彩星集团(00635) - 2025 - 中期业绩

Management Discussion and Analysis Overview H1 2025 saw Playmates Group's revenue drop 50.5% due to toy business decline, leading to expanded operating and attributable losses despite unchanged interim dividends Key Financial Data Overview for H1 2025 | Indicator | H1 2025 (HKD Thousands) | H1 2024 (HKD Thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Group Revenue | 261,116 | 526,666 | -50.5% | | —Toy Business | 185,514 | 445,141 | -58.3% | | —Property Investment and Management Business | 74,800 | 79,339 | -5.7% | | —Investment Business | 802 | 2,186 | -63.3% | | Gross Profit | 146,835 | 324,137 | -54.7% | | Net Revaluation Loss on Investment Properties | (234,926) | (249,529) | -5.9% | | Operating Loss | (227,641) | (121,081) | +88.0% | | Loss Before Income Tax | (198,940) | (80,414) | +147.4% | | Loss Attributable to Owners of the Company | (205,570) | (159,880) | +28.6% | | Loss Per Share (HK cents) | (9.94) | (7.72) | +28.8% | | Interim Dividend Per Share (HK cents) | 1.50 | 1.50 | 0.0% | - Group revenue significantly decreased by 50.5% year-on-year to HKD 261.116 million, primarily due to a sharp reduction in toy business revenue[2] - Loss attributable to owners of the Company expanded to HKD 205.57 million, with basic loss per share increasing to 9.94 HK cents[2] - Net revaluation loss on investment properties was HKD 234.926 million, slightly lower than the prior period, but remained a primary cause of operating loss[2][3] Property Investment and Management Business Property segment revenue fell 5.7% to HKD 74.8M, with HKD 234.9M revaluation losses causing a HKD 183.1M operating loss, yet long-term optimism persists - Property Investment and Management segment revenue decreased by 5.7% year-on-year to HKD 74.8 million[3] - Fair value of investment properties was HKD 4.2 billion, with a net revaluation loss of HKD 234.9 million[3] - Segment operating loss (including property revaluation) was HKD 183.1 million, a slight narrowing compared to the prior period[3] - Total rental income from investment properties was HKD 65 million, a 5.1% year-on-year decrease[4] - Overall occupancy rate of investment properties was approximately 58.8%, down from 60.3% as of December 31, 2024[4] Property Investment Key investment properties in Hong Kong and overseas face market challenges, but renovations and redevelopments aim to enhance long-term value - Key investment properties include commercial buildings (Playmates Group Building), residential units (Mid-Levels Tower), and industrial buildings (Playmates Industrial Building) in Hong Kong[4] - Overseas investment properties accounted for 9.6% of the Group's total investment property portfolio fair value (December 31, 2024: 8.6%)[4] - The Hong Kong retail and commercial property markets face challenges due to changing consumption patterns, office oversupply, and weak demand[5] - Internal renovation and refurbishment works for Mid-Levels Tower residential units commenced in 2021, expected to enhance long-term value[6] - Playmates Industrial Building received conditional planning approval for conversion to commercial use, with subsequent approval procedures currently underway[7] Property Management Property management revenue decreased by 9.3% to HKD 9.8M, with Savills appointed for services, as the Group balances its portfolio for growth - Property management business segment revenue decreased by 9.3% to HKD 9.8 million[9] - Savills Property Management Limited was appointed to manage Playmates Group Building and Playmates Industrial Building, providing comprehensive property management services[8] - The Group remains optimistic about the long-term prospects of property investment and will appropriately balance its investment property portfolio to achieve capital appreciation and recurring income growth[9] Playmates Toys Business Playmates Toys' global revenue plunged 58% to HKD 186M due to weak brands and trade tensions, resulting in a 43% gross margin and HKD 45M operating loss - Playmates Toys' global revenue decreased by 58% year-on-year to HKD 186 million[10] - The revenue decrease was primarily attributed to reduced shipments of "Godzilla x Kong" products, a lack of major entertainment-driven events for the "Teenage Mutant Ninja Turtles" brand, and trade tensions hindering product shipments to the US market[10] - Toy sales gross margin decreased from 56% in the prior period to 43%, mainly impacted by US import tariffs, increased product development and tooling costs as a percentage of sales, and higher clearance costs for discontinued products[10] - Playmates Toys Group recorded an operating loss of HKD 45 million (prior period: operating profit of HKD 68 million), with a net loss of HKD 25.6 million[11] - The Group is prudently evaluating alternative sourcing options and closely monitoring changes in consumer behavior to address challenges from global trade dynamics and tariff adjustments[11] Brand Overview The Group develops new product lines for key brands like Ninja Turtles and Power Rangers, aligning with entertainment releases to maintain relevance - The "Teenage Mutant Ninja Turtles" brand will launch a four-season series to connect with the movies, with the first season already aired on Paramount+ and Netflix, and seasons two to four planned for premiere this autumn[12] - A global licensing agreement was signed with Hasbro to produce and distribute "Power Rangers" toys, with initial products shipped and receiving positive feedback[13] - As the primary global toy licensee for "Godzilla x Kong," the Group will continue to develop and expand product lines, bringing MonsterVerse characters to life[14] - The "Winx Club: The Magic Is Back" CGI reboot will premiere on Netflix in October 2025, with the Group launching new fashion dolls and role-play toy lines this autumn[15] Investment Business The investment portfolio, valued at HKD 98.9M, generated HKD 11.5M net gain and HKD 22.2M income in H1 2025, with cautious monitoring ongoing - The fair market value of the investment portfolio was HKD 98.9 million (December 31, 2024: HKD 109.1 million), representing 1.7% of the Group's total assets (December 31, 2024: 1.8%)[17] - The investment portfolio included HKD 23.6 million in Hong Kong-listed securities and HKD 75.3 million in overseas-listed securities[17] - The top ten listed securities included NVIDIA, Amazon, Disney, Netflix, Tencent, Microsoft, Alphabet, Sun Hung Kai Properties, Goldman Sachs, and Apple[17] - A net investment gain of HKD 11.5 million was recorded in H1 2025 (H1 2024: HKD 18.5 million)[18] - Dividend and interest income from the investment portfolio amounted to HKD 22.2 million (H1 2024: HKD 32.2 million)[18] Condensed Consolidated Financial Information Condensed Consolidated Statement of Profit or Loss H1 2025 saw group revenue decline, leading to expanded operating and pre-tax losses, culminating in a HKD 218M period loss due to revaluation losses Key Data from Condensed Consolidated Statement of Profit or Loss (HKD Thousands) | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 261,116 | 526,666 | -50.5% | | Cost of Sales | (114,281) | (202,529) | -43.6% | | Gross Profit | 146,835 | 324,137 | -54.7% | | Marketing and License Expenses | (47,609) | (91,651) | -48.1% | | Selling and Distribution Expenses | (15,629) | (31,725) | -50.7% | | Administrative Expenses | (76,312) | (72,313) | +5.5% | | Net Revaluation Loss on Investment Properties | (234,926) | (249,529) | -5.9% | | Operating Loss | (227,641) | (121,081) | +88.0% | | Net Other Income | 33,242 | 48,651 | -31.7% | | Finance Costs | (4,541) | (7,984) | -43.1% | | Loss Before Income Tax | (198,940) | (80,414) | +147.4% | | Income Tax Expense | (19,218) | (34,485) | -44.3% | | Loss for the Period | (218,158) | (114,899) | +89.9% | | Loss Attributable to Owners of the Company | (205,570) | (159,880) | +28.6% | - Period loss increased from HKD 114.9 million to HKD 218.2 million, and loss attributable to owners of the Company increased from HKD 159.9 million to HKD 205.6 million[20] Condensed Consolidated Statement of Comprehensive Income Period loss expanded to HKD 218M, but positive foreign exchange differences partially offset this, resulting in a wider total comprehensive loss year-on-year Key Data from Condensed Consolidated Statement of Comprehensive Income (HKD Thousands) | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Loss for the Period | (218,158) | (114,899) | +89.9% | | Exchange Differences Arising from Translation of Overseas Subsidiaries | 26,710 | (10,936) | N/A (from loss to gain) | | Total Comprehensive Income for the Period | (191,448) | (125,835) | +52.1% | | Total Comprehensive Income Attributable to Owners of the Company | (178,860) | (170,816) | +4.7% | - Exchange differences arising from the translation of overseas subsidiaries shifted from a loss of HKD 10.936 million in H1 2024 to a gain of HKD 26.71 million in H1 2025[21] - Total comprehensive loss for the period was HKD 191.4 million, an increase from HKD 125.8 million in the prior period[21] Condensed Consolidated Statement of Financial Position Total assets decreased due to reduced investment property values and lower trade receivables, leading to a decline in net current assets and total equity Key Data from Condensed Consolidated Statement