德林国际(01126) - 2025 - 中期业绩

Interim Results Announcement Deling International Holdings Limited announces its unaudited consolidated results for the six months ended June 30, 2025 Company Information Deling International Holdings Limited (Stock Code: 1126) board is pleased to announce the unaudited consolidated results for the six months ended June 30, 2025, with comparative data for 2024 - Deling International Holdings Limited (Stock Code: 1126) announced its unaudited consolidated results for the six months ended June 30, 2025[2] Consolidated Financial Statements The company presents its consolidated financial statements, including income, comprehensive income, and financial position, for the interim period Consolidated Income Statement For the six months ended June 30, 2025, revenue increased by 12.4% to HK$2,578,311 thousand, profit for the period rose 10.1% to HK$307,026 thousand, and basic and diluted earnings per share were HK$0.454 Key Data from Consolidated Income Statement (Six Months Ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,578,311 | 2,294,045 | +12.4% | | Cost of sales | (2,060,691) | (1,743,774) | +18.2% | | Gross profit | 517,620 | 550,271 | -5.9% | | Operating profit | 393,459 | 349,301 | +12.6% | | Profit before tax | 390,112 | 347,727 | +12.2% | | Profit for the period | 307,026 | 278,854 | +10.1% | | Basic and diluted earnings per share | HK$0.454 | HK$0.412 | +10.2% | Consolidated Statement of Comprehensive Income Total comprehensive income for the period significantly increased to HK$340,252 thousand, primarily due to a shift from loss to gain in exchange differences from translating financial statements of overseas subsidiaries Key Data from Consolidated Statement of Comprehensive Income (Six Months Ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Profit for the period | 307,026 | 278,854 | +10.1% | | Exchange differences arising from translation of financial statements of overseas subsidiaries | 33,226 | (39,900) | from loss to gain | | Other comprehensive income for the period | 33,226 | (39,900) | from loss to gain | | Total comprehensive income for the period | 340,252 | 238,954 | +42.4% | Consolidated Statement of Financial Position As of June 30, 2025, total assets less current liabilities increased to HK$4,082,520 thousand, net assets rose to HK$4,030,424 thousand, and net current assets maintained steady growth Key Data from Consolidated Statement of Financial Position (As of June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 1,468,089 | 1,389,351 | +5.7% | | Current assets | 3,718,527 | 3,569,990 | +4.2% | | Current liabilities | 1,104,096 | 967,150 | +14.1% | | Net current assets | 2,614,431 | 2,602,840 | +0.4% | | Total assets less current liabilities | 4,082,520 | 3,992,191 | +2.3% | | Non-current liabilities | 52,096 | 31,273 | +66.6% | | Net assets | 4,030,424 | 3,960,918 | +1.7% | | Total equity | 4,030,424 | 3,960,918 | +1.7% | Notes to the Unaudited Interim Financial Report This section provides detailed notes on the group's accounting policies, financial performance, and position, including segment reporting and key financial balances General Information and Basis of Preparation The Group's principal activities include designing, developing, manufacturing, and selling plush toys, plastic figures, and tarpaulins, with the interim financial report prepared under HKAS 34 and reviewed by KPMG - The Group's principal activities are the design, development, manufacture, and sale of plush toys, plastic figures, and tarpaulins[10] - The interim financial report has been prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants and reviewed by KPMG[11][12] Changes in Accounting Policies The Group applied amendments to HKAS 21 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability', which had no material impact on this interim report due to the absence of non-exchangeable foreign currency transactions - The Group has applied the amendments to Hong Kong Accounting Standard 21 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability'[14] - As the Group did not enter into any foreign currency transactions involving a currency that is not exchangeable into another currency, the amendments had no material impact on this interim report[14] Revenue and Segment Reporting The Group's revenue is segmented by product line and customer geography