Financial Performance - In 2023, the company achieved a revenue growth of 1.0% to approximately RMB 1,155.7 million, compared to RMB 1,144.7 million in 2022[6] - The company recorded a net loss of approximately RMB 210.9 million in 2023, compared to a net loss of RMB 184.2 million in 2022[6] - For the fiscal year ending December 31, 2023, the company reported revenue of approximately RMB 1,155.7 million, an increase of 1.0% from RMB 1,144.7 million in the previous year[31] - The gross profit margin decreased from 35.6% in the previous year to 29.8% in the current year, primarily due to clearance activities that pressured short-term gross margins[31] - The company recorded a loss of approximately RMB 210.9 million for the reporting period, compared to a loss of RMB 184.2 million in the previous period[58] Operational Efficiency - Inventory turnover days decreased to 161 days in 2023, improving cash turnover days to 131 days, down from 219 days and 184 days in 2022 respectively[7] - The company aims to enhance operational efficiency and optimize organizational structure to maintain a strong market position[8] - The company has implemented new strategies to enhance operational efficiency, aiming for a G% reduction in costs over the next year[21] - Total selling, distribution, general and administrative expenses decreased by 2.7% to approximately RMB 539.9 million from RMB 554.6 million in the previous year[31] - The cash conversion cycle decreased from 184 days in the previous period to 131 days in the reporting period[60] Retail and Market Expansion - The company plans to expand its retail network by opening more diverse retail stores targeting children, teenagers, and young adults, including testing new retail formats in lower-tier cities[7] - The number of self-operated retail stores decreased from 172 at the beginning of the year to 155 at year-end, with 7 new stores opened and 24 closed[35] - Revenue from self-operated retail channels increased by 3.2% to approximately RMB 965.1 million, with retail store revenue rising by 6.7% to approximately RMB 648.0 million[49] - Wholesale channel revenue decreased by 8.9% to approximately RMB 190.6 million, primarily due to a 15.2% decline in distributor revenue[50] Future Outlook - For 2024, the company maintains a cautiously optimistic outlook, focusing on consumer-centric strategies in retail and customer-centric strategies in wholesale[8] - The company aims to achieve resilient growth despite market challenges by adjusting its business model to adapt to changing market conditions[8] - The company intends to invest in innovative products and marketing methods while improving internal operational efficiency[8] Sustainability and ESG Initiatives - The board of directors emphasized the importance of sustainability initiatives, committing to invest $H million in green technologies[21] - The company has established a top-down environmental, social, and governance (ESG) framework to integrate sustainability into its business operations[141] - The company reported a commitment to minimize negative impacts on the environment and society through regular monitoring of ESG indicators[141] - The group has developed a set of ESG policies to manage significant issues such as product responsibility, labor practices, anti-corruption, and environmental protection[152] - The company is committed to environmental sustainability and compliance with applicable laws and regulations[84] Employee Welfare and Safety - The company has a strong focus on employee welfare, providing benefits such as social and medical insurance, maternity leave, and retirement plans[197] - The company emphasizes the importance of occupational health and safety, strictly adhering to labor laws in China, Hong Kong, and Macau[199] - The company reported a total of 3 workplace injuries during the reporting period, resulting in 379 lost workdays[200] - The company is committed to providing a safe and reliable working environment for all employees[199] - Employees are required to follow workplace safety rules and report any actual or potential safety hazards[199] Governance and Management - The board of directors includes Mr. Li Chengyao as the Chairman and CEO, and Ms. Zhong Mei as an Executive Director[92] - The independent auditor for the consolidated financial statements is Deloitte Touche Tohmatsu, which will be proposed for reappointment at the 2024 annual general meeting[136] - The company has a three-year service agreement with all executive directors, requiring at least three months' written notice for termination[93] - The independent non-executive directors confirmed their independence as of December 31, 2023[95] Shareholder Information - As of December 31, 2023, the company's distributable reserves to shareholders amounted to approximately RMB 56.3 million, a decrease from RMB 264.3 million in 2022[89] - The board has decided not to recommend the payment of dividends for the current year[77] - The total number of shares issued is 800,000,000, with Asian Glory holding approximately 92% of the equity in the company[102]

