and Asia[47] Financial Management and Audit - The company maintained a prudent strategy in managing its financial needs and foreign exchange risks[50] - The audit committee reviewed the accounting policies and financial reporting matters for the year ending December 31, 2024[60]

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of HKD 2,294,000,000, a decrease of 7.8% from HKD 2,489,100,000 for the same period in 2023[3] - Gross profit for the same period was HKD 550,300,000, down from HKD 576,600,000, maintaining a gross margin of 24.0%, compared to 23.2% in the previous year[3] - Net profit attributable to shareholders was HKD 278,900,000, a decline from HKD 333,800,000, resulting in a net profit margin of 12.2%, down from 13.4%[3] - Operating profit decreased to HKD 349,301, a decline of 16.9% from HKD 420,621 in the previous year[32] - The profit for the period was HKD 278,854, down 16.5% from HKD 333,848 in the prior year[33] - Basic and diluted earnings per share were HKD 0.412, compared to HKD 0.493 for the same period last year, representing a decrease of 16.4%[32] - The total comprehensive income for the period was HKD 238,954, down from HKD 327,650, a decline of 27.0%[33] - Reported segment profit for the six months ended June 30, 2024, was HKD 426,275,000, down from HKD 510,817,000 in the same period of 2023, representing a decrease of approximately 16.5%[53] Revenue Breakdown - The plush toy segment generated sales of HKD 1,186,100,000, accounting for 51.7% of total revenue, showing resilience due to strong demand from theme parks in Asia[4] - The plastic model segment reported revenue of HKD 936,300,000, representing 40.8% of total revenue, with ongoing new project discussions and development[5] - Revenue from waterproof covers decreased to HKD 171,600,000, down from HKD 242,100,000, primarily due to high inventory levels in the U.S. market[6] - Revenue from plush toys was HKD 1,186,083,000, down from HKD 1,239,913,000, representing a decline of 4.3%[49] - Revenue from plastic model kits decreased to HKD 936,337,000 from HKD 1,007,115,000, a drop of 7.03%[49] - Revenue from waterproof covers fell to HKD 171,625,000 from HKD 242,050,000, a significant decrease of 29.1%[49] - Revenue from North America was HKD 976,417,000, down 18.3% from HKD 1,194,381,000[50] - Revenue from Japan decreased to HKD 539,157,000 from HKD 654,266,000, a decline of 17.6%[50] - Revenue from mainland China increased to HKD 509,985,000 from HKD 394,396,000, marking a growth of 29.3%[50] Assets and Liabilities - As of June 30, 2024, the group's net current assets amounted to HKD 2,313,100,000, a slight decrease from HKD 2,326,100,000 as of December 31, 2023[11] - The total cash and cash equivalents as of June 30, 2024, were HKD 1,127,500,000, down from HKD 1,264,500,000 as of December 31, 2023[11] - The bank loan amount as of June 30, 2024, was HKD 81,100,000, an increase from HKD 73,500,000 as of December 31, 2023[11] - The total equity as of June 30, 2024, was HKD 3,680,795 thousand, a slight increase from HKD 3,678,744 thousand[35] - Total assets as of June 30, 2024, were HKD 1,881,194,000, down from HKD 1,992,398,000 as of December 31, 2023, a decline of about 5.6%[53] - Total liabilities increased to HKD 344,741,000 as of June 30, 2024, from HKD 295,198,000 as of December 31, 2023, representing an increase of approximately 16.8%[53] Cash Flow and Financing - Operating cash flow netted HKD 247,842 thousand, down from HKD 363,661 thousand, a decrease of 31.8%[41] - The company reported a net cash outflow from financing activities of HKD 249,822 thousand, compared to HKD 241,141 thousand in the prior year[42] - The company incurred financial expenses of HKD 1,371,000 for the six months ended June 30, 2024, significantly lower than HKD 6,755,000 in the same period of 2023, indicating a decrease of about 79.7%[55] Dividends and Shareholder Information - The interim dividend declared for the six months ended June 30, 2024, was HKD 0.20 per share, consistent with the previous year[15] - The total interim dividend amounted to HKD 135,373,000, unchanged from the same period in 2023[15] - Major shareholders included Choi Kwai Yung with a total of 461,361,000 shares, representing 68.16% of the issued shares[18] Operational Strategy and Future Plans - The company plans to enhance production capacity with a new factory in Indonesia, expected to be completed in the first half of 2025, to meet increasing customer demand outside of China[9] - The company aims to focus on improving sales performance and efficiency in the second half of 2024, while continuing to automate production processes[9] Compliance and Governance - The audit