of Financial Position (HKD Thousands) | Indicator | June 30, 2025 | Dec 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Investment Properties | 4,208,052 | 4,416,969 | -4.8% | | Trade Receivables | 45,697 | 138,475 | -67.0% | | Financial Assets at Fair Value Through Profit or Loss | 98,924 | 109,116 | -9.3% | | Cash and Bank Balances | 1,081,282 | 1,102,889 | -2.0% | | Bank Borrowings (Current) | 136,800 | 172,200 | -20.6% | | Trade Payables | 46,373 | 23,274 | +99.2% | | Net Current Assets | 952,320 | 1,039,474 | -8.4% | | Net Assets | 5,307,136 | 5,595,364 | -5.1% | | Total Equity | 5,307,136 | 5,595,364 | -5.1% | - Investment property value decreased from HKD 4.417 billion to HKD 4.208 billion[22] - Trade receivables significantly decreased by 67.0% to HKD 45.697 million[22] - Trade payables within current liabilities significantly increased by 99.2% from HKD 23.274 million to HKD 46.373 million[22] - Total assets less current liabilities decreased from HKD 5.595 billion to HKD 5.307 billion[22][23] Notes to the Condensed Consolidated Financial Information This section details financial reporting basis, segment performance, and key financial items, highlighting declines in toy business and property revaluation losses - The Group's principal operating segments are Property Investment and Management, Investment, and Toys businesses[27][28] Basis of Preparation and Accounting Policies Financial information is prepared under HKAS 34 and Listing Rules, consistent with 2024 annual financial statements - This condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA and the applicable disclosure provisions of the Listing Rules of the Stock Exchange[24] - The accounting policies adopted in preparing this condensed consolidated financial information are consistent with those applied in the annual financial statements for the year ended December 31, 2024[25] Changes in Accounting Policies HKFRS amendments had no material impact, and no new standards not yet effective were applied - Certain amendments to Hong Kong Financial Reporting Standards issued by the HKICPA had no significant impact on the Group's results and financial position[26] - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[26] Revenue and Segment Information Group segments include Property, Investment, and Toys, with H1 2025 showing a sharp drop in toy sales and continued property losses Revenue Analysis H1 2025 total revenue fell 50.5% to HKD 261M, mainly due to a 58.3% drop in toy sales Revenue Analysis by Major Product or Service Line (HKD Thousands) | Revenue Source | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Toy Sales | 185,514 | 445,141 | -58.3% | | Property Management Income | 9,754 | 10,804 | -9.7% | | Investment Property Rental Income | 65,046 | 68,535 | -5.1% | | Dividend Income | 188 | 507 | -62.9% | | Interest Income | 614 | 1,679 | -63.4% | | Total Revenue | 261,116 | 526,666 | -50.5% | - Toy sales revenue significantly decreased from HKD 445.141 million to HKD 185.514 million[29] Segment Results, Assets and Liabilities Property segment loss widened, Toys shifted to a loss, and Investment gained, with changes across segment assets and liabilities Segment (Loss) / Profit Before Income Tax (HKD Thousands) | Segment | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Property Investment and Management Business | (186,720) | (196,637) | Loss narrowed | | Investment Business | 3,230 | (87) | From loss to profit | | Playmates Toys Business | (15,517) | 117,420 | From profit to loss | | Total Loss Before Income Tax | (198,940) | (80,414) | Loss expanded | - The Toys segment's pre-tax results shifted from a profit of HKD 117.42 million in H1 2024 to a loss of HKD 15.517 million in H1 2025[31][32] - Reportable segment assets for Property Investment and Management decreased from HKD 4.5656 billion as of December 31, 2024, to HKD 4.3598 billion as of June 30, 2025[33][34] Geographical Segment Information Revenue from Americas, Europe, and other Asia Pacific regions significantly declined, with most non-current assets in Hong Kong Revenue from External Customers (HKD Thousands) | Region | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong | 75,602 | 81,629 | -7.4% | | Americas - United States | 131,459 | 309,462 | -57.5% | | Americas - Other Regions | 20,217 | 25,826 | -21.7% | | Europe | 31,351 | 90,536 | -65.3% | | Other Asia Pacific Regions Excluding Hong Kong | 2,487 | 18,825 | -86.8% | | Total | 261,116 | 526,666 | -50.5% | - Revenue from the Americas (primarily the US) significantly decreased from HKD 309.462 million to HKD 131.459 million[36] - Designated non-current assets in Hong Kong amounted