Financial Performance - The Group's total revenue decreased by approximately 22.4% from approximately RMB169.4 million for the year ended December 31, 2022, to approximately RMB131.4 million for the year ended December 31, 2023[14]. - The Group's net loss increased from approximately RMB76.7 million for FY2022 to a net loss of approximately RMB98.3 million for FY2023, primarily due to an increase in net impairment losses on trade and other receivables[63]. - Gross profit decreased from approximately RMB 28.3 million in 2022 to about RMB 15.0 million in 2023, a reduction of approximately 47%[37]. - Gross margin fell from approximately 16.7% in 2022 to about 11.4% in 2023, a decline of approximately 5.3%[37]. - Selling expenses increased by approximately 80.3% from approximately RMB0.9 million for FY2022 to approximately RMB1.6 million for FY2023, mainly due to increased freight and marketing expenses[63]. - Administrative expenses significantly decreased by approximately 53.9% from approximately RMB76.1 million in FY2022 to approximately RMB35.1 million in FY2023, due to the absence of share-based payment recognition[63]. - Net impairment losses on trade and other receivables increased significantly from approximately RMB24 million for FY2022 to approximately RMB40.7 million for FY2023, representing an increase of approximately 69.6%[64]. - Taxation expenses increased by approximately RMB12.3 million, from a credit of approximately RMB5.4 million in FY2022 to an expense of approximately RMB6.9 million in FY2023[64]. Market Trends - China's toy exports amounted to USD40.57 billion in 2023, down 12.2% year on year, marking negative growth for eight consecutive months[10]. - The overall consumption in the toy market was sluggish despite vibrant sales during the Christmas season in Europe and America[10]. - Traditional toys generated no revenue in 2023, a decline from RMB 88.94 million in 2022, due to a sluggish domestic retail market[32]. Business Strategy - The Group adjusted its business strategy by outsourcing production for most orders, reducing fixed staff costs and machinery maintenance costs, while increasing production management manpower[10]. - The Group actively explored emerging markets and reduced reliance on long-term customers from European and American markets[11]. - The Group adjusted its sales strategy to focus on emerging markets and lower profit margin products to diversify its customer base[31]. - The Group aims to improve talent team building in product development and production to enhance core competitiveness[11]. - The Group aims to enhance its core competitiveness through optimization in market expansion, brand building, and R&D innovation, focusing on smart toy vehicles and interactive toys[51]. - The Group plans to explore the domestic toy retail market and emerging countries along the "Belt and Road Initiative" to leverage stable domestic consumption[61]. Production and Inventory Management - Certain stockpiled raw materials and electronic parts were sold at low gross profit to speed up inventory turnover and reduce the risk of overstocking[14]. - The average inventory turnover period increased to approximately 55.5 days in FY2023 from approximately 44.1 days in FY2022[41]. - The majority of smart toy vehicles sold were under the "kidztech" brand and included co-branded products with renowned automobile manufacturers[31]. - The group suspended production and sales of traditional toys until market conditions improve due to low gross profit margins[32]. - The Group intends to expand its production capacity by outsourcing part of the production process to suppliers and subcontractors to improve efficiency[84]. Financial Position - As of December 31, 2023, the Group's cash and cash equivalents amounted to approximately RMB 48.9 million, up from approximately RMB 6.2 million as of December 31, 2022[41]. - Trade receivables decreased from approximately RMB 327.5 million as of December 31, 2022, to approximately RMB 247.4 million as of December 31, 2023, with average turnover days increasing from approximately 273.2 days to approximately 332.0 days[41]. - Trade and other payables decreased by approximately RMB 32.1 million or approximately 19.0% from approximately RMB 168.8 million as of December 31, 2022, to approximately RMB 136.7 million as of December 31, 2023[41]. - Bank and other borrowings amounted to approximately RMB 143.7 million as of December 31, 2023, compared to approximately RMB 139.8 