彩星集团(00635) - 2024 - 中期财报

Management Discussion and Analysis This section provides an overview of the Group's financial performance and operational highlights across its key business segments, including property, toys, and investments Overview In H1 2024, the Group's total revenue increased by 23.3% to HK$527 million, driven by strong performance in the toy business, but a significant HK$250 million revaluation loss on investment properties led to a net loss of HK$160 million attributable to owners, despite maintaining an interim dividend of HK$0.015 per share Key Financial Indicators for H1 2024 | Indicator | 2024 H1 (HK$ Thousand) | 2023 H1 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Group Revenue | 526,666 | 427,006 | +23.3% | | Gross Profit | 324,137 | 259,934 | +24.7% | | Net (Loss)/Gain on Revaluation of Investment Properties | (249,529) | 4,123 | N/A | | Operating (Loss)/Profit | (121,081) | 120,219 | N/A | | (Loss)/Profit Attributable to Owners of the Company | (159,880) | 96,291 | N/A | | (Loss)/Earnings Per Share (HK Cents) | (7.72) | 4.65 | N/A | | Interim Dividend Per Share (HK Cents) | 1.50 | 1.50 | Unchanged | Property Investment and Management The Property Investment and Management segment's revenue slightly increased by 3.3% to HK$79.3 million, but a HK$249.5 million net revaluation loss on investment properties (compared to a HK$4.1 million gain last year) resulted in an operating loss of HK$190 million for the segment Property Investment and Management Segment Performance | Indicator | 2024 H1 (HK$ Thousand) | 2023 H1 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 79,339 | 76,792 | | Net (Loss)/Gain on Revaluation of Investment Properties | (249,529) | 4,123 | | Segment Operating (Loss)/Profit | (190,320) | 58,800 | Property Investment The Group's investment property portfolio, primarily Hong Kong commercial, residential, and industrial properties, has a total fair value of HK$4.7 billion, with total rental income increasing 3.9% to HK$68.5 million, though overall occupancy decreased from 74% to 68% - Key investment properties include Star Group Centre on Canton Road, several residential units in Mid-Levels on Macdonnell Road, and Star Industrial Building in Tuen Mun. Overseas properties constitute 8.3% of the portfolio's fair value[3] - Total rental income amounted to HK$68.5 million, representing a 3.9% increase compared to the same period last year[3] - The overall occupancy rate for investment properties was approximately 68%, a decrease from 74% at the end of 2023[3] Property Management Property management services, handled by Savills, generated HK$10.8 million in revenue during the period, a slight decrease of 0.9% from the prior year - Property management business revenue was HK$10.8 million, a 0.9% year-on-year decrease[7] Playmates Toys Playmates Toys demonstrated strong performance with global revenue surging 28% year-on-year to HK$445 million, primarily driven by the successful launch of "Godzilla x Kong" toys offsetting a decline in "Teenage Mutant Ninja Turtles" sales due to high base effects, while gross margin improved from 54% to 56% and operating profit grew 21.7% to HK$68.4 million Playmates Toys Segment Performance | Indicator | 2024 H1 (HK$) | 2023 H1 (HK$) | | :--- | :--- | :--- | | Global Revenue | 445 million | 347 million | | Gross Margin | 56% | 54% | | Operating Profit | 68.4 million | 56.2 million | - The second half of the year is expected to face challenges from tight household budgets and a high comparative base from last year's "Teenage Mutant Ninja Turtles" movie release, but the company remains optimistic about the long-term prospects of "Teenage Mutant Ninja Turtles" and new brands under development for 2025/2026[9] Brand Overview Core brands continue to evolve with expanding product lines, including Paramount's ongoing production of a "Teenage Mutant Ninja Turtles: Mutant Mayhem" movie sequel and animated series, sustained toy sales driven by the successful "Godzilla x Kong: The New Empire" film, and a new agreement with Hasbro for "Power Rangers" toys launching in Fall 2025 - "Teenage Mutant Ninja Turtles": A movie sequel and the spin-off animated series "Tales of The Teenage Mutant Ninja Turtles" are in production, with the latter set to premiere in August 2024[10] - "Godzilla x Kong": As a major global licensee, the product line is being expanded to meet strong sales driven by the movie[11] - "Power Rangers": A global licensing agreement has been signed with Hasbro, with plans to launch a new series of toy products in Fall 2025[12] Portfolio Investments The portfolio investment business primarily invests in highly liquid listed equities, with a fair value of HK$98.4 million at period-end, representing 1.5% of the Group's total assets, and recorded a net investment gain of HK$18.5 million and dividend and interest income of HK$32.2 million during the period - As of June 30, 2024, the fair value of the investment portfolio was HK$98.4 million, a slight increase from HK$95.3 million at the end of 2023[13] - The investment portfolio includes Hong Kong and overseas listed securities, with top ten holdings comprising