KIDDIELAND：InterimReport2024.pdf

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1、CONTENTS2Corporate Information3Management Discussion and Analysis7Condensed Consolidated Statement of Comprehensive Income9Condensed Consolidated Statement of Financial Position11Condensed Consolidated Statement of Changes in Equity12Condensed Consolidated Statement of Cash Flows13Notes to the Conde

2、nsed Consolidated Interim Financial Information32Other InformationKiddieland International Limited Interim Report 20242CORPORATE INFORMATIONAUDITORPricewaterhouseCoopersCertified Public AccountantsRegistered Public Interest Entity Auditor22/F,Princes BuildingCentral,Hong KongPRINCIPAL BANKERThe Hong

3、kong and Shanghai Banking Corporation LimitedHSBC Main Building1 Queens Road CentralHong KongHEADQUARTERS AND PRINCIPAL PLACE OF BUSINESS IN HONG KONG14/F,Bank of America Tower12 Harcourt Road,Central,Hong KongREGISTERED OFFICEWindward 3,Regatta Office ParkPO Box 1350,Grand Cayman KY1-1108Cayman Isl

4、andsPRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICEOcorian Trust(Cayman)LimitedWindward 3,Regatta Office ParkPO Box 1350,Grand Cayman KY1-1108Cayman IslandsHONG KONG BRANCH SHARE REGISTRAR AND TRANSFER OFFICETricor Investor Services Limited17/F,Far East Finance Centre16 Harcourt RoadHong KongCOMPANY W

5、EBSITEhttp:/.hkSTOCK CODE3830BOARD OF DIRECTORSExecutive DirectorsMs.Lo Shiu Shan SuzanneMs.Sin Lo Siu Wai Sylvia(Chief Executive Officer)Mr.Lo Hung(Chairman)Ms.Leung Siu Lin EstherIndependent Non-executive DirectorsMr.Man Ka Ho DonaldMr.Cheng DominicMr.Sit Hon WingAUDIT COMMITTEEMr.Sit Hon Wing(Cha

6、irman)Mr.Man Ka Ho DonaldMr.Cheng DominicREMUNERATION COMMITTEEMr.Cheng Dominic(Chairman)Mr.Man Ka Ho DonaldMr.Sit Hon WingMs.Sin Lo Siu Wai SylviaNOMINATION COMMITTEEMr.Man Ka Ho Donald(Chairman)Mr.Cheng DominicMr.Sit Hon WingAUTHORISED REPRESENTATIVESMs.Sin Lo Siu Wai SylviaMr.Cheung Ka CheongCOMP

7、ANY SECRETARYMr.Cheung Ka CheongMANAGEMENT DISCUSSION AND ANALYSISKiddieland International Limited Interim Report 20243BUSINESS REVIEWThe global economic climate continues to recover from the impacts of the COVID-19 pandemic,which has weakened purchasing power worldwide.Concurrently,economic slowdow

8、ns and depreciating currencies in countries outside the United States,relative to the US Dollar,have further dampened demand for our goods.Despite these challenges,the Toy Business has remained profitable during six months ended 31 October 2024(the“Review Period”),thanks to our innovative,high-quali

9、ty,and competitively priced products,as well as our strategic collaboration with trusted subcontractors who consistently deliver exceptional value to our customers.On the other hand,growth in the Laboratory Equipment Business has slowed,primarily due to domestic challenges,including deflation and pr

10、ice competition.As a result,the Groups unaudited revenue for the Review Period was approximately HK$136.1 million,marking a decrease of 8.5%compared to the corresponding period last year(the“Last Period”)(2023:HK$148.7 million).However,the profit attributable to owners of the Company for the Review

11、Period was approximately HK$5.5 million,a slight improvement compared to the net profit of approximately HK$4.5 million reported for the same period in 2023.OPERATING RESULTSRevenueThe revenue from North America grew by 0.9%to approximately HK$69.3 million in the Review Period(2023:HK68.7 million).A

12、 stable growth while average selling price remained relatively constant.The European market declined by 1.2%to approximately HK$32.9 million in the Review Period(2023:HK$33.3 million).The decrease highlights the impact of sluggish European economy,compounded by high inflation.Revenue generated from

13、Asia has underperformed with approximately HK$1.4 million contribution in the Review Period(2023:HK$4.4 million).The significant decline of 68.2%in the Asian market is attributed to economic and political uncertainties,including high interest rates and inflationary pressure.Revenue generated from th

14、e Laboratory Equipment Business decreased by 22.7%to approximately HK$28.3 million in the Review Period(2023:HK$36.6 million).The business is affected by the economic slowdown in the PRC and intense price competition in the industry.As a result of the above,the Groups overall revenue decreased by 8.