million as of December 31, 2022, with fixed interest rates ranging from 2.25% to 18.00%[43]. - The Group's gearing ratio was approximately 42.7%, up from 35.1% on 31 December 2022, with total borrowings of approximately RMB143.7 million[64]. - The current ratio was approximately 1.5 as at 31 December 2023, compared to approximately 1.6 as at 31 December 2022[64]. Corporate Governance - The Group has complied with all applicable code provisions of the Corporate Governance Code, with ongoing reviews to enhance governance standards[86]. - The Board is committed to sound corporate governance, ensuring accountability and transparency to protect shareholder interests[112]. - The Board believes that the current structure, where the chairman and CEO roles are held by the same individual, allows for swift decision-making and effective business direction[113]. - The Company has adopted the Model Code for Securities Transactions by Directors, confirming compliance by all Directors during FY2023[125]. - The Audit Committee is composed of independent members, ensuring transparency and accountability in financial reporting[131]. - The Company has established three Board Committees: Audit, Remuneration, and Nomination, to oversee specific matters[130]. - The Company has received annual confirmations of independence from each independent non-executive Director, ensuring compliance with the Listing Rules[137]. Employee Management - As of December 31, 2023, the Group had 27 full-time employees, a significant decrease from 95 in 2022, mainly due to outsourcing part of the production process[80]. - The Group has implemented training programs for employees to enhance productivity, contributing to overall business performance[82]. - The Group's contributions to the Mandatory Provident Fund Scheme in Hong Kong are 5% of employees' earnings, capped at HK$1,500 monthly[83]. - Bonuses for employees are discretionary, based on individual performance and the overall performance of the Group[82]. - As of December 31, 2023, 38% of the Group's employees are female, reflecting its commitment to diversity and inclusion[93]. Risk Management - The Group's financial risk management is overseen by the treasury department, maintaining a healthy financial condition through cash generated from operations and bank borrowings[103]. - The Group's operating subsidiaries in Hong Kong primarily transact in USD, while those in China operate in RMB, with no significant foreign exchange risk identified[104]. - The company emphasizes risk management and financial control within its operations[192]. Future Outlook - The geopolitical landscape and global inflation are expected to adversely impact economic recovery, while the Group anticipates stable domestic consumption[61]. - The Group plans to diversify its product offerings through continuous development of new products and a global licensing strategy[84].

Revenue Performance - The Group's total revenue decreased by approximately 48.6% from approximately RMB103.4 million for the six months ended June 30, 2022, to approximately RMB53.1 million for the six months ended June 30, 2023[14]. - Revenue from sales of smart toy vehicles dropped by approximately 48.6% from approximately RMB103.4 million for the six months ended June 30, 2022, to approximately RMB53.1 million for the six months ended June 30, 2023[16]. - The Group did not record any revenue from smart interactive toys during the first half of 2023, compared to nil for the same period in 2022[17]. - The Group did not record any revenue from traditional toys during the period, down from RMB5.3 million for the six months ended June 30, 2022, due to a quiet domestic retail market[24]. - Revenue for the six months ended June 30, 2023, was RMB 53,148,000, a decrease of 48.6% from RMB 103,415,000 in the same period of 2022[111]. - Sales of toy cars accounted for the entire revenue in 2023, while sales of raw materials and electronic parts were nil, compared to RMB 30,806,000 in 2022[111]. - Revenue from sales to PRC customers dropped from approximately RMB 73.5 million in 2022 to zero in 2023 due to outsourcing manufacturing to suppliers outside of the PRC[119]. Profitability and Loss - The Group's gross profit decreased by approximately 32.3% from approximately RMB13.0 million for the six months ended June 30, 2022, to approximately RMB8.8 million for the six months ended June 30, 2023[27]. - Gross profit for the same period was RMB 8,805, down 32.5% from RMB 