道和环球(00915) - 2025 - 中期业绩

Unaudited Interim Results Announcement Interim Results Summary For the six months ended June 30, 2025, the company's revenue decreased by 22.5% year-on-year to approximately 15.1 million USD, with profit for the period turning from near break-even to a loss of approximately 0.9 million USD, and the Board decided not to declare an interim dividend - Interim Results Summary (For the six months ended June 30, 2025) | Indicator | 2025 (Approx.) | 2024 (Approx.) | Change | | :--- | :--- | :--- | :--- | | Revenue | 15.1 million USD | 19.5 million USD | Down 22.5% | | Profit/(Loss) for the Period | Loss 0.9 million USD | Near break-even | From profit to loss | - The Board of Directors will not declare any interim dividend for the six months ended June 30, 2025[2] Condensed Consolidated Interim Financial Information Condensed Consolidated Interim Statement of Profit or Loss For the six months ended June 30, 2025, the company's revenue decreased to 15,138 thousand USD, with gross profit of 5,653 thousand USD, resulting in a loss of 920 thousand USD for the period and basic loss per share of 0.06 US cents - Key Data from Condensed Consolidated Interim Statement of Profit or Loss (thousand USD) | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | 15,138 | 19,539 | | Cost of Sales | (9,485) | (12,576) | | Gross Profit | 5,653 | 6,963 | | Other Income | 432 | 270 | | Selling and Marketing Expenses | (336) | (734) | | General and Administrative Expenses | (6,639) | (6,361) | | Finance Costs | (27) | (33) | | Provision for Trade Receivables | (29) | (31) | | Loss/(Profit) Before Tax | (946) | 74 | | Income Tax Credit/(Expense) | 26 | (50) | | Loss/(Profit) for the Period Attributable to Owners of the Company | (920) | 24 | | Basic Loss/(Earnings) Per Share (US cents) | (0.06) | 0.00 | Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the company reported a loss of 920 thousand USD for the period, which, combined with a 12 thousand USD exchange difference on translation of overseas operations, resulted in a total comprehensive loss of 908 thousand USD attributable to owners of the company - Key Data from Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income (thousand USD) | Indicator | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Loss/(Profit) for the Period | (920) | 24 | | Exchange difference on translation of overseas operations | 12 | (10) | | Other comprehensive income for the period | 12 | (10) | | Total comprehensive income for the period attributable to owners of the Company | (908) | 14 | Condensed Consolidated Interim Statement of Financial Position As of June 30, 2025, the company's total non-current assets increased to 2,320 thousand USD, total current assets decreased to 25,666 thousand USD, total current liabilities decreased to 11,730 thousand USD, and net assets were 15,014 thousand USD, a decrease from the end of 2024 - Key Data from Condensed Consolidated Interim Statement of Financial Position (thousand USD) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Total Non-current Assets | 2,320 | 1,360 | | Total Current Assets | 25,666 | 28,649 | | Total Current Liabilities | 11,730 | 13,599 | | Net Current Assets | 13,936 | 15,050 | | Total Assets Less Current Liabilities | 16,256 | 16,410 | | Total Non-current Liabilities | 1,242 | 488 | | Net Assets | 15,014 | 15,922 | | Total Equity | 15,014 | 15,922 | Notes Basis of Preparation The Group's condensed consolidated interim financial statements for the six months ended June 30, 2025, are prepared in accordance with HKAS 34 and the disclosure requirements of the Listing Rules, presented in USD, and should be read in conjunction with the annual financial statements - The condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the disclosure requirements of the Listing Rules issued by the Hong Kong Institute of Certified Public Accountants[7] - The financial information is presented in USD and should be read in conjunction with the annual financial statements for the year ended December 31, 2024[8] Changes in Accounting Policies and Disclosures This period saw the adoption of amendments to HKAS 21 and HKFRS 1, which had no significant impact on the Group's financial position, performance, or disclosures - Amendments to HKAS 21 and HKFRS 1 (Lack of Exchangeability) have been adopted[9] - These amendments had no significant impact on the Group's financial position, performance, and disclosures in the condensed consolidated interim financial statements for the current and prior periods[9] Operating Segment Information The Group's business comprises two reportable operating segments: Trading and Supply Chain Management Services and Cultural and Entertainment, with management assessing segment performance based on adjusted profit/(loss) before tax, and inter-segment transactions conducted at market prices - The Group's business comprises two reportable operating