小黄鸭德盈(02250) - 2024 - 中期业绩

Revenue and Financial Performance - Revenue for the six months ended June 30, 2024, increased to HKD 59.915 million, up from HKD 57.093 million in the same period in 2023[1] - The company's total revenue for the six months ended June 30, 2024, was HKD 59.915 million, compared to HKD 57.093 million in the same period in 2023[26] - Revenue from sales of licensed brand products increased to HKD 33.590 million in 2024 from HKD 27.699 million in 2023[26] - Revenue from mainland China accounted for HKD 57.161 million in 2024, up from HKD 55.559 million in 2023[29] - Revenue from the role licensing business decreased by 10.4% to HKD 26.3 million in the first six months of 2024 compared to HKD 29.4 million in the same period in 2023, primarily due to reduced licensing fees and additional licensing fees from licensees[67] - Revenue from e-commerce and other businesses increased by 21.3% to HKD 33.6 million in the first six months of 2024 compared to HKD 27.7 million in the same period in 2023, driven by increased promotional efforts and expansion into other e-commerce platforms in China and Southeast Asia[67] - Revenue from B.Duck products, the company's main product category, decreased by 4.2% to HKD 22.5 million in the first six months of 2024 compared to HKD 23.5 million in the same period in 2023, accounting for 85.3% of total licensing revenue[68] - Revenue from the Chinese mainland accounted for 95.4% of total revenue in the first six months of 2024, compared to 97.3% in the same period in 2023, while revenue from Southeast Asia and Taiwan increased to 2.7% from 0.6%[69] - Revenue from the role licensing business by service type showed that design consulting service fees increased to 28.0% of total revenue in the first six months of 2024, up from 21.2% in the same period in 2023[70] Net Loss and Profitability - Net loss attributable to equity holders of the company for the six months ended June 30, 2024, was HKD 16.961 million, compared to HKD 15.782 million in 2023[1] - Adjusted net loss margin improved to -22.7% in 2024 from -27.6% in 2023[1] - Return on equity (ROE) worsened to -8.3% in 2024 from -5.8% in 2023[2] - The company recorded a net loss attributable to equity holders of HK$17.0 million in the first six months of 2024, compared to HK$15.8 million in the same period last year[84] - Adjusted net loss attributable to equity holders under non-HK financial reporting standards was HK$13.618 million, compared to HK$15.782 million in the same period last year[82] - Basic loss per share increased to 1.79 HKD cents in 2024 from 1.64 HKD cents in 2023, with a reported loss attributable to owners of 16,961 thousand HKD[40] Segment Performance - Segment gross margin increased to 54.8% in 2024 from 45.6% in 2023[2] - The role licensing segment reported a loss of HKD 12.858 million, while the e-commerce and other segment reported a loss of HKD 2.172 million for the six months ended June 30, 2024[28] - The total outstanding contract amount for the role licensing business decreased from HK$62.3 million at the end of 2023 to HK$48.1 million at the end of June 2024, with a significant reduction in merchandise licensing from HK$59.1 million to HK$45.2 million[71] Assets and Liabilities - Total assets decreased to HKD 314.798 million as of June 30, 2024, from HKD 348.271 million as of December 31, 2023[5] - Cash and cash equivalents decreased to HKD 35.605 million as of June 30, 2024, from HKD 51.723 million as of December 31, 2023[5] - Inventory decreased to HKD 13.405 million as of June 30, 2024, from HKD 18.535 million as of December 31, 2023[5] - Trade receivables decreased to HKD 39.644 million as of June 30, 2024, from HKD 51.028 million as of December 31, 2023[5] - Contract assets increased to HKD 24.581 million as of June 30, 2024, from HKD 19.216 million as of December 31, 2023[5] - Total equity decreased from 248,979 thousand HKD as of December 31, 2023, to 227,884 thousand HKD as of June 30, 2024, reflecting a decline of 8.5%[6] - Retained earnings dropped from 86,212 thousand HKD to 69,251 thousand HKD, a decrease of 19.7%[6] - Total liabilities decreased from 99,292 thousand HKD to 86,914 thousand HKD, a reduction of 12.5%[6] - Lease liabilities decreased from 18,319 thousand HKD to 13,614 thousand HKD, a reduction of 25.7%[6] - Current liabilities decreased from 80,809 thousand HKD to 73,300 thousand HKD, a decline of 9.3%[6] - Net current assets decreased from HK$145.7 million as of December 31, 2023, to HK$123.8 million as of June 30, 2024, primarily due to a decrease in trade receivables and cash and cash equivalents[85] - Trade receivables and contract assets decreased from HK$70.2 million as of December 31, 2023, to HK$64.2 million as of June 30, 2024, mainly due to timely payments from customers[86] - Inventory decreased from HK$18.5 million as of December 31, 2023, to HK$13.4 million as of June 30, 2024, due to inventory utilization and conservative procurement policies[87] - Cash and cash equivalents and bank deposits decreased from HK$91.7 million as of December 31, 2023, to HK$75.6 million as of June 30, 2024, due to