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].

Financial Performance - The company recorded unaudited revenue of approximately HKD 217.5 million for the six months ended October 31, 2019, representing a 7.1% increase compared to HKD 203.1 million in the same period last year[5]. - The pre-tax profit decreased by 5.6% to approximately HKD 11.8 million, down from HKD 12.5 million in the previous year[5]. - Revenue from North America increased by 8.2% to approximately HKD 126.6 million, while revenue from Europe rose by 5.4% to approximately HKD 71.9 million[6]. - Gross profit increased by 9.9% to approximately HKD 43.3 million, with a gross profit margin rising to 19.9% from 19.4%[7]. - Net profit after tax increased by 39.1% to approximately HKD 15.3 million, up from HKD 11.0 million in the previous year[14]. - Operating profit increased slightly to HKD 15,386,000, compared to HKD 15,090,000 in the previous year[19]. - The company reported a total comprehensive income of HKD 12,356,000 for the period, compared to HKD 4,315,000 in the same period last year[24]. - The company’s profit attributable to owners for the six months ended October 31, 2019, was HKD 15,285,000, compared to HKD 11,017,000 for the same period in 2018, representing an increase of 38.5%[50]. - Basic earnings per share for the six months ended October 31, 2019, were HKD 1.5, up from HKD 1.1 in 2018, reflecting a growth of 36.4%[50]. Expenses and Costs - Selling and distribution expenses surged by 83.6% to approximately HKD 13.4 million, primarily due to changes in commission calculations and increased logistics costs[10]. - Administrative expenses decreased by 10.5% to approximately HKD 17.0 million, attributed to the absence of non-cash share-based payment expenses and reduced employee costs[11]. - Net financial costs increased by 38.5% to approximately HKD 3.6 million, due to higher average bank borrowing levels[12]. - Total expenses for the six months ended October 31, 2019, amounted to HKD 204,405,000, an increase of 7.9% from HKD 189,445,000 in the same period of 2018[44]. - The cost of goods sold was HKD 87,089,000, up from HKD 77,057,000, indicating an increase of 13.0%[44]. - The group incurred HKD 48,868,000 in employee costs, which decreased from HKD 50,580,000, reflecting a reduction of 3.4%[44]. Assets and Liabilities - Total assets as of October 31, 2019, amounted to HKD 354,745,000, up from HKD 321,046,000 as of April 30, 2019[20]. - Current assets increased to HKD 200,928,000 from HKD 169,389,000, driven by higher inventory and trade receivables[20]. - Total liabilities rose to HKD 214,445,000, compared to HKD 193,102,000 in the previous period[22]. - Cash and cash equivalents decreased to HKD 512,000 from HKD 20,022,000, indicating a cash outflow during the period[27]. - Trade receivables and notes receivable as of October 31, 2019, amounted to HKD 99,524,000, a substantial increase from HKD 31,273,000 as of April 30, 2019[59]. - As of October 31, 2019, the total trade payables and notes payable amounted to HKD 14,416,000, a decrease from HKD 21,240,000 as of April 30, 2019, representing a reduction of approximately 32.0%[65]. - The aging analysis of trade payables shows that payables within one month were HKD 5,044,000, down from HKD 13,365,000, indicating a decrease of about 62.3%[65]. Taxation - The company recorded a tax credit of approximately HKD 3.5 million, compared to a tax expense of HKD 1.5 million in the previous period[13]. - The total income tax expense for the six months ended October 31, 2019, was a tax credit of HKD 3,531,000, compared to an expense of HKD 1,519,000 in 2018, indicating a significant improvement[46]. Corporate Governance and Compliance - The company has complied with the corporate governance code as per the listing rules during the reporting period[92]. - The company has adopted the standard code of conduct as per Appendix 10 of the Listing Rules, confirming compliance for the six-month period ending October 31, 2019[93]. - The audit committee has reviewed the interim report for the six months ending October 31, 2019, including discussions on audit, internal control, risk management, and financial reporting matters[96]. Strategic Focus - The company plans to focus on cost control and automation in production to improve overall profitability amid ongoing challenges in the toy industry[15]. - The group operates primarily in the toy manufacturing and sales sector, with a focus on plastic toy products[41]. Shareholder Information - The company’s average weighted number of ordinary shares issued remained constant at 1,000,000 shares for both periods[50]. - As of October 31, 2019, KLH Capital holds 750,000,000 shares, representing 75% of the company's total shares[87]. - The company’s directors and key executives hold 25% each in KLH Capital, which is a significant shareholder[84]. - The exercise price for stock options granted is HKD 0.280, with a dividend yield of 0%[91]. Accounting Policies - The group adopted new accounting standards effective from May 1, 2019, which did not have a significant impact on performance[33]. - The company has adopted a new accounting policy for leases, recognizing right-of-use assets and corresponding liabilities from May 1, 2019[19]. - The total liabilities as of October 31, 2019, were significantly impacted by the new accounting policy, reflecting a shift in how leases are reported[75]. - The company has not chosen to reassess contracts for lease classification upon the initial application of HKFRS 16, relying instead on previous assessments under HKAS 17[79].

