彩星玩具(00869) - 2023 - 中期业绩

Performance Highlights The company achieved significant revenue growth and a turnaround to net profit for the six months ended June 30, 2023 Financial Summary for the Six Months Ended June 30, 2023 | Metric | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Revenue | HKD 347,231 Thousand | HKD 267,462 Thousand | | Gross Profit | HKD 187,415 Thousand | HKD 130,563 Thousand | | Operating Profit | HKD 56,227 Thousand | HKD 18,746 Thousand | | Profit/(Loss) Attributable to Owners of the Company | HKD 86,970 Thousand | HKD (1,412) Thousand | | Basic Earnings/(Loss) Per Share | 7.37 HK cents | (0.12) HK cents | | Interim Dividend Per Share | 2.00 HK cents | - | Management Discussion and Analysis This section details the company's strong financial performance and strategic brand initiatives during the reporting period Operating Results The company achieved strong performance in the first half of 2023, with significant revenue growth and a turnaround from net loss to net profit Key Performance Indicators for H1 2023 | Metric | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Global Turnover | HKD 347 Million | HKD 267 Million | | Net Profit/(Loss) Attributable to Shareholders | Net Profit HKD 87.0 Million | Net Loss HKD 1.4 Million | | Operating Profit | HKD 56.2 Million | HKD 18.7 Million | - Toy sales gross margin improved from 49% to 54%, primarily due to a favorable product mix, lower shipping costs, and reduced inventory write-down provisions[17] - Other net income included HKD 13.9 million in unrealized gains and HKD 2.1 million in realized gains from listed securities investments, compared to an unrealized investment loss of HKD 26.2 million in the prior period[42] Brand Overview The company maintains an optimistic outlook for the second half, driven by strong performance of core IPs like Teenage Mutant Ninja Turtles and Miraculous Ladybug & Cat Noir - The core IP, Teenage Mutant Ninja Turtles, was revitalized by the success of the animated film 'Teenage Mutant Ninja Turtles: Mutant Mayhem', leading to strong toy sales in key global markets, with continued marketing planned for the fall[18][19] - The company is actively developing new products for the Teenage Mutant Ninja Turtles IP's subsequent content, including a movie sequel and two seasons of a series to be aired on Paramount+[13] - Another core IP, 'Miraculous: Tales of Ladybug & Cat Noir' TV series continues to be popular globally, and its feature film's Netflix premiere received enthusiastic response, expected to drive toy sales in the second half[14][18][20] Condensed Consolidated Financial Statements This section presents the company's condensed consolidated financial statements, including income, comprehensive income, and financial position Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2023, the company reported a 30% revenue increase to HKD 347 million and a significant turnaround to a net profit of HKD 87 million Condensed Consolidated Statement of Profit or Loss (Six Months Ended June 30) | Item | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :--- | :--- | :--- | | Revenue | 347,231 | 267,462 | | Gross Profit | 187,415 | 130,563 | | Operating Profit | 56,227 | 18,746 | | Profit/(Loss) before income tax | 86,428 | (7,326) | | Profit/(Loss) Attributable to Owners of the Company | 86,970 | (1,412) | | Basic Earnings/(Loss) Per Share | 7.37 HK cents | (0.12) HK cents | Condensed Consolidated Statement of Financial Position As of June 30, 2023, the company's total assets increased to HKD 1.327 billion and net assets to HKD 1.05 billion, maintaining a robust financial position with ample cash and bank balances Condensed Consolidated Statement of Financial Position Summary | Item | June 30, 2023 (HKD Thousand) | Dec 31, 2022 (HKD Thousand) | | :--- | :--- | :--- | | ASSETS | | | | Non-current assets | 65,863 | 60,718 | | Current assets | 1,261,124 | 1,116,623 | | Of which: Inventories | 61,735 | 23,700 | | Of which: Trade receivables | 172,991 | 60,962 | | Of which: Cash and bank balances | 908,263 | 927,922 | | LIABILITIES AND EQUITY | | | | Current liabilities | 261,006 | 170,372 | | Non-current liabilities | 15,807 | 20,165 | | Net assets | 1,050,174 | 986,804 | Notes to the Condensed Consolidated Financial Information This section provides detailed notes on the preparation basis, accounting policies, and specific financial items within the consolidated financial information Basis of Preparation and Accounting Policies The interim condensed consolidated financial information is prepared in accordance with HKAS 34, with consistent accounting policies and no significant impact from new accounting standards - The financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and the disclosure provisions of the Listing Rules[23] - The accounting policies adopted are consistent with those used in the 2022 annual financial statements, and new standards and amendments effective during the period had no significant impact[24][25] Revenue and Segment Information The group operates solely in the design, R&D, marketing, and distribution of toys and home entertainment products, with Americas as the largest revenue source and a concentration of three major clients Revenue by Region (Six Months Ended June 30) | Region | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :--- | :--- | :--- | | Americas | 240,933 | 182,144 | | Europe | 80,492 | 67,786 | | Other Asia Pacific excluding Hong Kong | 25,000 | 16,137 | | Other | 806 | 1,313 | | Total | 347,231 | 267,380 | - The group has only one operating segment: the design, research and development, marketing, and distribution of toys and home entertainment products[25] - The group's customer base includes three clients whose transactions accounted for over 10% of total revenue, with revenues of approximately HKD 63.01 million, HKD 51.73 million, and HKD 46.49 million