Revenue Performance - The Toys Division's revenue decreased by approximately HKD 110.0 million or 47.7% compared to the previous period due to reduced consumer spending on non-essential items [12]. - The company's total revenue for the period was approximately HKD 127.1 million, a decrease of about HKD 108.6 million or 46.1% compared to the previous period's revenue of approximately HKD 235.7 million [20]. - The toy segment's revenue decreased by approximately HKD 110.0 million, while the financial services segment's revenue increased by approximately HKD 1.4 million, representing a year-on-year decrease of about 47.7% and an increase of about 28.2%, respectively [20]. - Revenue from external customers for the six months ended September 30, 2023, was HKD 127,149,000, a decrease of 46% compared to HKD 235,704,000 in the same period of 2022 [127]. - Revenue from North America dropped significantly to HKD 74,814,000 from HKD 139,144,000, representing a decline of 46% [127]. - Revenue from major customer A decreased to HKD 96,655,000 from HKD 187,975,000, a reduction of 48% [133]. - The company's total external revenue from the toy manufacturing segment was HKD 120,583,000 for the six months ended September 30, 2023, compared to HKD 230,581,000 for the same period in 2022 [115]. Financial Performance - The company reported a loss before tax of HKD 9,937,000 for the six months ended September 30, 2023, compared to a loss of HKD 15,683,000 for the same period in 2022 [115]. - The company reported a total comprehensive loss of HKD 10,091,000 for the period [95]. - Basic and diluted loss per share was HKD 0.67, an improvement from HKD 1.13 in the previous year [88]. - The company reported a loss before tax of HKD 9,937,000, an improvement from a loss of HKD 15,685,000 in the same period of 2022 [141]. - The company incurred financing costs of HKD 3,098,000 for the six months ended September 30, 2023, down from HKD 6,596,000 in the same period of 2022 [138]. - The company has seen a significant reduction in executive compensation, indicating a strategic shift in cost management [176]. Economic Conditions - The overall economic growth rate for Hong Kong is projected to reach 3.8% in 2023, following a weak economic performance in 2022 [10]. - The ongoing geopolitical tensions and the impact of the Ukraine war have adversely affected global economic conditions, influencing the company's operations [11]. - The company anticipates continued challenges in achieving economic rebound due to tightening monetary conditions and geopolitical conflicts [10]. - The financial market sentiment remains bearish, with the Morgan Stanley Capital International China Index expected to decline for the third consecutive year [14]. - The average daily trading volume in the market remained low at HKD 110 billion, slightly down from HKD 113 billion in the same period last year [14]. Cost Management - Selling expenses for the toy segment decreased by approximately HKD 3.5 million or 63.2% to about HKD 2.1 million due to a reduction in sales orders [23]. - Administrative expenses decreased by approximately HKD 7.1 million or 21.7% to about HKD 25.7 million, primarily due to the absence of provisions for expected credit losses in the financial services segment [24]. - The company plans to continue its focus on cost management and operational efficiency to improve financial performance in the upcoming periods [88]. Assets and Liabilities - Total assets as of September 30, 2023, amounted to HKD 233,209,000, a decrease from HKD 243,876,000 as of March 31, 2023 [119]. - Total liabilities decreased from HKD 102,474,000 to HKD 61,412,000, marking a reduction of about 40.2% [90]. - The company's cash and cash equivalents rose to HKD 67,662,000 from HKD 61,948,000, an increase of approximately 9.2% [103]. - The debt-to-equity ratio slightly decreased to approximately 30.5% from 30.9% as of March 31, 2023 [37]. - The current ratio improved to approximately 2.9 from 1.8 as of March 31, 2023 [37]. Shareholder Information - The total number of issued shares as of September 30, 2023, is 1,474,232,000 shares, with Smart Investor holding 482,864,000 shares, representing 32.75% [65]. - The company has a stock option plan that was adopted on January 3, 2013, and has granted a total of 24,200,000 options to eligible participants at various exercise prices [69]. - Major shareholders include Benefit Global Limited and Clearfield Global Limited, each holding 149,563,111 shares, representing 10.15% [66]. - The company has a total of 66,803,800 unexercised share options as of September 30, 2023, after accounting for 18,000,000 options that lapsed during the period [169]. Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions during the interim review period [57]. - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ended September 30, 2023 [55]. - The company has not established any share incentive plans as of the report date [68]. - The board has resolved not to declare an interim dividend for the period [53].

