Product Categories - The Group's principal product categories include tabletop games, greeting cards, educational items, trading cards, and premium packaging[16]. Supply Chain and Production - The Group optimized its supply chain agility by strategically allocating orders across production bases in the PRC and Vietnam, reducing tariff impacts while ensuring customer demand fulfillment[18]. - The Group intensified efforts to bolster production capabilities in the trading card business, a high-growth segment, during the reporting period[18]. - The Group achieved considerable business growth in its trading card manufacturing, exemplified by a collaboration to produce a new series of premium collectible cards featuring a celebrated athlete[18]. - The new factory building in Vietnam is set to commence operations in Q3 2025, enhancing capacity and agility, and optimizing the supply chain[26]. - The Group plans to diversify its OEM business and expand its trading card manufacturing business, leveraging established relationships with industry players[24]. Sales and Revenue - The Group's web sales business expanded its market footprint in the e-commerce segment through targeted marketing initiatives and a dedicated overseas sales force[19]. - The Group actively promoted its original brand manufacturer (OBM) business by expanding sales channels and exhibiting in relevant exhibitions[19]. - The Group recorded a profit attributable to equity holders of approximately HK$38.6 million for the six months ended 30 June 2025, a decrease of approximately 28.4% from HK$54.0 million for the same period in 2024[22]. - The Group's revenue decreased by approximately 1.2% from approximately HK$538.6 million for the six months ended 30 June 2024 to approximately HK$532.4 million for the same period in 2025[22]. - OEM sales revenue decreased from approximately HK$438.8 million for 6M2024 to approximately HK$419.1 million for 6M2025, representing a decrease of approximately 4.5%[22]. - Web sales revenue increased from approximately HK$99.8 million for 6M2024 to approximately HK$113.3 million for 6M2025, representing an increase of approximately 13.5%[22]. - The number of active registered user accounts increased from approximately 77,600 as of 31 December 2024 to approximately 82,000 as of 30 June 2025[22]. - The USA accounted for approximately 59.7% of total revenue in 6M2025, down from 63.2% in 6M2024[36]. - Total revenue for 6M2025 was approximately HK$532.4 million, a slight decrease from HK$538.6 million in 6M2024[36]. Financial Performance - Gross profit increased by approximately 1.3% to HK$195.1 million in 6M2025, with a gross profit margin rising from 35.7% to 36.6%[39]. - Selling and distribution expenses decreased by approximately 5.2% from HK$50.3 million in 6M2024 to HK$47.7 million in 6M2025[45]. - Administrative expenses increased by approximately 7.0% from HK$95.2 million in 6M2024 to HK$101.9 million in 6M2025[46]. - Income tax expense decreased by approximately 21.7% from HK$7.3 million in 6M2024 to HK$5.7 million in 6M2025[52]. - An interim dividend of HK2.0 cents per share was declared, totaling approximately HK$10.6 million for 6M2025[54]. - As of June 30, 2025, the company reported net current assets of approximately HK$195.1 million, a decrease from approximately HK$269.0 million as of December 31, 2024[62]. - The company's cash and cash equivalents as of June 30, 2025, amounted to approximately HK$192.8 million, down from approximately HK$246.5 million as of December 31, 2024, representing a decrease of approximately HK$53.7 million[62]. - Total borrowings, supplier finance liabilities, and lease liabilities amounted to approximately HK$166.2 million as of June 30, 2025, compared to approximately HK$70.7 million as of December 31, 2024[65]. - The gearing ratio increased to approximately 19% as of June 30, 2025, from 8% as of December 31, 2024, primarily due to increased bank borrowings for working capital[68]. - The company had capital commitments of approximately HK$34.0 million as of June 30, 2025, down from approximately HK$59.9 million as of December 31, 2024[67]. - The company did not have any material acquisitions or disposals of subsidiaries, associates, and joint ventures for the first six months of 2025[78]. - The company did not hold any significant investments for the first six months of 2025[80]. - As of June 30, 2025, right-of-use assets amounted to approximately HK$77.5 million, and property, plant, and equipment