COVID-19 Impact and Recovery Outlook - In 2022, the company faced significant challenges due to the resurgence of COVID-19, which severely impacted operations in major cities like Beijing and Shanghai[6]. - The company reported that the damage from COVID-19 in 2022 was greater than during the initial outbreak in 2020, affecting logistics and consumer sentiment[6]. - For 2023, the company maintains a cautiously optimistic outlook, expecting a gradual recovery in consumer spending despite uncertainties in the macroeconomic environment[7]. Business Strategy and Growth Plans - The company plans to introduce a new international top-tier toy brand in 2023, marking a significant milestone in its growth strategy[7]. - Distribution channels will be diversified in 2023 to reach more consumers, which is expected to enhance operational efficiency and drive growth[7]. - The company aims to achieve profitability in 2023 as part of its turnaround plan, leveraging both retail and wholesale business segments[7]. - The company emphasizes a consumer-centric strategy for retail and a customer-centric approach for wholesale, integrating online and offline channels[7]. Financial Performance - The company reported a net loss of approximately RMB 184.2 million for the year ended December 31, 2022, compared to a net profit of RMB 2.1 million for the previous year, primarily due to significant currency depreciation and COVID-19 impacts[29]. - Revenue decreased by 22.1% to approximately RMB 1,144.7 million from RMB 1,469.8 million in the previous year, with self-operated retail and wholesale revenues declining by 19.5% and 32.0%, respectively[29]. - Gross profit fell to approximately RMB 407.1 million from RMB 612.8 million, resulting in a gross margin decrease from 41.7% to 35.6%[30]. - Total selling, distribution, general, and administrative expenses decreased by 9.5% to approximately RMB 554.6 million from RMB 612.6 million in the previous year[30]. Operational Changes - The number of retail stores decreased from 185 at the beginning of the year to 172 at the end, with 16 new stores opened and 29 closed during the year[35]. - The number of self-operated retail sales points decreased from 627 to 587, while online stores increased from 21 to 29[36]. - The number of distributors decreased significantly from 521 to 342, with over 1,800 retail points compared to over 2,000 in the previous year[40]. Debt and Financial Position - The group's net debt stood at approximately RMB 186.0 million as of December 31, 2022, compared to RMB 156.4 million as of December 31, 2021, resulting in a debt-to-equity ratio of about 58.0%[64]. - The group had bank loans and trade financing totaling approximately RMB 115.4 million as of December 31, 2022, an increase from RMB 90.4 million as of December 31, 2021[63]. - As of December 31, 2022, the group's cash position was approximately RMB 20.6 million, down from RMB 25.4 million as of December 31, 2021[63]. Corporate Governance and Board Composition - The company has a diverse board with members possessing extensive experience in finance, law, and governance[21]. - Independent non-executive directors confirmed their independence as of December 31, 2022, in compliance with listing rules[95]. - The company plans to maintain compliance with corporate governance standards as outlined in its articles of association[93]. Environmental, Social, and Governance (ESG) Commitment - The company is committed to integrating sustainability into its business operations and has established a governance framework for ESG matters[143]. - The total greenhouse gas emissions for the fiscal year 2022 were 3,453 tons of CO2 equivalent, a decrease from 3,618 tons in 2021, representing a reduction of approximately 4.6%[176]. - The company aims to reduce its environmental footprint through energy savings and waste management initiatives[172]. Employee Management and Welfare - The company had approximately 1,500 employees as of December 31, 2022, a decrease from approximately 1,700 employees as of December 31, 2021[131]. - The overall employee turnover rate was 30.7%, with 461 employees leaving[199]. - The company emphasizes the importance of employee welfare and has established policies regarding compensation, recruitment, and promotion[199].

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告 的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不 對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的任何損失 承擔任何責任。 Kidsland International Holdings Limited 凱知樂國際控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2122） 截 至2022年12月31日 止 年 度 的 全 年 業 績 公 告 摘要 • 於報告期，本集團的收入由上一期間約人民幣1,469.8百萬元減少22.1% 至約人民幣1,144.7百萬元。 • 受COVID-19疫情再次爆發的影響，自營零售渠道及批發渠道的收 入分別下降19.5%及32.0%至約人民幣935.5百萬元及約人民幣209.2百 萬元。 ...