Revenue Performance - The Toys Division's revenue decreased by approximately 20.5% compared to the previous year due to COVID-19 restrictions in China and inflationary pressures affecting consumer spending in Western markets[9]. - The Financial Services Division experienced a revenue decline of about 42% year-on-year, primarily due to a stagnant bond issuance market and a 31% drop in the value of managed investment portfolios[10]. - The toy division reported revenue of approximately HKD 330.6 million, a decrease of about 20.5% from the previous year's HKD 415.7 million, primarily due to reduced sales to the top five customers[81]. - The financial services division's revenue decreased by approximately 66.1% to about HKD 11.2 million, primarily due to a significant drop in investment advisory fees by approximately HKD 23.1 million or 86.3%[82]. - The group's total revenue for the reporting year was approximately HKD 341.8 million, a decrease of HKD 106.9 million or about 23.8% compared to the previous year's revenue of HKD 448.7 million[92]. Cost Management and Operational Strategies - The company plans to implement cost management strategies in the Toys Division, focusing on reducing production outsourcing costs and overall operational expenses[11]. - The company is committed to enhancing shareholder value and long-term returns despite the challenging environment[13]. - The company is committed to several ongoing fundraising and underwriting projects despite the challenging economic conditions[80]. - The group is implementing cost management strategies to enhance competitiveness in the toy division, particularly by reducing production outsourcing costs[128]. Governance and Board Structure - The board consists of eight members, including four executive directors and three independent non-executive directors, ensuring a diverse governance structure[19]. - The company has adhered to all applicable corporate governance codes during the reporting year, maintaining high standards of accountability[16]. - The board of directors held four regular meetings during the reporting year, with all executive directors attending 100% of the meetings[30]. - The audit committee, chaired by Mr. Chan, consists entirely of independent non-executive directors and is responsible for overseeing the financial reporting process and internal controls[32]. - The company has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee, each with clearly defined responsibilities[27]. Financial Performance and Position - The net loss for the reporting year was approximately HKD 72.3 million, a reduction of HKD 22.1 million or 23.4% compared to the previous year's net loss of HKD 94.4 million[96]. - Administrative expenses decreased by approximately HKD 18.4 million or 23.0% to about HKD 61.6 million, primarily due to reduced consulting fees paid to portfolio managers in the financial services segment[97]. - The total gross profit decreased by approximately HKD 9.5 million or 17.5% to about HKD 44.9 million, mainly due to reduced sales to the toy segment's top five customers[93]. - Cash and cash equivalents increased by approximately HKD 32.6 million to about HKD 61.9 million, with no interest-bearing bank borrowings as of March 31, 2023[112]. - The debt-to-equity ratio improved to approximately 30.9% from 36.5% due to a reduction in bank borrowings and early redemption of promissory notes[112]. Market Conditions and Economic Outlook - The overall economic outlook remains cautious due to uncertainties in the US economy and ongoing geopolitical tensions, particularly the war in Ukraine[11]. - The macroeconomic environment, including rising U.S. interest rates and geopolitical tensions, continues to adversely affect the company's operations and market outlook[75]. - The Hang Seng Index fell by 7.43% from 22,039 points in April 2022 to 20,400 points by the end of March 2023, reflecting a challenging market environment[77]. - The overall trading volume on the Hong Kong Stock Exchange has been declining since 2020, with average daily turnover dropping from HKD 154 billion in 2020 to HKD 120 billion in 2022[78]. Shareholder Engagement and Communication - The company emphasizes clear and transparent communication with shareholders to understand the group's performance and prospects[59]. - The company encourages shareholder participation in meetings and has implemented measures to facilitate this engagement[67]. Risk Management and Compliance - The company faces various financial risks, including foreign currency, trade receivables, and credit risks, but believes the pandemic has not significantly impacted its liquidity and working capital[162]. - Regulatory compliance is critical for the company's operations, especially in the financial services division, where non-compliance could have significant adverse effects[169]. - The company has adopted a compliance manual outlining specific procedures for handling and protecting customer data, particularly in the financial services division[173]. Environmental and Social Responsibility - Environmental policies are being implemented to reduce emissions and waste, reflecting the company's commitment to environmental protection[170]. - The company is committed to energy-saving measures, such as using LED lighting and water-saving devices in its offices[179]. - The group continues to provide electronic statements to reduce paper usage, reflecting its commitment to environmental responsibility[176]. Employee and Talent Management - The company emphasizes the importance of maintaining strong relationships with employees, customers, and suppliers to achieve its business goals[160]. - The company faces intense competition in talent acquisition, particularly in the financial services division, which could negatively impact performance if key positions are not filled[168].

