Financial Results - The unaudited condensed consolidated results for the nine months ended December 31, 2019, have been announced, with comparative figures for the same period in 2018 provided[15]. - The report indicates that the results have not been audited or reviewed by an independent auditor but have been approved by the audit committee[15]. - The company emphasizes that the information contained in the report is accurate and complete in all material respects[4]. - The board of directors collectively accepts full responsibility for the report's contents[4]. - Revenue for the nine months ended December 31, 2019, was HK$162,316,000, an increase of 16.5% from HK$139,337,000 in 2018[17]. - Gross profit decreased to HK$33,358,000, down 7.0% from HK$35,851,000 in the previous year[17]. - Profit for the period was HK$6,803,000, a decline of 53.8% compared to HK$14,711,000 in the same period last year[17]. - Basic and diluted earnings per share dropped to HK$0.68 from HK$1.56, reflecting a decrease of 56.4%[17]. - Total comprehensive income for the period was HK$6,777,000, down 53.9% from HK$14,712,000 in the prior year[17]. - Selling expenses increased to HK$7,078,000, up 67.5% from HK$4,237,000 in 2018[17]. - Administrative expenses rose to HK$19,433,000, an increase of 47.0% from HK$13,209,000 in the previous year[17]. - The company incurred a loss of HK$904,000 on the deregistration of a subsidiary, which was not present in the previous year[17]. - Other net income increased to HK$4,599,000, compared to HK$1,951,000 in the same period last year, marking a growth of 135.5%[17]. Accounting Policies and Standards - The group has applied HKFRS 16 starting April 1, 2019, affecting the financial reporting but not restating comparative information[18]. - The Group has adopted HKFRS 16, Leases, effective from April 1, 2019, which requires the recognition of a right-of-use asset and a lease liability for all leases, except for short-term leases and leases of low-value assets[39]. - The initial application of HKFRS 16 resulted in an adjustment to the opening balance of equity at April 1, 2019, but comparative information has not been restated[39]. - Under HKFRS 16, all leases are capitalized, eliminating the previous classification of leases as operating or finance leases[49]. - The right-of-use asset is measured at cost, which includes the initial lease liability amount plus any lease payments made before the commencement date[54]. - The lease liability is initially recognized at the present value of lease payments, discounted using the implicit interest rate or incremental borrowing rate[51]. - The Group has opted to use transitional practical expedients for contracts entered into before April 1, 2019, allowing previous assessments of leases to remain unchanged[44]. - The Group's newly capitalized leases primarily relate to property, plant, and equipment[49]. - Variable lease payments not dependent on an index or rate are charged to profit or loss in the accounting period incurred[51]. - The right-of-use asset is subsequently stated at cost less accumulated depreciation and impairment losses[55]. - The lease liability is remeasured when there are changes in future lease payments or estimates related to the lease[56]. - The Group's lease liabilities recognized as of April 1, 2019, amounted to HK$2,177,000[71]. - The weighted average incremental borrowing rate used for determining the present value of remaining lease payments was 2.95%[66]. - Operating lease commitments as of March 31, 2019, were HK$3,901,000[71]. - After adjustments for short-term leases and leases contracted but not commenced, the total lease liabilities recognized were HK$2,177,000[71]. - The Group applied exemptions for leases with remaining terms ending within 12 months from the initial application date of HKFRS 16[68]. - Right-of-use assets related to leases previously classified as operating leases were recognized at an amount equal to the remaining lease liabilities[73]. - The Group continues to account for leasehold investment properties at fair value under HKFRS 16[60]. - The transition to HKFRS 16 did not have a significant impact on the Group's financial statements due to prior application of HKAS 40[60]. - The Group's accounting policies as a lessor remain substantially unchanged from those under HKAS 17[61]. - The Group's right-of-use assets that do not meet the definition of investment property are presented in 'property, plant and equipment'[72]. Revenue and Customer Information - The Group's revenue for the nine months ended December 31, 2019, was HK$162,316,000, an increase of 16.5% compared to HK$139,337,000 for the same period in 2018[84]. - Sales of ODM toys to license holders amounted to HK$109,695,000, up 46.9% from HK$74,653,000 in the previous year[84]. - The Group's five largest customers contributed approximately 77% of total revenue during the period, compared to 73% in the corresponding period[84]. - Bank interest income increased to HK$940,000 from HK$599,000, representing a growth of 56.9%[91]. - The Group's largest customer generated revenue of HK$109,232,000, compared to HK$75,879,000 in the previous year[89]. Assets and Liabilities - Total non-current assets increased from HK$26,319,000 to HK$28,496,000 due to the adoption of HKFRS 16[75]. - Lease liabilities (current) were recorded at HK$1,618,000 as of April 1, 2019, impacting current liabilities[75]. - The net book value of right-of-use assets included in property, plant, and equipment was HK$18,168,000 as of April 1, 2019[75]. - The Group's total assets less current liabilities amounted to HK$164,100,000 as of April 1, 2019[75]. - The total future minimum lease payments under non-cancellable operating leases amounted to HK$3,901,000 as of March 31, 2019[113]. Staff and Expenses - Staff costs, including directors' remuneration, rose to HK$8,727,000, up 10.9% from HK$7,868,000 in the previous year[94]. - The Group recognized depreciation of property, plant, and equipment amounting to HK$3,850,000, an increase of 36% from HK$2,836,000 in the prior year[94]. - Current tax for Hong Kong profits tax was HK$3,459,000, a slight increase of 2.6% from HK$3,371,000 in 2018[97]. Future Plans and Investments - The Group plans to expand its product portfolio of licensed toys, enhance overseas distribution networks, and strengthen manpower, with a total planned use of proceeds amounting to HK$57,900,000[172]. - The Group aims to explore potential business opportunities beyond the ACG figure toys market to broaden income sources and enhance shareholder value[178]. - The Group believes it will achieve a breakthrough in business performance by leveraging its advantages, particularly its wide variety of high-end toy products[181]. Shareholder Information - As of December 31, 2019, Mr. Li Wai Keung holds 525,000,000 shares, representing 52.50% of the company's issued share capital[185]. - Infinite Force Holdings Ltd, wholly owned by Mr. Li, is the beneficial owner of the 525,000,000 shares[187]. - Ms. Fong Wing Yan, as the spouse of Mr. Li, is deemed to have an interest in the same 525,000,000 shares, also representing 52.50%[191]. - Quasar Global Selection SPC holds 112,500,000 shares, representing 11.25% of the company's issued share capital[191]. - Beta Breakers Holdings Limited acts as a trustee for the 112,500,000 shares held for Quasar Global Selection SPC[200]. - No ordinary shares were redeemed or purchased by the company or its subsidiaries during the reporting period[194]. - None of the directors or controlling shareholders have interests in any competing business during the reporting period[195]. - The company has adopted a code of conduct for securities transactions by directors, with no reported non-compliance during the period[196]. - As of December 31, 2019, no other interests or short positions were recorded for directors or chief executives in the company's shares[188]. - The company maintains a register of substantial shareholders with interests of 5% or more in the company's issued share capital[189].
佰悦集团(08545) - 2020 Q3 - 季度财报