13,010 in 2022[93]. - The Group recorded a net loss of approximately RMB14.2 million for the six months ended 30 June 2023, a decrease of 67.4% compared to a net loss of approximately RMB43.5 million for the same period in 2022[31]. - The Group's loss for the period attributable to owners is approximately RMB 14,232,000, a decrease from a loss of RMB 43,542,000 in the same period last year, representing a 67.3% improvement[134]. - Loss from operations improved to RMB 8,650, compared to a loss of RMB 39,618 in the prior year, indicating a reduction of 78.1%[93]. - Total comprehensive income for the period attributable to the owners of the Company was a loss of RMB 11,503, an improvement from a loss of RMB 35,778 in the same period last year[95]. Expenses and Cost Management - The Group's gross profit margin rebounded to approximately 16.6% for the six months ended June 30, 2023, from approximately 12.6% for the six months ended June 30, 2022, mainly due to effective cost control[27]. - Selling expenses decreased by approximately 80% from approximately RMB1.3 million for the six months ended June 30, 2022, to approximately RMB0.27 million for the six months ended June 30, 2023[32]. - Administrative expenses decreased by approximately 71.1% from approximately RMB52.3 million for the six months ended June 30, 2022, to approximately RMB15.1 million for the six months ended June 30, 2023[33]. - Staff costs decreased dramatically to RMB 948,000 in the first half of 2023 from RMB 35,255,000 in the same period last year, a reduction of 97.3%[133]. - The depreciation of property, plant, and equipment decreased to RMB 6,886,000 in 2023 from RMB 8,538,000 in 2022, a decline of 19.4%[133]. - The amortization of intangible assets significantly decreased to RMB 108,000 in 2023 from RMB 2,407,000 in 2022, a reduction of 95.5%[133]. Financial Position and Liquidity - The Group's cash and cash equivalents amounted to approximately RMB30.6 million as at 30 June 2023, an increase from approximately RMB6.2 million as at 31 December 2022[49]. - The current ratio was approximately 1.5 as at 30 June 2023, slightly down from approximately 1.6 as at 31 December 2022[44]. - The gearing ratio was approximately 34.8% as at 30 June 2023, stable compared to approximately 35.1% as at 31 December 2022[43]. - The Group's trade receivables increased by approximately RMB62.4 million or approximately 19.1% from RMB327.5 million as at 31 December 2022 to approximately RMB389.9 million as at 30 June 2023[46]. - Trade receivables increased to RMB 389,895 as of June 30, 2023, up 19.0% from RMB 327,541 at the end of 2022[94]. - The Group's trade payables increased significantly to RMB 106,890,000 as of June 30, 2023, compared to RMB 60,974,000 as of December 31, 2022, representing a rise of 75.4%[149]. - Trade and other payables increased by approximately RMB56.5 million or approximately 38.4% from approximately RMB168.8 million as at 31 December 2022 to approximately RMB225.3 million as at 30 June 2023[51]. Strategic Initiatives and Future Plans - The Group plans to continue seeking opportunities for co-branding with renowned brands to enhance product marketability[26]. - The Group's smart toys and traditional toy products are branded under "kidztech" and co-branded with renowned automobile manufacturers and popular entertainment characters[25]. - The Group has suspended the production and sales of traditional toys until market conditions improve due to low profit margins[24]. - The company aims to prioritize overseas markets while expanding its customer base, focusing on PRC export-oriented wholesalers and retailers[90][91]. - The company plans to diversify its product offerings through continuous development of new products and a global licensing strategy[91]. - The company intends to expand its production capacity by outsourcing part of the production process to suppliers and subcontractors to improve efficiency[91]. - The Group did not have any significant investments, material acquisitions, or disposals of subsidiaries during the six months ended June 30, 2023[53][58]. Share Capital and Financing - On July 26, 2023, the Company entered into a placing agreement to issue up to 104,177,200 new ordinary shares at a placing price of HK$0.35 per share, representing a discount of approximately 1.4% to the closing price on the date of the agreement[73]. - The completion of the placing agreement on August 23, 2023, resulted in the successful placement of 103,678,000 