Financial Performance - The company reported a net loss of approximately RMB 63.6 million for the six months ended June 30, 2022, compared to a net profit of RMB 12.0 million for the same period in 2021[5]. - The company's revenue decreased by 19.9% to approximately RMB 603.8 million from RMB 754.0 million in the previous period[21]. - Revenue for the six months ended June 30, 2022, was RMB 603,793 thousand, a decrease of 20% compared to RMB 754,040 thousand in the same period of 2021[82]. - Gross profit decreased from approximately RMB 317.4 million to RMB 237.4 million, with the gross margin falling from 42.1% to 39.3%[27]. - Operating loss for the six months was RMB 56,984 thousand, compared to an operating profit of RMB 18,543 thousand in the prior year[82]. - The company recorded a loss of approximately RMB 63.6 million for the period, compared to a profit of RMB 12.0 million in the previous period[35]. - The company reported a basic and diluted loss per share of RMB 7.75 for the six months ended June 30, 2022, compared to earnings of RMB 1.54 per share in the same period of 2021[82]. - Cash generated from operating activities was RMB 53,728 thousand, down 49.5% from RMB 106,246 thousand in the same period of 2021[88]. Foreign Exchange and Financial Risks - The company experienced a foreign exchange loss of approximately RMB 15.4 million during the reporting period, leading to an adjusted loss of approximately RMB 48.2 million when excluding this loss[5]. - The group has no foreign exchange hedging policy and is exposed to foreign exchange risks from USD, EUR, and HKD against RMB[44]. - The company had a bank loan of RMB 21,380,000 as of June 30, 2022, which was in breach of financial covenants, potentially leading to immediate repayment[133]. Retail and Distribution Network - The company plans to open 3 to 5 LEGO certified stores in mainland China in the second half of 2022, marking a significant milestone[6]. - As of June 30, 2022, the company operated 614 self-operated retail points, a decrease from 642 points as of June 30, 2021[9]. - The number of distributors decreased to 515 as of June 30, 2022, down from 578 as of June 30, 2021[15]. - The company had 181 retail stores at the end of the reporting period, down from 189 stores at the end of the previous year[11]. - The company maintained 12 wholesale arrangements with chain hypermarkets and supermarkets, with a total of 682 retail points as of June 30, 2022, unchanged from the previous year[17]. - The company is focusing on optimizing its retail network and negotiating rent reductions to improve cash flow and profitability[6]. Employee and Compensation - The group has approximately 1,600 employees as of June 30, 2022, a decrease from about 1,700 employees as of June 30, 2021[47]. - Total employee compensation for the reporting period was approximately RMB 51.3 million for internal employees and RMB 48.8 million for outsourced employees, compared to RMB 47.6 million and RMB 49.8 million in the previous period[47]. Capital Expenditure and Investments - Capital expenditure for the period was approximately RMB 10.7 million, primarily for renovating existing stores[38]. - The company has no significant investments or plans for major acquisitions or disposals during the reporting period[45]. Share Capital and Options - As of June 30, 2022, the company has issued 800,000,000 ordinary shares with a par value of HKD 0.01 per share, with no changes in share capital during the reporting period[46]. - The company has adopted a post-IPO share option plan to encourage and reward eligible participants, including employees and directors[65]. - The total number of options granted under the post-IPO plan cannot exceed 10% of the total shares issued at the time of listing[146]. - The company authorized the grant of 47,500,000 shares under the pre-IPO share option plan to 78 eligible participants[138]. Compliance and Governance - The board of directors has confirmed compliance with the standard code for securities trading throughout the reporting period[52]. - The audit committee has reviewed the unaudited condensed consolidated financial statements and believes they fairly present the financial position and performance of the group for the reporting period[55]. - The company’s chairman and CEO roles are held by the same individual, which deviates from corporate governance guidelines[51]. Market Conditions and Future Outlook - Due to COVID-19, the group's business faced negative impacts, particularly in major cities like Beijing and Shanghai, affecting consumer sentiment and causing short-term disruptions[91]. - The board believes that sales performance and operating cash flow will improve over the next twelve months as the negative impacts of COVID-19 diminish[96]. - The group is actively seeking alternative financing and bank loans to meet existing financial obligations and future operational and capital expenditures[96].