technology and consumer giants such as NVIDIA, Amazon, Apple, Microsoft, and Tencent Holdings[13] Portfolio Investment Income | Item | 2024 H1 (HK$ Thousand) | 2023 H1 (HK$ Thousand) | | :--- | :--- | :--- | | Net Investment Gain | 18,500 | 17,400 | | Dividend and Interest Income | 32,200 | 18,900 | Condensed Consolidated Financial Information This section presents the Group's condensed consolidated financial statements, including the income statement, comprehensive income, balance sheet, cash flow, equity changes, and related notes Condensed Consolidated Income Statement For the six months ended June 30, 2024, the Group reported revenue of HK$527 million, a 23.3% year-on-year increase, but a significant HK$250 million revaluation loss on investment properties led to an operating loss of HK$121 million and a net loss attributable to owners of HK$160 million, with a basic loss per share of HK$0.0772 Summary of Condensed Consolidated Income Statement | Item (HK$ Thousand) | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Revenue | 526,666 | 427,006 | | Gross Profit | 324,137 | 259,934 | | Net (Loss)/Gain on Revaluation of Investment Properties | (249,529) | 4,123 | | Operating (Loss)/Profit | (121,081) | 120,219 | | (Loss)/Profit for the Period | (114,899) | 139,039 | | (Loss)/Profit Attributable to Owners of the Company | (159,880) | 96,291 | Condensed Consolidated Statement of Comprehensive Income Building on a period loss of HK$115 million, the total comprehensive loss for the period amounted to HK$126 million after accounting for a HK$10.94 million exchange loss arising from the translation of overseas subsidiaries Summary of Condensed Consolidated Statement of Comprehensive Income | Item (HK$ Thousand) | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | (Loss)/Profit for the Period | (114,899) | 139,039 | | Other Comprehensive Income | (10,936) | 915 | | Total Comprehensive (Loss)/Income for the Period | (125,835) | 139,954 | Condensed Consolidated Statement of Financial Position As of June 30, 2024, the Group's total assets decreased to HK$6.387 billion from HK$6.778 billion at the end of 2023, primarily due to investment property revaluation losses, with total liabilities at HK$544 million, net assets at HK$5.843 billion, and cash and bank balances increasing to HK$1.15 billion Summary of Condensed Consolidated Statement of Financial Position | Item (HK$ Thousand) | 2024 H1 | 2023 H2 | | :--- | :--- | :--- | | Non-current Assets | 4,878,545 | 5,139,842 | | Current Assets | 1,508,301 | 1,637,763 | | Total Assets | 6,386,846 | 6,777,605 | | Current Liabilities | 488,951 | 650,665 | | Non-current Liabilities | 54,750 | 60,853 | | Total Liabilities | 543,701 | 711,518 | | Net Assets | 5,843,145 | 6,066,087 | Condensed Consolidated Statement of Cash Flows During the period, net cash generated from operating activities significantly improved to HK$169 million from HK$40.49 million in the prior year, cash flow from investing activities remained largely stable, while financing activities resulted in a net cash outflow of HK$148 million due to loan repayments and dividend payments, with cash and cash equivalents at period-end totaling HK$504 million Summary of Condensed Consolidated Statement of Cash Flows | Item (HK$ Thousand) | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 168,952 | 40,487 | | Net Cash Generated from Investing Activities | 3,429 | 38,858 | | Net Cash Used in Financing Activities | (147,886) | (86,030) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 24,495 | (6,685) | Condensed Consolidated Statement of Changes in Equity As of June 30, 2024, total equity attributable to owners of the company decreased by HK$233 million to HK$5.261 billion from HK$5.494 billion at the beginning of the year, primarily due to a total comprehensive loss of HK$171 million for the period and dividend payments and share repurchases totaling HK$62.27 million - Equity attributable to owners of the company decreased from HK$5.494 billion at the beginning of the year to HK$5.261 billion at period-end[21] - Key factors contributing to the decrease in equity include a total comprehensive loss of HK$171 million for the period, dividend payments of HK$62.09 million, and share repurchases of HK$0.174 million[21] Notes to the Condensed Consolidated Financial Information This section provides detailed notes to the financial statements, covering specific explanations and data breakdowns for key items such as basis of preparation, accounting policies, segment information, revenue, dividends, commitments, and related party transactions Revenue and Segment Information The Group's revenue is categorized into three business segments: toy business, property investment and management, and investment business, with the toy business being the primary revenue source, accounting for 84.5% of total revenue, and the Americas being the largest market, contributing over 63% of revenue Revenue by Business Segment (HK$ Thousand) | Segment | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Toy Business | 445,141 | 347,231 | | Property Investment and Management | 79,339 | 76,792 | | Investment