Financial Performance - The company's unaudited revenue for the six months ended October 31, 2023, was approximately HKD 148.7 million, representing a 19.3% increase compared to HKD 124.6 million in the same period last year[5]. - Profit attributable to the company's owners for the review period was approximately HKD 4.5 million, a significant recovery from a net loss of HKD 36.2 million in the previous year[14]. - Revenue for the six months ended October 31, 2023, was HKD 148,709,000, an increase of 19.3% compared to HKD 124,604,000 for the same period in 2022[23]. - Gross profit for the same period was HKD 26,711,000, compared to a gross loss of HKD 13,380,000 in the previous year, indicating a significant recovery[23]. - Operating profit for the six months was HKD 4,283,000, a turnaround from an operating loss of HKD 35,077,000 in the prior year[23]. - The company reported a net profit of HKD 3,684,000 for the period, compared to a net loss of HKD 37,446,000 in the same period last year[23]. - For the six months ended October 31, 2023, the profit attributable to the company's owners was HKD 4,510,000, compared to a loss of HKD 36,189,000 for the same period in 2022, representing a significant turnaround[65]. - The basic earnings per share for the six months ended October 31, 2023, was HKD 0.5, compared to a loss per share of HKD 3.6 for the same period in 2022[65]. Revenue Breakdown - Revenue from North America increased by 24.2% to approximately HKD 68.7 million, driven by increased sales orders and stable average selling prices[6]. - Revenue from Europe decreased by 11.0% to approximately HKD 33.3 million, primarily due to economic downturns in Eastern Europe and the strengthening of the US dollar affecting purchasing power[6]. - Revenue from the laboratory equipment business surged by 92.6% to approximately HKD 36.6 million, indicating high growth potential for this newly invested segment[6]. - The toy business generated revenue of HKD 112,078,000, while the laboratory equipment business contributed HKD 36,631,000[52]. - Revenue from China rose significantly to HKD 36,631,000, compared to HKD 18,973,000 in the same period last year, marking a growth of 93.5%[58]. Expenses and Costs - Gross profit for the group was HKD 26,711,000, with a gross margin of approximately 17.9%[52]. - Administrative expenses decreased by 17.9% to approximately HKD 14.7 million, attributed to reduced employee costs and lower operating lease expenses[11]. - Financial costs decreased by 71.4% to approximately HKD 0.2 million, due to lower average bank borrowing levels and increased interest income from cash reserves[12]. - The company incurred a total comprehensive loss of HKD 2,964,000 for the six months ended October 31, 2023, compared to a comprehensive loss of HKD 39,565,000 in the same period of 2022[30]. - The company recognized an impairment loss of approximately HKD 908,000 on certain software that could not generate cash flows during the six months ended October 31, 2023[71]. Assets and Liabilities - The total assets as of October 31, 2023, were HKD 86,658,000, an increase from HKD 78,215,000 as of April 30, 2023[26]. - Cash and bank balances increased to HKD 7,568,000 from HKD 3,379,000, indicating improved liquidity[26]. - As of October 31, 2023, the company's total equity increased to HKD 41,116,000, compared to HKD 38,152,000 as of May 1, 2023, reflecting a growth of approximately 7.7%[30]. - The total amount of trade receivables and notes receivable as of October 31, 2023, was HKD 29,788,000, a substantial increase from HKD 12,388,000 as of April 30, 2023[75]. - The total liabilities were HKD 45,542,000, with segment liabilities of HKD 26,083,000 for the toy business and HKD 19,459,000 for the laboratory equipment business[56]. Cash Flow and Investments - Operating cash flow for the six months ended October 31, 2023, was HKD 11,154,000, a decrease of 67.5% from HKD 34,233,000 in the previous year[33]. - The company reported a net cash outflow from investing activities of HKD 5,338,000, compared to HKD 2,528,000 in the prior year, indicating increased investment expenditures[33]. - The company incurred a loss of HKD 3,304,000 for the six months ended October 31, 2023, an improvement from a loss of HKD 5,030,000 in the same period last year[84]. - The company paid HKD 600,000 in office rental expenses to Tianlong Enterprise Investment Co., Ltd. for the six months ended October 31, 2023, down from HKD 2,400,000 in the previous year[81]. Strategic Outlook - The company anticipates challenges from ongoing global economic issues, including the impact of the COVID-19 pandemic and the Ukraine war, but remains committed to innovation and strategic progress[17]. - The company plans to expand its product range and focus on innovative licensed products, which have shown significant potential[20]. - The company aims to enhance sales management and improve response times to customer needs, aligning with national education policies[20]. - The management is optimistic about future opportunities, anticipating a recovery in the global economic landscape in the second half of 2024[21]. Governance and Compliance - The company has complied with the corporate governance code as per the listing rules appendix 14 for the six months ending October 31, 2023[98]. - All directors confirmed adherence to the standard code of conduct regarding securities transactions during the six months ending October 31, 2023[99]. - The audit committee reviewed the interim report and discussed matters related to audit, internal control, risk management, and financial reporting for the six months ending October 31, 2023[100].