Financial Performance - The company reported a net profit of approximately RMB 2.1 million for the fiscal year ending December 31, 2021, marking its first annual net profit since 2017[6]. - The company recorded a net profit of approximately RMB 2.1 million for the year ended December 31, 2021, compared to a net loss of RMB 130.1 million for the previous year, marking the first annual profit since 2017[31]. - Revenue increased by 6.9% from approximately RMB 1,374.8 million in the previous year to approximately RMB 1,469.8 million, with self-operated retail channel revenue rising by 9.0% to approximately RMB 1,162.2 million[31][46]. - Gross profit rose by 21.8% from approximately RMB 503.3 million to approximately RMB 612.8 million, with the gross profit margin increasing from 36.6% to 41.7%[31][51]. - Revenue from Hong Kong and overseas increased by 30.2% in 2021, supported by strong performance from LEGO certified stores and the kkplus kidsland platform[10]. Retail and Market Expansion - Retail revenue increased by 16.7% from approximately RMB 599.8 million in 2020 to about RMB 699.7 million in 2021, driven by strong same-store sales growth in the Kidsland stores[7]. - The company expanded its product offerings and procurement agility, with sales of its second-largest brand in mainland China increasing by over 60% from 2020 to 2021[7]. - The company opened its first LEGO certified store in Macau in February 2021, which quickly became one of the best-performing LEGO certified stores globally[10]. - The company plans to strengthen the development of the kkplus kidsland and its e-commerce in 2022[10]. - The company is expanding its retail operations in Hong Kong and Macau, managed by Mr. Wu Guoshuo, who has significant experience in the retail sector[29]. Strategic Initiatives - The company became the authorized agent for MGA Entertainment in mainland China in Q4 2021, aiming to develop new revenue streams and enhance profitability[8]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the H sector[16]. - The company aims to enhance its market presence through strategic partnerships and acquisitions, leveraging the expertise of its board members[24]. - A new marketing strategy has been implemented, aiming to increase brand awareness and customer engagement by I%[16]. Technology and Innovation - The company is investing in new technology development, allocating $E million towards R&D initiatives aimed at enhancing product features[16]. - The company is committed to innovation and technology development, as indicated by its leadership's involvement in various committees and advisory roles[23]. Sustainability and ESG - The company is committed to integrating sustainability into its business operations and has established an ESG governance framework[151]. - The company aims to promote sustainable development values and incorporate them into its business practices[160]. - The greenhouse gas emissions for the fiscal year 2021 were 3,618 metric tons of CO2 equivalent, an increase from 3,099 metric tons in fiscal year 2020[178]. - The company is committed to achieving carbon neutrality and has implemented strict administrative policies to manage emissions from office operations[176]. - The company has established an environmental policy to guide employees in daily environmental practices, including energy and resource management[176]. Employee and Management - The company has approximately 1,700 employees as of December 31, 2021, a decrease from about 1,800 employees in 2020[138]. - The employee turnover rate for the group was 36.3%, with 628 employees leaving during the year[195]. - The group provides comprehensive employee benefits, including social and medical insurance in mainland China and medical insurance in Hong Kong[197]. - The group emphasizes a diverse and inclusive work environment to attract and retain talent[193]. - The management team includes Ms. Zhang Ying, who oversees sales and operations for retail stores in mainland China, and has extensive experience in the toy distribution sector[26]. Financial Management - The company has strengthened its financial position, with a cash reserve of $K million, providing flexibility for future investments[16]. - As of December 31, 2021, the company had a net debt position of approximately RMB 156.4 million, with a debt-to-equity ratio of approximately 32.5%[64]. - The company has approximately RMB 270.8 million available for distribution to shareholders as reserves as of December 31, 2021, compared to RMB 274.8 million in 2020[92]. Shareholder Information - The total number of issued shares was 800,000,000[103]. - Asian Glory Holdings Ltd. owns approximately 53.15% of the company, equating to 425,224,523 shares[103]. - The company has a stock option plan adopted on October 20, 2017, with a remaining term of over 5 years[110]. - The total number of unexercised share options at the end of the year was 34,200,000 shares, which represents 4.3% of the total issued shares as of the report date[115]. Compliance and Governance - The independent auditor for the consolidated financial statements is PricewaterhouseCoopers, with a resolution to reappoint them at the 2022 annual general meeting[146]. - The company has fully complied with the Listing Rules Chapter 14A regarding continuing connected transactions[125]. - The company has established a non-competition agreement with its major shareholders, ensuring compliance throughout the year[129].

