Financial Performance - For the six months ended October 31, 2024, total revenue was HKD 136,130,000, with a gross profit of HKD 23,666,000, resulting in a gross margin of approximately 17.4%[7] - The net profit before tax for the group was HKD 6,605,000, reflecting a decrease from HKD 4,039,000 in the same period last year[7] - The total revenue for the same period last year was HKD 148,709,000, showing a decline of approximately 8.5% year-over-year[7] - Operating profit for the six months ended October 31, 2024, was HKD 6,688,000, an increase of 56.3% compared to HKD 4,283,000 in the previous year[16] - The total comprehensive income for the period was HKD 4,515,000, up from HKD 2,964,000, indicating a growth of 52.2%[20] - Earnings per share increased to HKD 0.6 from HKD 0.5, reflecting a growth of 20%[23] - The group experienced a net loss of HKD 6,320 thousand for the six months ending October 31, 2024, compared to a loss of HKD 7,201 thousand in the same period of 2023, reflecting an improvement of approximately 12.2%[42] - The total comprehensive loss for the period, after tax, was HKD 42 thousand, compared to a loss of HKD 720 thousand in the previous year, showing a significant reduction[39] Revenue Breakdown - The toy business generated revenue of HKD 107,838,000, while the laboratory equipment business reported revenue of HKD 28,292,000, indicating a decline in the toy segment compared to the previous period[7] - Revenue from the Americas was HKD 69,803,000, slightly up from HKD 69,716,000 year-over-year[11] - Revenue from Europe decreased to HKD 32,905,000 from HKD 33,283,000, reflecting a decline of 1.1%[11] - Revenue from the Asia-Pacific region (excluding China) dropped significantly to HKD 5,130,000 from HKD 9,079,000, a decrease of 43.5%[11] - Revenue from China also saw a decline, falling to HKD 28,292,000 from HKD 36,631,000, representing a decrease of 22.9%[11] - Revenue from North America increased by 0.9% to approximately HKD 69.3 million, compared to HKD 68.7 million in the previous year[73] - Revenue from the laboratory equipment business decreased by 22.7% to approximately HKD 28.3 million (2023: HKD 36.6 million), impacted by the slowdown in the Chinese economy and intense industry price competition[97] Cost and Expenses - The cost of sales for the six months ending October 31, 2024, was HKD 23,666 thousand, down from HKD 26,711 thousand in the previous year, indicating a reduction of about 11.4%[42] - Total expenses for the six months ended October 31, 2024, were 129,746 thousand HKD, a decrease of 9.8% from 143,913 thousand HKD in the same period of 2023[44] - The company incurred advertising and promotional expenses of 1,151 thousand HKD for the six months ended October 31, 2024, down from 1,468 thousand HKD in the same period of 2023, reflecting a reduction of 21.5%[44] - Employee costs, including directors' remuneration, amounted to 10,665 thousand HKD for the six months ended October 31, 2024, a decrease of 20% from 13,328 thousand HKD in the same period of 2023[44] - The company’s total cost of goods sold was 92,498 thousand HKD for the six months ended October 31, 2024, compared to 99,992 thousand HKD in the same period of 2023, showing a decrease of 7.5%[44] - Sales and distribution expenses decreased by 12.5% to approximately HKD 6.3 million (2023: HKD 7.2 million), primarily due to a reduction in sales commissions corresponding to the decline in revenue from the toy and laboratory equipment businesses[100] - Administrative expenses decreased by 25.2% to approximately HKD 11.0 million (2023: HKD 14.7 million), mainly due to reduced employee costs and other fixed indirect expenses[101] Assets and Liabilities - Total assets as of October 31, 2024, amounted to HKD 63,191,000, with liabilities totaling HKD 31,865,000, resulting in a net asset position[9] - The total assets as of October 31, 2024, amounted to HKD 63,492,000, an increase from HKD 58,304,000[28] - Total liabilities stood at HKD 31,865,000, slightly up from HKD 31,192,000, indicating a growth of 2.2%[24] - The company’s cash and bank balances were reported at HKD 20,000 as of October 31, 2024, indicating a tight liquidity position[9] Strategic Focus and Future Outlook - The company has identified two main operating segments: the toy business and laboratory equipment, with a focus on resource allocation based on performance metrics[5] - The company is committed to evaluating its performance regularly to optimize resource distribution and enhance overall operational efficiency[5] - The group is focused on improving its financial performance and is exploring new strategies for market expansion and product development[41] - The company plans to expand its product range by introducing new popular licenses, which is expected to enhance profitability and capture market share in previously untapped countries[82] - The company expects a potential improvement in the global economic situation by 2025, which may present opportunities for launching more competitive and innovative products[81] - The company remains optimistic about future market opportunities, bolstered by its ability to adapt to market changes and innovate[109] Compliance and Reporting - The group has adopted new and revised Hong Kong Financial Reporting Standards effective from May 1, 2024, which will not have a significant impact on the financial performance and position of the group[34] - The group has not early adopted certain new and revised Hong Kong Financial Reporting Standards that will become effective in future periods, which are not expected to have a significant impact on the consolidated financial statements[36] - The management has made significant judgments and estimates in preparing the interim financial information, which may differ from actual results[37] - The company will issue its interim report for the six months ending October 31, 2024, to shareholders in due course[113] - The board of directors confirmed compliance with the standards set forth in the Listing Rules Appendix C3 during the reporting period[115] Stakeholder Engagement - The company expresses gratitude to all stakeholders for their support and contributions throughout the period[116]
童园国际(03830) - 2025 - 中期业绩