Revenue and Financial Performance - Revenue increased by 1.0% to approximately RMB 1,155.7 million in 2023 compared to RMB 1,144.7 million in the previous period[3] - Revenue increased by 1.0% from RMB 1,144.7 million in the previous period to RMB 1,155.7 million in the reporting period[23] - Revenue for the year ended December 31, 2023, was RMB 1,155.7 million, slightly up from RMB 1,144.7 million in the previous year[48] - Total revenue for 2023 was RMB 1,155,738 thousand, compared to RMB 1,144,716 thousand in 2022[78] - Revenue from China was RMB 912,130,000, while revenue from Hong Kong, Macau, and overseas was RMB 247,774,000, with total revenue reaching RMB 1,155,738,000 after inter-segment eliminations[67] - Revenue from self-operated retail channels increased from RMB 607,431 thousand in 2022 to RMB 647,950 thousand in 2023[78] - Revenue from wholesale channels decreased from RMB 171,467 thousand in 2022 to RMB 145,425 thousand in 2023[78] - Self-operated retail channel revenue increased by 3.2% to RMB 965.1 million, with retail store revenue up 6.7% and consignment counter revenue down 2.2%[25] - Wholesale channel revenue decreased by 8.9% to RMB 190.6 million, with distributor revenue down 15.2% and online key customer revenue down 5.8%[26] - The company reported a pre-tax loss of RMB 209,639,000 and a net loss for the year of RMB 210,945,000[67] - The company reported a net loss of RMB 184,234 thousand for 2022, with a pre-tax loss of RMB 183,962 thousand[69] - The company reported a loss of RMB 210.9 million for the period, compared to a loss of RMB 184.2 million in the previous period[35] - Post-tax loss increased to approximately RMB 210.9 million in 2023 from RMB 184.2 million in the previous period[3] - The company reported a net loss attributable to owners of RMB 210,495 thousand in 2023, compared to RMB 182,285 thousand in 2022, with basic loss per share increasing to RMB 26.31 cents from RMB 22.79 cents[86] Gross Profit and Margin - Gross profit margin decreased from 35.6% to 29.8% due to clearance activities, but inventory backlog was significantly reduced by approximately 27.0%[3] - Gross profit margin decreased from 35.6% to 29.8%, primarily due to clearance activities reducing short-term margins[27] Inventory and Cash Flow - Inventory turnover days decreased to 161 days, and cash conversion cycle improved to 131 days (previous period: 219 days and 184 days respectively)[3] - Inventory turnover days decreased from 219 days to 161 days, trade receivables turnover days decreased from 24 days to 18 days, and trade payables turnover days decreased from 59 days to 48 days[36] - The cash conversion cycle improved from 184 days to 131 days, indicating faster conversion of inventory investments into cash[37] - Current assets declined to RMB 431,539 thousand in 2023 from RMB 545,463 thousand in 2022, with inventory decreasing from RMB 413,135 thousand to RMB 301,448 thousand[49] - Inventory backlog was significantly reduced by approximately 27.0%[3] Expenses and Costs - Sales and distribution expenses decreased by 2.0% to RMB 486.7 million, driven by strengthened expense management[32] - Financial expenses increased by RMB 1.8 million to RMB 12.5 million, mainly due to interest expenses from lease liabilities, bank borrowings, and loans from related companies[34] - Total expenses increased to RMB 1,350,505 thousand in 2023, up from RMB 1,295,716 thousand in 2022, with significant increases in inventory costs (RMB 821,864 thousand vs. RMB 720,277 thousand) and employee benefits (RMB 104,610 thousand vs. RMB 98,241 thousand)[81] - Financing costs increased to RMB 12,536 thousand in 2023, up from RMB 10,691 thousand in 2022, driven by higher interest expenses on bank loans (RMB 2,942 thousand vs. RMB 722 thousand) and related party loans (RMB 2,386 thousand vs. RMB 959 thousand)[83] - Depreciation and amortization expenses increased from RMB 115,444 thousand in 2022 to RMB 120,170 thousand in 2023[72] - Depreciation and amortization expenses