香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任 何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 李旻重 香港，二零二五年八月十三日 於本公告日期，董事為： 董事會會議日期 德林國際有限公司（「本公司」，及其附屬公司「本集團」）董事（「董事」）會（「董事 會」）謹此宣佈，本公司將於二零二五年八月二十五日（星期一）在本公司註冊辦事 處舉行董事會會議，藉以（其中包括）考慮及批准本集團截至二零二五年六月三十 日止六個月的中期業績，及考慮派發中期股息（如有），以及處理任何其他業務。 承董事會命 德林國際有限公司 執行董事 DREAM INTERNATIONAL LIMITED 德林國際有限公司 （於香港註冊成立之有限公司） （股份代號：1126） 執行董事： 獨立非執行董事： 李政憲教授 崔奎玧先生 （主席） 金盛識先生 柳贊博士 李旻重先生 林宗勳先生 金賢珠女士 ...

Core Insights - The top short-selling ratios for the last trading day were recorded at 100% for New World Development Co. Ltd. (80016), Anta Sports Products Ltd. (82020), and Li Ning Company Limited (82331) [1][2] - The highest short-selling amounts were for Tencent Holdings Ltd. (00700) at 2.284 billion, Alibaba Group Holding Ltd. (09988) at 1.855 billion, and Meituan (03690) at 1.779 billion [1][2] - The highest deviation values were for New World Development Co. Ltd. (80016) at 47.23%, Hang Seng Bank Ltd. (80011) at 43.60%, and China International Marine Containers (Group) Co., Ltd. (02039) at 39.58% [1][3] Short-Selling Ratios - New World Development Co. Ltd. (80016) had a short-selling amount of 170,500 with a 100% short-selling ratio and a deviation of 47.23% [2] - Anta Sports Products Ltd. (82020) reported a short-selling amount of 131,200 with a 100% short-selling ratio and a deviation of 32.87% [2] - Li Ning Company Limited (82331) had a short-selling amount of 91,300 with a 100% short-selling ratio and a deviation of 32.41% [2] Short-Selling Amounts - Tencent Holdings Ltd. (00700) led with a short-selling amount of 2.284 billion and a short-selling ratio of 19.43% [2] - Alibaba Group Holding Ltd. (09988) followed with a short-selling amount of 1.855 billion and a short-selling ratio of 21.48% [2] - Meituan (03690) had a short-selling amount of 1.779 billion with a short-selling ratio of 32.58% [2] Deviation Values - New World Development Co. Ltd. (80016) had a deviation value of 47.23% with a short-selling amount of 170,500 and a short-selling ratio of 100% [3] - Hang Seng Bank Ltd. (80011) reported a deviation value of 43.60% with a short-selling amount of 612,100 and a short-selling ratio of 89.42% [3] - China International Marine Containers (Group) Co., Ltd. (02039) had a deviation value of 39.58% with a short-selling amount of 16.5625 million and a short-selling ratio of 55.28% [3]

II. 已發行股份及/或庫存股份變動 FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年7月31日 | 狀態: | 新提交 | | --- | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | | 公司名稱: | 德林國際有限公司 | | | | 呈交日期: | 2025年8月1日 | | | | I. 法定/註冊股本變動 不適用 | | | | | 備註： | | | | | 德林國際有限公司並無法定股本及/或其股本中並無股份面值。 | | | | | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01126 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | ...

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].