Financial Performance - The group's revenue for the fiscal year ended April 30, 2019, was approximately HKD 289.0 million, a decrease of about 9.8% compared to HKD 320.4 million in the previous year[6]. - Revenue from North America decreased by 11.1% to approximately HKD 153.6 million due to the impact of the TRU crisis, down from HKD 172.7 million in the previous year[10]. - The group recorded a loss of HKD 9.4 million for the fiscal year, compared to a loss of HKD 13.7 million attributable to shareholders in the previous year[7]. - Total revenue decreased by 9.8% to approximately HKD 289.0 million, down from HKD 320.4 million in 2018, primarily due to the cessation of sales to TRU in the US and reduced sales in Europe[13]. - Gross profit decreased by 18.1% to approximately HKD 38.9 million, resulting in a gross margin decline from 14.8% in 2018 to 13.4% in 2019[14]. - Sales and distribution expenses decreased by 31.0% to approximately HKD 11.6 million, reflecting a reduction in commissions and advertising expenses[15]. - Administrative expenses decreased by 25.9% to approximately HKD 33.7 million, mainly due to the absence of listing expenses and impairment provisions related to TRU[16]. - Financial costs increased by 13.0% to approximately HKD 5.2 million, attributed to a rise in average bank borrowing levels[17]. - The company recorded a net loss of approximately HKD 9.4 million for the year ended April 30, 2019, a decrease of 31.4% from a net loss of HKD 13.7 million in 2018[19]. Market Challenges - The overall market sentiment in Europe was low, with many customers adopting conservative purchasing plans due to political instability, particularly related to Brexit[10]. - The trade war between the US and China added uncertainty to the global economy, affecting the group's toy business performance despite toys not being subject to additional tariffs[10]. - The company reported a challenging market environment, with traditional toy demand declining due to the rise of electronic products and online sales impacting physical retail operations[34]. Strategic Initiatives - The group plans to continue investing in the research and development of new products, such as the 6V rechargeable electric ride-on toy car, which showed encouraging sales performance[7]. - The group recognizes the importance of introducing innovative products to attract customer attention and is committed to investing in the development of various innovative toys each year[7]. - The company aims to expand its online sales business by collaborating with major global retailers, despite the higher costs associated with this sales model[34]. - The company is focusing on the development of its 6V rechargeable electric riding toy cars and improving the design of its metal tricycles to capture market opportunities[35]. Inventory and Receivables - Inventory increased from approximately HKD 113.5 million in 2018 to approximately HKD 118.1 million in 2019, with inventory turnover days rising to 168.9 days[20]. - Trade receivables increased from approximately HKD 19.3 million in 2018 to approximately HKD 25.3 million in 2019, with turnover days improving to 28.2 days[21]. - As of April 30, 2019, the group's inventory amounted to HKD 118,079,000, with a provision for inventory impairment of approximately HKD 1,190,000[199]. - Inventory is recorded at the lower of cost and net realizable value, with management reviewing the carrying value and determining impairment provisions based on inventory usage records, aging, confirmed sales orders, and post-year-end selling prices[199]. Financial Position - Cash and cash equivalents decreased to approximately HKD 19.4 million from HKD 43.2 million in 2018, primarily due to operational cash flow used for early production[23]. - The company maintained a financial capital debt ratio of 108.0% as of April 30, 2019, compared to 87.5% in 2018, indicating increased leverage[23]. - The company raised a net amount of HKD 81.4 million from its global offering, with HKD 64.9 million utilized by April 30, 2019, leaving a remaining balance of HKD 16.5 million[32]. Corporate Governance - The company has complied with the corporate governance code as per the listing rules throughout the fiscal year ending April 30, 2019[109]. - 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[111]. - The independent non-executive directors have confirmed their independence annually as per the listing rules[112]. - The company has a company secretary responsible for ensuring compliance with internal control measures[132]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to environmental protection and aims to reduce its environmental footprint while viewing sustainability challenges as opportunities for innovation[149]. - The company has established an ESG working group responsible for implementing ESG strategies and reporting performance to the board[141]. - The company adheres to national environmental laws and regulations, focusing on pollution prevention and promoting clean production[150]. - Total greenhouse gas emissions decreased by 4.3% to 6,573.11 tons CO2 equivalent in 2019 from 6,868.16 tons in 2018[153]. - Total atmospheric emissions reduced, with sulfur oxides (SOx) at 0.65 tons in 2019, down from 0.74 tons in 2018, and nitrogen oxides (NOx) at 0.17 tons, down from 0.20 tons[151]. - The company has established waste management protocols to enhance recycling and reduce environmental impact[154]. - The company has taken measures to reduce refrigerant leakage and improve energy efficiency in air conditioning systems[156]. Employee and Community Engagement - The company strictly adheres to local labor laws, ensuring no employment of forced labor or child labor, with no incidents reported in the fiscal year ending April 30, 2019[175]. - The company has established a health and safety management program to ensure a safe working environment for employees[172]. - The company encourages community contributions and employee participation in local charitable activities[188].