Financial Performance - The company reported a revenue growth of 17.6% for the six months ended June 30, 2021, resulting in a net profit of approximately RMB 12.0 million, compared to a net loss of RMB 135.6 million for the same period in 2020[5]. - The group's revenue increased by 17.6% from approximately RMB 641.2 million to approximately RMB 754.0 million during the reporting period[19]. - Revenue for the six months ended June 30, 2021, was RMB 754,040 thousand, an increase of 17.6% compared to RMB 641,189 thousand for the same period in 2020[83]. - Gross profit increased by 48.0% from approximately RMB 214.4 million to approximately RMB 317.4 million, with the gross margin rising from 33.4% to 42.1%[23]. - Operating profit improved to RMB 18,543 thousand, compared to an operating loss of RMB 131,097 thousand in the previous year[83]. - The company reported a total comprehensive income of RMB 9,008 thousand for the period, recovering from a comprehensive loss of RMB 129,878 thousand in 2020[83]. - The company achieved a net profit of RMB 12,048,000 for the six months ended June 30, 2021, compared to a net loss of RMB 135,613,000 for the same period in 2020[100][101]. Retail and Distribution Network - The retail network included 642 self-operated retail points as of June 30, 2021, down from 717 in 2020, with 189 retail stores at the end of the period compared to 218 in 2020[7]. - The number of distributors decreased to 578 as of June 30, 2021, from 638 in 2020, with over 2,300 retail points selling the company's products compared to over 2,600 in 2020[13]. - The company closed 24 retail stores during the reporting period, maintaining a focus on strategic locations and profitability[9]. - The number of online stores increased to 24 as of June 30, 2021, from 22 in 2020, reflecting a continued expansion in e-commerce channels[11]. - The company is actively developing its trendy toy business and proprietary products in response to market opportunities from cultural trends and educational policies[5]. Financial Position and Cash Flow - As of June 30, 2021, the company's net debt was approximately RMB 54.2 million, down from RMB 108.6 million as of December 31, 2020, resulting in a debt-to-equity ratio of approximately 10.9%[37]. - The group's cash position improved to approximately RMB 99.8 million as of June 30, 2021, compared to RMB 53.8 million as of December 31, 2020[35]. - Cash generated from operating activities was RMB 108,114 thousand, a decrease of 19.5% from RMB 134,378 thousand in the prior year[89]. - The company incurred a net cash outflow from investing activities of RMB 10,952 thousand, compared to RMB 24,424 thousand in the previous year, reflecting reduced capital expenditures[89]. - Cash and cash equivalents at the end of the period stood at RMB 91,445 thousand, down from RMB 112,335 thousand at the end of June 2020[89]. Shareholder Information and Corporate Governance - The company has decided not to declare any interim dividend for the reporting period[46]. - The board has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules and has complied with all provisions except for the separation of the roles of Chairman and CEO, which are currently held by the same individual[48]. - Major shareholder Ms. Deng Kailun holds 439,224,523 shares, representing approximately 54.90% of the total equity[57]. - Asian Glory owns 425,206,524 shares, accounting for 53.15% of the total equity[57]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific matters[50]. Employee and Compensation - As of June 30, 2021, the group had approximately 1,700 employees, a decrease from 1,900 employees as of June 30, 2020[44]. - Total compensation for internal and outsourced employees was approximately RMB 47.6 million and RMB 49.8 million, respectively, compared to RMB 39.9 million and RMB 48.8 million in the previous period[44]. - The total remuneration for key management personnel was RMB 4,577,000 for the six months ended June 30, 2021, a decrease from RMB 5,023,000 in 2020[146]. Inventory and Trade Payables - Inventory turnover days decreased from 224 days to 175 days, while trade receivables turnover days improved from 35 days to 22 days[32]. - Trade payables increased significantly to RMB 172,198 thousand from RMB 93,390 thousand at the end of 2020, representing an increase of 84.5%[120]. - The company reported a net trade receivables amount of RMB 93,229,000 as of June 30, 2021, slightly down from RMB 94,235,000 at the end of 2020[116]. Investment and Capital Expenditure - The group invested approximately RMB 8.6 million in property, plant, and equipment during the reporting period, primarily for store renovations[34]. - The company has committed to invest a minimum of RMB 3,044,000 in live-action animated series production, down from RMB 6,087,000 in 2020[142]. - The company incurred rental expenses of RMB 720,000 and RMB 275,000 from related parties for the six months ended June 30, 2021[145]. Accounting and Compliance - The company has adopted new accounting standards effective from January 1, 2021, which are not expected to have a significant impact on the financial results[93]. - The company is evaluating the impact of new accounting standards that will take effect in 2022 and 2023, but does not expect significant effects on its consolidated financial statements[99].

Financial Performance - The company reported a net profit of approximately RMB 55 million for the second half of 2020, marking the first net profit recorded in any six-month period since January 1, 2018[5]. - The company reported a net loss of RMB 130.1 million for the year ended December 31, 2020, compared to a net loss of RMB 79.5 million for the previous year, indicating a significant decline in profitability[29]. - Revenue decreased by 19.6% to approximately RMB 1,374.8 million for the reporting period, down from RMB 1,710.0 million in the previous year[45]. - The company reported a significant increase in revenue, achieving a total of $X million, representing a Y% growth compared to the previous year[15]. - User data showed an increase in active users, reaching Z million, which is a W% increase year-over-year[15]. - The company provided guidance for the next quarter, expecting revenue to be between $A million and $B