Business | 2,186 | 2,983 | | Total | 526,666 | 427,006 | Revenue by Geographical Region (HK$ Thousand) | Region | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Hong Kong | 81,629 | 79,072 | | Americas | 335,288 | 240,952 | | Europe | 90,536 | 80,498 | | Other Asia Pacific | 18,825 | 25,678 | | Others | 388 | 806 | | Total | 526,666 | 427,006 | Dividends The Board resolved to declare an interim dividend of HK$0.015 per share for 2024, consistent with the prior year, totaling approximately HK$31.05 million, payable on September 27, 2024 - An interim dividend of HK$0.015 per share was declared, consistent with the same period in 2023[38] Share Capital For the six months ended June 30, 2024, the company repurchased and cancelled 310,000 of its own shares on the Stock Exchange for a total consideration of HK$0.174 million, reducing the issued share capital to 2,069,690,000 shares - During the period, the company repurchased 310,000 shares for a total consideration of HK$0.174 million, at a price of HK$0.56 per share[50] - All repurchased shares have been cancelled, reducing the number of issued shares to 2,069,690,000[49][50] Information Required by Listing Rules This section provides disclosures mandated by the Listing Rules, including details on liquidity, share-based incentive plans, director and major shareholder interests, and corporate governance compliance Liquidity and Financial Resources The Group maintains a sound financial position, with its gearing ratio (total bank borrowings/total tangible assets) decreasing to 2.8% as of June 30, 2024, from 3.4% at the year-end, and the current ratio improving from 2.5 to 3.1, supported by ample cash and bank balances of HK$1.15 billion, predominantly in USD Key Financial Ratios | Ratio | 2024 H1 | 2023 H2 | | :--- | :--- | :--- | | Gearing Ratio | 2.8% | 3.4% | | Current Ratio | 3.1 | 2.5 | - As of June 30, 2024, cash and bank balances totaled HK$1.15 billion, with approximately 93% (HK$1.068 billion) denominated in USD[63] Share Award Scheme The Company itself has not adopted any share award scheme, but its non-wholly owned subsidiary, Playmates Toys, adopted one in May 2023 with an authorized limit of 118 million shares, though no awards have been granted under the scheme since its adoption - The Company had no share award scheme during the period[64] - No share awards have been granted, vested, cancelled, or lapsed under the subsidiary Playmates Toys' share award scheme since its adoption[66] Share Options The Company itself has no share option scheme; its subsidiary Playmates Toys' "2018 Playmates Toys Scheme" terminated in May 2023, ceasing new grants, but existing options remain valid, with no options granted, exercised, cancelled, or lapsed during the period - The Company had no share option scheme during the period[68] - The subsidiary Playmates Toys' 2018 Share Option Scheme has terminated, with no changes to any share options during the period[71][73] Directors' and Major Shareholders' Interests The report discloses directors' and major shareholders' interests in the company's shares, with Mr. Chan Chun Hoo, Thomas, considered a controlling shareholder, holding a combined 65.25% of the company's shares personally and through his company, TGC Assets Limited - Major shareholder Mr. Chan Chun Hoo, Thomas, is deemed to be interested in 1,350,400,000 shares of the company, representing 65.25% of the issued share capital[76] - TGC Assets Limited beneficially holds 1,078,400,000 shares, representing 52.10% of the issued share capital[76] Repurchase, Sale or Redemption of Shares During the reporting period, the company repurchased and cancelled 310,000 of its own shares on the Stock Exchange for a total consideration of HK$0.174 million, at a repurchase price of HK$0.56 per share - The company repurchased 310,000 shares at a price of HK$0.56 per share during the period[77] Compliance with Corporate Governance Code The company complied with most provisions of the Corporate Governance Code during the reporting period, with one deviation from Code Provision C.2.1 regarding the separation of Chairman and Chief Executive Officer roles, as no CEO position exists and daily operations are jointly managed by executive directors, which the Board deems appropriate - There is a deviation from Code Provision C.2.1, where the roles of Chairman and Chief Executive Officer are not segregated, and no Chief Executive Officer has been appointed[78] Company Information This section provides essential company details, including board members, company secretary, registered and principal office addresses, auditors, legal advisors, principal bankers, share registrars, and the company's stock code (635) and official website Basic Company Information This section provides essential company details, including board members, company secretary, registered and principal office addresses, auditors, legal advisors, principal bankers, share registrars, and the company's stock code (635) and official website - The Chairman and Executive Director is Chan Kwong Fai[83] - The company's shares are listed on The Stock Exchange of Hong Kong Limited under stock code 635[83]