15、5%to approximately HK$136.1 million in the Review Period(2023:HK$148.7 million).MANAGEMENT DISCUSSION AND ANALYSISKiddieland International Limited Interim Report 20244Gross ProfitThe Group recorded a gross profit decreased by 11.2%to approximately HK$23.7 million in the Review Period(2023:HK$26.7 mi

16、llion).The decrease in gross profit is mainly due to the decrease in revenue during the Review Period.The Toy Business has maintained a stable gross profit margin of 17.5%while there was a slight decline in the Laboratory Equipment Business.While the economic growth in China remains slow,competition

17、 from Laboratory Equipment Business remains strong and price-sensitive.A decrease in gross profit margin of 3.0%to 17.1%is recorded in the Review Period.Other Gains/(Losses)The Group recorded other gains of approximately HK$0.1 million in the Review Period whilst the Group recorded other losses of a

18、pproximately HK$0.7 million in the Last Period.The other losses recorded in the Last Period were mainly attributed to the impairment loss in intangible assets whilst no such impairment loss has been recorded in the Review Period.Selling and Distribution ExpensesSelling and distribution expenses decr

19、eased by 12.5%to approximately HK$6.3 million during the Review Period(2023:HK$7.2 million).This reduction was primarily due to lower sales commissions,which corresponded to the decline in revenue from the Toy Business and Laboratory Equipment Business.Additionally,the decrease in expenses is attrib

20、uted to a reduced headcount of sales representatives in the Laboratory Equipment Business.Administrative ExpensesAdministrative expenses decreased by 25.2%to approximately HK$11.0 million in the Review Period(2023:HK$14.7 million).The decrease was mainly attributed to the decrease in staff costs and

21、 the other fixed overheads.Finance CostsNet finance costs have improved by 50.0%to approximately HK$0.1 million in the Review Period(2023:HK$0.2 million).The decrease was attributed to the decrease in average bank borrowings level while the bank interest income earned on the surplus cash on hand kep

22、t at the same level during the Review Period.MANAGEMENT DISCUSSION AND ANALYSISKiddieland International Limited Interim Report 20245Income Tax ExpensesThe Group recorded income tax expenses of approximately HK$2.0 million for the Review Period(2023:HK$0.4 million).The increase was mainly attributabl

23、e to the increase in the assessable profit and the de-recognition of deferred income tax assets of the Laboratory Equipment Business.Net ProfitAlthough there is a slight decrease in the revenue level during the Review Period,the Group recorded a net profit of approximately HK$5.5 million for the Rev

24、iew Period(2023:HK$4.5 million).The increase in net profit was mainly attributed to(i)the decrease in selling and distribution expenses;(ii)the decrease in administrative expenses;and(iii)the absence of impairment loss in intangible assets.It was partially offset by the de-recognition of deferred in

25、come tax assets of the Laboratory Equipment Business.Foreign Currency ExposureThe sales,purchases,and expenses incurred in the Toy Business are mainly denominated in Hong Kong and US Dollar.And for production factory located in the PRC in relation to the Laboratory Equipment Business,sales,purchases

26、,and expenses incurred there are denominated in Renminbi.Since Hong Kong Dollar remains pegged to US Dollar,the Group does not foresee substantial exposure in this area,and will closely monitor the trend of the Renminbi to see if any action is required.As at 31 October 2024,the Group had not entered

27、 into any financial instrument for the hedging of foreign currency.OUTLOOK/FUTURE PROSPECTS AND STRATEGIESKiddieland has faced different challenges and opportunities over the past year,but continues to strive to greater success with our continued development and success.The lingering effects of the

28、ongoing wars globally coupled with weak currencies,there still remains some impact on consumer spending.The toy industry as a whole has also navigated the complexities of raw material inflation.However,these hurdles have not hindered our drive for innovation and progress as we continue to grow our p

29、roduct range and sales worldwide.MANAGEMENT DISCUSSION AND ANALYSISKiddieland International Limited Interim Report 20246Kiddielands reliable subcontractors and outsourced manufacturing processes continue to help enhance profitability.We have emerged with a resilient performance over the last fiscal

30、year and are steadily growing our client base globally.Our proactive approach,including the introduction of reengineered and innovative products,has been pivotal in improving our profitability.As we look forward,the global economic situation is expected to show signs of improvement in 2025.This anti

31、cipated upturn presents us with an opportunity to introduce more competitive and innovative products into a market primed for consumption after a period of reorganization.In the forthcoming year,Kiddieland will continue to expand our product range with new,hot licenses.Such innovative and improved d

32、esigns contribute to increased profitability,allowing us to grow market share in untapped countries and identify new buyers and channels.Our strategic initiatives will be geared towards leveraging these anticipated market trends and evolving consumer preferences.In parallel with our Toy Business,Kid

33、dieland Technology(Laboratory Equipment Business)strives to specialize in three aspects.Firstly,to further specialize,optimize,upgrade and innovate the intelligent laboratory products and series products of laboratory operation evaluation system of the high school entrance examinations.Secondly,to p

34、rovide professional customized services for customers individual needs,so as to strongly build up the popularity and satisfaction of the Companys products.Thirdly,to deepen the sales management,continue to provide customers with one-stop service in the pre-sales,sales and after-sales process to alle

35、viate customers worries and create more opportunities for subsequent orders.In addition,Kiddieland Technology actively responds to national policies and continuously improves our product series.We believe that Kiddieland Technology is able to gain a foothold in Chinas education market.Kiddieland Tec