into three reportable segments: plush toys, plastic figures, and tarpaulins, with strong demand in North America and Japan driving overall revenue growth - The Group has identified three reportable segments: plush toys, plastic figures, and tarpaulins[16] Revenue by Major Product Line (Six Months Ended June 30) | Product Line | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Plush toys | 1,324,333 | 1,186,083 | +11.7% | | Plastic figures | 1,068,951 | 936,337 | +14.2% | | Tarpaulins | 185,027 | 171,625 | +7.8% | | Total | 2,578,311 | 2,294,045 | +12.4% | Revenue by Customer Geographical Location (Six Months Ended June 30) | Geographical Location | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong | 173,400 | 144,760 | +19.8% | | North America | 1,046,889 | 976,417 | +7.2% | | Japan | 702,306 | 539,157 | +30.3% | | Mainland China | 509,205 | 509,985 | -0.2% | | Europe | 79,689 | 62,475 | +27.6% | | Other countries | 66,822 | 61,251 | +9.1% | | Total | 2,578,311 | 2,294,045 | +12.4% | Reportable Segment Profit (Adjusted EBITDA) | Segment | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Plush toys | 340,508 | 306,266 | +11.2% | | Plastic figures | 92,970 | 98,003 | -5.2% | | Tarpaulins | 26,064 | 22,006 | +18.4% | | Total | 459,542 | 426,275 | +7.8% | Profit Before Tax Profit before tax was HK$390,112 thousand, influenced by increased finance costs (higher interest expenses on bank borrowings and lease liabilities) and decreased depreciation expenses Finance Costs (Six Months Ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Interest expense on bank borrowings | 1,878 | 356 | +427.5% | | Interest expense on lease liabilities | 1,711 | 1,015 | +68.6% | | Total | 3,589 | 1,371 | +161.8% | Impact of Other Items on Profit Before Tax (Six Months Ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Depreciation expense | 66,714 | 82,126 | -18.7% | | Write-down of inventories | 9,817 | 7,829 | +25.4% | | Reversal of write-down of inventories | – | (22,508) | from reversal to none | | Bank interest income | (22,290) | (25,099) | -11.2% | | Net (gain)/loss on disposal of other property, plant and equipment | (369) | 402 | from loss to gain | Income Tax Total income tax for the period was HK$83,086 thousand, an increase of 20.6% year-on-year, with higher Hong Kong profits tax and increases in overseas and deferred tax Income Tax (Six Months Ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Current tax – Hong Kong profits tax | 14,201 | 4,560 | +211.4% | | Current tax – Outside Hong Kong | 61,227 | 66,656 | -8.1% | | Deferred tax | 7,658 | (2,343) | from negative to positive | | Total | 83,086 | 68,873 | +20.6% | - Hong Kong profits tax provision is calculated at 16.5% of the estimated assessable profit for the period, with the first HK$2,000,000 for qualifying corporations taxed at 8.25%[23] - Withholding tax of HK$8,876,000 (2024: HK$7,724,000) on dividend income from Mainland China subsidiaries is included in 'Current tax – Outside Hong Kong'[24] Capital, Reserves and Dividends The Board recommends an interim dividend of HK$0.25 per ordinary share, an increase from HK$0.20 in the prior period, totaling HK$169,216 thousand Interim Dividend (Six Months Ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Interim dividend per ordinary share | HK cents 25 | HK cents 20 | +25.0% | | Total dividends payable to equity holders of the Company | 169,216 | 135,373 | +25.0% | Final Dividend for Previous Financial Year (Approved and Paid in Subsequent Interim Period) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Final dividend per ordinary share | HK cents 40 | HK cents 35 | +14.3% | | Total dividends payable to equity holders of the Company | 270,746 | 236,903 | +14.3% | Earnings Per Share For the six months ended June 30, 2025, basic earnings per share were HK$0.454, equal to diluted earnings per share due to the absence of potentially dilutive ordinary shares Earnings Per Share (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Basic earnings per share | HK$0.454 | HK$0.412 | | Diluted earnings per share | HK$0.454 | HK$0.412 | - Basic earnings per share are calculated based on the profit attributable to equity holders of the Company of HK$307,026,000 for the interim period and the weighted average number of ordinary shares outstanding of 676,865,000 shares[26] - Diluted earnings per share