amounted to approximately HK$61.7 million, both charged as security for bank borrowings[81]. Corporate Governance - The Company has adopted a share option scheme, with 53,200,000 options available for grant, representing 10% of the issued shares as of the interim report date[101]. - No share options were granted under the Share Option Scheme from its adoption date until June 30, 2025[100]. - The Company complied with the Corporate Governance Code throughout the reporting period, except for a deviation from code provision C.2.1[92]. - The roles of chairman and chief executive officer are currently held by the same individual, Mr. Cheng Wan Wai, which the Board believes provides strong leadership[93]. - The remuneration policy for Directors and senior management was reviewed, considering market conditions and individual performance[88]. - The Group's governance practices aim to enhance corporate value and ensure transparency and accountability to shareholders[91]. Shareholding Structure - As of June 30, 2025, Mr. Cheng Wan Wai and Mr. Yeung Keng Wu Kenneth each hold 310,353,954 shares, representing 58.34% of the company's ordinary shares[105]. - Ms. Liu Shuk Yu Sanny holds 64,706,046 shares, accounting for 12.16% of the company's ordinary shares[105]. - Mr. Chan Wang Tao Thomas has a long position of 19,950,000 shares, which is 3.75% of the company's ordinary shares[106]. - Ms. Hui Li Kwan has an interest in 310,353,954 shares through her spouse, representing 58.34% of the company's ordinary shares[106]. - Mr. Mak Chin Pang holds 3,990,000 shares, equivalent to 0.75% of the company's ordinary shares[106]. - As of June 30, 2025, no directors or chief executives had any interests or short positions in the shares of the company or its associated corporations[109]. - None of the directors or their spouses had been granted any rights to subscribe for equity or debt securities of the company during the six months ended June 30, 2025[110]. - There were no interests in competing businesses by any directors or their associates during the six months ended June 30, 2025[111]. - Ms. Wong Lai Ying holds an interest of 310,353,954 shares, which is 58.34% of the company's ordinary shares, as a spouse[116]. - The shares held by Good Elite Holdings Limited are owned 50% by Mr. Cheng Wan Wai and 50% by Mr. Yeung Keng Wu Kenneth[106]. - Good Elite holds 310,353,954 shares, representing 58.34% of the total shareholding[117]. - Cypress Spurge holds 64,706,046 shares, representing 12.16% of the total shareholding[117]. Events and Commitments - The register of members will be closed from September 17 to September 19, 2025, for interim dividend entitlement[127]. - There were no significant events affecting the Group after the first half of 2025 up to the date of the interim report[128]. - The audit committee reviewed the unaudited interim condensed consolidated financial information for the first half of 2025[129]. - Prof. Cheng was re-appointed to the Council for Carbon Neutrality and Sustainable Development for two years starting April 2025[118]. - Mr. Chan was elected as Vice Chairman of the China Committee of the Hong Kong General Chamber of Commerce in July 2025[119]. - Mr. Ng Shung was re-elected as Chairman of the Executive Committee of the Hong Kong Thoroughbred Breeders Alliance for two years starting July 2025[120]. Accounting and Financial Reporting - The Company is responsible for the preparation and presentation of interim financial information in accordance with Hong Kong Accounting Standard 34[135]. - Revenue for the six months ended June 30, 2025, was HK$532,417,000, a decrease of 1.4% from HK$538,630,000 in the same period of 2024[144]. - Gross profit increased to HK$195,051,000, up 1.3% from HK$192,497,000 year-over-year[144]. - Operating profit decreased to HK$41,828,000, down 27.5% from HK$57,675,000 in the previous year[144]. - Profit for the period was HK$38,364,000, a decline of 27.0% compared to HK$52,675,000 in the prior year[144]. - Total comprehensive income for the period rose to HK$57,877,000, compared to HK$34,424,000 in the same period last year, reflecting a significant increase of 68.3%[145]. - Non-current assets increased to HK$694,610,000, up from HK$629,115,000 as of December 31, 2024[147]. - Current assets totaled HK$556,041,000, slightly up from HK$541,773,000 at the end of 2024[147]. - Cash and bank balances decreased to HK$192,820,000 from HK$246,481,000, indicating a reduction of 21.8%[147]. - Earnings per share