Financial Performance - For the six months ended June 30, 2024, the company reported revenue of HKD 2,294,000,000, a decrease of 7.8% from HKD 2,489,100,000 for the same period in 2023[3] - Gross profit for the same period was HKD 550,300,000, down from HKD 576,600,000, maintaining a gross margin of 24.0%, compared to 23.2% in the previous year[3] - Net profit attributable to shareholders was HKD 278,900,000, a decline from HKD 333,800,000, resulting in a net profit margin of 12.2%, down from 13.4%[3] - Operating profit decreased to HKD 349,301, a decline of 16.9% from HKD 420,621 in the previous year[32] - The profit for the period was HKD 278,854, down 16.5% from HKD 333,848 in the prior year[33] - Basic and diluted earnings per share were HKD 0.412, compared to HKD 0.493 for the same period last year, representing a decrease of 16.4%[32] - The total comprehensive income for the period was HKD 238,954, down from HKD 327,650, a decline of 27.0%[33] - Reported segment profit for the six months ended June 30, 2024, was HKD 426,275,000, down from HKD 510,817,000 in the same period of 2023, representing a decrease of approximately 16.5%[53] Revenue Breakdown - The plush toy segment generated sales of HKD 1,186,100,000, accounting for 51.7% of total revenue, showing resilience due to strong demand from theme parks in Asia[4] - The plastic model segment reported revenue of HKD 936,300,000, representing 40.8% of total revenue, with ongoing new project discussions and development[5] - Revenue from waterproof covers decreased to HKD 171,600,000, down from HKD 242,100,000, primarily due to high inventory levels in the U.S. market[6] - Revenue from plush toys was HKD 1,186,083,000, down from HKD 1,239,913,000, representing a decline of 4.3%[49] - Revenue from plastic model kits decreased to HKD 936,337,000 from HKD 1,007,115,000, a drop of 7.03%[49] - Revenue from waterproof covers fell to HKD 171,625,000 from HKD 242,050,000, a significant decrease of 29.1%[49] - Revenue from North America was HKD 976,417,000, down 18.3% from HKD 1,194,381,000[50] - Revenue from Japan decreased to HKD 539,157,000 from HKD 654,266,000, a decline of 17.6%[50] - Revenue from mainland China increased to HKD 509,985,000 from HKD 394,396,000, marking a growth of 29.3%[50] Assets and Liabilities - As of June 30, 2024, the group's net current assets amounted to HKD 2,313,100,000, a slight decrease from HKD 2,326,100,000 as of December 31, 2023[11] - The total cash and cash equivalents as of June 30, 2024, were HKD 1,127,500,000, down from HKD 1,264,500,000 as of December 31, 2023[11] - The bank loan amount as of June 30, 2024, was HKD 81,100,000, an increase from HKD 73,500,000 as of December 31, 2023[11] - The total equity as of June 30, 2024, was HKD 3,680,795 thousand, a slight increase from HKD 3,678,744 thousand[35] - Total assets as of June 30, 2024, were HKD 1,881,194,000, down from HKD 1,992,398,000 as of December 31, 2023, a decline of about 5.6%[53] - Total liabilities increased to HKD 344,741,000 as of June 30, 2024, from HKD 295,198,000 as of December 31, 2023, representing an increase of approximately 16.8%[53] Cash Flow and Financing - Operating cash flow netted HKD 247,842 thousand, down from HKD 363,661 thousand, a decrease of 31.8%[41] - The company reported a net cash outflow from financing activities of HKD 249,822 thousand, compared to HKD 241,141 thousand in the prior year[42] - The company incurred financial expenses of HKD 1,371,000 for the six months ended June 30, 2024, significantly lower than HKD 6,755,000 in the same period of 2023, indicating a decrease of about 79.7%[55] Dividends and Shareholder Information - The interim dividend declared for the six months ended June 30, 2024, was HKD 0.20 per share, consistent with the previous year[15] - The total interim dividend amounted to HKD 135,373,000, unchanged from the same period in 2023[15] - Major shareholders included Choi Kwai Yung with a total of 461,361,000 shares, representing 68.16% of the issued shares[18] Operational Strategy and Future Plans - The company plans to enhance production capacity with a new factory in Indonesia, expected to be completed in the first half of 2025, to meet increasing customer demand outside of China[9] - The company aims to focus on improving sales performance and efficiency in the second half of 2024, while continuing to automate production processes[9] Compliance and Governance - The audit committee reviewed the interim financial results and confirmed compliance with relevant accounting standards and regulations[29] - The company has adopted the standard code for securities transactions by directors and confirmed compliance by all directors for the six-month period[28] - The board believes that the current dual role of the Chairman and CEO is appropriate for maintaining policy continuity and business stability[27] Inventory and Receivables - The company’s inventory increased to HKD 969,275 thousand from HKD 815,616 thousand, a rise of 18.9%[34] - Accounts receivable and notes receivable, net of loss provisions, totaled HKD 733,489,000 as of June 30, 2024, down from HKD 775,505,000 as of December 31, 2023[68] - The total accounts payable as of June 30, 2024, was HKD 498,550,000, an increase from HKD 372,896,000 as of December 31, 2023[71] Investments and Fair Value - The group did not hold any significant investments as of June 30, 2024[13] - The fair value of unlisted equity securities as of June 30, 2024, is HKD 2,996,000, down from HKD 3,206,000 as of December 31, 2023, reflecting a decrease of approximately 6.5%[78] - The fair value measurement for unlisted equity securities includes a lack of marketability discount of 30%, which has remained unchanged from the previous year[80]
德林国际(01126) - 2024 - 中期财报