million, indicating a growth rate of C%[15]. - New product launches are anticipated to contribute an additional $D million in revenue, with a focus on expanding the product line[15]. - The company is investing in R&D, allocating $E million towards new technologies aimed at enhancing product offerings[15]. - The company reported a strong balance sheet with total assets of $J million, providing a solid foundation for future growth[15]. Revenue and Market Expansion - Revenue from Hong Kong and overseas increased by 14.2% compared to the same period last year, benefiting from the opening of the fifth LEGO certified store and the kkplus kidsland platform[7]. - The company plans to further expand the kkplus kidsland platform in Hong Kong and mainland China, tapping into the fast-growing market for trendy and fun toys[7]. - Market expansion plans include entering F new regions, which are projected to increase market share by G%[15]. - The company is actively expanding its distribution network through collaborations with international high-end fashion stores and online fashion retailers for the kkplus kidsland platform[7]. Strategic Partnerships and Collaborations - The company established a partnership with Microsoft to become a model leader in digital transformation in mainland China, integrating supply chain, sales, retail, and finance through Microsoft's intelligent cloud solutions[6]. - A strategic collaboration with Tencent Video and Original Force Animation was announced to jointly invest in and develop the animated series "The Great Monsters in the Palace," creating a new innovative IP cooperation model in China[9]. - The company is building a team to accelerate the development of licensing business and proprietary products related to the animated series[9]. Cost Management and Operational Efficiency - The company reduced total sales, distribution, general, and administrative expenses by 9.8% to approximately RMB 666.8 million from RMB 739.0 million in the previous period[30]. - Inventory decreased by 27.2% to approximately RMB 419.9 million as of December 31, 2020, down from RMB 576.4 million at the end of 2019, due to improved procurement management[30]. - The company reported a decrease in operational costs by J%, enhancing overall profitability margins[23]. - The company is focusing on digitalization and customer-centric strategies to enhance operational efficiency and inventory management in response to the impacts of COVID-19[5]. Sustainability and Environmental Initiatives - The company emphasizes the importance of sustainability initiatives, aiming to reduce operational costs by I% over the next three years[15]. - The company is committed to sustainability and has identified 18 key environmental, social, and governance (ESG) topics impacting its operations[158]. - The company's carbon emissions decreased from 4,828 tons in 2019 to 3,099 tons in 2020, representing a reduction of approximately 36%[174]. - The carbon emission density per square meter reduced from 42.50 kg CO2 equivalent in 2019 to 33.57 kg CO2 equivalent in 2020, a decrease of around 21%[174]. - Total electricity consumption dropped from 5,521,636 kWh in 2019 to 3,284,638 kWh in 2020, reflecting a reduction of approximately 40%[177]. Employee Management and Workplace Practices - The company has approximately 1,800 employees as of December 31, 2020, down from about 2,100 employees in 2019[141]. - Employee turnover rate in Mainland China is 36% with 616 employees and in Hong Kong is 31% with 35 employees[186]. - The company aims to provide a caring workplace and maintain a balance between work and life to attract and retain talented employees[186]. - The company has implemented measures to prevent the spread of COVID-19, including temperature checks and regular disinfection of offices and retail stores[192]. - The company emphasizes occupational health and safety, with strict consequences for employees who disregard safety protocols[192]. Shareholder Information and Corporate Governance - The company reported a reserve available for distribution to shareholders of approximately RMB 274.8 million as of December 31, 2020, compared to RMB 279.2 million in 2019[94]. - The board of directors decided not to recommend the payment of a final dividend for the year, consistent with the previous year[80]. - The company has adopted a dividend policy aimed at providing continuous returns to shareholders and stable dividend payments[81]. - The company has maintained a commitment to environmental sustainability and compliance with relevant environmental laws and regulations[89]. Future Outlook and Strategic Planning - The company aims to lay a foundation for the next 20 years in 2021, marking its 20th anniversary[9]. - Future outlook remains positive, with management expressing confidence in achieving long-term growth targets[23]. - The company plans to reassess the timeline for developing experience centers and related products due to COVID-19 impacts[138].