are equal to basic earnings per share as there were no potentially dilutive ordinary shares for the six months ended June 30, 2025 and 2024[27] Property, Plant and Equipment For the six months ended June 30, 2025, right-of-use assets increased by HK$26,762 thousand due to new lease agreements, with HK$103,701 thousand in new PPE purchases and a net gain of HK$369 thousand from disposals - For the six months ended June 30, 2025, right-of-use assets increased by HK$26,762 thousand (2024: HK$16,704 thousand), related to capitalized lease payments for new lease agreements[28] - The Group purchased other property, plant and equipment items at a cost of HK$103,701 thousand (2024: HK$100,089 thousand)[29] - Disposal of property, plant and equipment items with a net book value of HK$7,245 thousand resulted in a net gain on disposal of HK$369 thousand (2024: loss of HK$402 thousand)[29] Other Financial Assets As of June 30, 2025, unlisted equity securities measured at fair value through other comprehensive income amounted to HK$1,917 thousand, primarily representing a strategic investment in JTBC, Korea Other Financial Assets (As of June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Unlisted equity securities at fair value through other comprehensive income | 1,917 | 1,771 | - Unlisted equity securities refer to the investment in Joongang Tongyang Broadcasting Company (JTBC), which is held for strategic purposes[30] Inventories For the six months ended June 30, 2025, inventory write-downs amounted to HK$9,817 thousand, with no reversals in the current period compared to HK$22,508 thousand in the prior year - For the six months ended June 30, 2025, write-downs of inventories amounted to HK$9,817 thousand (2024: HK$7,829 thousand)[31] - There were no reversals of write-downs of inventories during the period (2024: HK$22,508 thousand)[31] Trade and Other Receivables As of June 30, 2025, total trade and bills receivables were HK$882,396 thousand, with HK$498,861 thousand due within one month, and loans receivable amounted to HK$36,320 thousand, secured by third-party assets Ageing Analysis of Trade and Bills Receivables (As of June 30) | Ageing | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 1 month | 498,861 | 598,877 | | 1 to 2 months | 274,791 | 197,646 | | 2 to 3 months | 75,622 | 65,304 | | 3 to 4 months | 25,385 | 42,563 | | Over 4 months | 7,737 | 14,649 | | Total | 882,396 | 919,039 | Total Trade and Other Receivables (As of June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade and bills receivables | 882,396 | 919,039 | | Other receivables | 219,811 | 155,903 | | Prepayments | 19,306 | 16,462 | | Loans receivable | 36,320 | 34,511 | | Total | 1,157,833 | 1,125,915 | - Loans receivable are amounts due from third parties, of which HK$34,514 thousand are fully secured by leasehold land and factory buildings held by third parties, bearing interest at 5.4% to 9.5% per annum and repayable within one year[33] Trade and Other Payables and Contract Liabilities As of June 30, 2025, total trade payables were HK$623,356 thousand, with HK$398,756 thousand due within one month, and increases in salaries and welfare payable, VAT payable, and other payables Ageing Analysis of Trade Payables (As of June 30) | Ageing | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Within 1 month | 398,756 | 279,915 | | After 1 month but within 3 months | 134,481 | 92,935 | | After 3 months but within 6 months | 65,431 | 37,392 | | Over 6 months | 24,688 | 13,626 | | Total Trade Payables | 623,356 | 423,868 | Total Trade and Other Payables and Contract Liabilities (As of June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 623,356 | 423,868 | | Salaries and welfare payable | 145,422 | 116,389 | | VAT payable | 8,154 | 5,942 | | Other payables and accrued expenses | 55,424 | 87,996 | | Receipts in advance | 4,853 | 2,080 | | Total | 837,209 | 636,275 | Management Discussion and Analysis Management discusses the Group's financial performance, business operations, and future outlook, highlighting revenue growth, market trends, and strategic initiatives Financial Review Despite challenges, the Group achieved a 12.4% revenue growth to HK$2,578.3 million in H1 2025, driven by strong demand and order shifts to Vietnam, though gross margin declined to 20.1% due to rising costs - Revenue for the period increased by 