Market Performance - The Hang Seng Index fell by 22% during the period, from approximately 22,039 points in early April 2022 to 17,222 points by the end of September 2022[12]. - The Hang Seng Index fell from 27,472 points in January 2022 to 17,222 points by the end of September 2022, a decline of over 37%[13]. - The number of IPOs in Hong Kong decreased significantly, with only 50 companies completing IPOs from January to September 2022, compared to 94 in the same period of 2019[13]. - The healthcare sector index dropped over 66% during the year, primarily due to the implementation of a national bulk drug procurement plan in China[13]. Financial Performance - The group's revenue for the period was approximately HKD 235.7 million, a decrease of about HKD 14.1 million or 5.6% compared to the previous period's revenue of approximately HKD 249.8 million[17]. - The toy division contributed approximately HKD 230.6 million to the revenue, while the financial services division contributed approximately HKD 5.1 million, reflecting a decrease of about 3.7% and 50.3% respectively[17]. - Revenue for the six months ended September 30, 2022, was HKD 235,704,000, a decrease of 5.4% from HKD 249,796,000 in the same period of 2021[90]. - Total external revenue for the group was HKD 235,704,000, a decline of 5.6% compared to HKD 249,796,000 in the previous year[118]. - The group recorded a segment loss of HKD 8,022,000, compared to a loss of HKD 10,517,000 in the same period last year, indicating an improvement[118]. - The group’s net loss for the period was approximately HKD 16.6 million, a decrease of about HKD 0.9 million year-on-year, primarily due to an increase in gross profit from the toy segment by approximately HKD 3.0 million[28]. Cost and Expenses - The toy division faced significant challenges due to supply chain disruptions and rising raw material costs, leading to a narrowing profit margin[9]. - Inflation pressures have significantly impacted the costs of raw materials, labor, and operating expenses, prompting the company to explore cost-saving measures with subcontractors[9]. - Administrative expenses decreased by approximately HKD 2.8 million or 8.0% to about HKD 32.8 million, influenced by reduced employee costs and the absence of certain rental expenses[22]. - Financing costs increased by 22.2% to approximately HKD 6.6 million, mainly due to higher interest on convertible bonds and bank borrowings[24]. - The total employee cost for the six months ended September 30, 2022, was approximately HKD 18.9 million, a decrease from HKD 22.5 million in the previous year[52]. - The company plans to continue focusing on cost management and operational efficiency to improve financial performance in the upcoming periods[81]. Asset Management - The total assets under management in the financial services division decreased by about 25% during the period, reflecting the overall decline in the U.S. market[14]. - The group's inventory decreased by 21.3% from approximately HKD 82.8 million as of March 31, 2022, to approximately HKD 65.2 million as of September 30, 2022[30]. - The group's cash and cash equivalents increased by approximately HKD 33.4 million to about HKD 62.8 million as of September 30, 2022, compared to HKD 29.4 million as of March 31, 2022[36]. - The debt-to-equity ratio decreased to approximately 25.8% as of September 30, 2022, down from 36.5% as of March 31, 2022, due to a reduction in bank borrowings[36]. - The net asset value decreased to HKD 182,198,000 from HKD 198,710,000, reflecting a decline of about 8.3%[96]. - The company’s total liabilities decreased significantly, contributing to a stronger balance sheet position[96]. Strategic Initiatives - The company continues to maintain long-term relationships with key clients to ensure revenue stability during challenging market conditions[9]. - The group aims to expand its investment consulting and asset management business to generate stable management and advisory fee income, enhancing its core cash flow[56]. - The group anticipates challenges in the toy division due to increased logistics costs, inventory expenses, and inflationary pressures on raw materials, potentially leading to revenue contraction for the fiscal year[55]. - The group completed the acquisition of Ballas on May 3, 2022, which now operates as a wholly-owned subsidiary, focusing on corporate finance advisory services[47]. Governance and Compliance - The company has complied with all applicable code provisions under the corporate governance code during the review period, except for the separation of roles between the Chairman and CEO[64]. - The company has adopted the standard code for securities transactions by directors, and all directors have complied with the standards during the interim period[65]. - The company has disclosed the interests of directors in shares and related shares, with Mr. Liu and Ms. Li being significant shareholders[68][72]. Shareholder Information - As of September 30, 2022, the total number of shares issued by the company is 1,474,232,000, with major shareholders holding over 5% of shares including Smart Investor with 482,864,000 shares (32.75%) and Benefit Global Limited with 159,297,921 shares (10.81%)[72][73]. - Mr. Liu holds a total of 496,464,000 shares, representing 33.7% of the issued share capital, while Ms. Li holds 493,864,000 shares, representing 33.5%[68][72]. - The company has adopted a share option scheme to encourage and reward eligible participants, with a total of 10,800,000 options granted at an exercise price of HKD 1.00 per share in 2014[76]. Economic Environment - The U.S. Federal Reserve is expected to raise interest rates to a terminal rate of 5% to 5.25% by mid-2023 to combat inflation, which may lead to a recession in many countries[7]. - The company is facing a "triple whammy" in Hong Kong due to U.S. interest rate hikes, a sluggish Chinese economy, and a decline in global trade[8]. - The ongoing geopolitical tensions and inflation have catalyzed a surge in global inflation, affecting the company's operational costs[7]. - The company is committed to navigating the adverse effects of the COVID-19 pandemic and the Ukraine war on its business operations[7].