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 佈 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 就 因 本 公 佈 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 童園國際有限公司 Kiddieland International Limited （股份代號：3830） （於開曼群島註冊成立的有限公司） 截 至 二 零 二 三 年 十 月 三 十 一 日 止 六 個 月 的 中 期 業 績 公 佈 中 期 業 績 童 園 國 際 有 限 公 司（「童 園」或「本 公 司」）董 事（「董 事」）會（「董 事 會」）欣 然 宣 佈 本 公 司 及 其 附 屬 公 司（統 稱「本 集 團」）截 至 二 零 二 三 年 十 月 三 十 一 日 止 六 個 月 的 未 經 審 核 綜 合 中 期 業 績 以 及 二 零 二 二 年 同 期 的 未 經 審 核 比 較 數 字。 簡 明 綜 合 ...

Business Performance - The revenue of the new business segment "Kiddie Tech" increased significantly by 680% to approximately HKD 35.1 million for the year ending April 30, 2023, compared to HKD 4.5 million in 2022[6]. - The group's revenue for the year was approximately HKD 176.2 million, a decrease of 27.8% compared to last year (2022: HKD 244.2 million) [14]. - The net loss attributable to the company's owners for the year was approximately HKD 50.5 million, an improvement from last year's loss of HKD 65.5 million [22]. - Revenue from North America decreased by 50.8% to approximately HKD 71.5 million (2022: HKD 145.4 million) due to lower average selling prices and order volumes [13]. - Revenue from Europe decreased by 32.1% to approximately HKD 53.5 million (2022: HKD 78.8 million), impacted by the economic downturn in Eastern Europe and the appreciation of the US dollar [13]. - Revenue from the laboratory equipment business increased significantly by 680% to approximately HKD 35.1 million (2022: HKD 4.5 million), reflecting the growth potential of this new business segment [13]. - Gross profit for the year decreased by 34.6% to approximately HKD 6.8 million (2022: HKD 10.4 million), with a slight decline in gross profit margin to 3.8% from 4.3% last year [15]. - Other losses for the year amounted to approximately HKD 13.7 million, primarily due to one-time severance payments related to changes in the toy business operations [16]. Operational Changes - The company has transitioned its toy business from in-house production to outsourcing, aiming to reduce fixed indirect costs and improve cost efficiency[9]. - The company launched new products such as champion tables and I-shaped tables, enhancing its laboratory product series to five distinct categories[9]. - The company has established a sales team covering all 31 provinces and regions in China, rapidly expanding its market presence[10]. - The company has implemented a standardized management system, "Kingdee Cloud," to streamline various operational processes including procurement and quality control[11]. - The company is focusing on maintaining close relationships with outsourcing suppliers to ensure quality control and timely delivery of products[5]. - The company has optimized its examination evaluation system, launching multiple versions compatible with LINUX, WINDOWS, and ANDROID, which received high recognition from educational authorities[9]. Market Outlook - The company believes that the education equipment sector has significant growth potential, supported by government initiatives in China[6]. - The company is optimistic about the global economic situation improving in the second half of 2024, which is expected to clear global inventory backlog and create more opportunities for innovative products[36]. - The company plans to expand its product range in preschool and ride-on toys, focusing on enhancing its product portfolio, particularly licensed products with significant potential[37]. Financial Management - Cash and cash equivalents as of April 30, 2023, were approximately HKD 3.4 million, down from HKD 8.6 million, mainly due to increased repayment of bank loans [26]. - The group had no bank borrowings as of April 30, 2023, compared to HKD 44.6 million in borrowings the previous year, resulting in a financial leverage ratio of 0% [26]. - The company has adopted a dividend policy to allow shareholders to share in profits while retaining sufficient reserves for future development[51]. - The board of directors will continuously review the dividend policy, considering various factors including financial performance and capital expenditure needs[52]. Corporate Governance - The board of directors consists of eight members, including five executive directors and three independent non-executive directors[109]. - The attendance rate for board meetings was 100% for all directors except for one independent non-executive director who was newly appointed[113]. - The remuneration committee held two meetings during the year ending April 30, 2023, with a 100% attendance rate for all members[119]. - The nomination committee also held two meetings during the same period, with all members achieving a 100% attendance rate[121]. - The audit committee conducted three meetings in the year ending April 30, 2023, with all members present at each meeting[126]. - The company emphasizes continuous professional development for all directors to ensure compliance with the latest regulations and governance practices[116]. - The company has adopted a board diversity policy since 2017, considering factors such as gender, age, and professional experience[123]. Environmental Sustainability - The company is committed to environmental sustainability, having installed solar panels and energy-saving devices in its factories, and actively promoting recycling and energy conservation measures[31]. - The company has established an environmental management system to comply with national environmental laws and regulations[158]. - Total atmospheric pollutant emissions for the year ended April 30, 2023, were 0.0983 tons, a reduction of approximately 40% compared to 0.1626 tons in 2022[160]. - Total greenhouse gas emissions for the year ended April 30, 2023, were 2,286.94 tons of CO2 equivalent, a significant decrease of approximately 74% compared to 8,887.00 tons in 2022[163]. - The total hazardous waste generated was approximately 0.295 tons, representing a substantial reduction of about 86% from 2.18 tons in 2022[166]. - The group has committed to reducing greenhouse gas emissions by 50% by 2030 and achieving carbon neutrality by 2060[179]. Employee Management - The company reported a significant reduction in employee numbers, with total employees decreasing from 543 in 2022 to 26 in 2023[194]. - Employee turnover rate increased dramatically to 95% overall, attributed to factory shutdowns[194]. - The company adheres to local labor laws and provides competitive compensation and benefits to employees[188]. - The company has a five-day work week policy in its production facilities in China and Hong Kong[191]. - 100% of employees received training in 2023, up from 87% in 2022[200]. - Average training hours per employee increased to 6.07 hours in 2023 from 4.73 hours in 2022[200]. Community Engagement - The company actively participates in community activities to enhance stakeholder communication and social responsibility[152]. - The company emphasizes stakeholder engagement to enhance business strategies and risk management[153].