Financial Performance - The company reported a loss of approximately RMB 135.6 million for the six months ended June 30, 2020, due to the impact of COVID-19 on sales and gross margin [5]. - Revenue decreased by 24.6% from approximately RMB 850.0 million for the six months ended June 30, 2019, to approximately RMB 641.2 million for the current period [17]. - Gross profit decreased from approximately RMB 361.5 million to about RMB 214.4 million, with the gross margin dropping from 42.5% to 33.4% [20]. - The company recorded a loss of approximately RMB 135.6 million for the reporting period, compared to a loss of about RMB 1.9 million in the previous period [27]. - Operating loss for the six months was RMB 131,097 thousand, compared to an operating profit of RMB 7,792 thousand in the previous year [79]. - Net loss for the period was RMB 135,613 thousand, significantly higher than the net loss of RMB 1,937 thousand in 2019 [79]. - The total comprehensive loss for the six months ended June 30, 2020, was RMB 125,833,000, compared to a total comprehensive income of RMB 7,665,000 for the same period in 2019 [83]. - The company reported a loss before tax of RMB (137,125) thousand for the six months ended June 30, 2020, compared to a profit before tax of RMB 334 thousand for the same period in 2019 [97][98]. Cash Flow and Position - Cash position improved from RMB 36.2 million as of December 31, 2019, to RMB 117.8 million as of June 30, 2020 [5]. - The net cash generated from operating activities for the six months ended June 30, 2020, was RMB 134,378,000, an increase of 102.4% compared to RMB 66,413,000 in the same period of 2019 [85]. - The cash conversion cycle increased from 149 days to 173 days, despite a significant reduction in inventory from RMB 576.4 million to RMB 473.9 million [29]. - The cash and cash equivalents as of June 30, 2020, increased to RMB 112,335,000 from RMB 30,685,000 at the beginning of the year, reflecting a net increase of RMB 81,069,000 [85]. Inventory and Receivables - Inventory decreased from RMB 576.4 million as of December 31, 2019, to RMB 473.9 million as of June 30, 2020 [5]. - Inventory turnover days increased from 211 days to 224 days, while trade receivables turnover days increased from 32 days to 35 days [28]. - Total trade receivables increased to RMB 134,190,000 as of June 30, 2020, compared to RMB 111,424,000 in 2019, indicating a growth of approximately 20.4% [112]. Operational Changes - The number of self-operated retail points decreased from 750 as of June 30, 2019, to 717 as of June 30, 2020 [8]. - The company closed 24 retail stores during the reporting period, resulting in a total of 218 retail stores as of June 30, 2020 [10]. - The number of distributors decreased from 849 as of June 30, 2019, to 638 as of June 30, 2020 [14]. - The company maintained 16 wholesale arrangements with chain hypermarkets and supermarkets as of June 30, 2020, unchanged from the previous year [16]. - The number of online stores increased from 20 as of June 30, 2019, to 22 as of June 30, 2020 [10]. Shareholder Information - As of June 30, 2020, major shareholder Ms. Tang Hailun holds 439,224,523 shares, representing approximately 54.90% of the equity [58]. - Asian Glory Holdings Ltd. owns 425,206,524 shares, accounting for about 53.15% of the equity [58]. - The company’s chairman and CEO, Mr. Li Chengyao, is the sole shareholder of Asian Glory, which holds approximately 74.87% of the equity in another entity, Libao International Holdings Ltd. [57]. - The company had 800,000,000 issued shares as of June 30, 2020 [55]. Corporate Governance - The board of directors has adopted the corporate governance code as per the listing rules, ensuring compliance with all provisions except for the separation of the roles of Chairman and CEO, which are currently held by the same individual [42]. - The company has established three board committees: audit committee, remuneration committee, and nomination committee, to oversee specific matters [44]. - The remuneration committee is responsible for advising on the remuneration policies for all directors and senior management [50]. Capital Expenditure and Investments - Capital expenditure for the period was approximately RMB 24.7 million, primarily for renovating existing stores [30]. - The company had no significant investments or plans for major acquisitions or disposals during the reporting period [37]. Employee Information - As of June 30, 2020, the group had approximately 1,900 employees, a decrease from about 2,300 employees as of June 30, 2019 [38]. - Total compensation for internal and outsourced employees was approximately RMB 39.9 million and RMB 48.8 million, respectively, down from RMB 57.5 million and RMB 64.6 million in the previous period [38]. - Total compensation for key management personnel decreased to RMB 5,023,000 in the first half of 2020 from RMB 7,242,000 in the same period of 2019, representing a decline of approximately 30% [137]. Other Financial Metrics - The company recognized share-based payment expenses of RMB 1,134,000 during the six months ended June 30, 2020 [85]. - The company incurred a net cash outflow from investing activities of RMB 24,424,000 for the six months ended June 30, 2020, compared to RMB 27,535,000 in the same period of 2019 [85]. - The company reported a foreign exchange gain of RMB 5,735 thousand for the period, compared to a loss of RMB 3,186 thousand in 2019 [79]. - The company received government subsidies totaling RMB 2,620 thousand during the six months ended June 30, 2020, down from RMB 3,457 thousand in the same period of 2019 [101].

目錄 | 公司資料 | 2 | | --- | --- | | 主席報告書 | 3 | | 董事及高級管理層 | 5 | | 管理層討論及分析 | 9 | | 董事會報告 | 16 | | 企業管治報告 | 31 | | 獨立核數師報告 | 43 | | 綜合損益及其他全面收益表 | 48 | | 綜合財務狀況表 | 49 | | 綜合權益變動表 | 51 | | 綜合現金流量表 | 52 | | 綜合財務報表附註 | 53 | | 五年財務概要 | 120 | 公司資料 董事會 執行董事 李澄曜先生 （主席兼行政總裁） 洪誠明先生 仲梅女士 非執行董事 杜平先生 段蘭春女士 獨立非執行董事 鄭毓和先生 黃嘉純先生 林家禮博士 審核委員會 鄭毓和先生 （主席） 黃嘉純先生 林家禮博士 薪酬委員會 黃嘉純先生 （主席） 李澄曜先生 鄭毓和先生 提名委員會 林家禮博士 （主席） 鄭毓和先生 黃嘉純先生 公司秘書 陳振洋先生 授權代表 李澄曜先生 陳振洋先生 獨立核數師 羅兵咸永道會計師事務所 執業會計師 註冊公眾利益實體核數師 香港中環 太子大廈22 樓 註冊辦事處 Second Floor, Century Y ...