were RMB 90,640,000 in China and RMB 29,530,000 in Hong Kong, Macau, and overseas, totaling RMB 120,170,000[67] - Impairment losses for property, plant, and equipment rose to RMB 3,355 thousand in 2023, compared to RMB 1,708 thousand in 2022, while impairment losses for right-of-use assets increased to RMB 7,623 thousand from RMB 5,996 thousand[81][82] Distribution Network and Retail Operations - The distribution network includes 559 self-operated retail outlets, 31 online stores, and 306 distributors as of December 31, 2023[11] - The number of retail stores decreased from 172 at the beginning of 2023 to 155 at the end of the year, with 7 new stores opened and 24 closed[13] - The number of consignment counters decreased from 415 at the beginning of 2023 to 404 at the end of the year, with 37 new counters added and 48 closed[15] - The company operated 31 online stores as of December 31, 2023, an increase from 29 stores in the previous year[16] - The number of distributors decreased from 342 at the beginning of 2023 to 306 at the end of the year, with 88 new distributors added and 124 agreements not renewed[19] - The company maintained wholesale arrangements with 12 chain hypermarkets and supermarkets, covering 412 retail points in China[20] Strategic Plans and Market Position - The company plans to expand into new product categories focused on IP and test new retail formats in lower-tier cities to reach a broader target audience[7] - The company will continue to develop wholesale business, key accounts, and e-commerce, while consolidating key business partnerships[7] - The company aims to enhance operational efficiency and optimize organizational structure to maintain a strong market position[9] - The company remains cautiously optimistic for 2024, focusing on consumer-centric strategies in retail and customer-centric strategies in wholesale[9] Financial Position and Liabilities - Non-current assets decreased to RMB 149,214 thousand in 2023 from RMB 211,599 thousand in 2022, primarily due to a reduction in property, plant, and equipment from RMB 39,347 thousand to RMB 24,228 thousand[49] - Total equity dropped significantly to RMB 113,285 thousand in 2023 from RMB 320,580 thousand in 2022, mainly due to a decrease in reserves from RMB 306,814 thousand to RMB 100,075 thousand[49] - Non-current liabilities increased to RMB 119,278 thousand in 2023 from RMB 51,356 thousand in 2022, largely driven by the addition of RMB 85,302 thousand in loans from related companies[50] - Current liabilities decreased to RMB 348,190 thousand in 2023 from RMB 385,126 thousand in 2022, with a notable reduction in other payables and accrued expenses from RMB 115,471 thousand to RMB 82,502 thousand[50] - Net current assets fell to RMB 83,349 thousand in 2023 from RMB 160,337 thousand in 2022, reflecting a decline in liquidity[50] - Total assets minus current liabilities decreased to RMB 232,563 thousand in 2023 from RMB 371,936 thousand in 2022, indicating a reduction in the company's overall financial position[50] - Total assets decreased from RMB 757,062 thousand in 2022 to RMB 580,753 thousand in 2023[71] - Total liabilities increased from RMB 436,482 thousand in 2022 to RMB 467,468 thousand in 2023[71] - Bank loans and trade financing totaled RMB 167.2 million as of December 31, 2023, with RMB 42.5 million remaining unused[40] - Loans from a related company amounted to RMB 135.9 million as of December 31, 2023, with RMB 85.3 million utilized[41] - The company's restricted cash was RMB 2.5 million as of December 31, 2023, mainly due to bank guarantees for trade financing[42] - The company's cash position increased to RMB 24.5 million as of December 31, 2023, compared to RMB 20.6 million as of December 31, 2022[40] - Capital expenditure for the period was RMB 14.3 million, primarily used for store renovations, down from RMB 27.1 million in the previous period[39] Government Subsidies and Other Income - Other income decreased by RMB 3.5 million to RMB 5.4 million, mainly due to a decline in government subsidies[28] - Government subsidies decreased from RMB 4,428 thousand in 2022 to RMB 2,256 thousand in 2023[78] Segment Performance - The company reported a segment loss of RMB 82,460,000 in China and a segment profit of RMB 13,515,000 in Hong Kong, Macau, and overseas, resulting in a total segment loss of RMB 68,945,000[67] - The company's total segment performance showed a loss of RMB 189,115,000, with additional unallocated corporate expenses of RMB 7,975,000 and unallocated financing costs of RMB 