respectively[51] Other Income/(Loss), Net The period recorded other net income of HKD 31.85 million, a significant turnaround from a net loss of HKD 24.84 million in the prior period, driven by fair value changes in financial assets and increased interest income Other Income/(Loss), Net Details (Six Months Ended June 30) | Item | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :--- | :--- | :--- | | Net gain/(loss) on financial assets (unrealized) | 13,875 | (26,173) | | Net gain/(loss) on financial assets (realized) | 2,063 | - | | Interest income | 15,692 | 621 | | Total | 31,847 | (24,835) | Income Tax The period recorded an income tax credit of HKD 0.542 million, primarily from deferred tax movements, with accumulated unrecognized tax losses of HKD 9.335 million remaining at period-end Income Tax Credit Composition (Six Months Ended June 30) | Item | 2023 (HKD Thousand) | 2022 (HKD Thousand) | | :--- | :--- | :--- | | Current tax expense | 8,706 | 3,425 | | Deferred tax credit | (9,248) | (9,339) | | Total income tax credit | (542) | (5,914) | - As of June 30, 2023, the group's accumulated unrecognized tax losses amounted to HKD 9.335 million, with no expiry date for these tax losses[54] Dividends The Board resolved to declare an interim dividend of 2 HK cents per share for the six months ended June 30, 2023, payable on September 29, 2023 - The Board resolved to pay an interim dividend of 2 HK cents per share, totaling approximately HKD 23.614 million, with no dividend paid in the prior period[31][55] Earnings/(Loss) Per Share Basic earnings per share for the six months ended June 30, 2023, significantly improved to 7.37 HK cents, with diluted earnings per share being equal due to anti-dilutive potential ordinary shares Basic Earnings/(Loss) Per Share Calculation | Item | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Owners of the Company | HKD 86.970 Million | Loss HKD 1.412 Million | | Weighted average number of ordinary shares in issue | 1,180,000,000 shares | 1,180,000,000 shares | | Basic Earnings/(Loss) Per Share | 7.37 HK cents | (0.12) HK cents | - Diluted earnings per share are equal to basic earnings per share due to the anti-dilutive effect of potential ordinary shares from the exercise of share options[1] Trade and Other Receivables and Payables As of June 30, 2023, net trade receivables significantly increased to HKD 173 million, reflecting improved Q2 orders and shipments, with a healthy aging profile and a corresponding increase in trade payables Trade Receivables Aging Analysis | Aging | June 30, 2023 (HKD Thousand) | Dec 31, 2022 (HKD Thousand) | | :--- | :--- | :--- | | 0-60 days | 158,849 | 38,537 | | 61-90 days | 14,065 | 19,606 | | Over 90 days | 77 | 2,819 | | Total | 172,991 | 60,962 | - Trade receivables and inventories were at higher levels at the interim period-end, reflecting improved customer orders and shipments in Q2 2023[68] Financial Analysis This section analyzes the company's liquidity, financial resources, treasury investments, and foreign exchange risk exposures Liquidity and Financial Resources The group maintains ample liquidity with HKD 908.263 million in cash and bank balances and a healthy current ratio of 4.8, despite seasonal working capital demands Liquidity Indicators | Metric | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and bank balances | HKD 908.263 Million | HKD 927.922 Million | | Current Ratio | 4.8 | 6.6 | - The toy business is subject to seasonality, with additional working capital demands during the peak sales season in the second half, typically leading to a significant increase in trade receivables[68] Treasury Investments As of June 30, 2023, the group held treasury investments in listed securities totaling HKD 69.62 million, primarily diversified blue-chip stocks in overseas and Hong Kong markets - Total treasury investments amounted to HKD 69.624 million, with HKD 56.966 million in overseas listed securities and HKD 12.658 million in Hong Kong listed securities[37] - The top ten holdings include well-known companies such as The Walt Disney Company, Amazon.com, Inc., NVIDIA Corporation, Apple Inc., and Microsoft Corporation[37] Foreign Exchange Risk The group's primary foreign exchange risk stems from USD-denominated sales, which is mitigated by the HKD-USD peg, thus no hedging is undertaken - The primary foreign currency risk is from USD sales, but due to the HKD-USD linked exchange rate system, the group does not hedge its foreign currency risk[69] Other Matters This section covers corporate governance, share repurchase activities, and details regarding dividend payments and share transfers Corporate Governance During the reporting period, the company complied with the Corporate Governance Code, with the exception of the combined Chairman and CEO roles, and the Audit Committee reviewed the interim financial information - The company has complied with the Corporate Governance Code, except for the non-segregation of the roles of Chairman and Chief Executive Officer, as the company has no designated CEO[70] - The Audit Committee has reviewed accounting principles and practices with management and has reviewed the unaudited condensed consolidated financial information for the period[71] Share Repurchase Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's shares during the six months ended June 30, 2023 - The company did not redeem, purchase, or sell any of its shares during the period[5] Dividend Payment and Share Transfer To qualify for the interim dividend, shareholders must submit transfer documents by September 8, 2023, with share transfer registration suspended from September 11-12, and dividend payment on September 29, 2023 - The company will suspend share transfer registration from September 11 to 12, 2023, and the interim dividend will be paid on September 29, 2023, to shareholders registered on September 12[7]