Financial Performance - The company's revenue increased by approximately 4.8% compared to the same period in 2018, reaching around 368.2 million RMB[4]. - EBITDA improved to approximately 19.9 million RMB, a significant reduction in losses of about 96.1% compared to the previous year[4]. - The group's revenue increased by approximately 4.8% from about RMB 811.1 million in the previous period to approximately RMB 850.0 million[19]. - Wholesale revenue rose by approximately 14.9% to about RMB 226.5 million, driven by a 21.4% increase in revenue from distributors to approximately RMB 179.6 million[21]. - Online important customer sales grew by approximately 17.4%, contributing about RMB 34.2 million to total revenue[25]. - The gross profit margin improved from approximately 41.3% to about 42.5%, with gross profit increasing from about RMB 335.3 million to approximately RMB 361.5 million[28]. - The group recorded a pre-tax profit of approximately RMB 0.3 million, a significant improvement from a pre-tax loss of about RMB 46.8 million in the previous period[33]. - The company incurred a net loss of 1,937 thousand RMB for the six months ended June 30, 2019, significantly reduced from a loss of 49,303 thousand RMB in the prior year[98]. - The operating profit for the period was 7,792 thousand RMB, a significant recovery from an operating loss of 46,772 thousand RMB in the previous year[98]. - The company reported a basic and diluted loss per share of 0.56 RMB, compared to a loss of 6.52 RMB per share in the same period last year[98]. - The company reported a net loss attributable to shareholders of RMB 4,504,000 for the six months ended June 30, 2019, compared to a net loss of RMB 52,193,000 for the same period in 2018, indicating a significant improvement[141]. Operational Changes - The number of self-operated retail stores decreased from 257 to 246, with a net reduction of 11 stores during the period[8]. - The number of distributors decreased from 931 to 849, with a net reduction of 82 distributors[13]. - The company expanded its online presence, increasing the number of online stores from 17 to 20[10]. - Sales and distribution expenses were reduced by approximately 4.7% during the review period[4]. - The company operates a broad sales network, including 750 self-operated retail points and 849 distributors[6][12]. - The company plans to leverage its distribution network to expand into promising markets in mainland China[12]. - The company opened a flagship FAO Schwarz store in Beijing in the first half of 2019, enhancing its reputation and market leadership in the toy industry in mainland China[50]. - The company opened 10 new Kidsland and Babyland stores during the reporting period, with a total expenditure of 46.1 million HKD, of which 33.0 million HKD has been utilized[91]. Financial Position - As of June 30, 2019, the group's cash and bank balance was approximately RMB 85.4 million, down from RMB 112.2 million as of December 31, 2018[42]. - The inventory turnover days increased from approximately 200 days to about 211 days due to the introduction of new brands and product lines[38]. - The cash conversion cycle remained stable at approximately 149 days for both 2018 and 2019[40]. - As of June 30, 2019, total assets amounted to RMB 950,577 thousand, an increase from RMB 923,667 thousand as of December 31, 2018, reflecting a growth of approximately 2.5%[101]. - Current liabilities rose to RMB 423,727 thousand, up from RMB 323,128 thousand, indicating a significant increase of approximately 31.2%[101]. - Cash and cash equivalents decreased to RMB 85,429 thousand from RMB 112,246 thousand, representing a decline of approximately 23.9%[106]. - Total equity as of June 30, 2019, was RMB 695,758 thousand, a slight decrease from RMB 700,543 thousand as of December 31, 2018[102]. - The company’s trade payables increased to RMB 277,939 thousand from RMB 233,265 thousand, reflecting a rise of approximately 19.2%[101]. - The company has incurred a lease liability of RMB 125,953 thousand as of June 30, 2019, indicating the impact of new leasing standards[102]. Governance and Compliance - The company has adopted the corporate governance code and complied with all relevant provisions during the first half of 2019, with some exceptions noted[59]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim financial information for the six months ending June 30, 2019[63]. - The company has implemented measures to monitor foreign exchange risks related to the Euro, Yen, and HKD against the RMB, which may impact profitability[46]. - The company has ensured adequate training and professional development opportunities for employees, maintaining compliance with local laws and market conditions[49]. - The company’s independent non-executive directors are responsible for reviewing the board's composition and providing recommendations on nominations and appointments[68]. - The remuneration committee is tasked with advising on the remuneration policies for all directors and senior management[70]. - The company has no arrangements that would allow directors or their family members to benefit from purchasing shares or debt securities of the company[79]. - The company’s governance practices align with the corporate governance code as outlined in the relevant regulations[68]. Shareholder Information - Major shareholders include Ms. Deng Kailun with a 54.90% stake and Asian Glory Holdings Limited with a 53.15% stake as of June 30, 2019[53]. - The company’s executive director, Mr. Li Chengyao, holds 14,000,000 shares, representing approximately 1.75% of the total equity[73]. - Mr. Li Chengyao also holds 425,224,523 shares through a controlled corporation, accounting for approximately 53.15% of the total equity[73]. - The company’s independent non-executive director, Mr. Hong Chengming, owns 24,100,000 shares, which is about 3.01% of the total equity[73]. - The company has authorized 78 eligible participants to subscribe for a total of 47,500,000 shares under the pre-IPO share option plan[158]. Future Outlook - The company expects continued uncertainty in the retail market due to economic adjustments in mainland China and the US-China trade war, but remains focused on improving product and sales channel mix[50]. - The company is currently evaluating the impact of new accounting standards that will take effect in 2020 and 2021[123]. Accounting and Standards - The group has applied new and revised Hong Kong Financial Reporting Standards effective from January 1, 2019, impacting the financial statements[112]. - The group’s accounting policies remain consistent with those used in the annual financial statements for the year ended December 31, 2018, except for the new lease standard[110]. - The group has not restated comparative information for the year ended December 31, 2018, under the simplified transition method allowed by the new lease standard[117]. - The adoption of HKFRS 16 resulted in a right-of-use asset of RMB 188,529,000 as of June 30, 2019, compared to RMB 163,244,000 on January 1, 2019[120]. - The depreciation expense for right-of-use assets was RMB 53,682,000 for the six months ended June 30, 2019, with no comparable figure for the previous year due to the adoption of new accounting standards[146].