dividend payments, lease liability repayments, and property, plant, and equipment purchases[88] - Right-of-use assets decreased from HK$23.6 million as of December 31, 2023, to HK$17.8 million as of June 30, 2024, due to depreciation and lease payments[89] - Intangible assets slightly decreased from HK$2.9 million as of December 31, 2023, to HK$2.7 million as of June 30, 2024, due to amortization of trademarks[90] - Bank borrowings as of June 30, 2024, were HK$42.068 million, compared to HK$43.572 million as of December 31, 2023[91] - The company's gearing ratio increased from 16.5% as of June 30, 2023, to 18.5% as of June 30, 2024[93] Credit Risk and Provisions - Trade receivables credit concentration risk was 31,689 thousand HKD as of June 30, 2024, representing 82% of total trade receivables, compared to 44,587 thousand HKD (63%) as of December 31, 2023[15] - Expected credit loss rate for individually assessed trade receivables and contract assets is 27.3% as of June 30, 2024, with a provision of HKD 13,224 thousand against a total book value of HKD 48,461 thousand[17] - The expected credit loss rate for trade receivables overdue for more than 180 days is 61.8%, with a provision of HKD 2,893 thousand against a total book value of HKD 4,679 thousand[17] - For e-commerce and other receivables, the expected credit loss rate for those overdue for more than 180 days is 73.8%, with a provision of HKD 146 thousand against a total book value of HKD 198 thousand[17] - The company recognized a full-period expected credit loss of HKD 2,931 thousand for other receivables from third parties, amounting to HKD 69,156 thousand, due to a significant increase in credit risk[18] - The company's credit loss allowance for trade receivables decreased to 16,668 thousand HKD in 2024 from 22,035 thousand HKD in 2023, with a reversal of impairment losses of 1,821 thousand HKD[44] - Total deposits, prepayments, and other receivables decreased from 109,359 thousand HKD in 2023 to 107,849 thousand HKD in 2024, with a reduction in impairment provisions from 3,863 thousand HKD to 2,931 thousand HKD[46] - Non-current portion of deposits and other receivables decreased slightly from 64,234 thousand HKD in 2023 to 63,994 thousand HKD in 2024[46] Expenses and Costs - Employee benefits expenses increased to 31,726 thousand HKD in 2024 from 27,780 thousand HKD in 2023, with a notable inclusion of share-based payments of 3,787 thousand HKD in 2024[34] - Other expenses decreased to 17,652 thousand HKD in 2024 from 20,056 thousand HKD in 2023, with significant reductions in legal and professional fees from 9,220 thousand HKD to 7,322 thousand HKD[35] - Net financial income increased to 1,071 thousand HKD in 2024 from 124 thousand HKD in 2023, driven by higher bank deposit interest income of 1,629 thousand HKD compared to 125 thousand HKD in 2023[35] - Current tax expenses decreased to 762 thousand HKD in 2024 from 1,325 thousand HKD in 2023, with a significant drop in withholding tax from 1,012 thousand HKD to 5 thousand HKD[36] - Cost of goods sold remained stable at HK$15.2 million in the first half of 2024, representing 18.3$15.1 million (19.1%) in the same period of 2023[72] - Employee benefits expenses increased by 14% to HK$31.7 million in the first half of 2024, accounting for 38.1$7.7 million in the first half of 2024 compared to HK$6.9 million in the same period of 2023[75] - Online platform usage fees increased by 11.5$2.9 million in the first half of 2024 compared to HK$2.6 million in the same period of 2023[76] - Legal, audit, and professional fees decreased to HK$8.4 million (47.8% of other expenses) in the first half of 2024 from HK$10.3 million (51.2$1.1 million in the first half of 2024 from HK$0.1 million in the same period of 2023, driven by higher average deposit balances and interest rates[80] Dividends and Share Repurchases - The company declared a final dividend of 0.5 HKD cents per share for 2023, totaling 4,904,965 HKD, but no interim dividend for the first half of 2024[38] - Final dividend of HK$0.005 per share for the year ended December 31, 2023, totaling HK$4,904,965, was approved and paid within the six months ended June 30, 2024[105] - The company repurchased a total of 19,007,000 shares of its ordinary shares through the stock exchange, with a total payment of approximately HKD 30,047,000, of which HKD 4,000 and HKD 30,043,000 were deducted from share capital and share premium respectively[56] - The company declared a final dividend of HKD 0.005 per ordinary share for 2023, totaling HKD 4,904,965, which was offset by dividends received by the trustee for shares held under the Share Award Scheme[56] Share-Based Payments and Incentives - The company granted 14,608,000 reward shares to selected participants on October 31, 2023, and 14,714,000 reward shares to two senior management members of Shenzhen Dequ Technology Co., Ltd. on January 31, 2024[57] - The group recognized expenses of approximately HKD 3,787,000 for the share awards granted during the six months ended June 30, 2024[57] - As of June 30, 2024, the Share Award Scheme held 34,393,000 shares, compared to 