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 佈 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 就 因 本 公 佈 全 部 或 任 何 部 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 童園國際有限公司 Kiddieland International Limited （股份代號：3830） （於開曼群島註冊成立的有限公司） 截 至 二 零 二 三 年 四 月 三 十 日 止 年 度 的 全 年 業 績 公 佈 全 年 業 績 童 園 國 際 有 限 公 司（「本 公 司」）董 事（「董 事」）會（「董 事 會」）謹 此 公 佈，本 公 司 及 其 附 屬 公 司（統 稱「本 集 團」）截 至 二 零 二 三 年 四 月 三 十 日 止 年 度 的 全 年 業 績 連 同 上 一 年 度 的 比 較 數 字 如 下： – 1 – 綜 合 全 面 收 益 表 | --- | --- | |-------|- ...

Revenue Performance - The group's unaudited revenue for the six months ended October 31, 2022, was approximately HKD 124.6 million, a decrease of 27.5% compared to HKD 171.9 million in the same period last year[5]. - Revenue from North America decreased by 47.6% to approximately HKD 55.3 million, down from HKD 105.6 million in the previous year, primarily due to reduced demand and inventory issues[6]. - Revenue from Europe decreased by 32.7% to approximately HKD 37.4 million, down from HKD 55.6 million, impacted by economic downturns and currency fluctuations[6]. - Revenue for the six months ended October 31, 2022, was HKD 124,604,000, a decrease of 27.5% compared to HKD 171,897,000 for the same period in 2021[21]. - Revenue from the Americas decreased to HKD 56,283,000 from HKD 107,068,000 year-over-year, a decline of approximately 47.4%[51]. - Revenue from Europe also decreased to HKD 37,356,000 from HKD 55,592,000, representing a decline of about 32.8%[51]. - The toy business generated revenue of HKD 105,631,000, while the laboratory equipment business contributed HKD 18,973,000, resulting in a gross loss of HKD 13,380,000 for the group[45]. Financial Losses - The group recorded a gross loss of approximately HKD 13.4 million, compared to a gross profit of HKD 16.6 million in the previous year, mainly due to the significant revenue decline[7]. - The group recorded a net loss of approximately HKD 36.2 million, compared to a net loss of HKD 3.3 million in the previous year, attributed to significant revenue decline and one-time costs[14]. - The company reported a net loss of HKD 37,446,000 for the period, significantly higher than the net loss of HKD 3,314,000 in the same period last year[21]. - The total comprehensive loss for the period was HKD 39,565,000, which includes a loss of HKD 36,189,000 and other comprehensive losses of HKD 2,119,000[29]. - The group reported a total loss before tax of HKD 35,747,000 for the six months ended October 31, 2022, compared to a profit in the previous period[45]. - The company reported a loss attributable to owners of HKD 36,189,000 for the six months ended October 31, 2022, compared to a loss of HKD 3,314,000 for the same period in 2021, representing an increase in loss of approximately 1,090%[58]. Expenses and Costs - Selling and distribution expenses increased by 73.2% to approximately HKD 7.1 million, up from HKD 4.1 million, primarily due to intangible asset amortization from the new laboratory equipment business[10]. - Administrative expenses rose by 20.1% to approximately HKD 17.9 million, compared to HKD 14.9 million, mainly due to increased staff costs in the new laboratory equipment business[11]. - Financial costs net increased by 133.3% to approximately HKD 0.7 million, up from HKD 0.3 million, due to higher average bank borrowing levels and global interest rates[12]. - The group incurred a one-time severance cost of approximately HKD 7,816,000 due to changes in the toy business operating model[53]. Assets and Liabilities - Total assets decreased to HKD 95,515,000 from HKD 181,416,000, reflecting a decline of 47.4%[25]. - Current liabilities were reduced to HKD 36,479,000 from HKD 80,742,000, a decrease of 54.7%[26]. - The total assets of the group as of October 31, 2022, amounted to HKD 95,515,000, with total liabilities of HKD 41,186,000[47]. - The laboratory equipment business had assets of HKD 40,949,000 and liabilities of HKD 18,579,000 as of October 31, 2022[47]. - The company’s total liabilities increased significantly, impacting its overall financial position[29]. Cash Flow and Financing - The company reported a net cash inflow from operating activities of HKD 34,554,000 for the six months ended October 31, 2022, compared to a net cash outflow of HKD 2,130,000 in the same period last year[31]. - The company incurred a net cash outflow from investing activities of HKD 2,528,000, an improvement from HKD 5,424,000 in the previous year[31]. - The company raised HKD 84,000,000 from bank borrowings during the period, compared to HKD 40,698,000 in the prior year[31]. - The company experienced a decrease in cash and cash equivalents at the end of the period, resulting in a balance of HKD (6,406,000) compared to HKD 13,034,000 at the same time last year[31]. Business Model and Strategy - The company is transitioning to a new business model by outsourcing production to qualified subcontractors to reduce indirect fixed costs[17]. - Management is focused on minimizing costs and maintaining a healthy financial position during challenging market conditions[18]. - The company aims to establish partnerships with reliable subcontractors based on over 20 years of manufacturing experience[17]. - The outlook remains uncertain due to global economic weakness and inflationary pressures impacting demand[17]. Corporate Governance and Compliance - The company has complied with the corporate governance code as set out in the Listing Rules during the reporting period[89]. - The audit committee has reviewed the interim report for the six months ending October 31, 2022, including the accounting principles adopted by the group[91]. - Discussions included audit, internal control, risk