Financial Performance - The Toys Division recorded a loss during the reporting year due to challenges from the COVID-19 pandemic and rising production costs[6]. - The Financial Services Division experienced a significant decrease in bond placement commission income and underwriting service revenue, attributed to adverse market conditions[6]. - The company anticipates continued volatility in the business environment for the Toys Division in the upcoming fiscal year[7]. - The toy division reported revenue of approximately HKD 415.7 million, a decrease of 8.9% compared to the previous fiscal year, with a segment loss of HKD 14.7 million, down 467.1%[73]. - The financial services division recorded a loss of approximately HKD 65.4 million, a substantial increase of about 170.1% from HKD 24.2 million in the previous year, mainly due to goodwill impairment losses[87]. - The group's total revenue for the reporting year was approximately HKD 448.7 million, a decrease of about 7.6% from the previous year's revenue of approximately HKD 485.8 million[96]. - The net loss for the group in the reporting year was approximately HKD 94.4 million, an increase of about 164.9% compared to the previous year's net loss of approximately HKD 35.6 million[100]. - The financial performance for the reporting year is detailed in the consolidated income statement and other comprehensive income on page 47[154]. Revenue and Income Sources - Despite the challenges, the Financial Services Division made satisfactory progress in attracting investor capital through investment advisory and management services[6]. - The company expects growth in assets under advisory and management to expand returns in the Financial Services Division[7]. - Revenue from North American clients accounted for about 59.8% of the toy division's total revenue, decreasing by approximately 13.7% year-on-year[73]. - The financial services division increased revenue by approximately 11.3% to HKD 33.0 million, driven by a significant rise in investment advisory fees, which increased by approximately HKD 8.4 million or 46.1%[84]. - The revenue from the financial services segment increased by approximately HKD 3.3 million or about 11.3% compared to the previous year, partially offsetting the revenue decline in the toy segment[96]. Cost Management and Challenges - The company aims to monitor cost control strategies and secure customer orders despite pressure on gross margins[7]. - The gross profit margin for the toy division dropped significantly from approximately 9.2% in the previous year to about 5.2% in the reporting year due to rising material costs and inflationary pressures[73]. - The company implemented strict cost control measures in product production, particularly during non-peak periods and in a challenging operating environment[74]. - The company plans to continue using lean production methods and logistics simplification to manage inventory levels effectively[74]. - The company anticipates continued challenges in the next fiscal year due to ongoing global supply chain disruptions and inflationary pressures from rising raw material prices[130]. Governance and Compliance - The board of directors held four regular meetings during the reporting year, with all executive directors attending all meetings[25]. - The audit committee reviewed the consolidated financial statements for the fiscal year ending March 31, 2021, and confirmed that they were prepared in accordance with applicable accounting standards[29]. - The company has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee, each with defined responsibilities[22]. - The company has established a whistleblowing mechanism applicable to all stakeholders, allowing confidential reporting of any misconduct[43]. - The company plans to adapt its governance framework to align with updated listing rules and enhance shareholder protections[63]. Shareholder Relations and Dividends - The company emphasizes clear and transparent communication with shareholders to understand the group's performance and prospects[51]. - The company will determine future dividend payments based on profitability, cash flow, and other relevant conditions[50]. - The board recommended not to declare a final dividend for the reporting year, consistent with the previous year[154]. - The company reported a distributable reserve of approximately HKD 198.2 million as of March 31, 2022, down from HKD 291.9 million in 2021[156]. Strategic Initiatives and Acquisitions - The company recently acquired a controlling stake in a boutique financing firm to enhance its competitiveness in IPO underwriting services[7]. - The company’s subsidiary, Crosby Asia Limited, acquired a majority stake in Ballas Group Limited to enhance its financial service offerings in the new regulatory environment[82]. - A strategic acquisition of Ballas has been made to enhance the competitiveness of the underwriting business and provide comprehensive services to issuer clients[132]. - The company is