5,328,000[67] Employee and Compensation - The group had approximately 1,300 employees as of December 31, 2023, down from 1,500 in 2022, with total internal and outsourced employee compensation at RMB 104.6 million and RMB 82.6 million, respectively[101] Corporate Governance and Auditing - The company's chairman and CEO roles are both held by Mr. Li Chengyao, which deviates from the corporate governance code but is deemed in the best interest of the company and shareholders[105] - The company has established an Audit Committee consisting of three independent non-executive directors, including Mr. Zheng Yuhe (Chairman), Mr. Huang Jiachun, and Dr. Lin Jiali, to review and confirm the annual results for the year ended December 31, 2023[107] - The financial figures for the year ended December 31, 2023, have been verified by the company's auditor, Da Hua Ma Shi Yun CPA Limited, and are consistent with the audited consolidated financial statements[109] - The annual report for the year ended December 31, 2023, will be published on the company's website (www.kidslandholdings.com) and the Hong Kong Stock Exchange website (www.hkexnews.hk), and will be sent to shareholders in accordance with the listing rules[110] Accounting Standards and Financial Reporting - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards (HKFRS) and the disclosure requirements of the Hong Kong Companies Ordinance[56] - The company applied new and revised HKFRS standards effective from January 1, 2023, including HKFRS 17 (Insurance Contracts) and amendments to HKAS 8 (Definition of Accounting Estimates), with no significant impact on the financial statements[58] - The company disclosed deferred tax assets of approximately RMB 21,131,000 and deferred tax liabilities of approximately RMB 18,676,000, with no impact on retained earnings for the earliest presented period[61] Trade Receivables and Payables - Trade receivables from customer contracts decreased to RMB 66,476 thousand in 2023 from RMB 67,515 thousand in 2022, with a provision for impairment of RMB 10,199 thousand in 2023 compared to RMB 10,934 thousand in 2022[92] - Trade receivables aged within 30 days increased to RMB 40,190 thousand in 2023 from RMB 33,690 thousand in 2022, while those aged over 180 days decreased to RMB 13,298 thousand from RMB 15,337 thousand[94] - Trade payables increased to RMB 117,154 thousand in 2023 from RMB 95,938 thousand in 2022, with the majority aged within 30 days (RMB 87,103 thousand in 2023)[95] Lease and Right-of-Use Assets - Right-of-use assets decreased to RMB 81,309 thousand in 2023 from RMB 112,319 thousand in 2022, with additions of RMB 70,337 thousand during the year[90] - Total lease-related cash outflows amounted to RMB 142,324 thousand in 2023, down from RMB 147,494 thousand in 2022[91] Contract Liabilities and Other Financial Metrics - Contract liabilities increased from RMB 8,775 thousand in 2022 to RMB 9,665 thousand in 2023[74] - The company added non-current assets worth RMB 84,650 thousand in 2023, compared to RMB 103,848 thousand in 2022[72] Business Operations and Market Focus - The company primarily operates in the trade and sale of toys and related lifestyle products, with a focus on Mainland China, Hong Kong, and Macau[52]

Financial Performance - For the six months ended June 30, 2023, the company reported a net loss of approximately RMB 829 million, compared to a net loss of RMB 636 million for the same period in 2022, reflecting a significant decline in consumer sentiment due to macroeconomic uncertainties [6]. - The group's revenue decreased by 3.6% to approximately RMB 581.9 million from RMB 603.8 million in the previous period, attributed to adverse consumer sentiment due to macroeconomic uncertainties in mainland China [20]. - The company reported a loss before tax of RMB 82,049,000 for the six months ended June 30, 2023, compared to a loss of RMB 62,079,000 for the same period in 2022 [103]. - The net loss for the period was RMB 82,869,000, compared to a net loss of RMB 63,623,000 in the previous year, indicating a worsening financial performance [103]. - Operating loss for the period was RMB 76,503 thousand, compared to a loss of RMB 56,984 thousand in 2022, reflecting a deterioration of 34.4% [84]. - Gross profit margin decreased from 39.3% to 33.8%, with gross profit declining from approximately RMB 237.4 million to RMB 196.9 million due to clearance activities and intense price competition in mainland China [25]. Revenue Streams - Self-operated retail channels generated stable revenue of approximately RMB 