committee reviewed the interim financial results and confirmed compliance with relevant accounting standards and regulations[29] - The company has adopted the standard code for securities transactions by directors and confirmed compliance by all directors for the six-month period[28] - The board believes that the current dual role of the Chairman and CEO is appropriate for maintaining policy continuity and business stability[27] Inventory and Receivables - The company’s inventory increased to HKD 969,275 thousand from HKD 815,616 thousand, a rise of 18.9%[34] - Accounts receivable and notes receivable, net of loss provisions, totaled HKD 733,489,000 as of June 30, 2024, down from HKD 775,505,000 as of December 31, 2023[68] - The total accounts payable as of June 30, 2024, was HKD 498,550,000, an increase from HKD 372,896,000 as of December 31, 2023[71] Investments and Fair Value - The group did not hold any significant investments as of June 30, 2024[13] - The fair value of unlisted equity securities as of June 30, 2024, is HKD 2,996,000, down from HKD 3,206,000 as of December 31, 2023, reflecting a decrease of approximately 6.5%[78] - The fair value measurement for unlisted equity securities includes a lack of marketability discount of 30%, which has remained unchanged from the previous year[80]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 2,294,045, a decrease of 7.85% compared to HKD 2,489,078 for the same period in 2023[2] - Gross profit for the same period was HKD 550,271, down from HKD 576,567, reflecting a gross margin of approximately 24%[2] - Operating profit decreased to HKD 349,301, a decline of 16.9% from HKD 420,621 in the previous year[2] - Profit for the period was HKD 278,854, down 16.5% from HKD 333,848 in the prior year[3] - Basic and diluted earnings per share were HKD 0.412, compared to HKD 0.493 for the same period last year, representing a decrease of 16.4%[2] - Total comprehensive income for the period was HKD 238,954, down from HKD 327,650 in the previous year[4] Revenue Breakdown - Revenue from plush toys was HKD 1,186,083 thousand for the six months ended June 30, 2024, compared to HKD 1,239,913 thousand in 2023, a decrease of 4.3%[13] - Revenue from plastic model products was HKD 936,337 thousand for the six months ended June 30, 2024, down from HKD 1,007,115 thousand in 2023, a decline of 7.0%[13] - Revenue from waterproof covers was HKD 171,625 thousand for the six months ended June 30, 2024, a significant decrease of 29.1% compared to HKD 242,050 thousand in 2023[13] - Revenue from North America was HKD 976,417 thousand for the six months ended June 30, 2024, down 18.3% from HKD 1,194,381 thousand in 2023[14] Assets and Liabilities - Non-current assets increased to HKD 1,404,215 from HKD 1,389,802 as of December 31, 2023[5] - The total assets for the reporting segments as of June 30, 2024, were HKD 3,341,892 thousand, compared to HKD 3,510,121 thousand as of December 31, 2023, indicating a decrease of 4.8%[15] - The total liabilities for the reporting segments increased to HKD 960,907 thousand as of June 30, 2024, from HKD 947,935 thousand as of December 31, 2023, representing an increase of 1.5%[15] Operational Highlights - The company continues to focus on the design, development, manufacturing, and sales of plastic models, plush toys, and waterproof covers, with no new product launches or market expansions reported in this period[8] - The company reported an operating profit before interest, tax, depreciation, and amortization of HKD 306,266 thousand for the six months ended June 30, 2024, compared to HKD 377,703 thousand in 2023, a decrease of 19.0%[16] - The company has 27 factories with an average utilization rate of approximately 84%, and has made significant progress in production automation[37] - A new factory is being constructed in Indonesia, expected to be completed in the first half of 2025, to expand production capacity and meet customer demand outside of China[38] Tax and Expenses - The current tax provision for Hong Kong profits tax was HKD 4,560,000 for the six months ended June 30, 2024, compared to HKD 19,233,000 in 2023, showing a decrease of about 76.3%[19] - Depreciation expenses for owned properties, plants, and equipment were HKD 67,496,000 for the six months ended June 30, 2024, down from HKD 73,812,000 in 2023, reflecting a reduction of approximately 8.4%[18] - Interest income increased to HKD 25,099 thousand for the six months ended June 30, 2024, compared to HKD 18,364 thousand in 2023, reflecting an increase of 36.7%[16] - The interest expense on bank borrowings decreased to HKD 356,000 for the six months ended June 30, 2024, from HKD 4,922,000 in 