management, and financial reporting matters[91]. - The interim financial data was reviewed without audit[91]. Other Financial Information - The company did not declare or pay any dividends for the six months ended October 31, 2022[60]. - The company recorded intangible assets of HKD 8,377,000 as of October 31, 2022, compared to HKD 2,442,000 for the same period in 2021, showing a substantial increase in intangible assets[64]. - The company’s right-of-use assets decreased to HKD 7,582,000 as of October 31, 2022, from HKD 11,247,000 at the beginning of the period, indicating a reduction of approximately 32.5%[66]. - The company’s total liabilities related to leases decreased to HKD 7,814,000 as of October 31, 2022, from HKD 11,422,000 at the beginning of the period, reflecting a decline of approximately 31.5%[66]. - The company incurred office rental expenses of HKD 2,400,000 to Tianlong Enterprise Investment Limited for the six months ended October 31, 2022, slightly down from HKD 2,480,000 in the same period last year[73]. - Total compensation for key management personnel was HKD 3,696,000 for the six months ended October 31, 2022, compared to HKD 4,312,000 in the previous year[73].

Financial Performance - The company's revenue for the fiscal year ending April 30, 2022, was approximately HKD 244.2 million, a decrease of 19.1% compared to HKD 301.9 million in the previous year[8]. - The toy business generated revenue of approximately HKD 67.8 million in the second half of the fiscal year, down 14.1% from approximately HKD 78.9 million in the same period last year[7]. - The company recorded a net loss attributable to shareholders of approximately HKD 65.5 million for the fiscal year, compared to a net profit of HKD 6.6 million in the previous year[8]. - Revenue decreased by 19.1% to approximately HKD 244.2 million (2021: HKD 301.9 million) due to a 24.6% decline in North America and a 10.1% decline in Europe[10]. - Gross profit fell by 80.5% to approximately HKD 10.4 million (2021: HKD 53.2 million), resulting in a gross margin decrease from 17.6% to 4.3%[11]. - Selling and distribution expenses decreased by 55.6% to approximately HKD 8.3 million (2021: HKD 18.7 million) in line with revenue decline[13]. - Administrative expenses increased by 17.7% to approximately HKD 35.2 million (2021: HKD 29.9 million) primarily due to higher employee costs[14]. - Net loss for the year amounted to approximately HKD 65.5 million (2021: net profit of HKD 6.6 million) attributed to revenue decline and rising raw material prices[18]. Operational Challenges - Shipping costs increased by 500%, significantly impacting global export performance and customer orders[5]. - The company faced challenges from geopolitical tensions, including the ongoing US-China trade conflict and the COVID-19 pandemic[6]. - The company is facing significant challenges due to rising material costs and labor shortages in China, leading to increased production costs[34]. - The company has experienced a substantial reduction in its customer base due to soaring shipping costs, particularly affecting the sales of ride-on toys[34]. - The management anticipates ongoing challenges from global economic instability and inflation, which may persist in the coming year[34]. Strategic Initiatives - The company established a joint venture in China focused on developing and producing laboratory equipment for primary and secondary schools, with initial revenue of approximately HKD 4.5 million[6]. - The company plans to engage reliable suppliers for toy manufacturing to navigate the current unstable market conditions[5]. - The management is exploring subcontracting production to reliable suppliers to mitigate rising manufacturing costs and uncertainties in future orders[35]. - The company is diversifying its business by investing in educational equipment through a new subsidiary, focusing on manufacturing and distributing laboratory equipment and furniture for educational institutions in China[36]. - The management believes that adapting products to reduce costs while maintaining core play value is essential for improving business performance[35]. Financial Position and Ratios - Current ratio decreased to 1.6 (2021: 2.5) with cash and cash equivalents dropping to approximately HKD 8.6 million (2021: HKD 17.6 million)[22]. - Trade receivables decreased from approximately HKD 24.9 million to HKD 18.3 million, with turnover days increasing to 32.3 days (2021: 25.3 days)[20]. - Inventory decreased from approximately HKD 95.5 million to HKD 93.4 million, with inventory turnover days increasing to 147.5 days (2021: 143.1 days)[19]. - Financial costs decreased by 36.4% to approximately HKD 0.7 million (2021: HKD 1.1 million) due to lower average bank borrowing levels[16]. Corporate Governance - The board consists of eight members, including five executive directors and three independent non-executive directors, ensuring a separation of roles between the chairman and the CEO[108]. - The company has adopted a share option scheme to incentivize its directors and eligible employees[71]. - The board has the discretion to invite various categories of participants to the stock option plan, including employees and directors[91]. - The company has established a risk management and internal control system to safeguard its assets and shareholders' interests, with the board overseeing its implementation[127]. - The company has adhered to the corporate governance code as stipulated in the listing rules throughout the year ending April 30, 2022[106]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report outlines the company's commitment to environmental and social responsibilities, highlighting