498.8 million, down from RMB 502.4 million, with retail store revenue increasing by 4.7% to approximately RMB 332.7 million [22]. - Wholesale channel revenue fell by 18.0% to approximately RMB 83.1 million, primarily due to a 32.2% decline in distributor revenue to approximately RMB 59.5 million, while revenue from chain supermarkets increased by 102.5% to approximately RMB 18.9 million [23]. - Revenue for the six months ended June 30, 2023, was RMB 581,872 thousand, a decrease of 3.7% compared to RMB 603,793 thousand in 2022 [84]. - Revenue from the China segment was RMB 466,609,000, while revenue from Hong Kong and overseas was RMB 115,533,000, reflecting a decline in both segments [103]. Operational Changes - As of June 30, 2023, the company operated 571 self-operated retail points, a decrease from 614 points as of June 30, 2022, and had 28 online stores, up from 21 stores in the previous year [8]. - The number of distributors decreased to 344 as of June 30, 2023, from 515 in the previous year, with over 1,700 retail points selling the company's products through third-party retailers or its own stores [14]. - The number of retail stores decreased from 185 at the beginning of the period to 167 at the end, with 4 new stores opened and 9 closed during the reporting period [10]. - The number of consignment counters decreased from 442 to 404, with 21 new counters opened and 32 closed during the reporting period [12]. Financial Position - As of June 30, 2023, the group's net debt position was approximately RMB 195.0 million, with a debt-to-equity ratio of approximately 79.3%, up from 58.0% as of December 31, 2022 [39]. - Total assets as of June 30, 2023, were RMB 716,396 thousand, down from RMB 757,062 thousand as of December 31, 2022 [85]. - The company's total equity decreased to RMB 245,944 thousand from RMB 320,580 thousand, reflecting a decline of 23.2% [86]. - Current liabilities increased to RMB 429,865 thousand, up from RMB 385,126 thousand at the end of 2022, indicating a rise of 11.6% [86]. Cash Flow and Liquidity - The cash conversion cycle improved from 186 days to 151 days, indicating better efficiency in converting inventory investments into cash [35]. - The net cash generated from operating activities for the six months ended June 30, 2023, was RMB 32,684,000, a decrease of 39.1% compared to RMB 53,728,000 in the same period of 2022 [90]. - The company plans to seek alternative financing and bank loans to meet existing financial obligations and future operational and capital expenditures [94]. - The company is currently assessing its financial resources to ensure sufficient liquidity for ongoing operations and obligations [94]. Shareholder Information - The company's share capital remains unchanged at 800,000,000 shares with a par value of HKD 0.01 per share as of June 30, 2023 [44]. - The company has a total of 47,600,000 shares available for issuance under the post-IPO share option plan, representing 6.0% of the total issued shares as of June 30, 2023 [67]. - The company’s major shareholder, Asian Glory Holdings Limited, holds 53.15% of the company’s shares as of June 30, 2023 [151]. - The company has not declared any interim dividends for the reporting period [47]. Governance and Management - The chairman and CEO roles are held by the same individual, Mr. Li Chengyao, which deviates from corporate governance guidelines [49]. - The company’s board of directors has undergone changes, with Dr. Lam Ka Lai appointed as an independent non-executive director of New Fire Technology Holdings Limited on April 21, 2023 [64]. - The company has not made any significant investments or acquisitions during the reporting period [43]. Accounting and Compliance - The company's financial statements were reviewed in accordance with Hong Kong Accounting Standards, with no significant issues found [80]. - The company is currently assessing the impact of new accounting guidelines related to the cancellation of the MPF offsetting mechanism, which will take effect on May 1, 2025 [99]. - Management has initiated procedures to implement changes in accounting policies in response to the new guidelines, including additional data collection and impact assessment [99].

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2023年6月30日 止 六 個 月 的 中 期 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603.8百萬元減少3.6%至 約人民幣581.9百萬元，乃由於中國內地宏觀經濟及就業形勢不明朗對 消費者情緒造成不利影響所致。 • 自營零售渠道的收入於報告期保持穩定於約人民幣498.8百萬元， 上一期間則約為人民幣502.4百萬元，而批發渠道的收入減少18.0% 至約人民幣83.1百萬元。 ...

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].