2023, reflecting a significant reduction of approximately 92.8%[17] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.20 per ordinary share for the six months ended June 30, 2024, unchanged from the same period in 2023, totaling HKD 135,373,000[21] - The board has proposed an interim dividend of HKD 0.20 per share, consistent with the previous year[33] Employment and Costs - As of June 30, 2024, the group employed 25,602 staff, a decrease from 26,210 as of December 31, 2023[39] - Total employee costs for the period amounted to HKD 670,500,000, nearly unchanged from HKD 670,600,000 for the same period last year[39] Current Assets and Cash Flow - Cash and cash equivalents totaled HKD 1,127,500,000 as of June 30, 2024, compared to HKD 1,264,500,000 as of December 31, 2023[40] - The group's net current assets were HKD 2,313,100,000 as of June 30, 2024, down from HKD 2,326,100,000 as of December 31, 2023[40] - The group's bank loans increased to HKD 81,100,000 as of June 30, 2024, from HKD 73,500,000 as of December 31, 2023[40] Inventory Management - Inventory as of June 30, 2024, was HKD 969,275, an increase from HKD 815,616 at the end of 2023, indicating a rise of 19%[6] - The company recorded a reversal of inventory write-downs amounting to HKD 22,508,000 for the six months ended June 30, 2024, compared to HKD 601,000 in 2023, indicating improved inventory management[28] Compliance and Governance - The interim results for the six months ended June 30, 2024, were reviewed by the audit committee and found to comply with relevant accounting standards[47] - The group has not engaged in any purchase, sale, or redemption of its listed securities during the reporting period[42] - The group maintains a prudent approach to foreign exchange risk management, primarily financing non-HKD assets with local currency liabilities[40]

Financial Performance - The company recorded revenue of HKD 5,344,700,000 for the year, a decrease from HKD 6,252,900,000 in 2022, reflecting the impact of geopolitical conflicts and economic challenges[16]. - Gross profit increased to HKD 1,344,700,000, with a gross margin rising by 5.4 percentage points to 25.1% compared to 19.7% in 2022[16]. - Net profit attributable to shareholders rose by 20.8% to HKD 829,800,000, with a net profit margin increasing to 15.5% from 11.0% in the previous year[16]. - The plush toy segment grew by 19.6% to HKD 2,737,200,000, accounting for 51.1% of total revenue, driven by strong orders from theme parks[17]. - The plastic model segment's revenue fell to HKD 1,927,900,000, a decrease from HKD 3,232,900,000 in 2022, representing 36.0% of total revenue[17]. - The company plans to expand sales of sustainable waterproof covers globally, with revenue from this segment at HKD 393,100,000, down from HKD 485,900,000 in 2022[19]. - The injection molding products segment saw a revenue increase of 19.4% to HKD 294,200,000, representing 5.6% of total revenue[20]. - North America remains the largest regional market, contributing 44.9% of total revenue, followed by Japan at 25.6% and China at 17.0%[21]. Operational Strategy - The company focused on optimizing production processes and improving profitability through strategic initiatives in raw material procurement and production[9]. - The company invested significantly in automating production processes to enhance productivity, efficiency, and quality[12]. - The company has established long-term partnerships with suppliers to ensure stable raw material supply at competitive costs[9]. - The company is adapting to industry competition by maintaining strong relationships with existing customers and seizing emerging opportunities[8]. - The company is constructing a new factory in Indonesia, expected to commence operations in 2025, as part of its strategy to diversify regional risks and enhance production flexibility[25]. Sustainability and Corporate Responsibility - The company emphasized sustainability by sourcing renewable and recyclable materials, aligning with market demand for sustainable products[12]. - The company is committed to corporate social responsibility and has made progress in environmental, social, and governance management[12]. - The company has implemented measures to reduce carbon emissions, focusing on energy consumption reduction[152]. - The company aims to minimize environmental impact through resource management and compliance with applicable environmental laws and regulations[139]. - The group has received multiple certifications for social compliance standards, including ICTI Care Program and Disney International Labor Standards[135]. Shareholder Returns - The company maintained profitability despite economic