collaborating with a potential IPO candidate in the real estate sector, acting as the sponsor and global coordinator for its IPO project[132]. Market Conditions and Risks - The overall business environment was affected by labor shortages in the U.S. and supply chain disruptions, particularly due to the Omicron variant's impact[68]. - The report highlights the ongoing credit crisis in the Chinese real estate sector, which has negatively impacted investor sentiment and capital market access[69]. - The company faces significant risks including market volatility, regulatory compliance, and potential disruptions from global events such as the ongoing trade tensions and the pandemic[165][172][174]. - The financial services division's performance is influenced by capital market fluctuations, which can affect asset pricing and liquidity, potentially impacting revenue[167]. Employee and Operational Insights - The total employee cost for the reporting year was approximately HKD 33.7 million, a decrease from HKD 37.1 million in the previous year[127]. - The group maintained a total of 48 employees as of March 31, 2022, unchanged from the previous year[127]. - The company emphasizes the importance of maintaining strong relationships with employees, customers, and suppliers to achieve current and long-term business goals[164]. Environmental and Data Protection Measures - The company has implemented strict environmental protection measures to comply with current laws and reduce emissions and waste[173]. - The group has implemented security measures to mitigate cybersecurity risks, including the installation of firewalls and antivirus software to protect data transmitted over the internet[177]. - The group has adopted a compliance manual outlining specific procedures for handling and protecting customer data, particularly in the financial services division[176]. - The group emphasizes the importance of customer privacy and has established procedures to ensure compliance with data protection regulations[176].

Revenue Performance - For the toy division, revenue was approximately HKD 239.5 million, a decrease of about 20.0% compared to the previous period, with a segment loss of HKD 1.1 million, representing a decline of 106.7%[11] - Revenue from North American customers, which accounted for approximately 61.3% of the toy division's total revenue, decreased by about 19.2% compared to the previous period[11] - The group's revenue for the period was approximately HKD 249.8 million, a decrease of about HKD 59.4 million or 19.2% compared to the previous period's revenue of approximately HKD 309.2 million[21] - The toy division's revenue decreased by approximately HKD 59.8 million, while the financial services division's revenue slightly increased by about HKD 0.4 million, representing a year-on-year decrease of approximately 20.0% and an increase of about 3.9%, respectively[21] - Total external revenue for the six months ended September 30, 2021, was HKD 249,796, a decrease of 19.2% from HKD 309,199 for the same period in 2020[132] - The manufacturing and sales of toys segment reported external revenue of HKD 239,493, down 19.9% from HKD 299,280 in the previous year[142] - The financial services segment generated external revenue of HKD 10,303, an increase of 3.9% from HKD 9,919 in the prior year[142] Financial Performance - The gross profit margin for the toy division decreased from approximately 11.2% to about 8.1%, leading to a total gross profit margin decline from approximately 14.0% to about 11.9%[22] - The company reported a loss before tax of HKD 17,472,000, compared to a loss of HKD 114,000 in the previous year[89] - The group reported a loss before tax of HKD 17,472,000 for the six months ended September 30, 2021, compared to a loss of HKD 3,152,000 for the same period in 2020, representing an increase in loss of approximately 453%[152] - The company reported a total comprehensive income attributable to the company was a loss of HKD 17,472,000[101] - The basic and diluted loss per share for the period was HKD 1.19, compared to HKD 0.21 in the previous year[89] - The company had a cumulative loss of HKD 220,163,000 as of September 30, 2021, compared to HKD 170,359,000 for the same period in 2020[101] Operational Challenges - The company faced increased operational costs due to global inflation pressures on raw materials, particularly plastic resin and electronic components[11] - The company experienced significant disruptions in global supply chains, affecting product delivery times to North American and Western European markets[11] - The toy division is expected to face revenue contraction throughout the fiscal year due to challenges such as logistics disruptions, increased inventory and storage costs, and inflationary pressures on raw material costs[55] - The company is implementing emergency plans in processing plants to minimize significant disruptions to product production due to energy uncertainties in China[14] - The company will continue