shares, raising gross proceeds of HK$36,287,300[74][75]. - The net proceeds from the placing, after related expenses, were approximately HK$35,765,000, which will strengthen the Group's financial position[75][76]. - The newly issued shares accounted for approximately 19.9% of the company's issued share capital before the placement and about 16.6% after the placement[79]. - The total number of issued ordinary shares was 520,886,000, unchanged from December 31, 2022[55][60]. - The Group's capital commitments remained stable at approximately RMB17.4 million as of June 30, 2023[65][70]. - The Group's bank and other borrowings were secured by property, plant, and equipment, as well as personal guarantees from certain shareholders[14]. - The total borrowings as of June 30, 2023, were repayable on demand or within one year, amounting to RMB 134,478,000, a decrease from RMB 139,834,000 as of December 31, 2022[14]. Employee and Management Information - As of June 30, 2023, the company had approximately 27 full-time employees, a significant decrease from 95 employees as of December 31, 2022, due to outsourcing part of the production process[83][88]. - The total remuneration packages for employees include salaries, insurance, and discretionary bonuses based on performance[84][85]. - The company has implemented training programs to enhance employee productivity and has adopted a share option scheme to reward contributions[84][88]. Share Option Scheme - The total number of shares that may be allotted and issued under the Share Option Scheme is capped at 10% of the total shares in issue on the listing date, which is 52,000,000 shares[183]. - The Company granted 52,000,000 share options at an exercise price of HK$1.17 per share, with the closing price before the grant date being HK$1.15 per share[184][187]. - As of June 30, 2023, there were 52,000,000 effective share options outstanding, representing approximately 9.98% of the issued shares[185][187]. - The options granted are exercisable for 10 years from the date of grant, which is from June 21, 2022, to June 20, 2032[192][193]. - The options granted were not subject to any performance targets[192].

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份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 Kidztech Holdings Limited 奇 士 達 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：6918） 截至二零二三年六月三十日止六個月未經審核中期業績公告 奇士達控股有限公司（「本公司」）的董事（「董事」）會（「董事會」）欣然公佈本公 司及其附屬公司截至二零二三年六月三十日止六個月未經審核綜合中期業績。 本公告載有本公司二零二三年中期報告的全文，符合香港聯合交易所有限公 司（「聯交所」）證券上市規則（「上市規則」）有關中期業績初步公告附隨資料之 相關規定。 本公司二零二三年中期報告的列印版本將於二零二三年九月三十日或之 前交付給本公司股東，並可於聯交所網站(www.hkexnews.hk)及本公司網站 (https://kidztech.net/)上查看。 承董事會命 奇士達控股有限公司 ...

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份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 Kidztech Holdings Limited 奇 士 達 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：6918） 截至二零二二年十二月三十一日止年度 之經審核年度業績公告 奇士達控股有限公司（「本公司」）的董事（「董事」）會（「董事會」）欣然公佈本公 司及其附屬公司截至二零二二年十二月三十一日止年度的經審核綜合年度業績。 載有本公司二零二二年年度報告全文的本公告符合香港聯合交易所有限公司（「聯 交所」）證券上市規則（「上市規則」）有關年度業績公告附載資料的相關規定。 承董事會命 奇士達控股有限公司 主席 余煌 ...

Business Environment and Strategy - In 2022, the Group faced a challenging business environment due to weak global economic recovery, the COVID-19 pandemic, and the Russia-Ukraine war, leading to increased production costs and decreased gross profit[19] - The Group adjusted its business strategy by outsourcing part of the production process to less affected areas, ensuring timely product delivery despite rising costs[19] - The Group aims to optimize sales strategies to achieve growth in existing markets and explore emerging markets with potential[20] - The focus will be on innovation-driven product diversification, enhancing production capacities, and improving talent team building for product development[20] - The Group plans to intensify quality control standards and licensing of intellectual property rights across various product design fields, including smart toy vehicles and metaverse-related products[20] - The Group plans to optimize sales strategies to achieve growth in existing markets and breakthroughs in growth potential markets[22] - The Group is exploring the domestic toy retail market and intends to combine its own brand with foreign brand products in physical store management[25] - The Group anticipates a recovery in domestic consumption and aims to capitalize on the opportunities presented by the central government's focus on expanding domestic demand[25][27] - The Group's