Financial Performance - In 2018, the company experienced a full-year accounting loss of approximately HKD 100.1 million due to various factors, despite a revenue growth of 5.0%[8] - The company recorded a net loss of HKD 100.1 million in 2018, compared to a profit of HKD 65.4 million in 2017[82] - Revenue increased by approximately 5.0%, rising from about HKD 1,862.2 million to approximately HKD 1,954.4 million[47] - The company reported a significant increase in revenue, achieving a total of $1.2 billion, representing a 15% year-over-year growth[38] - Adjusted EBITDA for 2018 was a loss of HKD 4.5 million, down from an adjusted EBITDA of HKD 130.6 million in 2017[83] - The company's gross margin decreased by 3 percentage points in 2018, but improved from 42.8% in the first half to 43.5% for the full year[9] - The gross profit margin narrowed by three percentage points, leading to a total gross profit decline of 1.9% or about HKD 16.8 million compared to 2017[47] - The company reported a 30% increase in gross margin, reaching 45% due to improved operational efficiencies[38] Revenue Sources - The toy segment revenue increased by 7.3%, while retail store revenue grew by 25.1%[8] - Retail store revenue grew by 25.1% to approximately HKD 732.0 million in 2018[47] - Toy product revenue increased by 7.3% to approximately HKD 1,856.1 million[47] - Revenue from wholesale channels decreased by 16.3% to approximately HKD 507.7 million, down from HKD 606.2 million in 2017[69] - The sales of toy products accounted for 95.0% of total revenue in 2018, up from 92.9% in 2017[70] Expenses and Costs - Total sales, distribution, general, and administrative expenses amounted to HKD 956.9 million, a 22.9% increase from HKD 778.3 million in 2017[12] - Total selling, distribution, and administrative expenses increased significantly by 22.9% or about HKD 178.6 million from 2017 to 2018[47] - Non-cash share-based payment expenses were HKD 28.8 million in 2018, significantly up from HKD 3.7 million in 2017[13] - The company recorded a net foreign exchange loss of HKD 15.1 million in 2018, compared to HKD 1.0 million in 2017[13] Strategic Initiatives - The company plans to enhance its customer-centric approach and innovate its brand to meet the demands of modern parents[14] - The company is committed to enhancing its digital operations and sales efficiency through technology and big data, aiming for gradual and sustainable growth[19] - The company is focused on expanding its product diversity to meet the increasingly personalized market demands, particularly in innovative fashion toys and baby products[17] - The company plans to open a flagship FAO Schwarz store in Beijing by June 30, 2019, which will increase the total retail network area by approximately 7%[17] - The company aims to open more FAO Schwarz stores in China in the coming years, leveraging its high-end positioning and unique shopping experience[17] Market Expansion and User Growth - User data showed a growth in active users, reaching 5 million, which is a 20% increase compared to the previous quarter[38] - Market expansion plans include entering three new international markets by the end of the fiscal year[38] - The company opened 11 new online stores and operated four flagship stores on major Chinese e-commerce platforms, generating a collective revenue of HKD 83.9 million on Tmall, ranking among the top in the imported toy category[18] Corporate Governance - The board consists of eight directors, including the executive chairman and CEO, Mr. Li Chengyao, and independent non-executive directors who provide valuable insights and experience[190] - The board is responsible for overall strategy, major acquisitions, annual budgets, and significant operational and financial matters, ensuring effective leadership and governance[189] - All independent non-executive directors have confirmed their independence and possess relevant professional qualifications, contributing to the board's effectiveness[194] - The company has established three committees (Audit, Remuneration, and Nomination) to oversee various responsibilities within their respective scopes[196] Future Outlook - The company provided an optimistic outlook for the next quarter, projecting revenue growth of 10% to 12%[38] - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[38] - The company is considering strategic acquisitions to bolster its market position, with a budget of $100 million allocated for potential deals[38] Financial Health - The company has maintained a strong balance sheet with no bank borrowings since its inception, emphasizing prudent management of its financial resources as of December 31, 2018[19] - As of December 31, 2018, cash and bank balances were approximately HKD 128.1 million, down from HKD 311.7 million as of December 31, 2017[92] - The current ratio and quick ratio as of December 31, 2018, were 2.9 and 1.2, respectively, compared to 3.0 and 1.5 in 2017[92] Employee and Compensation - Total employee compensation for self-employed and outsourced employees was approximately HKD 175.1 million and HKD 137.9 million, respectively, for the year ended December 31, 2018[98] - The total compensation for self-employed and outsourced employees was approximately HKD 313 million for the year ended December 31, 2018, compared to HKD 215.1 million in 2017[174]