to adopt a prudent strategy to manage costs and seek alternative logistics arrangements in response to operational challenges[55] Cost Management - The company is focusing on effective cost control measures, including streamlining inventory and automating manufacturing processes[14] - Administrative expenses increased by approximately HKD 1.1 million or 3.3% to about HKD 35.6 million due to additional short-term leasing costs for extra storage space[26] - Financing costs decreased by approximately 13.1% to about HKD 5.4 million, primarily due to a reduction in interest on convertible bonds[28] - Other income decreased significantly from approximately HKD 2.6 million to a loss of about HKD 0.3 million, a decline of about 110.6%[27] Inventory and Receivables - Inventory increased by 15.4% from approximately HKD 85.0 million on March 31, 2021, to approximately HKD 98.1 million on September 30, 2021, with inventory turnover days rising by 10.5% to 75.9 days[31] - Trade receivables for the toy segment rose significantly from approximately HKD 41.9 million to approximately HKD 149.4 million, resulting in an increase in trade receivables turnover days from 39.1 days to 72.9 days[34] - The aging analysis of trade receivables from the manufacturing and sales of toys segment shows that as of September 30, 2021, HKD 149,422,000 was overdue, with HKD 59,301,000 due within 30 days and HKD 14,005,000 overdue by more than 90 days[164] - The expected credit impairment for trade receivables from the toy segment is considered negligible due to the debtor's creditworthiness and recent market conditions[165] Shareholder Information - As of September 30, 2021, the total issued shares of the company were 1,474,232,000, with Smart Investor Holdings Limited holding 482,864,000 shares, representing 32.75%[73] - Liu Haoming holds personal and corporate interests totaling 496,464,000 shares, which is 33.7% of the issued share capital[69] - Li Minyi holds interests totaling 493,864,000 shares, which is 33.5% of the issued share capital[69] - The total number of shares held by directors and major shareholders indicates a concentrated ownership structure, with the top two shareholders holding over 67% of the total shares[73] Capital Structure - The debt-to-equity ratio rose to approximately 48.8% as of September 30, 2021, compared to 17.4% on March 31, 2021, reflecting increased operational funding requirements[39] - The current ratio decreased to approximately 1.8 as of September 30, 2021, down from 2.5 on March 31, 2021, primarily due to increased bank borrowings[39] - Interest-bearing bank borrowings increased to approximately HKD 80.8 million as of September 30, 2021, from zero on March 31, 2021, due to seasonal working capital needs[39] Employee and Management Costs - The group had a total employee cost of approximately HKD 22.5 million for the six months ended September 30, 2021, compared to HKD 22.1 million in 2020, with a total of 47 employees as of September 30, 2021[54] - Total remuneration for key management personnel (excluding executive directors) was 1,090,000 HKD for the six months ended September 30, 2021, down from 1,397,000 HKD in the previous year[189] Dividend Policy - The board has resolved not to declare an interim dividend for the six months ended September 30, 2021, consistent with the previous year[59] - The company did not declare an interim dividend for the period ending September 30, 2021, consistent with the previous year[186]

Financial Performance - The company reported a significant increase in revenue, achieving a total of $X million for the fiscal year 2021, representing a Y% growth compared to the previous year[1]. - The company's total revenue for the year was approximately HKD 485.8 million, an increase of 17.5% compared to HKD 413.3 million in the previous year[103]. - The toy division reported total revenue of approximately HKD 456.1 million, an increase of about 18.9% compared to the previous year, driven by increased demand for indoor leisure products during lockdowns[23]. - The toy division's profit surged by 1,385.2% to approximately HKD 4.0 million from HKD 0.3 million in the previous year[93]. - The financial services division contributed revenue of approximately HKD 29.6 million, remaining roughly flat compared to the previous year, while the division's losses decreased by about 58.0%[24]. - The financial services division recorded revenue of approximately HKD 29.6 million, remaining stable compared to the previous year, despite a significant decrease in brokerage commission income by approximately 53.8%[94]. - The net loss for the year decreased by approximately 59.4% to about HKD 35.6 million from a loss of about HKD 87.7 million in the previous year[107]. User and Market Growth - User data showed an increase in active users, reaching Z million, which is a growth of A% year-over-year[2]. - Market expansion efforts are underway, targeting F new regions, which are expected to increase market share by G%[6]. - The