segments: Trading and Supply Chain Management Services and Cultural and Entertainment[10][12] - Segment performance is measured based on adjusted profit/(loss) before tax, excluding bank interest income, bank borrowing interest, and unallocated corporate expenses[10] - Inter-segment sales and transfer transactions are conducted with reference to selling prices to third parties at the time[11] Segment Revenue and Results - Segment Revenue and Results (For the six months ended June 30, 2025, thousand USD) | Segment | Revenue from external customers | Segment results | | :--- | :--- | :--- | | Trading and Supply Chain Management Services | 6,976 | (635) | | Cultural and Entertainment | 8,162 | 25 | | Total | 15,138 | (610) | | Bank interest income | | 198 | | Corporate and other unallocated expenses | | (534) | | Loss Before Tax | | (946) | - Segment Revenue and Results (For the six months ended June 30, 2024, thousand USD) | Segment | Revenue from external customers | Segment results | | :--- | :--- | :--- | | Trading and Supply Chain Management Services | 8,530 | 129 | | Cultural and Entertainment | 11,009 | 226 | | Total | 19,539 | 355 | | Bank interest income | | 194 | | Corporate and other unallocated expenses | | (472) | | Bank borrowing interest | | (3) | | Profit Before Tax | | 74 | Segment Assets and Liabilities - Segment Assets and Liabilities (As of June 30, 2025, thousand USD) | Segment | Segment Assets | Segment Liabilities | | :--- | :--- | :--- | | Trading and Supply Chain Management Services | 11,160 | 4,095 | | Cultural and Entertainment | 16,554 | 4,863 | | Total | 27,714 | 8,958 | | Corporate and other unallocated assets | 272 | | | Loan from a shareholder | | 3,856 | | Corporate and other unallocated liabilities | | 158 | | Total Assets | 27,986 | | | Total Liabilities | | 12,972 | - Segment Assets and Liabilities (As of December 31, 2024, thousand USD) | Segment | Segment Assets | Segment Liabilities | | :--- | :--- | :--- | | Trading and Supply Chain Management Services | 13,418 | 5,396 | | Cultural and Entertainment | 16,295 | 4,746 | | Total | 29,713 | 10,142 | | Corporate and other unallocated assets | 296 | | | Loan from a shareholder | | 3,856 | | Corporate and other unallocated liabilities | | 89 | | Total Assets | 30,009 | | | Total Liabilities | | 14,087 | Revenue For the six months ended June 30, 2025, total revenue was 15,138 thousand USD, primarily from sales of goods, commission income, and internet value-added services, with the China market contributing the majority, and all revenue recognized at a point in time when goods are transferred/services provided - Revenue Analysis (thousand USD) | Revenue Type | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Sales of goods | 5,427 | 7,295 | | Commission income | 3,613 | 4,114 | | Internet value-added services revenue | 6,098 | 8,130 | | Total | 15,138 | 19,539 | Disaggregated Revenue Information - Revenue by Type of Goods or Services and Geographical Market (For the six months ended June 30, 2025, thousand USD) | Type of Goods or Services | Trading and Supply Chain Management Services | Cultural and Entertainment | Total | | :--- | :--- | :--- | :--- | | Sales of goods | 3,363 | 2,064 | 5,427 | | Commission income | 3,613 | – | 3,613 | | Internet value-added services revenue | – | 6,098 | 6,098 | | Subtotal | 6,976 | 8,162 | 15,138 | | Geographical Market | | | | | China | 927 | 8,162 | 9,089 | | Southern Hemisphere | 3,109 | – | 3,109 | | North America | 1,796 | – | 1,796 | | Europe | 625 | – | 625 | | Other | 519 | – | 519 | | Subtotal | 6,976 | 8,162 | 15,138 | | Timing of Revenue Recognition | | | | | At a point in time when goods are transferred/services provided | 6,976 | 8,162 | 15,138 | - Revenue by Type of Goods or Services and Geographical Market (For the six months ended June 30, 2024, thousand USD) | Type of Goods or Services | Trading and Supply Chain Management Services | Cultural and Entertainment | Total | | :--- | :--- | :--- | :--- | | Sales of goods | 4,416 | 2,879 | 7,295 | | Commission income | 4,114 | – | 4,114 | | Internet value-added services revenue | – | 8,130 | 8,130 | | Subtotal | 8,530 | 11,009 | 19,539 | | Geographical Market | | | | | China | 1,063 | 11,009 | 12,072 | | Southern Hemisphere | 4,100 | – | 4,100 | | North America | 2,236 | – | 2,236 | | Europe | 513 | – | 513 | | Other | 618 | – | 618 | | Subtotal | 8,530 | 11,009 | 19,539 | | Timing of Revenue Recognition | | | | | At a point in time when goods are transferred/services provided | 8,530 | 11,009 | 19,539 | Loss/(Profit) Before Tax For the six months ended June 30, 2025, the Group recorded a loss before tax of 946 thousand USD, primarily due to higher cost of sales, cost of services, and employee benefit expenses, despite a positive net exchange difference - Components of Loss/(Profit) Before Tax (thousand USD) | Item | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Cost