to HKD 3.8949 billion, representing the vast majority of the total[36] Major Customers Three customers accounted for over 10% of total revenue in H1 2025, indicating increased client concentration - The Group's customer base included three (2024: two) customers whose transactions each accounted for over 10% of the Group's total revenue[37] - Revenue from sales to these customers amounted to approximately HKD 56.572 million, HKD 51.054 million, and HKD 50.122 million, respectively[37] Net Other Income Net other income decreased 31.7% to HKD 33.2M, mainly due to realized losses on financial assets and reduced interest income Composition of Net Other Income (HKD Thousands) | Item | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Gain / (Loss) on Financial Assets at Fair Value Through Profit or Loss | 11,480 | 18,516 | -38.0% | | —Unrealized | 12,325 | 14,005 | -12.0% | | —Realized | (845) | 4,511 | N/A (from gain to loss) | | Playmates Toys Treasury —Interest Income | 21,149 | 29,811 | -29.1% | | Playmates Toys Treasury —Dividend Income | 237 | 240 | -1.2% | | Other | 376 | 84 | +347.6% | | Total | 33,242 | 48,651 | -31.7% | - Realized gains on financial assets at fair value through profit or loss shifted from HKD 4.511 million to a loss of HKD 0.845 million[38] - Interest income from Playmates Toys Treasury decreased by 29.1% to HKD 21.149 million[38] Loss / Profit Before Income Tax Pre-tax loss expanded due to decreased revenue, despite reductions in cost of sales and royalties, while R&D and staff costs rose (Loss) / Profit Before Income Tax Deducted / (Credited) Items (HKD Thousands) | Item | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost of Inventories Sold | 90,999 | 184,619 | -50.7% | | Product Development and Tooling Costs | 14,946 | 10,638 | +40.5% | | Royalty Expenses | 25,849 | 58,936 | -56.1% | | Directors' and Employees' Remuneration | 41,926 | 39,857 | +5.2% | | Depreciation — Other Property, Plant and Equipment | 4,384 | 4,518 | -3.0% | | Depreciation — Right-of-Use Assets | 1,818 | 1,818 | 0.0% | | Interest Expense — Bank Borrowings | 3,632 | 6,323 | -42.6% | | Interest Expense — Lease Liabilities | 134 | 242 | -44.7% | | Net Exchange Gain | (1,075) | (315) | +241.3% | - Product development and tooling costs increased by 40.5% to HKD 14.946 million[39] - Royalty expenses significantly decreased by 56.1% to HKD 25.849 million[39] Income Tax Expense Income tax expense fell 44.3% to HKD 19.2M, with unrecognized tax losses significantly increasing to HKD 66.1M Income Tax Expense (HKD Thousands) | Item | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong Profits Tax | 11,273 | 15,565 | -27.6% | | Overseas Taxation | 7,578 | 12,897 | -41.3% | | Total Current Period Tax | 18,851 | 28,462 | -33.7% | | Deferred Tax | 367 | 6,023 | -93.9% | | Total Income Tax Expense | 19,218 | 34,485 | -44.3% | - As of June 30, 2025, the Group's accumulated unrecognized tax losses amounted to HKD 66.159 million (December 31, 2024: HKD 11.071 million) with no expiry date[41] Dividends An interim dividend of 1.5 HK cents per share was declared, consistent with prior year, in addition to previous fiscal year dividends paid Interim Dividend An interim dividend of 1.5 HK cents per share was declared, payable September 19, 2025, to shareholders on record by September 2, 2025 - The Board resolved to pay an interim dividend of 1.5 HK cents per share, consistent with H1 2024[43] - The interim dividend will be paid on September 19, 2025, to shareholders whose names appear on the Company's register of members as of September 2, 2025[43] Dividends Paid for Previous Financial Year During Interim Period Second interim and special interim dividends for the previous fiscal year, totaling HKD 62.04M, were paid during the period Dividends Paid for Previous Financial Year During Interim Period (HKD Thousands) | Dividend Type | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Second Interim Dividend of 1.5 HK cents per share | 31,020 | 31,046 | -0.1% | | Special Interim Dividend of 1.5 HK cents per share | 31,020 | 31,045 | -0.1% | | Total | 62,040 | 62,091 | -0.1% | - During the interim period, the second interim dividend and special interim dividend for the previous financial year were both 1.5 HK cents per share, totaling HKD 62.04 million[44] Loss Per Share Basic loss per share expanded to 9.94 HK cents, with diluted loss per share being identical due to no potential ordinary shares - Basic loss per share was 9.94 HK cents (2024: 7.72 HK cents), calculated based on the loss attributable to owners of the Company of HKD 205.57 million and a weighted average of 2.068 billion ordinary shares