Financial Results - The unaudited condensed consolidated results for the nine months ended December 31, 2021, have been announced, with comparative figures for the same period in 2020[18]. - The report includes a statement of profit or loss and other comprehensive income for the nine months ended December 31, 2021[19]. - The financial results have not been audited but have been reviewed and approved by the audit committee of the Company[18]. - Revenue for the nine months ended December 31, 2021, was HK$175,901,000, representing an increase of 10.8% compared to HK$159,774,000 in the same period of 2020[20]. - Gross profit decreased to HK$24,507,000, down 19.8% from HK$30,568,000 year-on-year[20]. - Profit from operations significantly dropped to HK$1,480,000, down 91.6% from HK$17,496,000[20]. - Loss for the period was HK$643,000 compared to a profit of HK$13,661,000 in the previous year[20]. - Other net income for the period totaled HK$3,921,000, down from HK$5,756,000 in the previous year[45]. - Cost of sales increased by approximately 17.2% to approximately HK$151,394,000 from approximately HK$129,206,000[76]. - Gross profit decreased by approximately 19.8% to approximately HK$24,507,000, with a gross profit margin decrease to 13.9% from approximately 19.1%[77]. Revenue Breakdown - Sales of ODM toys to license holders decreased by 12.5% to HK$91,441,000 from HK$104,467,000[36]. - Distribution of imported toys and related products increased by 22.6% to HK$41,355,000 from HK$33,715,000[36]. - Sales of own licensed toys and related products surged by 99.5% to HK$43,105,000 from HK$21,592,000[36]. - Revenue from the sales of ODM toys to license holders decreased by approximately 12.5% to approximately HK$91,441,000, primarily due to a decline in production capacity of suppliers in mainland China[66]. - Revenue from the distribution of imported toys and related products increased by approximately 22.7% to approximately HK$41,355,000, driven by the release of a hot-selling high-end robot figure[67]. - Revenue from the sales of own licensed toys and related products increased by approximately 99.6% to approximately HK$43,105,000, attributed to the popularity of a newly developed superhero series figure[68]. Expenses and Costs - Administrative expenses increased to HK$16,626,000, up 32.3% from HK$12,579,000[20]. - Selling expenses rose to HK$9,446,000, an increase of 51.5% from HK$6,249,000[20]. - Staff costs increased to HK$13,016,000 from HK$9,336,000, reflecting higher salaries and benefits[47]. Corporate Governance and Compliance - The Company has a responsibility to ensure the accuracy and completeness of the information provided in the report[5]. - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the nine months ended 31 December 2021, confirming compliance with applicable accounting standards and GEM Listing Rules[156]. - The Company has complied with the Corporate Governance Code during the period, except for a deviation regarding the roles of the chairman and CEO being held by Mr. Li[155]. - The Board will continue to review the appropriateness of splitting the roles of chairman and CEO in the future[155]. - The Company has made adequate disclosures in its financial statements as per legal requirements[156]. Shareholder Information - As of December 31, 2021, Mr. Li Wai Keung holds 180,800,000 shares, representing 18.08% of the Company's issued share capital[135]. - The Company has not redeemed any ordinary shares during the reporting period, nor has it purchased or sold any of its ordinary shares[142]. - The Group did not recommend the payment of dividends for the Period, consistent with the Corresponding Period[119]. - The issued ordinary share capital of the Company was HK$10,000,000, divided into 1,000,000,000 shares of HK$0.01 each[148]. Future Outlook and Strategy - The Group is negotiating a possible acquisition of DongYiQuan Network Technology Co., Ltd., with a memorandum of understanding signed[104]. - The Board aims to expand the Group's network beyond the ACG figure toys market to enhance income sources and shareholder value[128]. - The Group plans to leverage its advantages in high-end toy products to achieve breakthroughs in business performance[131]. Risks and Challenges - The Group's exposure to foreign currency risk primarily arises from financial instruments denominated in JPY, RMB, and USD, with no hedging strategies adopted[111]. - The Group's revenue for the third quarter of 2021/22 was impacted by ineffective quality control over suppliers and products, which may adversely affect business operations[132]. - The Group may face delays and/or defaults in payments by customers, which could adversely affect cash flows and financial results[132]. - The failure to renew existing license rights or obtain new ones for licensed toys could negatively impact the Group's financial performance[132].
佰悦集团(08545) - 2022 Q3 - 季度财报