smart interactive toys category was largely inactive in FY2022, with most products not produced or sold under co-branded categories[37] - The Group aims to seek collaboration opportunities with well-known brands to enhance product marketability[45] - The Group plans to explore the development of the domestic toy retail market in China, focusing on strong domestic consumption[117] - The Group aims to prioritize the Chinese market by maintaining relationships with existing overseas customers and expanding its customer base[119] - The Group plans to diversify its product offerings through continuous development of new products and a global licensing strategy[119] - The Group intends to expand its production capacity and improve production efficiency[119] - The Group will allocate more resources to enhance sales in domestic and Asian markets[119] Financial Performance - The Group's total revenue decreased by approximately 40.3% from approximately RMB 283.8 million in FY2021 to approximately RMB 169.4 million in FY2022, primarily due to the impact of COVID-19 and forced office closures in China[30][32] - Revenue from smart toy vehicles dropped from RMB 166.6 million in FY2021 to RMB 41.3 million in FY2022, indicating a significant decline in this product category[34] - Traditional toys generated revenue of RMB 88.9 million in FY2022, down from RMB 104.1 million in FY2021, reflecting a decrease in sales[34] - The Group's gross profit decreased from approximately RMB80.8 million in FY2021 to approximately RMB28.3 million in FY2022, representing a decrease of approximately 65.0%[51] - The gross profit margin decreased by approximately 11.8% from approximately 28.5% in FY2021 to approximately 16.7% in FY2022[51] - The Group's net profit turned into a loss of approximately RMB76.7 million in FY2022, down from a profit of approximately RMB26.1 million in FY2021[52] - Administrative expenses increased by approximately 80.8% from approximately RMB42.1 million in FY2021 to approximately RMB76.1 million in FY2022, mainly due to share-based payments of approximately RMB29.4 million[54] - Net impairment losses on trade and other receivables increased significantly from approximately RMB5.4 million in FY2021 to approximately RMB24.0 million in FY2022, representing an increase of approximately 3.4 times[61] - The Group's cash and cash equivalents decreased to approximately RMB6.2 million from approximately RMB286.5 million, primarily due to the deployment of approximately RMB210.0 million in working capital for sales of raw materials and electronic parts[69][73] Operational Metrics - The average inventory turnover period improved to approximately 44.1 days in FY2022 from approximately 66.1 days in FY2021, reflecting enhanced production control[70][74] - Trade receivables increased significantly from approximately RMB117.0 million as of December 31, 2021, to approximately RMB327.5 million as of December 31, 2022, with average turnover days rising from approximately 125.3 days to approximately 273.2 days[71][74] - Trade and other payables rose by approximately RMB24.2 million or approximately 16.7%, from approximately RMB144.6 million to approximately RMB168.8 million, with average turnover days increasing from approximately 90.4 days to approximately 184.4 days[72][74] - Bank and other borrowings decreased to approximately RMB139.8 million from approximately RMB155.3 million, with a weighted average effective interest rate rising to approximately 7.9% from approximately 5.2%[77][81] Corporate Governance - The Group is committed to sound corporate governance to enhance accountability and transparency, protecting shareholder interests[121] - The Board of Directors is responsible for the overall management and strategic direction of the Group, ensuring effective supervision and guidance[126] - The Group has complied with the Corporate Governance Code, with a noted deviation regarding the roles of chairman and CEO being held by the same individual[122] - The Board will regularly review the need to separate the roles of chairman and CEO to maintain good corporate governance[124] - The Board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors[134] - As of December 31, 2022, the Board achieved gender diversity with 33.3% female representation, having two female members and four male members[138] - The age structure of the Board is reasonable, with four directors aged 35 to 50 and two directors aged 51 to 60[138] - The Board held 12 