the establishment of a cross-departmental ESG task force[145]. - The company has set clear short-term and long-term sustainability goals, incorporating emission reduction strategies into its business planning[145]. - Total atmospheric pollutant emissions decreased by approximately 54% to 0.1626 tons in 2022 from 0.3562 tons in 2021, attributed to reduced consumption of natural gas and gasoline[158]. - Total greenhouse gas emissions amounted to 8,887.00 tons of CO2 equivalent in 2022, a significant decrease of about 17% from 10,726.97 tons in 2021, primarily due to reduced electricity consumption[161]. - The company aims to reduce greenhouse gas emissions by 50% by 2030 and achieve carbon neutrality by 2060[176]. Employee Management - The total number of employees decreased from 674 in 2021 to 543 in 2022, representing a reduction of approximately 19.4%[190]. - The employee turnover rate for the overall company was 35% in 2022, down from 40% in 2021[190]. - The company has established a "Health and Safety Management Procedure" to ensure employee safety and compliance with local laws[191]. - The company encourages employees to participate in various training programs, with a focus on quality assurance and sustainable development[194]. - The percentage of trained employees increased to 87% in 2022 from 85% in 2021[196].

Financial Performance - The company reported unaudited revenue of approximately HKD 171.9 million for the six months ended October 31, 2021, a decrease of 22.9% compared to HKD 223.0 million in the same period last year[8]. - The loss attributable to equity shareholders was approximately HKD 3.3 million, compared to a profit of HKD 17.5 million in the previous year[8]. - Revenue from North America decreased by 28.1% to approximately HKD 105.6 million, primarily due to a decline in sales orders and average selling prices[9]. - Revenue from Europe decreased by 10.6% to approximately HKD 55.6 million, attributed to reduced sales orders from Eastern European developing countries[9]. - Gross profit fell by 65.1% to approximately HKD 16.6 million, with a gross margin of 9.7%, down from 21.3% in the previous year[12]. - The company reported a net loss of HKD 3,314,000 for the period, contrasting with a profit of HKD 17,499,000 in the same period last year[26]. - The basic loss per share for the period was HKD (0.3), compared to earnings of HKD 1.7 per share in the previous year[58]. - Total expenses for the six months ended October 31, 2021, were HKD 174,326,000, a decrease of 13.6% from HKD 201,743,000 in 2020[50]. Cost Management - Selling and distribution expenses decreased by 69.9% to approximately HKD 4.1 million, aligning with the revenue decline[13]. - Administrative expenses increased by 23.7% to approximately HKD 16.2 million, mainly due to rising employee costs and lack of government subsidies[14]. - Financial costs decreased by 66.7% to approximately HKD 0.3 million, due to lower average bank borrowing levels[15]. - The company did not receive any government subsidies for the six months ended October 31, 2021, compared to HKD 1,710,000 received in the previous year[51][52]. - The company’s management compensation totaled HKD 4,312,000 for the six months ended October 31, 2021, down from HKD 4,735,000 in the previous year, reflecting a decrease of approximately 8.9%[75]. Inventory and Assets - Inventory levels as of October 31, 2021, were HKD 73,899,000, down from HKD 95,541,000 as of April 30, 2021[28]. - The company’s total assets as of October 31, 2021, were HKD 206,708,000, a slight decrease from HKD 213,494,000 as of April 30, 2021[29]. - The total liabilities decreased to HKD 55,774,000 from HKD 59,763,000 over the same period[29]. - The company’s intangible assets related to licenses decreased to HKD 2,442,000 from HKD 14,090,000 in the previous year, reflecting a significant reduction of approximately 83.7%[64]. - The company’s trade receivables and notes receivable increased to HKD 59,092,000 as of October 31, 2021, compared to HKD 26,061,000 as of April 30, 2021, representing a growth of approximately 126.6%[68]. Cash Flow and Financing - Operating cash flow for the six months ended October 31, 2021, was a net outflow of HKD 2,356,000, compared to a net inflow of HKD 33,500,000 for the same period in 2020[34]. - Cash used in investing activities amounted to HKD 5,424,000, a decrease from HKD 10,198,000 in the prior year[34]. - Financing activities generated a net cash inflow of HKD 4,666,000, a significant improvement from a net outflow of HKD 21,062,000 in the previous year[34]. - Total cash and cash equivalents decreased by HKD 3,114,000, compared to an increase of HKD 2,240,000 in the same period last year[34]. - The company reported a total cash and cash equivalents balance of HKD 13,034,000 at the end of the period, down from HKD 16,124,000 at the beginning[34]. Future Outlook - The company anticipates a challenging 2022 due to high inventory levels and ongoing shipping crises, with no expected decrease in freight costs in the short term[24]. - The management views the upcoming year as a time to focus on cost reduction and exploring new market opportunities[24]. Compliance and Governance - The company has complied with the corporate governance code as per the listing rules for the six months ending October 31, 2021[89]. - The company has adopted the standard code for securities transactions by directors and confirmed compliance for the six months ending October 31, 2021[90]. - The company did not declare or pay any dividends for the six months ended October 31, 2021[60]. - The company did not grant any share options during the six months ending October 31, 2021[87].