36、hnology will continue to take the mission of creating digital and intelligent products suitable for the strategic goals of national education,and empowering education with technological innovation.Based on the above,our ability to adapt to conditions,be innovative and to succeed in the market has gr

37、adually increased over the past year,and the Company is optimistic about the future and potential market opportunities.CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEKiddieland International Limited Interim Report 20247For the six months ended 31 October 2024Six monthsended31 October2024Six

38、 monthsended31 October2023NoteHK$000HK$000(unaudited)(unaudited)Revenue6136,130148,709Cost of sales7(112,464)(121,998)Gross profit23,66626,711Other income234233Other gains/(losses),net54(706)Selling and distribution expenses7(6,320)(7,201)Administrative expenses7(10,962)(14,714)Reversals of impairme

39、nt losses/(impairment losses)on financial assets,net16(40)Operating profit6,6884,283Finance income262315Finance expenses(345)(559)Finance costs,net(83)(244)Profit before taxation6,6054,039Income tax expenses8(2,048)(355)Profit for the period4,5573,684 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIV

40、E INCOMEKiddieland International Limited Interim Report 20248For the six months ended 31 October 2024Six monthsended31 October2024Six monthsended31 October2023NoteHK$000HK$000(unaudited)(unaudited)Other comprehensive lossItem that may be reclassified to profit or loss:Currency translation difference

41、s(42)(720)Other comprehensive loss for the period,net of tax(42)(720)Total comprehensive income for the period4,5152,964 Profit/(loss)for the period attributable to:Owners of the Company5,5454,510Non-controlling interests(988)(826)4,5573,684 Total comprehensive income/(loss)attributable to:Owners of

42、 the Company5,5063,901Non-controlling interests(991)(937)4,5152,964 Earnings per share for profit attributable to owners of the Company during the period(expressed in HK cents per share)Basic and diluted earnings per share90.60.5 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITIONKiddieland Inter

43、national Limited Interim Report 20249As at 31 October 2024As at31 October2024As at30 April2024NoteHK$000HK$000(unaudited)(audited)ASSETSNon-current assetsProperty,plant and equipment115,3015,662Right-of-use assets131,2562,648Intangible assets123,8297,056Deferred income tax assets8,25410,447Deposits

44、and prepayments76 18,64025,889 Current assetsInventories10,4449,831Trade receivables1426,9878,731Other receivables,deposits and prepayments5,0066,395Contract assets118110Income tax recoverable8Cash and bank balances2,2977,340 44,85232,415 Total assets63,49258,304 EQUITYOwners of the CompanyShare cap

45、ital15100,000100,000Other reserves6,2426,242Exchange reserves(1,711)(1,672)Accumulated losses(73,342)(78,887)31,18925,683Non-controlling interests184381,429 Total equity31,62727,112 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITIONKiddieland International Limited Interim Report 202410As at 31 O

46、ctober 2024As at31 October2024As at30 April2024NoteHK$000HK$000(unaudited)(audited)LIABILITIESNon-current liabilitiesAccruals and other payables851,563Deferred income tax liabilities405550Lease liabilities13105 4902,218 Current liabilitiesTrade and bills payables166,9394,908Accruals and other payabl

47、es11,58214,530Contract liabilities11,5016,840Lease liabilities131,3532,696 31,37528,974 Total liabilities31,86531,192 Total equity and liabilities63,49258,304 Kiddieland International Limited Interim Report 202411CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFor the six months ended 31 Octobe

48、r 2024Attributable to owners of the Company(unaudited)SharecapitalOtherreservesExchangereservesAccumulatedlossesNon-controllinginterestsTotalequityHK$000HK$000HK$000HK$000HK$000HK$000 Balance as at 1 May 2024100,0006,242(1,672)(78,887)1,42927,112Profit/(loss)for the period5,545(988)4,557Other compre

49、hensive loss(39)(3)(42)Total comprehensive income/(loss)(39)5,545(991)4,515 Balance as at 31 October 2024100,0006,242(1,711)(73,342)43831,627 Attributable to owners of the Company(unaudited)Share capitalOther reservesExchange reservesAccumulated lossesNon-controlling InterestsTotal equityHK$000HK$00

50、0HK$000HK$000HK$000HK$000 Balance as at 1 May 2023100,0006,24287(71,549)3,37238,152Profit/(loss)for the period4,510(826)3,684Other comprehensive loss(609)(111)(720)Total comprehensive income/(loss)(609)4,510(937)2,964 Balance as at 31 October 2023100,0006,242(522)(67,039)2,43541,116 CONDENSED CONSOL

51、IDATED STATEMENT OF CASH FLOWSKiddieland International Limited Interim Report 202412For the six months ended 31 October 2024Six months ended 31 October 2024Six months ended 31 October 2023HK$000HK$000(unaudited)(unaudited)Cash flows from operating activitiesNet cash(used in)/generated from operation