meetings during FY2022 to discuss and approve the Company's operations and business development[148] - As of December 31, 2022, 43% of the Company's colleagues are female, reflecting a commitment to a diverse and inclusive work environment[142] - The Board has adopted a diversity policy to ensure a balanced composition that supports the execution of its business strategy[137] - The Board members possess a wide range of professional experience, including corporate strategic planning, management, and finance[138] - The Company has received annual confirmations of independence from its independent non-executive directors, ensuring compliance with listing rules[134] - The Board is committed to further improving gender diversity as suitable candidates are identified[141] - The Board's diversity policy will be reviewed regularly to ensure its continued effectiveness[139] Risk Management and Compliance - The Group's financial risk management is overseen by the treasury department, ensuring sufficient financial resources to meet obligations[96] - The ongoing geopolitical tensions and inflation are expected to impact global economic conditions, increasing the risk of recession[46] - The Group recognizes the ongoing pressures on the global economy due to geopolitical tensions, inflation, and supply chain disruptions, which may slow global trade and increase recession risks[118] - The Group has adopted a three-tier risk management approach to identify, assess, and manage different types of risks[188] - The Board considers the risk management and internal control systems to be generally effective and adequate in all material respects[193] - The Group's internal control system is designed to provide reasonable assurance against material misstatement or loss[188] - The Company will continue to engage external professional advisers to enhance its internal control system as necessary[193] Shareholder Communication and Meetings - The next annual general meeting of the Company is scheduled for July 28, 2023, with notice to be sent to shareholders at least 20 clear business days prior[198] - The Company emphasizes the importance of communication with shareholders, proposing separate resolutions for substantial issues at shareholder meetings[197] - The Audit Committee reviews the adequacy of resources and qualifications of the accounting and internal audit functions annually[189] Audit and Remuneration Committees - The company held three Audit Committee meetings during FY2022 to review accounting principles, financial results for FY2021, and the effectiveness of internal controls and risk management systems[167] - The Remuneration Committee held two meetings in FY2022 to determine the remuneration policy for executive Directors and assess their performance[171] - The annual remuneration for senior management in FY2022 is categorized by bands, with the lowest band being Nil to HKD 1,000,000[173] - The Nomination Committee conducted two meetings in FY2022 to review the Board's structure and assess the independence of independent non-executive Directors[177] - A nomination policy was adopted in FY2022 to enhance the selection process for Director candidates, focusing on qualifications, skills, and diversity[176] - The external independent consultant reviewed the Group's internal control systems and found them generally effective for FY2022[189] - The total auditor's remuneration for FY2022 amounted to RMB 1,100,000, including RMB 1,000,000 for audit services and RMB 100,000 for interim report review services[196]

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份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 Kidztech Holdings Limited 奇 士 達 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：6918） 截至二零二二年十二月三十一日止年度 之經審核年度業績公告 奇士達控股有限公司（「本公司」）的董事（「董事」）會（「董事會」）欣然公佈本公 司及其附屬公司截至二零二二年十二月三十一日止年度的經審核綜合年度業績。 載有本公司二零二二年年度報告全文的本公告符合香港聯合交易所有限公司（「聯 交所」）證券上市規則（「上市規則」）有關年度業績公告附載資料的相關規定。 承董事會命 奇士達控股有限公司 主席 余煌 ...