Financial Performance - The total revenue for the fiscal year ended April 30, 2021, was approximately HKD 301.9 million, representing a 9.3% increase compared to HKD 276.3 million in the previous year[4]. - The net profit for the fiscal year was approximately HKD 6.6 million, a significant recovery from a net loss of approximately HKD 6.2 million in the previous year[5]. - Revenue from North America increased by 19.1% to approximately HKD 192.8 million, driven by increased orders from major clients[8]. - The second half of the fiscal year saw a revenue increase to approximately HKD 78.9 million, a 34.2% rise compared to approximately HKD 58.8 million in the same period last year[7]. - The overall profitability improvement was attributed to increased revenue, reduced depreciation expenses, and lower sales and distribution costs[9]. - Gross profit rose by 18.5% to approximately HKD 53.2 million, with a gross margin increase from 16.2% to 17.6%[12]. - Other income and gains decreased by 98.3% to approximately HKD 3.5 million, primarily due to the prior year's special gain from the sale of a subsidiary[13]. - Selling and distribution expenses decreased by 9.2% to approximately HKD 18.7 million, attributed to a reduction in commission-based sales and logistics costs[14]. - Administrative expenses decreased by 8.0% to approximately HKD 29.9 million, mainly due to reduced employee costs and government subsidies[15]. Market and Sales Strategy - The company anticipates a positive sales trend following the acquisition of new patents and improved market conditions[5]. - The company has obtained new patent rights from Marvel, expected to significantly boost sales in the coming year[5]. - Revenue from North America increased by 19.1% to approximately HKD 192.8 million, driven by higher average selling prices and a shift to higher-priced products[10]. Cost Management and Financial Position - Cost control measures, including automation and restructuring, have begun to show initial results, although rising raw material prices have offset some gains[8]. - The company's financial position and debt-to-asset ratio have improved, with bank borrowings maintained at low levels[5]. - Current ratio improved to 2.5 from 2.2, with cash and cash equivalents increasing to approximately HKD 17.6 million[23]. - Inventory turnover days improved to 143.1 days from 172.1 days, reflecting increased sales in the last three months of the fiscal year[19]. - Trade receivables increased to approximately HKD 24.9 million, with turnover days improving to 25.3 days from 28.0 days[20]. Corporate Governance - The company has a total of four independent non-executive directors with extensive experience in finance and management, enhancing corporate governance[41][42][44]. - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[64]. - The board is responsible for overseeing the implementation of effective risk management and internal control systems to protect the company's assets and shareholders' interests[127]. - The company has adopted high standards of corporate governance to protect shareholder interests and enhance group performance[106]. Environmental Sustainability - The company has installed solar panels and energy-saving devices in its factories as part of its commitment to environmental sustainability[28]. - The company aims to reduce energy consumption through regular maintenance of machinery and enhancing employee energy-saving awareness[161]. - The company is committed to reducing its environmental footprint and has implemented policies for managing emissions, waste disposal, and wastewater discharge[147]. - Total atmospheric emissions increased by approximately 50% to 0.3562 tons in 2021 from 0.2376 tons in 2020, attributed to increased natural gas usage due to rising production demand post-COVID-19 lockdowns[151]. - Total greenhouse gas emissions amounted to 10,726.97 tons of CO2 equivalent in 2021, a slight increase of about 4% from 10,268.71 tons in 2020, primarily due to increased electricity consumption[153]. Employee and Labor Practices - The company has a mandatory provident fund plan for employees in Hong Kong and a retirement plan for employees in mainland China[72]. - The company adheres to strict labor standards, ensuring no employment of forced labor or child labor, with a commitment to comply with relevant labor laws[178]. - Continuous training programs are in place, with employees participating in various training sessions covering topics such as quality assurance and sustainable development[177]. - The company encourages employees to complete vaccinations to enhance workplace health and safety amid the COVID-19 pandemic[179]. Shareholder Communication and Rights - The company has developed a shareholder communication policy to enhance minority shareholder rights during annual general meetings[132]. - The company has established procedures for shareholders to propose special meetings and nominate directors[134]. - The company emphasizes the importance of stakeholder participation in shaping business strategies and fulfilling social responsibilities[143]. Risk Management and Compliance - The independent auditor confirmed that the consolidated financial statements accurately reflect the company's financial position as of April 30, 2021[199]. - The company maintains a zero-tolerance policy towards bribery and corruption, ensuring compliance with local laws and regulations[194]. - As of April 30, 2021, the company is not aware of any legal or regulatory non-compliance that could significantly impact its operations[197].