Financial Performance - For the six months ended October 31, 2018, Kiddieland International Limited reported unaudited revenue of approximately HKD 203.1 million, a decrease of 15.3% compared to HKD 239.7 million in the same period last year[6]. - The company's profit before tax was approximately HKD 12.5 million, down 40.2% from HKD 20.9 million in the previous year[6]. - Revenue from North America decreased by 13.5% to approximately HKD 117.0 million, primarily due to the termination of sales to Toys"R"Us Inc., which filed for Chapter 11 bankruptcy in September 2017[7]. - Revenue from Europe also fell by 16.2% to approximately HKD 68.2 million, attributed to a decline in average selling prices and customer orders due to changes in product mix[7]. - Gross profit decreased by 27.5% to approximately HKD 43.4 million, with a gross margin of 21.4%, down from 25.0% in the previous year[8]. - The net profit after tax decreased by 35.3% to approximately HKD 11.0 million, down from HKD 17.0 million in the previous year[14]. - The company's revenue for the six months ended October 31, 2018, was HKD 203,077,000, a decrease of 15.2% compared to HKD 239,721,000 for the same period in 2017[19]. - Gross profit for the same period was HKD 43,360,000, down 27.6% from HKD 59,908,000 year-on-year[19]. - Operating profit decreased to HKD 15,090,000, a decline of 37.2% from HKD 24,036,000 in the previous year[19]. - The net profit for the period was HKD 11,017,000, representing a 35.4% decrease compared to HKD 17,022,000 in the prior year[19]. Expenses and Costs - Selling and distribution expenses decreased by 16.4% to approximately HKD 11.2 million, aligning with the revenue decline[10]. - Administrative expenses reduced by 17.7% to approximately HKD 19.0 million, due to the absence of listing expenses incurred in the previous period[11]. - Net finance costs decreased by 16.1% to approximately HKD 2.6 million, resulting from a reduction in average bank borrowing levels[12]. - Total expenses for the six months were HKD 189,929,000, a decrease of 12.2% from HKD 216,375,000 in 2017[40]. Assets and Liabilities - The company's total assets as of October 31, 2018, were HKD 353,547,000, an increase from HKD 340,966,000 as of April 30, 2018[21]. - The company's total liabilities increased to HKD 207,102,000 from HKD 200,156,000 in the previous period[23]. - The company's total liabilities related to operating leases were HKD 9,676,000, indicating a commitment to long-term lease agreements[59]. - Total liabilities decreased to HKD 18,969,000 as of October 31, 2018, from HKD 20,078,000 as of April 30, 2018, showing improved financial management[56]. Cash Flow and Investments - The net cash used in operating activities for the six months ended October 31, 2018, was HKD 21,664,000, compared to HKD 8,114,000 for the same period in 2017, indicating a significant increase in cash outflow[27]. - The company incurred a net cash outflow from investing activities of HKD 20,220,000, a decrease from HKD 24,396,000 in the previous year, showing improved cash management in investments[27]. - Cash and cash equivalents increased to HKD 20,022,000 at the end of the reporting period, compared to HKD 19,071,000 at the end of the same period in 2017, marking a rise of 5%[27]. Future Outlook - The company anticipates continued challenges in the fiscal year 2019 due to the impact of online sales on traditional retail and the bankruptcy of two major customers[16]. - The company plans to focus on developing innovative toys and seeking new licensing opportunities to drive growth[17]. - The company expects the release of two new Disney movies, "Toy Story 4" and "Frozen 2," to boost sales in the fiscal year 2020[17]. Shareholder Information - The company reported a basic and diluted earnings per share of HKD 1.1, down from HKD 2.1 in the same period last year[19]. - The company has not declared any dividends since its establishment, with the last dividend declared in 2017 amounting to HKD 100,000,000[48]. - The board has resolved not to declare any interim dividend for the six months ended October 31, 2018, but approved a special interim dividend of HKD 100,000,000 prior to the listing on the Hong Kong Stock Exchange[89]. Compliance and Governance - The company has maintained compliance with the corporate governance code as per the listing rules for the six months ended October 31, 2018[92]. - The audit committee has reviewed the interim report and discussed matters related to audit, internal control, risk management, and financial reporting[96]. Accounting Policies - The adoption of HKFRS 9 resulted in changes to the accounting policies, particularly in the classification and measurement of financial instruments, effective from May 1, 2018[67]. - The company implemented a simplified approach for measuring expected credit losses on trade receivables, recognizing lifetime expected losses at initial recognition[67]. - The company adopted the Hong Kong Financial Reporting Standard 15, which had no net impact on profit for the period due to unchanged revenue recognition timing for product sales and rental income[77].