Financial Performance - For the six months ended September 30, 2020, the company reported revenue of HKD 549,021,000, a decrease of 7.1% compared to HKD 590,957,000 in the same period of 2019[3] - The gross profit for the same period was HKD 121,019,000, slightly up from HKD 120,116,000 year-on-year, resulting in a gross margin of 22.0%[3] - Operating profit significantly increased to HKD 28,859,000 from HKD 1,327,000 in the previous year, indicating a substantial recovery in operational performance[3] - The net profit for the period was HKD 19,875,000, compared to a loss of HKD 7,731,000 in the same period last year, marking a turnaround in profitability[3] - The total comprehensive income for the period was HKD 52,896,000, compared to a loss of HKD 27,364,000 in the previous year, reflecting improved financial health[8] - The company reported a profit of HKD 20,474,000 for the six months ended September 30, 2020, compared to a loss of HKD 6,107,000 for the same period in 2019, indicating a significant turnaround[18] - Total comprehensive income for the six months ended September 30, 2020, was HKD 52,896,000, compared to a total comprehensive loss of HKD 27,364,000 in the previous year, marking a substantial improvement[18] Assets and Liabilities - Non-current assets increased to HKD 373,896,000 from HKD 345,242,000, driven by growth in investment properties[9] - Current assets rose to HKD 638,905,000, up from HKD 530,983,000, with significant increases in accounts receivable and inventory[9] - The company's total equity increased to HKD 714,616,000 from HKD 679,855,000, indicating a stronger balance sheet[10] - Total assets as of September 30, 2020, amounted to HKD 1,012,801,000, an increase of 15.5% from HKD 876,225,000 as of March 31, 2020[46] - Total liabilities increased to HKD 298,185,000 as of September 30, 2020, compared to HKD 196,370,000 as of March 31, 2020, reflecting a rise of 51.8%[50] Revenue Breakdown - Revenue from toy sales for the six months ended September 30, 2020, was HKD 428,309,000, a decrease of 3.77% from HKD 445,144,000 in 2019[32] - Revenue from computer products decreased by 30.3% to HKD 36,157,000 in 2020 from HKD 51,925,000 in 2019[32] - The segment revenue from toys was HKD 428,309,000, accounting for 77.8% of total reported segment revenue[36] - The segment loss for computer products was HKD 4,569,000, indicating challenges in this category[36] - The toy division's revenue decreased by 4% to HKD 428 million, while operating profit increased from HKD 33.8 million to HKD 37.7 million due to improved operational efficiency[79] - The computer products division's revenue fell by 30% to HKD 36 million, with operating losses reduced from HKD 12.6 million to HKD 4.6 million through strict cost control[80] - The household products division's revenue decreased by 15% to HKD 27 million, but operating profit improved to HKD 1.8 million from a loss of HKD 3.6 million in the previous year[80] - The watch division's revenue declined by 7% to HKD 57 million, with operating losses increasing to HKD 3.2 million from HKD 0.9 million in the previous year[80] Dividends and Shareholder Information - The company declared dividends payable to shareholders amounting to HKD 31,041,000, compared to HKD 18,135,000 in the previous period[10] - The interim dividend declared for the period ending September 30, 2020, is HKD 0.03 per share, totaling HKD 18,000,000, an increase from HKD 12,000,000 in 2019[89] - The number of shares held by Dr. Zhang Zengji is 106,489,893, representing 17.62% of the issued shares[91] - Major shareholder Ms. Wu Yaozhi holds 106,489,893 shares, representing 17.62% of the issued shares[103] - The total equity interests of Ms. Zhang Qun and Mr. Tang Shijing are 64,104,057 shares, representing 10.60% each of the total shares[103] Employee and Governance - The total employee count as of September 30, 2020, was 3,469 in Mainland China, 151 in Hong Kong, and 41 in Europe, showing a decrease from 3,937, 157, and 53 respectively in 2019[108] - Total employee costs for the review period amounted to HKD 189,724,000, down from HKD 222,693,000 in 2019, indicating a reduction of approximately 15%[108] - The company has ensured competitive employee compensation based on performance and industry practices[108] - The company has complied with the Corporate Governance Code, with some deviations regarding the appointment of independent non-executive directors[114] - The audit committee consists of three independent non-executive directors, ensuring regular meetings with senior management and external auditors to discuss audit matters[111] Future Outlook - The company plans to continue focusing on market expansion and new product development to drive future growth[3] - The group expressed concerns about the performance in the second half of the fiscal year due to the impact of COVID-19 and a 13% decline in revenue in October 2020 compared to the same month in 2019[82]
HERALD HOLD(00114) - 2021 - 中期财报