company plans to focus on maintaining its reliable customer base in the toy division while improving service efficiency, including production efficiency and timely product delivery[25]. - Revenue from North American and Western European clients accounted for approximately 63.1% and 24.6% of the toy division's total revenue, respectively, with increases of about 21.8% and 29.0% year-on-year[88]. Strategic Initiatives - The company provided guidance for the next fiscal year, projecting revenue growth of B% and an expected total revenue of $C million[3]. - New product launches are anticipated to contribute an additional D million in revenue, with a focus on innovative features and market needs[4]. - The company is investing in R&D, allocating E% of its revenue towards developing new technologies and enhancing existing products[5]. - The company is exploring potential acquisitions to enhance its product portfolio and market presence, with a focus on strategic fit and synergy[7]. - The company plans to seek higher quality issuers and is confident in its role as a global coordinator for IPO projects[26]. Operational Efficiency - A new operational strategy has been implemented to improve efficiency, aiming for a reduction in production costs by H%[8]. - The company aims to enhance automation in production processes to further strengthen operational efficiency in the toy division[25]. - The company continues to focus on high-margin product lines in the toy division to navigate the uncertain macroeconomic environment[84]. - The company is enhancing cost control in the financial services division and hiring more commission-based employees to align their interests with the division's performance[139]. Governance and Compliance - The Audit Committee held at least 2 regular meetings during the financial year, ensuring compliance with the listing rules[47]. - The Audit Committee reviewed the consolidated financial statements for the year ending March 31, 2021, confirming they were prepared in accordance with applicable accounting standards[51]. - The company has no internal audit function, but the Audit Committee is responsible for regular reviews of risk management and internal control systems[50]. - The Nomination Committee confirmed that non-executive directors dedicated sufficient time and effort to the group's affairs[59]. - The company ensured that all independent non-executive directors were independent throughout the financial year[62]. Sustainability and Environmental Impact - The management team emphasized a commitment to sustainability, with initiatives aimed at reducing environmental impact by I% over the next five years[10]. - The company has implemented strict environmental protection measures and policies to reduce emissions and waste[164]. - The toy division has not faced any environmental claims or penalties during the year, indicating adherence to environmental responsibilities[170]. - The company has implemented energy-saving measures, such as using LED lighting and water-saving devices in offices[172]. Challenges and Risks - The overall business outlook remains challenging, and the company will continue to manage costs cautiously while linking new employee compensation to performance[26]. - The company anticipates a volatile business environment in the next fiscal year due to ongoing challenges from the COVID-19 pandemic[135]. - The company is concerned about rising raw material prices impacting profit margins, particularly in the toy division[136]. - Global economic and political uncertainties, including the ongoing US-China trade war, may adversely affect the company's performance[165]. Shareholder Relations - The company prioritizes clear and transparent communication with shareholders to understand the group's performance and prospects[71]. - The company allows shareholders holding at least 10% of voting rights to request a special general meeting to address specified matters[72]. - The board has proposed not to declare a final dividend for the year ending March 31, 2021, consistent with the previous year[144]. Employee and Director Information - The total employee cost for the year ended March 31, 2021, was approximately HKD 37.1 million, down from HKD 43.1 million in 2020[133]. - The executive directors have service contracts for three years, requiring a minimum of three months' written notice for termination[177]. - The independent non-executive directors are considered independent under the relevant guidelines of the Hong Kong Stock Exchange[175]. Stock Options and Equity - The company has a stock option plan in place to reward employees, directors, and other selected participants for their contributions[199]. - The total number of unexercised stock options under the plan was 130,271,600, representing 8.8% of the issued share capital[200]. - The stock options will vest in three tranches: 30% after the first anniversary, 30% after the second anniversary, and 40% after the third anniversary of the grant date[197].