challenges, proposing a final dividend to shareholders[8]. - The company reported a mid-term dividend of HKD 0.20 per share, an increase from HKD 0.10 per share in 2022[47]. - The proposed final dividend for the year ending December 31, 2023, is HKD 0.35 per share, up from HKD 0.30 per share in 2022[47]. - The total reserves available for distribution to equity shareholders amounted to HKD 1,120,854,000, a decrease from HKD 1,260,613,000 in 2022[55]. Risk Management - The company is facing pressures from global economic challenges, rising raw material prices, and operational costs, prompting a dual strategy to expand business scale and increase revenue[31]. - The company has maintained a cautious approach to foreign exchange risk management, with no hedging arrangements in place as of December 31, 2023[34]. - The risk management working group has reported on significant risks and appropriate measures to mitigate or transfer identified risks[118]. - The company is actively monitoring climate-related risks and has established emergency plans for extreme weather events[164]. Governance and Management - The board of directors consists of four executive directors and three independent non-executive directors, ensuring a diverse governance structure[83]. - The roles of the chairman and CEO are distinct, with the chairman focusing on strategy and governance while the CEO manages the business operations[97]. - The audit committee has reviewed the accounting policies and financial reporting matters for the fiscal year ending December 31, 2023[77]. - The company has adopted a written guideline for employee securities trading that meets or exceeds the standards set forth in the listing rules[85]. - The company ensures that shareholders receive detailed information about director elections prior to the annual general meeting[95]. Employee and Community Engagement - The total number of employees decreased to 26,210 from 28,924 in the previous year, with total employee costs amounting to HKD 1,324,300,000[26]. - Employee turnover rate for the year was reported at 14.7%, with a total workforce of 19,593 employees across 11 subsidiaries in China and Vietnam[168]. - The company made charitable donations totaling HKD 116,000 for the year ended December 31, 2023, down from HKD 691,000 in 2022[54]. - Community investment focuses on areas such as education, environment, labor needs, health, culture, and sports[4]. Environmental Performance - The company aims to replace all existing lighting with LED equipment, contributing to energy efficiency improvements[144]. - The company has installed wastewater treatment facilities in its factories, ensuring compliance with local discharge standards[156]. - The company reported a total energy consumption of 105,000,000 kWh, an increase from 97,235,192 kWh in 2022[141]. - The company has not reported any corruption lawsuits against its employees during the reporting period, indicating effective anti-corruption measures[3].

Revenue Performance - Revenue from external customers for the year ended December 31, 2023, was HKD 2,737,208, an increase from HKD 2,287,828 in 2022, representing a growth of approximately 19.6%[3] - The total reportable segment revenue for 2023 was HKD 5,478,380, compared to HKD 6,475,900 in 2022, indicating a decline of about 15.4%[3] Profitability - The adjusted segment profit for plush toys in 2023 was HKD 805,207, up from HKD 526,705 in 2022, reflecting a growth of approximately 52.9%[3] - The adjusted profit before interest, tax, depreciation, and amortization for the total reportable segments was HKD 1,195,438 in 2023, compared to HKD 1,064,781 in 2022, representing an increase of about 12.3%[3] Assets and Liabilities - The total reportable segment assets as of December 31, 2023, were HKD 3,510,121, a decrease from HKD 3,740,386 in 2022, showing a decline of about 6.2%[4] - The company’s total liabilities for reportable segments decreased to HKD 947,935 in 2023 from HKD 1,222,165 in 2022, a reduction of about 22.4%[4] - Non-current segment asset additions for the year were HKD 78,832, down from HKD 162,618 in 2022, indicating a decrease of approximately 51.6%[4] Interest Income - The company reported a bank interest income of HKD 38,737 for 2023, significantly higher than HKD 19,513 in 2022, marking an increase of approximately 97.1%[4] Strategic Outlook - The company aims to enhance its market presence through new product development and strategic acquisitions in the upcoming fiscal year[2] - The company confirmed that the clarifications made do not affect the other information contained in the annual performance announcement[4]