52、s(1,428)11,097Interest received262315Interest paid(277)(249)Income tax refunded/(paid)8(9)Net cash(used in)/generated from operating activities(1,435)11,154 Cash flows from investing activitiesPurchases of property,plant and equipment(629)(748)Settlements of liabilities arising from acquisitions of

53、licenses(1,426)(4,555)Purchase of intangible assets(31)(35)Net cash used in investing activities(2,086)(5,338)Cash flows from financing activitiesRepayment of principal element of lease liabilities(1,431)(1,232)Repayment of interest element of lease liabilities(68)(155)Net cash used in financing act

54、ivities(1,499)(1,387)Net(decrease)/increase in cash and cash equivalents(5,020)4,429Effect on exchange rate differences(23)(240)Cash and cash equivalents at beginning of the period7,3403,379 Cash and cash equivalents at end of the period2,2977,568 NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIA

55、L INFORMATIONKiddieland International Limited Interim Report 2024131 GENERAL INFORMATION OF THE GROUPKiddieland International Limited(the“Company”)was incorporated in the Cayman Islands on 3 June 2016 as an exempted company with limited liability.The address of its registered office is Windward 3,Re

56、gatta Office Park,PO Box 1350,Grand Cayman KY1-1108,Cayman Islands.The Company is an investment holding company.Its subsidiaries are principally engaged in the manufacturing and selling of plastic toy products and laboratory equipments.In the opinion of the directors,the Companys ultimate and immedi

57、ate holding company is KLH Capital Limited,a company incorporated in the British Virgin Islands.The condensed consolidated interim financial information is presented in Hong Kong Dollars(“HK$”)unless otherwise stated.2 BASIS OF PREPARATIONThe unaudited condensed consolidated interim financial inform

58、ation for the six months ended 31 October 2024 is prepared in accordance with Hong Kong Accounting Standard(“HKAS”)34,“Interim Financial Reporting”.It should be read in conjunction with the annual report for the year ended 30 April 2024(the“Annual Report”),which have been prepared in accordance with

59、 Hong Kong Financial Reporting Standards(“HKFRSs”)issued by the Hong Kong Institute of Certified Public Accountants(“HKICPA”).NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATIONKiddieland International Limited Interim Report 2024143 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe account

60、ing policies applied are consistent with those as described in the Annual Report,except for the adoption of new and amended standards,improvements and interpretations of HKFRSs effective for the financial year commencing on 1 May 2024.(a)New and amended standards,improvements and interpretations of

61、HKFRSs adopted by the GroupThe Group has adopted the following new and amended standards,improvements and interpretations of HKFRSs which are mandatory for the financial year commencing on 1 May 2024 and are relevant to its operation:Amendments to HKAS 1Classification of Liabilities as Current or No

62、n-currentAmendments to HKAS 1Non-current Liabilities with CovenantsAmendments to HKFRS 16Lease Liability in a Sale and LeasebackAmendments to HKAS 7 and HKFRS 7Supplier Finance ArrangementsHong Kong Interpretation 5(Revised)Presentation of Financial Statements Classification by the Borrower of a Ter

63、m Loan that Contains a Repayment on Demand ClauseThe adoption of new and amended standards,improvements and interpretations of HKFRSs does not have a material impact to the Groups financial performance and positions for the current and prior periods and/or on the disclosure set out in these condense

64、d consolidated financial information.NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATIONKiddieland International Limited Interim Report 2024153 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)(b)New and amended standards,improvements and interpretations of HKFRSs not yet adopted b

65、y the GroupThe following new and amended standards,improvements and interpretations of HKFRSs are not yet effective for annual periods commencing on or after 1 May 2024 and have not been early adopted by the Group:Effective for annual periods commencing on or after Amendments to HKAS 21Lack of Excha

66、ngeability1 May 2025HKFRS 18(Amendments)Presentation and Disclosure in Financial Statements1 May 2027HKFRS 19(Amendments)Subsidiaries without Public Accountability:Disclosures1 May 2027HKFRS 10 and HKAS 28(Amendments)Sale or Contribution of Assets between an Investor and its Associate or Joint Ventu

67、reTo be determinedNone of the above new and amended standards,improvements and interpretations of HKFRSs is expected to have a significant effect on the consolidated financial statements of the Group.4 ESTIMATESThe preparation of condensed consolidated interim financial information requires the mana

68、gement to make judgements,estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities,income and expense.Actual results may differ from these estimates.In preparing this condensed consolidated interim financial information,the signi

69、ficant judgements made by the management in applying the Groups accounting policies and the key sources of estimation uncertainty were the same as those that applied to the Annual Report.NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATIONKiddieland International Limited Interim Report

70、2024165 FINANCIAL RISK MANAGEMENT(a)Financial risk factorsThe Groups activities expose it to a variety of financial risks:market risk(including currency risk,fair value interest rate risk,cash flow interest rate risk and price risk),credit risk and liquidity risk.The condensed consolidated interim f

71、inancial information does not include all financial risk management information and disclosures required in the annual report,and should be read in conjunction with the Annual Report.There have been no changes in the Groups risk management policies since the year ended 30 April 2024.(b)Liquidity ris