32,700,000 shares as of December 31, 2023[56] - The trustee purchased 1,693,000 shares at a total cost of HKD 1,975,000 for the share incentive plan during the six months ending June 30, 2024[113] Legal and Regulatory Matters - The company received HKD 1.361 million in compensation from legal actions against third parties for trademark infringement in 2024[33] - The company has set aside a provision of RMB 1,000,000 (approximately HKD 1,096,000) for potential damages and legal fees related to a trademark infringement case, with the likelihood of the judgment being overturned based on legal advice[94] - The company deviated from the Corporate Governance Code by having the Chairman and CEO roles combined, but believes this arrangement is in the best interest of the group[114] - The company does not provide monthly updates to the board but ensures timely updates on significant matters to fulfill board responsibilities[115] - The company has adopted the Standard Code for Securities Transactions and confirmed compliance by all directors and senior management during the six months ending June 30, 2024[116] - The Audit Committee, established on December 15, 2021, consists of independent non-executive directors and operates under written terms of reference[117] - The Audit Committee has reviewed the unaudited condensed interim financial information for the six months ended June 30, 2024, and confirmed compliance with applicable accounting standards and disclosure requirements[118] - The unaudited condensed interim financial information for the six months ended June 30, 2024, has been reviewed by the company's auditor, PricewaterhouseCoopers[118] - The interim report for the six months ended June 30, 2024, will be published on the Hong Kong Stock Exchange website (www.hkexnews.hk) and the company's website (www.semk.net)[119] - The interim report will be sent to shareholders as needed[119] Strategic Initiatives and Future Plans - The company plans to focus on the "B.Duck+ IP" matrix, developing self-researched products, opening offline retail stores, and expanding into new consumer sectors such as gaming, offline eco-tourism, trendy toys, and the metaverse[106] - The company will collaborate with Guizhou Tourism Group to create B.Duck-themed entertainment parks, themed tourism routes, and tourism merchandise, aiming to enhance the B.Duck IP's commercial value[107] - The company has established a large entertainment innovation business development center to deepen its gaming and related businesses, leveraging the WeChat ecosystem to absorb private traffic and improve conversion rates[108] - The company has formed a product planning team to adopt a self-developed, self-produced, and self-sold model, enhancing brand exposure and profitability through online and offline channels[108] - The company will focus on internationalization, leveraging the "B.Duck IP" to penetrate Southeast Asian markets through partnerships with OTA platforms like Ctrip and Meituan[109] - The company plans to open its first offline retail flagship store in Hong Kong and overseas, creating a comprehensive brand experience center with customized products and localized entertainment activities[109] - The company will continue to leverage AIGC technology to enhance production efficiency and quality, exploring applications in video generation, IP-specific voice, and theme songs for creative, marketing, and animation fields[110] - A new IP operation innovation department has been established to accelerate the commercialization of new IPs, aiming to replicate the success of the "B.Duck IP" model[111] - The company plans to invest in and collaborate with startups in new consumption and retail sectors, leveraging its resources in brand, IP operation, design, funding, and channels to expand licensing categories and enhance financial returns[112] - The company aims to establish a revenue system exceeding 1 billion yuan, focusing on retail, offline cultural tourism, online gaming, cross-border expansion, and AIGC innovation to build a comprehensive IP ecosystem worth over 10 billion yuan[112] - The company will seek partnerships with local governments and state-owned capital to form industrial investment funds, targeting digital cultural IP, new consumption, new media, ACGC animation, and gaming sectors[112] Investments and Acquisitions - The company acquired a 20% stake in a non-listed entity in China for 7,592,000 HKD in 2023, classified as a financial asset at fair value through profit or loss[49] - The company acquired a 10% stake in another non-listed entity in China for 1,294,000 HKD in 2023, also classified as a financial asset at fair value through profit or loss[50] - The fair value of non-listed equity investments decreased from 9,735 thousand HKD in 2023 to 8,782 thousand HKD in 2024, with a fair value loss of 889 thousand HKD[48][49] - The company has not made any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the six months ending June 30, 2024[101] - The company has not made any significant investments or capital asset plans beyond those disclosed in the prospectus dated December 30, 202