Financial Performance - Revenue for the year ended December 31, 2023, was HKD 5,352,473, a decrease of 14.4% from HKD 6,252,874 in 2022[2] - Gross profit increased to HKD 1,344,744, up 9.4% from HKD 1,228,876 in the previous year[2] - Operating profit rose to HKD 1,039,548, reflecting a growth of 23.4% compared to HKD 842,451 in 2022[2] - Profit before tax for 2023 was HKD 1,033,231, an increase of 23.7% from HKD 835,062 in 2022[2] - Net profit for the year was HKD 829,847, representing a 20.8% increase from HKD 687,096 in the prior year[2] - Basic and diluted earnings per share for 2023 were HKD 1.2260, compared to HKD 1.0151 in 2022[2] - Total comprehensive income for the year was HKD 811,690, up from HKD 666,641 in 2022[4] Revenue Breakdown - Customer contract revenue for 2023 was HKD 5,352,473, a decrease of 14.4% from HKD 6,252,874 in 2022[16] - Revenue from plush toys increased to HKD 2,737,208 in 2023 from HKD 2,287,828 in 2022, representing a growth of 19.7%[16] - Revenue from plastic hand models decreased significantly to HKD 1,927,946 in 2023 from HKD 3,232,899 in 2022, a decline of 40.4%[16] - Total revenue from North America was HKD 2,404,000 in 2023, down from HKD 3,794,341 in 2022, a decrease of 36.6%[19] - Revenue from Japan increased to HKD 1,369,371 in 2023 from HKD 1,115,211 in 2022, a growth of 22.8%[19] - The revenue from the plastic model segment was HKD 1,927,900,000, a decrease from HKD 3,232,900,000 in 2022, accounting for 36.0% of total group revenue[44] - The waterproof cover segment recorded revenue of HKD 393,100,000, down from HKD 485,900,000 in 2022, representing 7.3% of total group revenue[45] - The injection molding products segment saw a revenue increase of 19.4% to HKD 294,200,000, up from HKD 246,300,000 in 2022, making up 5.6% of total group revenue[46] Assets and Liabilities - Current assets increased to HKD 3,222,744 from HKD 2,899,867 in the previous year[5] - Total equity rose to HKD 3,678,744, compared to HKD 3,205,487 in 2022, indicating a growth of 14.7%[9] - Total specific non-current assets in Hong Kong decreased to HKD 1,152,810 in 2023 from HKD 1,256,910 in 2022[20] - Total assets reported for 2023 were HKD 4,612,546,000, an increase from HKD 4,384,667,000 in 2022[23] - Total liabilities reported for 2023 were HKD 933,802,000, down from HKD 1,179,180,000 in 2022[24] - Accounts receivable decreased to HKD 775,505,000 from HKD 946,892,000 in the previous year, reflecting improved collection efforts[36] - Total liabilities decreased to HKD 571,880,000 from HKD 817,445,000, indicating a stronger balance sheet position[40] Operational Highlights - The company reported a decrease in inventory to HKD 815,616 from HKD 944,935 in 2022, a reduction of 13.7%[6] - The company has diversified its customer base, with three major customers accounting for significant portions of revenue in various product segments[17] - The company expects to continue focusing on market expansion and new product development in the upcoming fiscal year[22] - As of December 31, 2023, the group operated 27 factories with an average utilization rate of approximately 84%[48] - The group plans to build a new factory in Indonesia, expected to commence operations in 2025, to enhance production flexibility and market adaptability[49] Dividends and Shareholder Returns - The company plans to declare a final dividend of HKD 0.35 per share, up from HKD 0.30 per share in 2022, reflecting its commitment to shareholder returns[41] - The proposed final dividend for the year ended December 31, 2023, is HKD 0.35 per share, an increase from HKD 0.30 per share in 2022, totaling HKD 236,903,000 compared to HKD 203,060,000 in the previous year[57] Compliance and Governance - The company has complied with the corporate governance code, except for the separation of roles between the Chairman and CEO, which is currently held by the same individual, Mr. Choi Kwan-yung[54] - The audit committee has reviewed the accounting policies and financial reporting matters for the year ended December 31, 2023[59] - The company has adopted the standard code for securities trading by directors, confirming compliance for the year ended December 31, 2023[55] - The company will suspend share transfer registration from April 29, 2024, to May 3, 2024, to facilitate the upcoming annual general meeting[58]