Revenue and Profit Performance - For the six months ended September 30, 2020, the Toy Division reported revenue of approximately HKD 299.3 million, an increase of 16.0% compared to the same period last year[12]. - The Toy Division's profit for the same period was approximately HKD 15.9 million, reflecting a 17.8% increase year-on-year[12]. - The group's revenue for the period was approximately HKD 309.2 million, an increase of about HKD 40.7 million or 15.2% compared to the previous period's revenue of approximately HKD 268.5 million[20]. - Revenue for the six months ended September 30, 2020, was HKD 309,199,000, representing a 15.2% increase from HKD 268,451,000 in the same period of 2019[81]. - Gross profit for the same period was HKD 43,390,000, up from HKD 41,401,000, indicating a gross margin improvement[81]. - The company reported a net loss of HKD 3,152,000 for the six months ended September 30, 2020, a significant improvement from a loss of HKD 11,920,000 in 2019[143]. Client Revenue Breakdown - Revenue from European clients accounted for about 27.0% of the Toy Division's total revenue, representing a 47.0% increase compared to the previous period[12]. - Revenue from North American clients constituted approximately 60.7% of the Toy Division's total revenue, which is an 8.4% increase from the prior period[12]. - Revenue from North America was HKD 181,568,000, up 8.4% from HKD 167,545,000 in 2019[122]. - Revenue from major customer A increased significantly to HKD 169,359,000 from HKD 65,952,000, representing a growth of 156.5%[129]. Financial Services Division - The financial services division experienced a slight decline in revenue compared to the previous period, but the division's losses did not worsen[8]. - The financial services segment's revenue was approximately HKD 9.9 million, a slight decrease of about 5.1% from HKD 10.4 million in the previous period[20]. - Investment advisory and management fees in the financial services segment increased by approximately HKD 4.8 million, a rise of about 642.1% compared to the previous period[20]. - The financial services division aims to increase assets under management to generate more recurring income, although performance will largely depend on the U.S. securities market[54]. Cost Management and Efficiency - The company continues to focus on high-margin product lines and effective cost control measures to navigate the challenging business environment[8]. - The company is committed to streamlining inventory and manufacturing processes to control production costs effectively[12]. - Selling expenses for the toy segment decreased by approximately HKD 1.8 million or 25.3% to about HKD 5.4 million due to more favorable logistics arrangements[22]. - Financing costs decreased by approximately 53.2% to about HKD 6.2 million from HKD 13.3 million in the previous period[27]. - The overall gross profit margin decreased from approximately 15.4% in the previous period to about 14.0% in the current period[21]. Inventory and Trade Receivables - Inventory increased by 8.3% from approximately HKD 71.0 million to HKD 76.9 million, while inventory turnover days decreased by 37.3% to 50.8 days[32]. - Trade receivables for the toy segment rose from approximately HKD 55.8 million to HKD 156.8 million, an increase of about 180.3%, due to higher sales during the peak business season[33]. - Trade receivables from the financial services segment increased significantly to HKD 25,461,000 as of September 30, 2020, compared to HKD 9,574,000 as of March 31, 2020, marking a growth of 166.5%[153]. - Trade receivables from the manufacturing and sales of toys segment rose to HKD 156,827,000 as of September 30, 2020, up from HKD 55,756,000 as of March 31, 2020, reflecting an increase of 181.5%[157]. Shareholder Information and Stock Options - Smart Investor Holdings Limited holds 482,864,000 shares, representing 32.75% of the total shares issued as of September 30, 2020[67]. - Benefit Global Limited, Clearfield Global Limited, and BlackPine Private Equity Partners G.P. Limited each hold 159,297,921 shares, accounting for 10.81% of the total shares[67]. - The total number of shares issued as of September 30, 2020, is 1,474,232,000[67]. - The company granted stock options totaling 10,800,000 shares at an exercise price of HKD 1.00 on March 17, 2014[71]. - As of September 30, 2020, there are 130,271,600 stock options remaining unexercised under the stock option plan[75]. Employee and Management Costs - As of September 30, 2020, the total employee cost for the six-month period was approximately HKD 22.1 million, compared to HKD 20.9 million in 2019, reflecting an increase of about 5.7%[52]. - The total remuneration for key management personnel (excluding executive directors) was HKD 1,397,000 for the six months ended September 30, 2020, compared to HKD 1,083,000 in the previous year[187]. - The total remuneration for executive directors was HKD 4,404,000 for the six months ended September 30, 2020, down from HKD 5,334,000 in the previous year[187]. Market Outlook and Strategic Focus - The overall market outlook for the toy industry remains uncertain due to ongoing geopolitical tensions and the impact of COVID-19[12]. - The company anticipates continued volatility in the global business environment due to the ongoing COVID-19 pandemic, which has significantly altered consumer behavior towards online distribution channels[53]. - The company is focusing on higher-margin products and strict cost control as a defensive strategy in light of uncertain mid-term prospects[53]. - The company plans to continue focusing on its core segments of toy manufacturing and financial services for future growth[109].

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].