for equity holders decreased to HK$7.26 from HK$10.15, reflecting a decline of 28.5%[144]. - The company reported a currency translation difference of HK$19,513,000, compared to a loss of HK$18,251,000 in the previous period[145]. - Total equity as of June 30, 2025, is HK$881,593,000, a slight decrease from HK$882,236,000 as of December 31, 2024[150]. - The company reported a profit of HK$38,364,000 for the six months ended June 30, 2025, compared to a profit of HK$52,675,000 for the same period in 2024[152]. - Cash flows from operating activities resulted in a net cash outflow of HK$14,368,000 for the six months ended June 30, 2025, compared to a net cash inflow of HK$36,482,000 in 2024[160]. - Total liabilities increased to HK$369,058,000 as of June 30, 2025, from HK$288,652,000 as of December 31, 2024[150]. - The company paid dividends totaling HK$58,520,000 during the period, impacting retained earnings[152]. - Cash used in investing activities amounted to HK$43,210,000 for the six months ended June 30, 2025, compared to HK$52,147,000 in 2024[160]. - The company's total comprehensive income for the period was HK$57,877,000, reflecting a combination of profit and currency translation differences[152]. - Non-controlling interests decreased to HK$1,018,000 as of June 30, 2025, from HK$751,000 as of December 31, 2024[150]. - The company's cash position was affected by significant capital expenditures, with HK$87,380,000 spent on property, plant, and equipment[160]. - Deferred income tax liabilities decreased significantly to HK$6,718,000 from HK$14,277,000, indicating a potential improvement in tax management[150]. - Proceeds from borrowings increased significantly to HK$167,200,000 in 2025 from HK$62,265,000 in 2024, representing a growth of 168%[163]. - Net cash generated from financing activities rose to HK$31,415,000 in 2025 compared to HK$3,722,000 in 2024, indicating an increase of 746%[163]. - Cash and cash equivalents at the end of the period were HK$136,226,000, up from HK$54,811,000 in 2024, reflecting a growth of 148%[163]. - The company paid dividends of HK$58,520,000 to shareholders in 2025, an increase from HK$42,560,000 in 2024, which is a rise of 37%[163]. - The cash and bank balances at the end of the period were HK$192,820,000, compared to HK$176,299,000 in 2024, showing an increase of 9%[163]. - Time deposits maturing after three months decreased to HK$56,594,000 in 2025 from HK$121,488,000 in 2024, a decline of 53%[163]. - The effect of changes in foreign exchange rates positively impacted cash and cash equivalents by HK$2,977,000 in 2025, compared to a negative impact of HK$726,000 in 2024[163]. - The company’s cash flow from financing activities showed a net decrease in cash and cash equivalents of HK$26,163,000 in 2025, compared to HK$11,943,000 in 2024[163]. - The company’s total cash and cash equivalents at the beginning of the period were HK$159,412,000 in 2025, up from HK$67,480,000 in 2024, an increase of 136%[163]. - The company is assessing the impact of new accounting standards that will be effective from January 1, 2025, but they are not expected to have significant impacts on the Group's results[176]. - Segment revenue from web sales was HK$113,276,000, while OEM sales contributed HK$419,141,000, indicating a strong reliance on OEM sales for total revenue[200]. - The cost of sales totaled HK$337,366,000, with web sales cost at HK$20,300,000 and OEM sales cost at HK$317,066,000[200]. - Profit before income tax for the period was HK$44,106,000, with an income tax expense of HK$5,742,000, resulting in a profit for the period of HK$38,364,000[200]. Fair Value Measurement - The Group's derivative financial instruments are classified under Level 2 of the fair value measurement hierarchy, while equity investments at fair value through profit or loss are classified under Level 3[189]. - There were no transfers between Level 1 and Level 2 fair value measurements during the six months ended June 30, 2025, and 2024[190]. - The Group's policy is to recognize transfers into and out of fair value hierarchy levels at the end of the reporting period[189]. - Valuation techniques for determining fair values include present value of future cash flows based on forward exchange rates and discounted cash flow analysis[191]. - All performance obligations not yet fulfilled by the Group as of June 30, 2025, were from contracts with an original expected duration of less than one year[196].
隽思集团(01412) - 2025 - 中期财报