Financial Performance - For the six months ended October 31, 2020, the company recorded unaudited revenue of approximately HKD 223.0 million, an increase of 2.5% compared to HKD 217.5 million in the same period last year[5] - The company's profit before tax was approximately HKD 20.3 million, representing a significant increase of 72.0% from HKD 11.8 million in the previous year[5] - Revenue from North America increased by 16.0% to approximately HKD 146.8 million, driven by higher average selling prices and sales orders[6] - Revenue from Europe decreased by 13.5% to approximately HKD 62.2 million, primarily due to reduced sales orders amid economic downturns in Western Europe[6] - Gross profit increased by 9.7% to approximately HKD 47.5 million, with a gross profit margin rising to 21.3% from 19.9% in the previous year[8] - The company's net profit after tax increased by 14.4% to approximately HKD 17.5 million, up from HKD 15.3 million in the previous year[13] - Revenue for the six months ended October 31, 2020, was HKD 222,955,000, a 2% increase from HKD 217,523,000 in the same period of 2019[19] - Gross profit for the same period was HKD 47,461,000, representing a 9.8% increase compared to HKD 43,346,000 in 2019[19] - Operating profit increased to HKD 21,242,000, up 38.1% from HKD 15,386,000 in the previous year[19] - Net profit for the period was HKD 17,499,000, a 14.3% increase from HKD 15,285,000 in 2019[19] - The company reported a net profit of HKD 17,499,000 for the six months ended October 31, 2020, compared to HKD 15,285,000 for the same period in 2019, representing a year-over-year increase of approximately 14.5%[24] - The company’s total comprehensive income for the period was HKD 20,085,000, compared to HKD 12,356,000 in the prior year, indicating a year-over-year increase of approximately 62.7%[24] Expenses and Costs - Selling and distribution expenses slightly increased by 1.5% to approximately HKD 13.6 million, in line with revenue growth[9] - Administrative expenses decreased by 22.9% to approximately HKD 13.1 million, mainly due to reduced employee costs and government subsidies[10] - Financial costs decreased by 75.0% to approximately HKD 0.9 million, attributed to a significant reduction in average bank borrowings[11] - The cost of goods sold was HKD 98,986,000, an increase from HKD 87,089,000 in the previous year, indicating a rise of 13.3%[40] - Total expenses for the six months were HKD 201,743,000, slightly down from HKD 204,405,000 in the same period last year[41] Assets and Liabilities - Total assets increased to HKD 259,148,000 from HKD 245,216,000, reflecting a growth in the company's financial position[21] - Total liabilities decreased to HKD 95,623,000 from HKD 101,776,000, indicating a reduction in financial obligations[22] - The company reported a significant reduction in interest paid, decreasing from HKD 3,492,000 in 2019 to HKD 879,000 in 2020, which reflects improved financial management[25] - The company’s total liabilities decreased, with bank borrowings reducing from HKD 215,938,000 in 2019 to HKD 33,285,000 in 2020, indicating a strategic focus on debt reduction[25] - The foreign exchange reserve improved from a deficit of HKD 5,338,000 in 2019 to a positive balance of HKD 1,842,000 in 2020, reflecting favorable currency movements[24] Cash Flow and Investments - Operating cash flow for the six months ended October 31, 2020, was HKD 33,500,000, a significant improvement from a cash outflow of HKD 21,472,000 in the same period of 2019[25] - The company incurred a net cash outflow of HKD 10,198,000 from investing activities for the six months ended October 31, 2020, compared to HKD 20,023,000 in the same period of 2019, indicating a reduction in investment expenditures[25] - Cash and cash equivalents increased to HKD 9,540,000 at the end of the reporting period, up from HKD 512,000 at the end of the previous period, marking a substantial improvement in liquidity[25] Shareholder Information - Basic and diluted earnings per share increased to HKD 1.7 from HKD 1.5, reflecting improved profitability[19] - The company did not declare or pay any dividends for the six months ended October 31, 2020[48] - The company has not granted any stock options during the six months ended October 31, 2020[73] - As of October 31, 2020, KLH Capital held 750,000,000 shares, representing 75% of the company's equity[68] Strategic Initiatives - The company plans to focus on labor-intensive product lines, such as battery-powered ride-on toys, to improve labor productivity due to decreased labor mobility in mainland China[18] - The company has secured a license for Marvel's Spider-Man for 2021, coinciding with the release of a new Spider-Man movie, which is expected to boost sales[18] Risk Management - The company continues to face various financial risks, including market risk and liquidity risk, but has maintained its risk management policies since the last reporting period[35] Corporate Governance - The company has adhered to the corporate governance code as per the listing rules for the six months ending October 31, 2020[75] - The board of directors confirmed compliance with the standard code regarding securities transactions for the six months ending October 31, 2020[76] - Executive directors renewed their service agreements for three years as of September 20, 2020[77] - Independent non-executive directors are entitled to an annual director's fee of HKD 60,000 effective from October 1, 2020[77] - The audit committee reviewed the interim report and discussed audit, internal control, risk management, and financial reporting matters for the six months ending October 31, 2020[79]