of inventories sold | 4,562 | 5,708 | | Cost of services provided | 4,923 | 6,868 | | Depreciation of property, plant and equipment | 76 | 69 | | Depreciation of right-of-use assets | 401 | 379 | | Employee benefit expenses | 5,666 | 5,585 | | Loss on disposal of property, plant and equipment | – | 1 | | Net exchange difference | (38) | 69 | Income Tax For the six months ended June 30, 2025, the Group recorded an income tax credit of 26 thousand USD, mainly from deferred tax credit of 20 thousand USD and current tax of 23 thousand USD from outside Hong Kong, offset by a net over-provision from prior periods - Hong Kong qualified group entities are subject to tax at 8.25% on the first HKD 2,000,000 of assessable profits, with the remainder taxed at 16.5%[20] - Total Income Tax Credit/(Expense) (thousand USD) | Item | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Current - Hong Kong | – | 19 | | Current - Outside Hong Kong | 23 | 29 | | Net (over-provision)/under-provision from prior periods | (29) | 2 | | Deferred tax | (20) | – | | Total tax (credit)/expense for the period | (26) | 50 | Dividends The Board of Directors decided not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year period - The Directors will not declare any interim dividend for the six months ended June 30, 2025 (2024: nil)[21] Loss/(Earnings) Per Share For the six months ended June 30, 2025, basic loss per share was 0.06 US cents, compared to basic earnings per share of 0.00 US cents in the prior year period, primarily due to a loss of 920 thousand USD for the period - Basic loss per share was 0.06 US cents, calculated based on a loss for the period of 920 thousand USD and 1,509,592,701 ordinary shares in issue[22] - The Group had no potentially dilutive ordinary shares in issue for the period ended June 30, 2025[22] Property, Plant and Equipment For the six months ended June 30, 2025, the Group purchased assets worth 24 thousand USD and recognized no gain or loss from the disposal of assets - Changes in Property, Plant and Equipment (thousand USD) | Item | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Purchases of assets | 24 | 41 | | Net book value of assets disposed of | 0 | 1 | | Gain or loss on disposal | 0 | Loss 1 | Right-of-Use Assets For the six months ended June 30, 2025, the Group recognized 1,331 thousand USD in right-of-use assets and lease liabilities due to new lease agreements, a significant increase from the prior year period - The Group recognized 1,331 thousand USD in right-of-use assets and lease liabilities due to new lease agreements (2024: 31 thousand USD)[24] Trade Receivables As of June 30, 2025, net trade receivables were 2,680 thousand USD, a decrease from 3,901 thousand USD at the end of 2024, with the provision for doubtful debts increasing to 700 thousand USD, and trade receivables over 90 days closely monitored - Trade Receivables (thousand USD) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gross trade receivables | 3,380 | 4,531 | | Provision for doubtful debts | (700) | (630) | | Net | 2,680 | 3,901 | - Ageing Analysis of Trade Receivables (thousand USD) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 30 days | 1,374 | 1,963 | | 31 to 60 days | 460 | 921 | | 61 to 90 days | 221 | 345 | | 91 to 365 days | 711 | 708 | | Over one year | 614 | 594 | | Total | 3,380 | 4,531 | Trade Payables As of June 30, 2025, total trade payables were 779 thousand USD, a significant decrease from 1,449 thousand USD at the end of 2024, primarily concentrated within 30 days - Ageing Analysis of Trade Payables (thousand USD) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 30 days | 485 | 651 | | 31 to 60 days | 141 | 637 | | 61 to 90 days | 65 | 74 | | 91 to 365 days | 25 | 11 | | Over one year | 63 | 76 | | Total | 779 | 1,449 | Related Party Transactions The Group engaged in two significant related party transactions during the period: an unsecured, interest-free loan from a shareholder and compensation for key management personnel Loan from a Shareholder - A loan from a shareholder amounted to 3,856 thousand USD, unsecured, interest-free, and repayable by May 22, 2026[27] Compensation of Key Management Personnel - Key Management Personnel Compensation (thousand USD) | Item | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Short-term employee benefits | 616 | 616 | | Employee retirement benefits | 46 | 46 | | Total | 662 | 662 | Management Discussion and Analysis Business Review During the reporting period, global economic uncertainties and trade tensions significantly impacted all of the Group's business segments, leading to a 22.5% decrease in total revenue, an 18.8% reduction in gross profit, and a shift from profit to loss for the period Overview - Total revenue decreased by approximately 22.5% from approximately 19.5 million USD to approximately 15.1 million USD[29] - Shipments for Trading and Supply Chain Management Services