12.4% to HK$2,578.3 million, primarily benefiting from strong demand in North American and Asian markets, and the shift of orders to Vietnam to mitigate tariff increases[35] Key Financial Review Data (Six Months Ended June 30) | Metric | 2025 (HK$ million) | 2024 (HK$ million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,578.3 | 2,294.0 | +12.4% | | Gross profit | 517.6 | 550.3 | -5.9% | | Gross profit margin | 20.1% | 24.0% | -3.9 percentage points | | Profit attributable to equity holders of the Company | 307.0 | 278.9 | +10.1% | | Net profit margin | 11.9% | 12.2% | -0.3 percentage points | - As of June 30, 2025, the Group's cash and cash equivalents and current bank deposits amounted to HK$1,577.1 million (December 31, 2024: HK$1,607.4 million)[36] - The Board recommends an interim dividend of HK cents 25 per ordinary share for the period (2024: HK cents 20)[36] Business Review All three product lines achieved revenue growth, driven by strong demand in Asia and North America for plush toys and plastic figures, and inventory recovery for tarpaulins, with multi-regional production mitigating tariff impacts - Plush toys segment revenue grew by 11.7% to HK$1,324.3 million, accounting for 51.4% of total revenue, driven by demand from Asian theme park visitors and increased demand for non-China production capacity under US tariff policies[37] - Plastic figures segment revenue grew by 14.2% to HK$1,069.0 million, accounting for 41.5% of total revenue, driven by strong demand in Asian and North American markets, leveraging Vietnam and Indonesia production for order transfers[38] - Tarpaulins segment revenue grew by 7.8% to HK$185.0 million, accounting for 7.1% of total revenue, benefiting from lower inventory levels and a recovery in US market orders[39] - North America remains the Group's largest geographical market, accounting for 40.6% of total revenue, followed by Japan (27.2%), China (19.7%), and Hong Kong (6.7%)[40] - The Group operates 28 factories (7 in China, 20 in Vietnam, 1 in Indonesia) with an average utilization rate of approximately 84.7%, and has introduced advanced equipment to enhance operational efficiency[41] Outlook Geopolitical tensions and tariffs are expected to persist, but the IP-driven global toy market shows robust growth, prompting the Group to strengthen its multi-regional production, expand in Vietnam and Indonesia, and enhance efficiency - Geopolitical tensions and US tariff policies on toy imports from China are expected to continue to exert pressure on the industry[42] - The global toy market, especially the IP-driven segment, continues to show robust growth, driven by the expanding 'kidult' demographic, technology-integrated experiences, and strong collaborations with entertainment content[42] - The Group will continue to strengthen its multi-regional production layout, with China factories focusing on local and emerging Chinese brands, and Vietnam and Indonesia bases serving as global export hubs[43] - Plans are in place to add one factory each in Vietnam and Indonesia in the second half of 2025 to meet booming demand from Asian countries and the US market[43] - Committed to enhancing production efficiency and technological capabilities, seizing emerging opportunities through localized procurement, automated processes, and stringent quality assurance programs[43] - Establishing long-term partnerships with key character owners and licensors, continuously enhancing R&D and production capabilities to support higher product value and market penetration[44] Other Information This section covers details on employee numbers, remuneration, liquidity, financial resources, asset pledges, corporate governance, and dividend announcements Number of Employees and Remuneration As of June 30, 2025, the Group employed 28,699 staff globally, with total employee costs of HK$804,700 thousand for the period, and provides comprehensive training programs - As of June 30, 2025, the Group employed 28,699 staff (December 31, 2024: 28,697 staff) in Hong Kong, China, Korea, USA, Japan, Vietnam, Singapore, and Indonesia[45] - Total staff costs for the Group amounted to HK$804,700 thousand for the period (2024: HK$670,500 thousand)[45] - The Group grants bonuses based on individual employee performance and provides comprehensive training programs or sponsors employees to attend various