Financial Performance - The revenue for the fiscal year ending April 30, 2020, was approximately HKD 276.3 million, a decrease of 4.4% compared to the previous year[6]. - The net profit for the fiscal year was approximately HKD 163.8 million, a significant recovery from a loss of HKD 9.4 million in the previous year, primarily due to the sale of a subsidiary in China[6]. - The company completed a significant sale transaction, generating approximately HKD 170.0 million from the sale of a subsidiary in China[5]. - The company declared a special cash dividend of HKD 150 million for the first time since its listing in 2017, benefiting shareholders by providing immediate cash value[6]. - The company recorded revenue of approximately HKD 276.3 million, a decrease of 4.4% compared to HKD 289.0 million in the previous year[15]. - Revenue from Europe decreased by 17.4% to approximately HKD 88.2 million, down from HKD 106.8 million, primarily due to economic conditions and political instability[14]. - North America contributed revenue of approximately HKD 161.9 million, an increase of 5.4% from HKD 153.6 million, attributed to higher average selling prices and order numbers[14]. - Gross profit increased by 15.4% to approximately HKD 44.9 million, with a gross profit margin rising from 13.4% to 16.2%[18]. - Other income and gains surged approximately 71 times to about HKD 200.3 million, mainly due to the special gain from the sale of a subsidiary in China[19]. - The company recorded a net profit of approximately HKD 163.8 million, compared to a net loss of HKD 9.4 million in the previous year, largely due to the sale of the Chinese subsidiary[13]. Challenges and Market Conditions - The company faced challenges due to external factors, particularly the impact of COVID-19, which severely affected production schedules and sales performance in the last three months of the fiscal year[10]. - The company has been actively seeking new customers to replace lost business from the bankruptcy of Toys "R" Us, which significantly impacted the toy industry[9]. - The company anticipates improved sales performance in Europe following the resolution of uncertainties related to Brexit[9]. - The company acknowledges the easing of tensions between the US and China, which may positively influence the overall economic environment for its business[9]. - The company faced significant challenges due to the COVID-19 pandemic, with a notable decline in toy demand and increased production costs due to labor supply issues[44]. Strategic Initiatives and Future Outlook - The company is committed to investing in the development of innovative toys to attract customer attention and expand market reach[7]. - The company aims to strengthen product development and accelerate market expansion following the sale of the subsidiary, leveraging additional resources[7]. - The company has seen signs of recovery with new orders being received, indicating a potential rebound in sales[44]. - The management is focusing on enhancing online sales capabilities, particularly in North America, as a long-term investment strategy[45]. - The company has set a revenue guidance for the next fiscal year, projecting a growth of 10% to 12%[60]. - New product launches are expected to contribute an additional 5% to overall revenue, with three major products scheduled for release[60]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of $5 million earmarked for potential targets[60]. - Overall, the management team remains optimistic about future growth, citing strong demand trends in the toy industry[60]. Operational Efficiency and Cost Management - The company has implemented cost reduction measures and streamlined production processes to navigate through the challenging economic environment[45]. - Inventory decreased from approximately HKD 118.1 million to HKD 99.5 million, with inventory turnover days at 172.1 days[26]. - Trade receivables decreased from approximately HKD 25.3 million to HKD 16.9 million, with trade receivables turnover days at 28.0 days[27]. - Trade payables decreased from approximately HKD 21.2 million to HKD 15.9 million, with trade payables turnover days at 29.4 days[28]. - Administrative expenses decreased by 3.6% to approximately HKD 32.5 million, primarily due to the absence of non-cash share-based payment expenses[21]. - The company has optimized inventory levels, resulting in a 30% reduction in holding costs compared to the previous year[60]. - The company has implemented new logistics strategies, improving delivery times by 25%[60]. Environmental Sustainability - The group is committed to environmental sustainability, having installed solar panels and energy-saving devices in its factories[34]. - Total atmospheric emissions decreased by 10% to 0.2376 tons in 2020 from 0.2651 tons in 2019[180]. - Greenhouse gas emissions totaled 10,268.71 tons of CO2 equivalent in 2020, an 8% reduction from 11,152.77 tons in 2019[183]. - The company is committed to complying with national environmental laws and regulations to mitigate pollution[177]. - The company has implemented measures to monitor and control emissions from various activities, including painting and cooking processes[180]. - Total energy consumption was 12,059,604.86 kWh, a reduction of 8% compared to 13,134,861.73 kWh in the previous year[190]. - The company established an energy management system to monitor and manage resource usage, aiming to reduce operational costs and carbon footprint[190]. Corporate Governance and Shareholder Relations - The board has decided not to declare any final or interim dividends for the fiscal year ending April 30, 2020[64]. - The company has adopted a dividend policy to allow shareholders to share in profits while retaining sufficient reserves for future development[66]. - The board consists of eight members, including five executive directors and three independent non-executive directors[134]. - The company has adhered to the corporate governance code as per the listing rules throughout the fiscal year[132]. - The independent auditor, PricewaterhouseCoopers, will be proposed for reappointment at the upcoming annual general meeting[129]. - The company has established a shareholder communication policy to ensure shareholders can exercise their rights with informed decisions[163]. Employee Relations and Compensation - The group views employees as valuable assets and is committed to providing a comfortable working environment and growth opportunities[198]. - Competitive compensation is provided to employees, complying with local laws and regulations, including contributions to social security plans in China[199]. - The equal employment opportunity policy prohibits discrimination based on race, color, religion, gender, nationality, age, disability, marital status, veteran status, or any other protected status[200]. - The group is dedicated to protecting the rights of female employees, ensuring they cannot be dismissed during their menstrual cycle or pregnancy[200].