Financial Performance - For the six months ended June 30, 2023, the company recorded revenue of HKD 2,489,100,000, a decrease of 12.4% compared to HKD 2,841,700,000 for the same period in 2022[2] - The gross profit increased by 16.3% to HKD 576,600,000, with a gross margin of 23.2%, up from 17.4% in the previous year[2] - Net profit attributable to shareholders rose by 65.7% to HKD 333,800,000, resulting in a net margin of 13.4%, compared to 7.1% in the prior year[2] - Operating profit rose significantly to HKD 420,621, representing a 59.5% increase from HKD 263,916 in the previous year[34] - Profit for the period was HKD 333,848, an increase of 65.5% compared to HKD 201,524 in 2022[34] - Basic and diluted earnings per share increased to HKD 0.493 from HKD 0.298, reflecting a growth of 65.5%[34] - Total comprehensive income before tax for the six months ended June 30, 2023, was HKD 416,177,000, compared to HKD 259,508,000 in 2022, representing a growth of 60.4%[66] Revenue Breakdown - The plush toy segment saw a revenue increase of 45.7% to HKD 1,239,900,000, accounting for 49.8% of total revenue[3] - Revenue from the plastic model segment decreased to HKD 911,900,000, representing a decline from HKD 1,577,200,000, and accounted for 36.6% of total revenue[4] - The waterproof cover segment's revenue was HKD 242,100,000, down 20.3% from HKD 303,900,000, making up 9.7% of total revenue[5] - Revenue from injection molded products was HKD 95,244,000, down 13.3% from HKD 109,787,000 in the previous year[60] - Revenue from North America was HKD 1,194,381,000, a decrease of 38.9% from HKD 1,953,068,000 in the previous year[61] - Revenue from Japan increased to HKD 654,266,000, up 46.7% from HKD 446,301,000 in the previous year[61] - Revenue from China increased to HKD 394,396,000, up 89.5% from HKD 208,163,000 in the previous year[61] Dividends and Shareholder Returns - The board proposed an interim dividend of HKD 0.20 per share, up from HKD 0.10 per share in the previous year[2] - The interim dividend declared for the six months ended June 30, 2023, is HKD 0.20 per share, compared to HKD 0.10 per share for the same period in 2022, totaling HKD 135,373,000[16] - The company approved an interim dividend of HKD 0.30 per ordinary share for the previous fiscal year, totaling HKD 203,060,000, compared to HKD 67,687,000 for the same period in 2022[85] Assets and Liabilities - As of June 30, 2023, the group's net current assets amounted to HKD 1,930,800,000, an increase from HKD 1,773,100,000 as of December 31, 2022[12] - The total assets as of June 30, 2023, amounted to HKD 3,371,667, an increase from HKD 3,257,923 at the end of 2022[37] - The group’s total liabilities decreased from HKD 1,192,922,000 as of December 31, 2022, to HKD 1,147,930,000 as of June 30, 2023[75] - The total liabilities, including lease liabilities and deferred tax liabilities, decreased to HKD 41,590 thousand as of June 30, 2023, from HKD 52,436 thousand at the end of 2022, marking a reduction of approximately 20.6%[38] Cash Flow and Financing - The cash generated from operating activities for the six months ended June 30, 2023, was HKD 363,661 thousand, a significant increase from HKD 4,306 thousand in the same period of 2022[51] - The company reported a net cash outflow from investing activities of HKD 128,021 thousand for the six months ended June 30, 2023, compared to HKD 100,334 thousand in the previous year[52] - Financing activities resulted in a net cash outflow of HKD 241,141 thousand for the six months ended June 30, 2023, contrasting with a net inflow of HKD 60,119 thousand in the same period of 2022[52] - The company paid dividends amounting to HKD 203,060 thousand during the six months ended June 30, 2023, compared to HKD 67,687 thousand in the previous year, reflecting a substantial increase in dividend payouts[52] Operational Efficiency and Strategy - The company is focusing on enhancing automation levels to improve production efficiency and is preparing to meet future market demand[10] - The group maintains a prudent strategy in managing its financial needs, relying on internally generated cash flows and bank credit[12] - The company anticipates higher sales in the second half of the year due to increased demand during the holiday season, particularly for plush toys and injection-molded products[65] Governance and Compliance - The company has maintained compliance with the corporate governance code, with the board including three independent non-executive directors to ensure balance[30] - The audit committee reviewed the interim results and confirmed compliance with relevant accounting standards[30] Miscellaneous - The group did not hold any significant investments or engage in major acquisitions or disposals of subsidiaries and associates during the six months ended June 30, 2023[14] - The company reported a loss of HKD 41,420,000 due to unauthorized fund transfer, impacting overall financial performance[68] - The effective tax rate for the period was maintained at 16.5%, consistent with the previous year[69]