72、kCompared to the year ended 30 April 2024,there was no material change in the contractual undiscounted cash out flows for financial liabilities.(c)Fair value estimationThe Groups financial assets comprise of cash and bank balances,trade and bills receivables,other receivables and deposits;and the Gr

73、oups financial liabilities comprise of trade and bills payables,accruals and other payables and bank borrowings.The carrying amounts of the financial assets and financial liabilities approximate their fair values due to their short maturities.NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INF

74、ORMATIONKiddieland International Limited Interim Report 2024176 SEGMENT INFORMATIONThe executive Directors of the Company have been identified as the chief operating decision-makers of the Group who review the Groups internal reporting in order to assess performance of the Group on a regular basis a

75、nd allocate resources.During the six months ended 31 October 2024,the Group engaged in two operating segments namely,toy business and laboratory equipment business.The chief operating decision-makers assess the business performance based on a measure of operating results.Information reported to the

76、chief operating decision-makers for the purposes of resources allocation and performance assessment focuses on the operation results of the Group as a whole as the Groups resources are integrated.Accordingly,the related revenue and results of the operating segments of toy business and laboratory equ

77、ipment business are presented for the six months ended 31 October 2024 and 2023.The related assets and liabilities of the operating segments as at 31 October 2024 and 30 April 2024 are presented as below.Segment revenue and resultsThe following is an analysis of the Groups revenue and results by ope

78、rating segment:For the six months ended 31 October 2024(unaudited)Toy businessLaboratoryequipmentbusinessTotalHK$000HK$000HK$000 Revenue107,83828,292136,130Cost of sales(89,009)(23,455)(112,464)Gross profit18,8294,83723,666 Segment results9,128(2,728)6,400Unallocated:Other income234Other gains,net54

79、Finance costs,net(83)Profit before income tax6,605 NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATIONKiddieland International Limited Interim Report 2024186 SEGMENT INFORMATION(Continued)Segment revenue and results(Continued)For the six months ended 31 October 2023(unaudited)Toy busin

80、essLaboratoryequipmentbusinessTotalHK$000HK$000HK$000 Revenue112,07836,631148,709Cost of sales(92,715)(29,283)(121,998)Gross profit19,3637,34826,711 Segment results7,357(2,601)4,756Unallocated:Other income233Other losses,net(706)Finance costs,net(244)Profit before income tax4,039 NOTES TO THE CONDEN

81、SED CONSOLIDATED INTERIM FINANCIAL INFORMATIONKiddieland International Limited Interim Report 2024196 SEGMENT INFORMATION(Continued)Segment assets and liabilitiesThe following is an analysis of the Groups assets and liabilities by operating segment:Toy businessLaboratoryequipmentbusinessTotalHK$000H

82、K$000HK$000 As at 31 October 2024(unaudited)AssetsSegment assets43,60519,58663,191Unallocated:Property,plant and equipment281Cash and bank balances20 Total assets63,492 LiabilitiesSegment liabilities14,03117,83431,865 Total liabilities31,865 As at 30 April 2024(audited)AssetsSegment assets36,01521,8

83、3857,853Unallocated:Property,plant and equipment345Cash and bank balances106 Total assets58,304 LiabilitiesSegment liabilities15,07316,11931,192 Total liabilities31,192 NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATIONKiddieland International Limited Interim Report 2024206 SEGMENT IN

84、FORMATION(Continued)For the six months ended 31 October 2024,revenue by geographical areas is as follows:Six monthsended31 October2024Six monthsended31 October2023HK$000HK$000(unaudited)(unaudited)America69,80369,716Europe32,90533,283Asia Pacific and Oceania(exclude the PRC)5,1309,079The PRC28,29236

85、,631 136,130148,709 The analysis of revenue by geographical segment is based on the location of customers.For the six months ended 31 October 2024,there was no(six months ended 31 October 2023:one)customer(s)which individually contributed over 10%of the Groups total revenue.During the period,the rev

86、enue contributed from the customer is as follows:Six monthsended31 October2024Six monthsended31 October2023HK$000HK$000(unaudited)(unaudited)Customer AN/A*19,381 *Represent less than 10%of the Groups total revenue for the respective period.NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORM

87、ATIONKiddieland International Limited Interim Report 2024217 EXPENSES BY NATUREExpenses included in cost of sales,selling and distribution expenses and administrative expenses are analysed as follows:Six monthsended31 October2024Six monthsended31 October2023HK$000HK$000(unaudited)(unaudited)Auditors

88、 remuneration Audit services500700 Non-audit services21Advertising and promotion expenses1,1511,468Amortisation of intangible assets(note 12)3,4323,187Bank charges245254Commissions7941,168Consumables288408Cost of inventories sold92,49899,992Custom and declaration handling expenses25Depreciation of p

89、roperty,plant and equipment(note 11)9631,201Depreciation of right-of-use assets(note 13)1,3751,298Expenses for short-term and low-value operating leases6961,651Licenses fees6,7447,975Logistics and warehousing expenses1,6121,853Other taxes1144Product testing expenses896743Repair and maintenance expen

