Financial Performance - The company reported a significant increase in revenue, achieving a total of $500 million for the fiscal year, representing a 20% growth compared to the previous year[1]. - The company reported a net profit margin of 12%, up from 10% in the previous year[1]. - Cash flow from operations improved by 30%, totaling $80 million for the fiscal year[1]. - The group’s total revenue for the year was approximately HKD 413.3 million, a decrease of 33.8% from HKD 624.2 million in the previous year, primarily driven by a reduction in the toy segment's revenue[97]. - The overall financial services segment recorded a loss of approximately HKD 57.6 million, an increase of about 23.4% from the previous year's loss of HKD 46.6 million, mainly due to goodwill impairment loss related to Gao Cheng Securities Limited[93]. - The group's net loss for the year was approximately HKD 87.7 million, an increase of about 145.0% compared to the previous year's net loss of approximately HKD 35.8 million[101]. User Engagement - User data showed a 15% increase in active users, reaching 1.2 million by the end of the fiscal year[1]. Future Projections - The company provided guidance for the next fiscal year, projecting revenue growth of 10% to 15%[1]. - The company anticipates continued difficulties in the upcoming fiscal year, with strict cost control and flexible inventory management strategies in place for the toy division[26]. - The projected EBIT margin for the next five years has been adjusted downwards to reflect a 32% reduction in forecasted revenue[96]. Product Development and Innovation - New product launches included two innovative toy lines, expected to contribute an additional $50 million in revenue[1]. - The company is investing $10 million in research and development for new technologies in the toy manufacturing process[1]. Market Expansion - Market expansion plans include entering three new international markets, aiming for a 5% market share within the first year[1]. - The company completed a strategic acquisition of a smaller competitor for $30 million, enhancing its market position[1]. Marketing Strategy - A new marketing strategy was introduced, focusing on digital channels, with a budget increase of 25% compared to the previous year[1]. Challenges and Risks - The group faced significant challenges in the operating environment due to the escalation of the US-China trade war and the COVID-19 pandemic, leading to a decline in retail market conditions for the toy division[81]. - The ongoing U.S.-China trade tensions have created an atmosphere of uncertainty in the global toy industry, impacting sales across all major markets[90]. - The company expects volatility in local financial markets due to the uncertainties surrounding the COVID-19 pandemic, which may delay some transactions[26]. - Global economic and political uncertainties, such as Brexit and the COVID-19 pandemic, may adversely impact the group's performance[162]. Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules and has complied with all applicable provisions for the financial year ending March 31, 2020[30]. - The board of directors consists of 8 members, including the executive chairman and several non-executive directors[35]. - The company has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee, each with defined responsibilities[43]. - The Audit Committee reviewed the consolidated financial statements for the year ended March 31, 2020, ensuring compliance with applicable accounting standards[52]. Environmental and Social Responsibility - The group is committed to environmental protection and has implemented strict measures to comply with current environmental laws[160]. - The company has implemented energy-saving measures, including the use of LED lighting and water-saving devices in offices[168]. - The financial services division has continued to provide electronic statements to reduce paper usage, with no environmental claims or penalties reported during the year[171]. Shareholder Information - The company expressed gratitude to customers, shareholders, and partners for their ongoing support and confidence[27]. - The company did not declare a final dividend for the year ended March 31, 2020, consistent with the previous year[141]. - As of March 31, 2020, the total shares held by the executive chairman amounted to 496,464,000 shares, representing 33.7% of the issued share capital[180]. Financial Services Division - The financial services division recorded an increase in revenue, with a significant reduction in losses (excluding goodwill impairment) compared to the previous fiscal year[23]. - The financial services division is preparing multiple projects and focusing on expanding transaction sources and increasing recurring income from investment consulting and discretionary management services[26]. - The financial services division successfully completed six IPO projects as the lead manager during the fiscal year, marking a significant improvement compared to the previous year[81]. Cost Management - The company plans to maintain efficient operational management and implement strict cost controls in the toy division to navigate the uncertain market conditions[86]. - The financial services division is implementing significant cost-cutting measures, including reductions in fixed salaries and rental expenses, to maintain revenue levels during challenging times[136].