decreased by approximately 14.0% to approximately 48.1 million USD, with revenue decreasing by approximately 18.2% to approximately 7.0 million USD[29] - Total revenue from Cultural and Entertainment business decreased by approximately 25.9% to approximately 8.2 million USD, primarily due to increased competition, product over-saturation, and suppressed consumer spending[30] - Gross profit decreased by approximately 18.8% to approximately 5.7 million USD, but the gross profit margin increased from approximately 35.6% to approximately 37.3%[30] - Profit for the period turned from near break-even to a loss of approximately 0.9 million USD, with operating expenses decreasing by approximately 1.8% (or approximately 7.4% excluding restructuring costs)[31] Segment Analysis - The Group's business includes Trading and Supply Chain Management Services and Cultural and Entertainment operating segments[32] Trading and Supply Chain Management Services - Total shipment volume decreased by approximately 14.0% to approximately 48.1 million USD, as customer procurement strategies became more conservative[33] - The Trading and Supply Chain Management Services segment recorded revenue of approximately 7.0 million USD, accounting for approximately 46.1% of the Group's total revenue[37] Geographical Analysis - Total Shipment Value of Trading and Supply Chain Management Services by Region (million USD) | Region | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | North America | 32.4 | 41.7 | | Europe | 11.9 | 9.8 | | Other | 3.8 | 4.4 | | Total | 48.1 | 55.9 | - North America shipment volume decreased by approximately 22.3% to approximately 32.4 million USD, accounting for approximately 67.4% of total shipments[35] - Europe shipment volume increased by approximately 21.4% to approximately 11.9 million USD, accounting for approximately 24.7% of total shipments[36] - "Other" (primarily Southern Hemisphere) shipment volume decreased by approximately 13.6% to approximately 3.8 million USD[37] Cultural and Entertainment - Revenue from the Cultural and Entertainment segment decreased by approximately 25.9% from approximately 11.0 million USD to approximately 8.2 million USD[37] - Cultural and Entertainment Segment Revenue Composition (million USD) | Revenue Type | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Online entertainment | 6.1 | 8.1 | | Sales of goods | 2.1 | 2.9 | | Total | 8.2 | 11.0 | - Online entertainment revenue decreased by approximately 25.0% to approximately 6.1 million USD, and sales of goods contracted by approximately 28.3% to approximately 2.1 million USD[38][39] - The decrease in revenue was due to increased competition in online claw machine games, over-saturation in the trendy toy industry, and macroeconomic headwinds suppressing consumer spending[30][39] Financial Review The Group maintains a sound financial position with ample cash and deposits, a current ratio of approximately 2.2, and a zero debt-to-equity ratio; trade receivables are closely monitored and adequately provided for, with net assets of approximately 15.0 million USD Financial Resources and Liquidity - Deposits and cash and cash equivalents were approximately 21.1 million USD (consistent with the end of 2024)[40] - Total bank facilities were approximately 5.1 million USD, of which approximately 100 thousand USD was utilized for borrowings[40] - The current ratio was approximately 2.2 (end of 2024: approximately 2.1), and the debt-to-equity ratio was zero[40] - Trade receivables were approximately 2.7 million USD (end of 2024: approximately 3.9 million USD), with adequate provision made for accounts over 90 days[41] - Net assets were approximately 15.0 million USD (end of 2024: approximately 15.9 million USD)[41] - The Group had no significant contingent liabilities or guarantees, nor had it pledged any of its assets[42] Remuneration Policy and Staff Development Programs As of June 30, 2025, the Group employed 259 staff, with total employee costs of approximately 5.7 million USD, offering competitive remuneration, a share option scheme, and discretionary bonuses to incentivize employees - As of June 30, 2025, the Group employed 259 staff (2024: 264 staff)[43] - Total employee costs for the review period were approximately 5.7 million USD (2024: approximately 5.6 million USD)[43] - The Group has established competitive remuneration packages, a share option scheme for eligible employees, and discretionary bonuses to incentivize staff[44] Prospects Facing global economic uncertainty, escalating trade barriers, and surging tariffs with the potential return of the Trump administration, the Group anticipates continued challenges in the short term and will actively diversify procurement, expand supply chain networks, broaden product portfolios, implement cost controls, and explore M&A and investment opportunities to navigate these challenges - The global economy faces complex challenges, with