outstanding[45] - Diluted loss per share was equal to basic loss per share, as there were no potential ordinary shares during the period[45] Trade Receivables Net trade receivables decreased 67% to HKD 45.7M, reflecting toy business seasonality, with a slight rise in customer discount provisions Trade Receivables (HKD Thousands) | Item | June 30, 2025 | Dec 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Gross Trade Receivables | 84,950 | 177,322 | -52.1% | | Less: Provision for Customer Discounts | (39,253) | (38,847) | +1.0% | | Net Trade Receivables | 45,697 | 138,475 | -67.0% | - Net trade receivables significantly decreased by 67.0% to HKD 45.697 million, primarily reflecting the seasonal impact of the toy business[46] - Toy business customers typically have credit terms of 60 to 90 days, while the Property Investment and Management business does not grant credit terms[46] Trade Payables Total trade payables significantly increased 99.2% to HKD 46.4M, with a notable rise in short-term payables Trade Payables (HKD Thousands) | Ageing | June 30, 2025 | Dec 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | 0 to 30 Days | 42,550 | 21,851 | +94.7% | | 31 to 60 Days | 1,758 | 1,389 | +26.6% | | Over 60 Days | 2,065 | 34 | +5973.5% | | Total | 46,373 | 23,274 | +99.2% | - Total trade payables significantly increased by 99.2% from HKD 23.274 million to HKD 46.373 million[47] US Dollar Equivalents US dollar equivalent figures are for reference only, based on HKD 7.8 to USD 1 as of June 30, 2025 - US dollar equivalent figures are based on an exchange rate of HKD 7.8 to USD 1 as of June 30, 2025, and are for reference only[48] Financial Analysis Liquidity and Capital Structure Property business provides stable income, while toy seasonality impacts receivables; debt-to-tangible-assets ratio improved to 2.4%, with ample USD cash reserves - The Property Investment and Management business provided a relatively stable income source for the period, with an overall occupancy rate of 58.8% (December 31, 2024: 60.3%)[50] - The toy business is affected by industry seasonality, with trade receivables significantly decreasing after peak sales seasons, amounting to HKD 44.435 million as of June 30, 2025 (December 31, 2024: HKD 136.67 million)[50] - The debt-to-tangible-assets ratio (total bank borrowings as a percentage of total tangible assets) was 2.4% (December 31, 2024: 2.9%), and the liquidity ratio (current assets to current liabilities) was 3.4 (December 31, 2024: 3.4)[51] - Cash and bank balances amounted to HKD 1.081 billion (December 31, 2024: HKD 1.1029 billion), with the majority (HKD 1.012 billion) denominated in US dollars[51] Other Information Repurchase, Sale or Redemption of Shares Neither the Company nor its subsidiaries repurchased, sold, or redeemed any shares, and no treasury shares were held - During the period, neither the Company nor its subsidiaries repurchased, sold, or redeemed any shares[52] - The Company held no treasury shares[52] Corporate Governance The Company complied with governance codes, except for combined Chairman/CEO roles, with the Board and Audit Committee ensuring effective oversight - The Company has adopted and complied with all applicable provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules, except for the non-segregation of the roles of Chairman and Chief Executive Officer[53] - The Board believes the existing structure (with Executive Directors jointly handling daily operations) is appropriate to ensure effective management and oversight of the Group's business and operations[53] - The Audit Committee has reviewed accounting principles and practices with management and has reviewed the unaudited condensed consolidated financial information for the six months ended June 30, 2025[53] Closure of Register of Members Share transfer registration will be suspended from Sept 1-2, 2025, requiring submissions by Aug 29, 2025, for dividend eligibility - The Company will suspend registration of share transfers from September 1 to September 2, 2025 (both dates inclusive)[54] - Shareholders must lodge transfer documents with the relevant share certificates with the share registrar by 4:30 p.m. on August 29, 2025, to qualify for the interim dividend[54] Board of Directors The Board comprises the Chairman, two Executive Directors, one Non-Executive Director, and three Independent Non-Executive Directors - The Board of Directors includes Mr. Chan Kwong Fai (Chairman), Executive Directors Ms. Chan Hoi Lun and Mr. Chan Kwong Keung, Non-Executive Director Mr. Li Ka Sze, and Independent Non-Executive Directors Mr. Law Kai Yiu, Dr. Ko Ching Fai, and Mr. Jim Tak Chee[55]