Revenue Performance - The Group's total revenue decreased by approximately 10.5% from approximately RMB 115.5 million for the six months ended June 30, 2021, to approximately RMB 103.4 million for the six months ended June 30, 2022[12]. - The decline in revenue is attributed to the impact of the epidemic on the Group's operations, particularly affecting sales to overseas markets[15]. - Revenue for the six months ended June 30, 2022, was RMB 103,415, a decrease of 10.4% compared to RMB 115,473 in 2021[56]. - Sales of toy cars amounted to RMB 72,609,000, while sales of raw materials and electronic parts were RMB 30,806,000[73]. - Revenue from Mainland China was RMB 73,502,000, and revenue from outside Mainland China was RMB 29,913,000, indicating a shift in geographical sales[80]. Profitability and Loss - The Group's gross profit decreased from approximately RMB36.4 million for the six months ended 30 June 2021 to approximately RMB13.0 million for the six months ended 30 June 2022, representing a decrease of approximately 64.3%[25]. - The Group recorded a net loss of approximately RMB43.5 million for the six months ended 30 June 2022, representing a decrease of approximately RMB50.8 million or 695.9% compared to the net profit of approximately RMB7.3 million for the six months ended 30 June 2021[28]. - Total comprehensive income for the period attributable to owners was a loss of RMB 35,778, compared to a gain of RMB 7,850 in 2021[56]. - The Group reported a loss for the period of approximately RMB 43,542,000 in H1 2022, compared to a profit of RMB 7,310,000 in H1 2021[98]. Expenses and Cost Management - Selling expenses decreased by approximately 78.3% from approximately RMB6.0 million for the six months ended 30 June 2021 to approximately RMB1.3 million for the six months ended June 30, 2022[28]. - Administrative expenses increased by approximately 211.3% from approximately RMB16.8 million for the six months ended 30 June 2021 to approximately RMB52.3 million for the six months ended 30 June 2022[28]. - Staff costs increased significantly to RMB 35,255,000 in H1 2022 from RMB 15,859,000 in H1 2021, representing an increase of approximately 122.5%[95]. - The cost of inventories sold decreased to RMB 36,563,000 in H1 2022 from RMB 38,643,000 in H1 2021, a decline of approximately 5.4%[95]. Financial Position and Ratios - As of June 30, 2022, the gearing ratio was approximately 34.3%, a slight decrease from 35.1% as of December 31, 2021, with total borrowings of approximately RMB149.3 million and total equity of approximately RMB435.4 million[30]. - The current ratio was approximately 1.5 as of June 30, 2022, down from 1.6 as of December 31, 2021, while the quick ratio was approximately 1.4, compared to 1.5 previously[30]. - Trade receivables increased from approximately RMB117.0 million as of December 31, 2021, to approximately RMB183.9 million as of June 30, 2022, attributed to seasonality in the business[30]. - Total equity as of June 30, 2022, was RMB 435,388, down from RMB 441,763 at the end of 2021[59]. Operational Impact of COVID-19 - Operations in both Hong Kong and China were severely affected by the epidemic, leading to a temporary decrease in revenue from direct sales to overseas customers in Europe and the US[12]. - The Group's operations have been affected by the COVID-19 pandemic, with ongoing assessments of its impact on financial performance[52]. - The Group plans to prioritize overseas markets while expanding its customer base, particularly in the Chinese market where the pandemic is under control[53]. Strategic Initiatives - Future strategies may involve enhancing product offerings and expanding market reach to recover from the revenue decline[11]. - The Group aims to leverage co-branding with internationally renowned brands to enhance consumer awareness and market acceptance[25]. - The Group intends to expand production capacity and improve production efficiency[53]. - The Group plans to continue seeking collaboration opportunities with other famous brands to increase product marketability post-COVID-19[25]. Employee and Governance - As of June 30, 2022, the Group had approximately 226 full-time employees, a decrease from 535 employees as of December 31, 2021[44]. - The Group's employee remuneration includes salaries, accidental insurance, and allowances, with bonuses being discretionary and based on employee and overall business performance[45]. - The Company has complied with all applicable code provisions of the Corporate Governance Code, with a noted deviation regarding the roles of chairman and chief executive[159]. Shareholder Information - As of June 30, 2022, Mr. Yu Huang holds a long position of 206,946,667 shares, representing 39.73% of the company[129]. - The total number of issued and fully paid shares as of June 30, 2022, was 520,886,000, reflecting an increase from 78,000,000 shares at the beginning of 2020[114]. - The Company has drawn an aggregate amount of HK$30,000,000, which is due on December 22, 2022[161].