90、ses410304Staff costs,including Directors emoluments10,66513,328Subcontracting expenses3,3713,690Utilities203190Other expenses3,9024,313 129,746143,913 NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATIONKiddieland International Limited Interim Report 2024228 INCOME TAX EXPENSESFor the s

91、ix months ended 31 October 2024 and 2023,Hong Kong profits tax has been provided for at the rate of 16.5%on the estimated assessable profit.The Groups subsidiaries in the PRC are subject to China enterprise income tax at a rate of 25%on estimated assessable profits.The Groups subsidiary in the U.S.i

92、s subject to U.S.corporate income tax at progressive tax rates ranged from 5%to 39%on the estimated assessable profit.The amount of income tax expenses charged to the condensed consolidated interim statement of comprehensive income represents:Six monthsended31 October2024Six monthsended31 October202

93、3HK$000HK$000(unaudited)(unaudited)Current income tax Current tax on profit for the period2Deferred income tax2,048353 Income tax expenses2,048355 NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATIONKiddieland International Limited Interim Report 2024239 EARNINGS PER SHARE(a)Basic earni

94、ngs per shareBasic earnings per share is calculated by dividing the profit attributable to owners of the Company by the weighted average number of ordinary shares in issue during the six months ended 31 October 2024 and 2023.Six monthsended31 October2024Six monthsended31 October2023(unaudited)(unaud

95、ited)Profit attributable to owners of the Company(HK$000)5,5454,510 Weighted average number of ordinary shares in issue(in thousand)1,000,0001,000,000 Basic earnings per share(HK cents)0.60.5 (b)Diluted earnings per shareDiluted earnings per share for the period ended 31 October 2024 and 2023 are th

96、e same as basic earnings per share as there was no potential dilutive share.10 DIVIDENDSFor the six months ended 31 October 2024,no dividend was declared or paid by the Company.NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATIONKiddieland International Limited Interim Report 20242411 P

97、ROPERTY,PLANT AND EQUIPMENTLeaseholdimprovementsFurnitureand fixturesOfficeequipmentMotorvehiclesPlant andmachineryMoulds andtoolsMouldswork-in-progressTotalHK$000HK$000HK$000HK$000HK$000HK$000HK$000HK$000(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)Six mon

98、ths ended 31 October 2023Net book valueAt beginning of the period70237321981,1735,8732167,988Addition43325416748Depreciation(note 7)(4)(33)(160)(12)(120)(872)(1,201)Transfer upon completion333(333)Disposal(25)(25)Exchange differences(9)(11)(4)(45)(144)(213)At end of the period66199153829835,5152997,

99、297 Six months ended 31 October 2024Net book valueAt beginning of the period884542698163,8072285,662Addition4283342629Depreciation(note 7)(24)(78)(35)(116)(710)(963)Transfer upon completion570(570)Exchange differences(2)(1)(2)(7)(15)(27)At end of the period623752366933,9355,301 NOTES TO THE CONDENSE

100、D CONSOLIDATED INTERIM FINANCIAL INFORMATIONKiddieland International Limited Interim Report 20242512 INTANGIBLE ASSETSSix monthsended31 October2024Six monthsended31 October2023HK$000HK$000(unaudited)(unaudited)Software3261,197Licenses3,5036,114 3,8297,311 Beginning of the period7,0569,727Addition209

101、1,790Less:amortisation(note 7)(3,432)(3,187)Less:impairment losses(908)Exchange differences(4)(111)End of the period3,8297,311 During the six months ended 31 October 2023,the Group identified several software which is unable to generate any cash flow and impairment loss of approximately HK$908,000 w

102、as recognised for the relevant software.Licenses represent minimum payments under license arrangement for non-exclusive rights of manufacturing toy products with specific cartoon icons and distributing to certain countries.During the six months ended 31 October 2024,amortisation charge of approximat

103、ely HK$3,428,000(six months ended 31 October 2023:HK$3,183,000)and HK$4,000(six months ended 31 October 2023:HK$4,000)were charged to cost of sales and administrative expenses,respectively.NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATIONKiddieland International Limited Interim Repor

104、t 20242613 LEASES AND RIGHT-OF-USE ASSETSThe Group has lease contracts for factories and buildings,office premise,warehouse and staff quarter.The movements during the six months ended 31 October 2024 are set out below:Six monthsended31 October2024Six monthsended31 October2023HK$000HK$000(unaudited)(

105、unaudited)Right-of-use assetsAt beginning of the period2,6484,885Addition586Depreciation(note 7)(1,375)(1,298)Exchange differences(17)(188)At end of the period1,2563,985 Lease liabilitiesAt beginning of the period2,8014,981Addition586Finance cost68155Payment(1,499)(1,387)Exchange differences(17)(193

106、)At end of the period1,3534,142 Current1,3532,517Non-current1,625 NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATIONKiddieland International Limited Interim Report 20242714 TRADE RECEIVABLESAs at31 October2024As at30 April2024HK$000HK$000(unaudited)(audited)Trade receivables27,3789,13

