彩星玩具(00869) - 2025 - 中期业绩

Management Discussion and Analysis Performance Overview In H1 2025, the company's revenue sharply declined by 58% to HKD 186 million, resulting in a net loss of HKD 25.6 million due to a high prior-year base, slower core brand demand, and trade tensions, with gross margin also pressured by tariffs and increased costs Key Financial Indicators for H1 2025 | Indicator | H1 2025 (HKD Thousands) | H1 2024 (HKD Thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 185,514 | 445,141 | -58.3% | | Gross Profit | 79,360 | 249,447 | -68.2% | | Operating (Loss)/Profit | (45,293) | 68,435 | N/A | | (Loss)/Profit Attributable to Owners of the Company | (25,610) | 91,458 | N/A | | Basic (Loss)/Earnings Per Share | (2.17) HK Cents | 7.75 HK Cents | N/A | | Interim Dividend Per Share | 1.00 HK Cents | 2.00 HK Cents | -50.0% | - Three main reasons for revenue decline include: (i) decreased shipments of Godzilla x Kong products due to fading movie effects; (ii) slower demand for the Ninja Turtles brand due to a lack of major entertainment events; and (iii) trade tensions hindering product shipments to the US market[2] - Gross margin decreased from 56% in the prior period to 43%, primarily affected by US tariffs, increased development costs for new products, and clearance costs for discontinued products[3] - The company anticipates ongoing challenges from global trade changes, with current tariff measures negatively impacting profitability, and is evaluating alternative sourcing options while planning selective price adjustments to mitigate some effects[4] Brand Overview and Development The company is actively developing new product lines for core IPs, including a Ninja Turtles series, newly acquired global licensing for Hasbro's Power Rangers with positive reception, and new toy series for Godzilla x Kong and Winx aligned with upcoming media content - Ninja Turtles: A four-season series is being produced to connect the movie and its 2027 sequel, with the company actively developing new products to align with the content release[5] - Power Rangers: A global licensing agreement has been signed with Hasbro to develop the Mighty Morphin Power Rangers: Re-Ignition toy series, with initial products shipped and positive preliminary consumer response[6] - Godzilla x Kong: As a major global toy licensee, the company will continue to develop and expand its product series[7] - Winx: To coincide with the reboot series premiering on Netflix in October 2025, a new fashion doll and role-play toy series will be launched this autumn[8] Condensed Consolidated Financial Information Condensed Consolidated Statement of Profit or Loss For H1 2025, the company reported revenue of HKD 186 million, a 58.3% decrease, resulting in an operating loss of HKD 45.29 million and a net loss of HKD 25.61 million due to reduced revenue and gross margin H1 2025 Statement of Profit or Loss Summary | Item (HKD Thousands) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 185,514 | 445,141 | | Gross Profit | 79,360 | 249,447 | | Operating (Loss)/Profit | (45,293) | 68,435 | | (Loss)/Profit Before Income Tax | (15,517) | 117,420 | | (Loss)/Profit Attributable to Owners of the Company | (25,610) | 91,458 | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets were HKD 1.32 billion, with net assets of HKD 1.10 billion and net current assets of HKD 1.07 billion, indicating a strong financial position with HKD 1.03 billion in cash and bank balances Statement of Financial Position Summary | Item (HKD Thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 1,320,066 | 1,425,132 | | Total Liabilities | 215,294 | 224,010 | | Net Assets | 1,104,772 | 1,201,122 | | Cash and Bank Balances | 1,028,781 | 1,043,325 | | Trade Receivables | 44,435 | 136,670 | Notes to the Condensed Consolidated Financial Information Notes reveal a single business segment, significant revenue decline in the Americas, high customer concentration, decreased other income due to lower investment and interest gains, and a 50% reduction in interim dividend to HKD 0.01 per share Revenue and Segment Information The company operates in a single segment (toys and home entertainment), with the Americas as the primary but significantly declining revenue source, European revenue halved, and high customer concentration where the top three clients account for approximately 71% of total revenue Revenue by Region (HKD Thousands) | Region | H1 2025 | H1 2024 | | :--- | :--- | :--- | | United States | 131,459 | 309,454 | | Other Americas | 20,217 | 25,826 | | Europe | 31,351 | 90,536 | | Other Asia Pacific excluding Hong Kong | 2,487 | 18,549 | - The Group has three major customers whose transactions account for over 10% of total revenue, with sales revenue of approximately HKD 56.57 million, HKD 51.05 million, and HKD 24.01 million, respectively[18] Net Other Income Net other income decreased from HKD 50.82 million to HKD 30.72 million, primarily due to reduced unrealized and realized gains from financial assets and lower interest income Net Other Income Details (HKD Thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Gains from Financial Assets | 9,009 | 20,742 | | Interest Income | 21,149 | 29,811 | | Total | 30,718 | 50,822 | Dividends The Board declared an interim dividend of HKD 0.01 per share for H1 2025, a 50% reduction from HKD 0.02 per share in the prior period - The Board resolved to declare an interim dividend of HKD 0.01 per share, compared to HKD 0.02 per share in the prior period[23] Loss/Earnings Per Share Due to the company's shift from profit to loss, basic loss per share was HKD 0.0217, compared to basic earnings per share of HKD 0.0775 in the prior period - Basic loss per share was HKD 0.0217, calculated based on the loss attributable to owners of the company of HKD 25.61 million[26] Trade Receivables Trade receivables significantly decreased from HKD 137 million to HKD 44.44 million, reflecting lower H1 sales, with approximately 85% of receivables aged within 60 days Trade Receivables Aging Analysis (HKD Thousands) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 60 days | 37,981 | 89,307 | | 61 to 90 days | 5,334 | 35,777 | | Over 90 days | 1,120 | 11,586 | | Total | 44,435 | 136,670 | Financial Analysis and Other Information Financial Analysis The Group maintains a robust financial position with a current ratio of 6.0 and HKD 1.03 billion in cash, holding an HKD 85.04 million listed securities portfolio (6.4% of total assets), with USD sales naturally hedged by the HKD-USD peg - As of June 30, 2025, the Group's current ratio was 6.0, with ample cash and bank balances of HKD 1.029 billion[30] - The treasury investment portfolio was valued at HKD 85.04 million, representing 6.4% of total assets, with top ten holdings including NVIDIA, Amazon, Microsoft, Tencent Holdings, and Alibaba[31] Share Repurchases and Corporate Governance During the period, the share award scheme trustee purchased 3 million shares in the open market, and while the company largely complied with corporate governance codes, the roles of Chairman and CEO are not separated, though the Board deems the current structure appropriate - During the period, the trustee of the share award scheme purchased a total of 3 million shares in the open market for a total consideration of approximately HKD 1.68 million[33] - The company did not comply with Corporate Governance Code Provision C.2.1, which stipulates that the roles of Chairman and Chief Executive Officer should be separate; however, the Board believes the current structure, where executive directors jointly manage daily operations, ensures effective management[34]