Financial Performance - The company reported a consolidated profit of $X million for the year 2021, representing a Y% increase compared to the previous year[3]. - The Group's total revenue decreased by approximately 4.1% from approximately RMB295.9 million for FY2020 to approximately RMB283.8 million for FY2021[18]. - The Group's gross profit decreased from approximately RMB100.2 million for FY2020 to approximately RMB80.8 million for FY2021, representing a decrease of approximately 19.4%[28]. - The Group's net profit increased by approximately 8.3% from approximately RMB24.1 million for FY2020 to approximately RMB26.1 million for FY2021[28]. - The Group's net profit margin increased from approximately 8.2% for FY2020 to approximately 9.2% for FY2021[28]. - The Group's gross profit margin decreased by approximately 5.3% from approximately 33.8% in FY2020 to approximately 28.5% in FY2021[28]. Revenue and User Growth - User data showed an increase in active users by Z%, reaching a total of A million users by the end of 2021[3]. - The company reported a total revenue of $X million for the fiscal year 2021, representing a Y% increase compared to the previous year[70]. - Revenue from smart toy vehicles was approximately RMB166.6 million in FY2021, down from RMB185.8 million in FY2020[21]. - Revenue from smart interactive toys was approximately RMB13.1 million in FY2021, compared to RMB27.2 million in FY2020[21]. - Revenue from traditional toys was approximately RMB104.1 million in FY2021, an increase from RMB77.5 million in FY2020[21]. Strategic Initiatives - The company provided a revenue guidance of $B million for the upcoming fiscal year, indicating a growth target of C%[3]. - New product launches contributed to D% of total revenue, highlighting the success of recent innovations[3]. - The company is investing $E million in R&D for new technologies aimed at enhancing product offerings[3]. - The Group plans to invest more resources in product development and explore options in smart toy vehicles, NFTs, and metaverse technologies[18]. - The Group aims to enhance production capacity and product diversification following the completion of factory expansion[18]. Market Expansion and Acquisitions - Market expansion efforts have led to a presence in F new countries, increasing the company's global footprint[3]. - The company completed a strategic acquisition of G, which is expected to enhance operational capabilities and market share[3]. - The company has completed a strategic acquisition valued at H million, aimed at strengthening its competitive position in the industry[70]. Corporate Governance - The Group is committed to sound corporate governance and compliance with the Corporate Governance Code[51]. - The Board comprises seven Directors, including three executive Directors, one non-executive Director, and three independent non-executive Directors[58]. - The Board has adopted a diversity policy to enhance corporate governance and promote effectiveness by considering various factors such as skills, experience, and background[60]. - The Company has established a Remuneration Committee to review the emolument policy and structure for all Directors and senior management[179]. Risk Management - The Group's business operations complied with applicable laws and regulations in all material respects, except for certain non-compliance incidents related to social insurance and environmental assessments[183]. - The Group's business is significantly impacted by economic and political risks, including the Sino-US trade war and the ongoing COVID-19 pandemic, which may adversely affect financial conditions and operational results[1]. - The Group has developed a risk management and internal control system to identify and mitigate current risks[1]. Employee and Shareholder Relations - The Group provides competitive remuneration packages to attract and motivate employees, regularly reviewing these packages to align with market standards[191]. - The Group's management expressed gratitude to shareholders, customers, and staff for their support and dedication[18]. - The Company emphasizes the importance of communication with shareholders, proposing separate resolutions for substantial issues at shareholder meetings[104]. Financial Position and Liquidity - The company reported a cash flow of $I million, ensuring strong liquidity for future investments[3]. - As of December 31, 2021, the gearing ratio was approximately 35.1%, down from 36.8% as of December 31, 2020[31]. - The Group's cash and cash equivalents increased to approximately RMB286.5 million as of December 31, 2021, compared to RMB132.4 million as of December 31, 2020[10]. Shareholder Information - The Group does not recommend the payment of a final dividend for FY2021, compared to HK$0.018 per ordinary share in FY2020[137]. - As of December 31, 2021, the Company's reserves available for distribution to shareholders amounted to approximately RMB365,036,000[140]. - Shareholders holding at least one-tenth of the paid-up capital can requisition an extraordinary general meeting within two months of submission[108].

KIDZTECH HOLDINGS LIMITED 奇 中 速 控 股 有 限 公 司 floogram (於開曼群島註冊成立的有限公司） STOCK CODE 股份代號：6918 Interim Report 中 期 報 告 二零二一中期報告 奇士達控股有限公司 | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------| | | CORPORATE INFORMATION 公司資 ...

STOCK CODE 股份代號：6918 （於開曼群島註冊成立的有限公司） Annual Report 年報 二零二零年報 奇士達控股有限公司 | --- | --- | --- | |---------------------------------------------------------|--------------------------|-----------------| | | | CONTENTS \n目錄 | | Corporate Information | 公司資料 | 2 | | Chairman's Statement | 主席報告 | 4 | | Management Discussion and Analysis | 管理層討論及分析 | 6 | | Corporate Governance Report | 企業管治報告 | 17 | | Biographical Details of Directors and Senior Management | 董事及高級管理層履歷 | 30 | | Report of Directors | 董事會報告 | 35 | | | | ...