107、8Less:loss allowance(391)(407)Trade receivables,net26,9878,731 The gross amounts of trade receivables are denominated in the following currencies:As at31 October2024As at30 April2024HK$000HK$000(unaudited)(audited)US$25,4277,794RMB1,9511,344 27,3789,138 The Group grants credit periods to customers r

108、anged from 0 to 180 days.As at 31 October 2024,the ageing analysis of trade receivables in gross amount based on invoice date is as follows:As at31 October2024As at30 April2024HK$000HK$000(unaudited)(audited)Within 3 months26,8687,7803 months to 1 year1861,034Over 1 year324324 27,3789,138 NOTES TO T

109、HE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATIONKiddieland International Limited Interim Report 20242815 SHARE CAPITALNumber of sharesNominal value(in thousand)HK$000(unaudited)(unaudited)Authorised ordinary shares at HK$0.1 each:As at 31 October 2024 and 30 April 202410,000,0001,000,000 Ordi

110、nary shares issued and fully paid:As at 31 October 2024 and 30 April 20241,000,000100,000 16 TRADE AND BILLS PAYABLESTrade and bills payables are denominated in the following currencies:As at31 October2024As at30 April2024HK$000HK$000(unaudited)(audited)US$6,3123,309HK$11RMB6271,588 6,9394,908 As at

111、 31 October 2024,the ageing analysis of trade and bills payables based on invoice date is as follows:As at31 October2024As at30 April2024HK$000HK$000(unaudited)(audited)Within 1 month5,2373,8221 to 2 months1,3927102 to 3 months297182Over 3 months13194 6,9394,908 NOTES TO THE CONDENSED CONSOLIDATED I

112、NTERIM FINANCIAL INFORMATIONKiddieland International Limited Interim Report 20242917 RELATED PARTY TRANSACTIONSThe Directors are of the view that the following parties/companies were related parties that had transactions or balances with the Group during the period.The related party transactions set

113、 out below were carried out on terms mutually agreed between the parties.Name of related partiesRelationship with the Group Mr.Lo HungExecutive Director of the CompanyMs.Leung Siu Lin EstherExecutive Director of the CompanyMs.Lo Shiu Shan SuzanneExecutive Director of the CompanyMs.Sin Lo Siu Wai Syl

114、viaControlling shareholder and executive Director of the CompanyEsther&Victor LimitedControlled by Mr.Lo Hung and Ms.Leung Siu Lin EstherTop Dragon Enterprise Investment LimitedControlled by Mr.Lo Hung and Ms.Leung Siu Lin Esther(a)Transactions with related partiesSix monthsended31 October2024Six mo

115、nthsended31 October2023HK$000HK$000(unaudited)(unaudited)(i)Op erating lease expense for office paid or payable to Top Dragon Enterprise Investment Limited600600 600600 (ii)Key management compensation:Wages,salaries and bonuses2,2752,561Retirement benefits3642Other benefits 2,3112,603 NOTES TO THE C

116、ONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATIONKiddieland International Limited Interim Report 20243017 RELATED PARTY TRANSACTIONS(Continued)(b)Other arrangementDuring the period,two related companies,Esther&Victor Limited and Top Dragon Enterprise Investment Limited,pledged their properties to

117、banks to make available to the Groups bank facilities of approximately HK$185,050,000(six months ended 31 October 2023:HK$215,050,000).18 NON-CONTROLLING INTERESTSGuangdong Kiddieland Technology Co.,Ltd.,a 75%(six months ended 31 October 2023:75%)owned subsidiary of the Company,has non-controlling i

118、nterests of 25%which is material to the Group.The summarised financial information of Guangdong Kiddieland Technology Co.,Ltd.and its wholly-owned subsidiaries,Shenzhen Kiddieland Technology Co.,Ltd.,Guangzhou Lianda Smart Technology Co.,Ltd.,Kiddieland Technology Co.,Limited and Shenzhen Kiddieland

119、 Information Technology Co.,Ltd.,before intra-group elimination,are presented as below:Six monthsended31 October 2024Six monthsended31 October 2023HK$000HK$000(unaudited)(unaudited)Revenue28,29236,631Loss for the period(3,953)(3,304)Total comprehensive loss for the period(3,967)(3,748)Loss allocated

120、 to non-controlling interests(991)(937)Cash flows generated from operating activities1,7502,706Cash flows used in investing activities(89)(258)Cash flows used in financing activities(1,341)(1,335)Net cash inflows3201,113 NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATIONKiddieland Int

121、ernational Limited Interim Report 20243118 NON-CONTROLLING INTERESTS(Continued)As at31 October 2024As at30 April 2024HK$000HK$000(unaudited)(audited)CurrentAssets14,34313,567Liabilities(17,834)(16,119)Net current liabilities(3,491)(2,552)Non-currentAssets5,2438,271 Net non-current assets5,2438,271 N