work-related training courses[45] Liquidity, Financial Resources and Gearing Ratio The Group maintains reasonable liquidity with net current assets of HK$2,614,400 thousand, significantly reduced bank loans, and a gearing ratio of 1.5%, indicating a robust financial position Key Liquidity and Gearing Ratio Data (As of June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Net current assets | 2,614,400 | 2,602,800 | +0.4% | | Total cash and cash equivalents | 1,479,400 | 1,407,900 | +5.1% | | Bank loans | 62,100 | 99,600 | -37.6% | | Gearing ratio | 1.5% | 2.5% | -1.0 percentage points | - The Group maintains a prudent approach to foreign exchange risk management, primarily exposed to risks denominated in USD, RMB, VND, JPY, and IDR[46] Pledge of Group's Assets As of June 30, 2025, the Group pledged assets totaling HK$268,800 thousand, including factory buildings, leasehold land, PPE, and time deposits, as security for bank loans and unutilized banking facilities - Assets with a total carrying value of HK$166,100 thousand were pledged as security for bank loans of HK$62,100 thousand[47] - Assets with a total carrying value of HK$142,000 thousand were pledged as security for unutilized banking facilities of HK$86,200 thousand[47] - Total pledged assets amounted to HK$268,800 thousand (December 31, 2024: HK$281,000 thousand)[47] Corporate Governance The Company complies with the Corporate Governance Code, with Mr. Choi Kweon-min serving as both Chairman and CEO for continuity, balanced by three independent non-executive directors - The Company has complied with the Corporate Governance Code set out in Appendix C1 to the Listing Rules, with the exception of a deviation from code provision C.2.1[51] - Mr. Choi Kweon-min holds both the Chairman and Chief Executive Officer positions, an arrangement the Board believes helps maintain continuity of the Company's policies and stability of business operations[51] - All Directors have confirmed their compliance with the Model Code for Securities Transactions by Directors of Listed Issuers for the six months ended June 30, 2025[52] Interim Dividend and Closure of Register of Members The Board declared an interim dividend of HK cents 25 per ordinary share for the six months ended June 30, 2025, payable on October 13, 2025, to shareholders registered on September 29, 2025 - The Board declared an interim dividend of HK cents 25 per ordinary share (2024: HK cents 20) for the six months ended June 30, 2025[53] - The interim dividend of HK$169,216,000 will be paid on October 13, 2025, to shareholders registered at the close of business on the record date, September 29, 2025[53] - To qualify for the interim dividend, all transfer documents, together with the relevant share certificates, must be lodged with the Company's share registrar by 4:30 p.m. on September 26, 2025[54] Audit Committee and Review of Accounts The Audit Committee reviewed the Group's accounting principles, risk management, internal control systems, and financial reporting, confirming compliance with relevant standards, rules, and regulations, with the interim financial report reviewed by KPMG - The Audit Committee, together with the Company's management, has reviewed the accounting principles and practices adopted by the Group and discussed risk management, internal control systems, and financial reporting matters[55] - The Audit Committee is of the opinion that the unaudited interim results for the six months ended June 30, 2025, have complied with the relevant accounting standards, rules, and regulations and have been duly disclosed[55] - The interim financial report is unaudited but has been reviewed by the Company's auditor, KPMG, in accordance with Hong Kong Standard on Review Engagements 2410[55] Publication of 2025 Interim Results and Interim Report The electronic version of this interim results announcement is available on the company and HKEX websites, with printed interim reports provided to shareholders upon request - The electronic version of this interim results announcement is available on the Company's website (www.dream-i.com.hk) and the HKEX website (www.hkexnews.hk)[56](index=56&type=chunk) - Printed copies of the interim report for the six months ended June 30, 2025, will be provided to shareholders upon request and will be posted on the aforementioned websites in due course[56]