Revenue and Profit Performance - The toy division's revenue and profit decreased by approximately 43.4% and 47.1% respectively compared to the previous period, with North America seeing a revenue drop of about 46.2%[9] - The revenue from the Western European market decreased by approximately 33.9% compared to the previous period[9] - The group's revenue for the period was approximately HKD 268.5 million, a decrease of about HKD 190.8 million or 41.5% compared to the previous period's revenue of approximately HKD 459.2 million[16] - The toy segment's revenue decreased by approximately HKD 198.1 million or 43.4%, while the financial services segment's revenue increased by approximately HKD 7.3 million or 236.3%[16] - Revenue for the six months ended September 30, 2019, was HKD 268,451,000, a decrease of 41.5% compared to HKD 459,238,000 in the same period of 2018[82] - Revenue from manufacturing and selling toys decreased to HKD 258,004,000 in 2019 from HKD 456,132,000 in 2018, representing a decline of approximately 43.4%[147] - Revenue from financial services increased to HKD 10,447,000 in 2019 from HKD 3,106,000 in 2018, showing a growth of about 236.5%[147] Financial Services Division - The financial services division's average daily trading volume on the Hong Kong Stock Exchange fell by 31.4% from approximately HKD 110.6 billion to about HKD 75.8 billion during the six-month period[12] - The financial services division successfully completed three IPO transactions as the exclusive global coordinator or joint bookrunner, leading to a significant increase in underwriting commissions and trading income compared to the previous period[12] - The financial services division's investment advisory business made progress due to a signed agreement with a well-known international financial institution, contributing to advisory fee income[13] - The financial services division has successfully completed fundraising transactions in recent months, resulting in a significant improvement in performance compared to the previous period, although future opportunities may be impacted by the unstable socio-economic situation[53] Cost and Expense Management - Selling expenses for the toy segment decreased by approximately HKD 6.2 million or 46.0% to about HKD 7.3 million due to reduced sales orders[18] - Administrative expenses decreased by approximately HKD 11.7 million or 25.4% to about HKD 34.4 million, primarily due to a reduction in salary and wage expenses[21] - Other income and gains increased by approximately HKD 1.9 million or 81.3% to about HKD 4.4 million, mainly due to gains from the sale of properties, plants, and equipment[22] - Financing costs increased by approximately 12.0% to about HKD 13.3 million, primarily due to increased interest from convertible bonds issued in 2017[23] Profitability and Loss - The group's gross profit decreased by approximately 27.7% to about HKD 41.4 million, down from HKD 57.3 million in the previous period[17] - The overall gross profit margin improved from approximately 12.5% in the previous period to approximately 15.4% in the current period, mainly due to increased revenue from the financial services segment[17] - The net loss for the period was approximately HKD 11.9 million, a decrease of about HKD 4.0 million compared to the previous period[25] - The company reported a loss before tax of HKD 9,116,000, an improvement from a loss of HKD 11,628,000 in the previous year[82] - The company reported a loss attributable to equity holders of approximately HKD 11,920,000 for the six months ended September 30, 2019, compared to a loss of HKD 15,895,000 for the same period in 2018, representing a 25.5% improvement in losses year-over-year[157] Cash Flow and Liquidity - Cash and cash equivalents decreased to approximately HKD 93.1 million as of September 30, 2019, from HKD 140.5 million on March 31, 2019[33] - The net cash flow used in operating activities for the six months ended September 30, 2019, was HKD (48,561,000), an improvement from HKD (128,009,000) in 2018[97] - The company reported a net cash inflow from investing activities of HKD 5,264,000 for the six months ended September 30, 2019, compared to a net outflow of HKD (10,308,000) in 2018[97] - The company raised HKD 75,189,000 from bank borrowings during the six months ended September 30, 2019, compared to HKD 284,652,000 in the same period of 2018[97] Shareholder Information - As of September 30, 2019, the company’s major shareholders include Liu Haoming with a total of 496,464,000 shares (33.7%) and Li Minyi with 493,864,000 shares (33.5%) of the issued share capital[63] - As of September 30, 2019, Smart Investor Holdings Limited holds 482,864,000 shares, representing 32.75% of the total shares[67] - The total number of issued shares as of September 30, 2019, is 1,474,232,000[69] - The company’s major shareholders include Silver Pointer Limited, which holds 106,880,000 shares, or 7.25%[67] Compliance and Governance - The company maintained a prudent financial management policy to ensure a stable liquidity position and closely monitored its cash flow needs[32] - The company did not engage in any significant acquisitions or disposals of subsidiaries or associates during the six months ended September 30, 2019[42] - The company has not violated any covenants related to the drawn borrowings as of September 30, 2019, maintaining compliance with financial ratios[181] - The company continues to monitor compliance with financial covenants to ensure ongoing access to bank financing[181] Market Outlook and Strategic Focus - The company remains focused on managing and mitigating the impacts of ongoing global and local market turmoil[8] - The company will continue to seek appropriate strategic cooperation opportunities for business expansion despite the termination of a significant acquisition deal[8] - Despite slightly better-than-expected performance, the company anticipates a challenging outlook for the second half of the fiscal year due to ongoing uncertainties in the macroeconomic environment, including U.S.-China trade negotiations and Brexit[52] Changes in Accounting Standards - The adoption of Hong Kong Financial Reporting Standard 16 resulted in the recognition of right-of-use assets amounting to HKD 14,792,000 and lease liabilities of HKD 14,792,000 as of April 1, 2019[107] - The transition to HKFRS 16 led to a negative impact on the group's operating loss reported in the consolidated income statement compared to the previous policy under HKAS 17[110] - The group chose to apply the modified retrospective approach, adjusting the opening balance of retained earnings without restating prior period financial information[107] Employee Compensation - Total employee costs for the six-month period ended September 30, 2019, were approximately HKD 20.9 million, down from HKD 28.3 million in 2018[47] - Total remuneration for key management personnel (excluding executive directors) was HKD 1,083,000 for the six months ended September 30, 2019, unchanged from the previous year[200] - Executive director remuneration decreased significantly, with Mr. Liu Haoming receiving HKD 1,044,000 compared to HKD 2,358,000 in 2018, a decline of approximately 56%[200] - The total remuneration for executive directors was HKD 5,334,000, down from HKD 8,660,000 in the previous year, representing a decrease of about 38%[200]

Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching $500 million in the Toys Division[1]. - User data showed a 20% growth in active users, totaling 1.2 million users in the Financial Services Division[2]. - The company provided a future outlook with a revenue guidance of $600 million for the next fiscal year, representing a 20% increase[3]. - New product launches in the Toys Division are expected to contribute an additional $50 million in revenue[4]. - The company reported a 10% reduction in production costs due to improved supply chain management[9]. - The Toys Division's gross margin improved to 35%, up from 30% in the previous year[10]. - The toy division recorded revenue of approximately HKD 619.5 million, a decrease of 17.7% compared to the previous year, while the division's profit increased by 43.7% to approximately HKD 47.9 million[91]. - The financial services segment reported revenue of approximately HKD 4.7 million, a decrease of 79.0% from HKD 22.2 million in the previous year, primarily due to reduced underwriting and brokerage commission income[101]. - The overall group revenue from continuing operations was approximately HKD 624.2 million, down 19.4% from HKD 774.9 million, with a decline of approximately HKD 150.7 million attributed mainly to the toys segment[102]. Market and Strategic Initiatives - Market expansion plans include entering two new international markets by Q3 2020, projected to increase market share by 5%[6]. - The company is considering strategic acquisitions to bolster its Financial Services Division, targeting a potential deal valued at $30 million[7]. - The company is optimistic about the financial services division's performance in the upcoming fiscal year, having completed three IPO projects in the first quarter of 2019/20[25]. - The company is working towards completing a transaction with Zhongtai Group, which involves the acquisition of Zhongtai International Financing Limited and Zhongtai International Asset Management Limited[26]. - The company aims to strengthen its capital base and enhance its product offerings in the financial services division through the completion of the Zhongtai transaction[26]. - The company plans to complete the aforementioned acquisitions in the next fiscal year, despite the extended timeline and resource investment required[87]. Governance and Compliance - The company has maintained compliance with all applicable corporate governance code provisions for the financial year ending March 31, 2019, except as discussed below[31]. - The board consists of 8 members, including 4 executive directors and 4 non-executive directors, ensuring a balance of power and responsibilities[36]. - The executive chairman role has been separated from the CEO position since November 25, 2013, with the CEO role remaining vacant during the financial year[32]. - The board held four regular meetings during the financial year, with all directors attending at least 75% of the meetings[40]. - The company has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee, each with defined responsibilities[44]. - The audit committee reviewed the consolidated financial statements for the year ending March 31, 2019, and confirmed that they were prepared in accordance with applicable accounting standards[54]. - The audit committee is satisfied with the independence and objectivity of the auditor, and recommends their reappointment at the upcoming annual general meeting[55]. - The company has established a remuneration committee to review the compensation policies for directors and senior management, ensuring no conflicts of interest[58]. - The nomination committee confirmed that all non-executive directors have dedicated sufficient time and effort to the group's affairs and possess the necessary qualifications and experience[62]. Risks and Challenges - The toy division faced significant challenges due to the bankruptcy of Toys "R" Us and the ongoing impact of the US-China trade war, resulting in a difficult year[24]. - The financial services division experienced a substantial decrease in stock underwriting and commission income, completing only one IPO transaction during the year[24]. - The company acknowledges the ongoing political and economic uncertainties affecting the global market, particularly due to trade tensions and Brexit[25]. - The company faces significant risks including market volatility affecting financial assets and the performance of its financial services division[177]. - The business is subject to seasonal demand fluctuations, particularly in the toy division, which may impact future sales[178]. - Regulatory compliance is critical, especially for the financial services division, as non-compliance could have significant adverse effects[182]. Environmental and Social Responsibility - The company has implemented strict environmental protection measures to comply with current laws and regulations[183]. - The group continues to provide electronic statements to reduce paper usage, reflecting its commitment to environmental responsibility[190]. - The group has not faced any environmental claims, lawsuits, fines, or disciplinary actions during the year[190]. Shareholder Engagement - The company expresses gratitude to its management, employees, customers, and stakeholders for their support and efforts in driving business development[28]. - The company is committed to enhancing shareholder value and delivering long-term returns[28]. - The company emphasizes the importance of clear and transparent communication with shareholders to understand the group's performance and prospects[74]. - The company encourages shareholders to participate in general meetings or appoint representatives to vote on their behalf[75]. - The company will determine any future dividend payments based on profitability, cash flow, financial condition, and other relevant factors[73]. - The board of directors recommended not to declare a final dividend for the year ended March 31, 2019, consistent with 2018[164].