122、et assets1,7525,719 Accumulated non-controlling interests4381,429 OTHER INFORMATIONKiddieland International Limited Interim Report 202432DIRECTORS AND CHIEF EXECUTIVES INTERESTS AND SHORT POSITIONS IN SHARES,UNDERLYING SHARES AND DEBENTURES OF THE COMPANY OR ANY ASSOCIATED CORPORATIONAs of 31 Octobe

123、r 2024,the interests and/or short positions of the Directors and/or the chief executive of the Company in the shares,underlying shares and debentures of the Company or any of its associated corporations(within the meaning of Part XV of the Securities and Futures Ordinance(the“SFO”)as recorded in the

124、 register required to be kept by the Company pursuant to section 352 of the SFO or as otherwise notified to the Company and The Stock Exchange of Hong Kong Limited(the“Hong Kong Stock Exchange”)pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers(the“Model Code”)cont

125、ained in Appendix C3(formerly Appendix 10)to the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange(the“Listing Rules”)were as follows:Long position in shares of associated corporation KLH Capital Limited(“KLH Capital”)Name of DirectorsCapacityNature of interestsNumber ofshare

126、s(ordinary)Approximatepercentage ofshareholdingin KLH Capital Ms.Sin Lo Siu Wai SylviaBeneficial ownerPersonal10,000100%Save as disclosed above,as at 31 October 2024,none of the Directors or the chief executives of the Company had any interests or short positions in the shares,underlying shares and

127、debentures of the Company or any of its associated corporations as recorded in the register required to be kept pursuant to section 352 of the SFO or which were required,pursuant to the Model Code,to be notified to the Company and the Hong Kong Stock Exchange.OTHER INFORMATIONKiddieland Internationa

128、l Limited Interim Report 202433INTERESTS AND SHORT POSITIONS OF THE SUBSTANTIAL SHAREHOLDERS IN SHARES AND UNDERLYING SHARES OF THE COMPANYAs at 31 October 2024,the interests and short positions of substantial shareholders(other than the Directors and the chief executive of the Company)in the shares

129、 or the underlying shares of the Company as recorded in the register required to be kept by the Company under section 336 of the SFO were as follows:Long position in the sharesName of shareholderCapacityNumber of shares(ordinary)Approximate percentage ofshareholding inthe Company KLH CapitalBenefici

130、al owner750,000,000(note)75%Note:Ms.Sin Lo Siu Wai Sylvia,being executive Director and chief executive officer of the Company,holds 100%of the issued shares in KLH Capital.Saved as disclosed above,as at 31 October 2024,the Company is not aware of any other party(not being a Director and the chief ex

131、ecutive of the Company),who had interests or short positions in the shares and underlying shares of the Company,which would fall to be disclosed to the Company under the provisions of Division 2 and 3 of Part XV of the SFO or recorded in the register required to be kept by the Company pursuant to se

132、ction 336 of the SFO.PURCHASE,SALE OR REDEMPTION OF LISTED SECURITIESNeither the Company nor any of its subsidiaries has purchased,sold or redeemed any of the Companys listed securities during the six months ended 31 October 2024.SIGNIFICANT INVESTMENT HELDExcept for investments in subsidiaries,the

133、Group did not hold any significant investment during the six months ended 31 October 2024.INTERIM DIVIDENDThe Board has resolved not to declare any interim dividend for the six months ended 31 October 2024.OTHER INFORMATIONKiddieland International Limited Interim Report 202434EVENTS AFTER REPORTING

134、PERIODAs of the date of this report,there is no significant event occurring after 31 October 2024.SHARE OPTION SCHEMEThe shareholders of the Company approved and adopted a share option scheme on 31 August 2017(the“Share Option Scheme”)to enable the Company to grant share options to the Directors,emp

135、loyees or other selected participants as incentives and rewards for their contribution to the Group.The Share Option Scheme took effect on 21 September 2017(the“Listing Date”).Details of the Share Option Scheme are set out in the Companys annual report 2024.Since its adoption,20,000,000 share option

136、s had been granted on 19 July 2018 and expired on 18 July 2021(both dates inclusive).No share option has been granted under the Share Option Scheme during the six months ended 31 October 2024.The balance of shares issuable under the Share Option Scheme as at 31 October 2024 is Nil.CORPORATE GOVERNAN

137、CE CODEThroughout the six months ended 31 October 2024,the Company had complied with the code provisions of the Corporate Governance Code as set out in Appendix C1(formerly Appendix 14)to the Listing Rules.CODE FOR DEALING IN COMPANYS SECURITIES BY DIRECTORSThe Company has adopted the Model Code as

138、set out in Appendix C3(formerly Appendix 10)to the Listing Rules.Having made specific enquiry to each of the Directors,all the Directors confirmed that they have complied with the required standards as set out in the Model Code throughout the six months ended 31 October 2024.AUDIT COMMITTEEThe Audit

139、 Committee of the Company has reviewed with the management the interim report for the six months ended 31 October 2024,accounting principles and practices adopted by the Group and discussed auditing,internal controls,risk management and financial reporting matters including a review of the unaudited interim financial information.By Order of the BoardKiddieland International LimitedLo HungChairmanHong Kong,20 December 2024