escalating trade barriers and surging tariffs, and the situation is expected to remain challenging in the second half of the year[45] - The Group is actively pursuing diversified procurement models, expanding its supply chain network, broadening its product portfolio, and implementing strict cost controls[45] - The Cultural and Entertainment segment will expand its online business through new media platforms and influencer collaborations, regularly launch new products, and deepen its design capabilities to develop innovative trendy toy products[46] - The Group will closely monitor economic developments, adjust strategies, and explore potential M&A and investment opportunities to consolidate and diversify its business[47] Other Information Material Investments, Major Acquisitions or Disposals For the six months ended June 30, 2025, the Group had no material investments, major acquisitions, or disposals - The Group had no material investments, major acquisitions, or disposals during the reporting period[48] Future Plans for Material Investments As of the date of this announcement, the Group has no plans for any significant future investments or capital assets - As of the date of this announcement, the Group has no plans for any significant future investments or capital assets[49] Events After Reporting Period No significant events occurred after the end of the reporting period and up to the date of this announcement - No significant events occurred after the end of the reporting period and up to the date of this announcement[50] Interim Dividends The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year period - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 (2024: nil)[51] Purchase, Sale or Redemption of Shares For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[52] Audit Committee The Company's Audit Committee has reviewed the Group's accounting policies and the unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, but this information has not been audited or reviewed by an independent auditor - The Audit Committee has reviewed the Group's accounting policies and the unaudited condensed consolidated interim financial information[53] - The condensed consolidated interim financial information has not been audited or reviewed by the Company's independent auditor[53] Corporate Governance For the period ended June 30, 2025, and up to the date of this announcement, the Company has not yet appointed a Chairman of the Board, but the Board believes this vacancy will not adversely affect the Company and is committed to identifying a suitable candidate - The Company has not yet appointed a Chairman of the Board, in breach of Rule C.2.1 of Appendix C1 to the Listing Rules[54] - The Board believes that the vacancy of the Chairman will not adversely affect the Company and is committed to identifying and appointing a suitable Chairman[54] Standard Code for Securities Transactions The Company has adopted the Standard Code as set out in Appendix C3 to the Listing Rules as the code of conduct for Directors' dealings in company securities and has established written guidelines for employees no less exacting than the Standard Code; all Directors confirmed compliance with the Standard Code during the reporting period, and no employee violations were found - The Company has adopted the Standard Code as set out in Appendix C3 to the Listing Rules as the code of conduct for Directors' dealings in the Company's securities[55] - All Directors have confirmed compliance with the Standard Code during the reporting period[55] - The Company has established written guidelines for employees no less exacting than the terms of the Standard Code, and no violations by relevant employees were found[55] Publication of Results Announcement and Interim Report This announcement has been published on the Company's website and the Stock Exchange's website, and the interim report will be sent to shareholders upon request and published on the aforementioned websites in due course - This announcement has been published on the Company's website (www.daoheglobal.com.hk) and the Stock Exchange's website (www.hkexnews.hk)[56](index=56&type=chunk) - The Company's 2025 interim report will be sent to shareholders upon request and published on the aforementioned websites in due course[56] By Order of the Board This announcement is issued by Mr. Wong Hing Nin, Executive Director and Chief Executive Officer, on behalf of the Board; as of the announcement date, the Board comprises two executive directors and three independent non-executive directors - This announcement is issued by Mr. Wong Hing Nin, Executive Director and Chief Executive Officer, on behalf of the Board[57] - As of the date of this announcement, the executive directors are Mr. Wong Hing Nin and Mr. Lung Li Ping, and the independent non-executive directors are Mr. Lau Shu Yan, Mr. Cheung Wui Chun, and Ms. Lok Kuen[57]