Financial Information

Latest Results Announcement

Condensed Interim Financial Statements For the six months and Financial Year ended 31 December 2022

Condensed Consolidated Statement Of Profit Or Loss For The Six Months Ended 31 December 2022

Condensed Consolidated Statement Of Profit Or Loss And Other Comprehensive Income For The Six Months Ended 31 December 2022

Condensed Statements Of Financial Position at 31 December 2022

Review of Performance

Profit and Loss


The Group’s overall revenue increased by HK$201.0 million or 17.6%, from HK$1,140.4 million in FY2021 to HK$1,341.4 million in FY2022. The increase in revenue was mainly due to continuous orders placed by our core customers and the goods delivered as scheduled for this year.

Gross profit and gross profit margin

In FY2022, the Group’s gross profit increased by 50.4% or HK$47.9 million, generating gross profit margin of 10.7% (FY2021: 8.3%). This was mainly due to the decrease of purchase price of raw material.

Other Income

The Group’s other income decreased by 53.3% or HK$31.5 million, from HK$59.1 million in FY2021 to HK$27.6 million in FY2022. This was mainly due to fair value loss of FVTPL and decrease of mold engineering income for new product.

Selling and distribution expenses

The Group’s selling and distribution expenses increased by 23.2% or HK$3.5 million, from HK$15.1 million in FY2021 to HK$18.6 million in FY2022. This was mainly due to the progressive sales rebate paid in FY2022.

Administrative expenses

The Group’s administrative expenses decreased by 7.3% or HK$5.4 million, from HK$73.8 million in FY2021 to HK$68.4 million in FY2022. This was mainly due to a reversal of trade receivables and contract assets and lower legal & professional fees incurred.

Finance Costs

Finance costs increased by 23.2% or HK$4.3 million, from HK$18.4 million in FY2021 to HK$22.7 million in FY2022, mainly due to increased interest rate in FY2022.

Income Tax Expenses

Income tax expense increased 202.6% or HK$12.1 million, from HK$5.9 million in FY2021 to HK$18.0 million in FY2022. This was due to additional tax expenses assessed on prior years profits claims.

Balance Sheet

Non-current assets

The Group’s non-current assets stood at HK$564.1 million as at 31 December 2022, decreased by 5.0% or HK$29.5 million, from HK$593.6 million as at 31 December 2021. This was due to an increase in capital expenditure on property, plant and equipment of HK$41.9 million invested in Indonesia and new property, plant and equipment of HK$55.1 million for Guangxi, Heyuan and Dongguan manufacturing operations, which were partially offset by total depreciation expenses for property, plant and equipment, exchange difference and right-of-use assets of HK$126.3 million.

Current assets

The Group’s current assets stood at HK$978.5 million as at 31 December 2022, a decrease of HK$83.6 million or 7.9%, from HK$1,062.1 million as at 31 December 2021, mainly due to:

  • a decrease in inventories of HK$83.5 million;
  • a decrease in contract assets of HK$60.1 million; and
  • a decrease in prepayments, deposits and other receivables of HK$14.8 million.

which were partially offset by:

  • an increase in financial assets at FVTPL of HK$28.8 million;
  • an increase in bank and cash balances of HK$28.6 million; and
  • an increase in trade and bills receivables of HK$17.4 million.
Current liabilities

The Group’s current liabilities stood at HK$754.5 million at 31 December 2022, decreased by HK$75.0 million or 9.0%, from HK$829.5 million at 31 December 2021, mainly due to:

  • a decrease in trade and bills payables of HK$2.6 million;
  • a decrease in accruals and other payables of HK$3.1 million;
  • a decrease in lease liabilities of HK$1.6 million;
  • a decrease in short-term borrowings of HK$55.5 million as we reduced our loan exposure; and
  • a decrease in dividends payables of HK$14.2 million;

which were partially offset by:

  • an increase in current tax liabilities of HK$2.0 million
Non-current liabilities

The Group’s non-current liabilities stood at HK$67.9 million as at 31 December 2022, a decrease of HK$14.2 million or 17.3%, from HK$82.1 million as at 31 December 2021 mainly due to decreases in lease liabilities of HK$24.2 million partially offset by inception in long-term borrowings HK$10.0 million.

Cash Flow Analysis

As at 31 December 2022, the Group’s cash resources of HK$132.1 million are considered adequate for current operational needs. The net increase in cash and cash equivalents of HK$28.6 million held by the Group comprised:

  • Net cash generated from operating activities of HK$240.5 million to finance the working capital needs;
  • Net cash used in investing activities of HK$91.5 million mainly due to additions of property, plant and equipment; and
  • Net cash used in financing activities of HK$87.1 million, mainly due to the repayment of loans.


The Group delivered a strong performance in 2022, despite the challenges posed by the prolonged COVID-19 pandemic, ongoing geopolitical tension, and rising inflation throughout the year. We attribute this success to our strategic investments and transformation roadmap, which have positioned us well for potential future growth and opportunities. In addition to our strategic investments, we also focused on building the resiliency of our operations by enhancing our supply chain resilience plan and business continuity plan. We recognised the need to implement better risk assessment strategies in response to the increasing inconsistencies of the macroeconomy, which enabled us to identify potential risks and develop a full-range contingency plans to mitigate them.

The Group has made sustainability and green manufacturing a priority, exploring more business opportunities and enhancing our manufacturing process. In addition to producing with paper materials certified by Forest Stewardship Council (“FSC paper”), we also collaborate with market-leading companies and educational institutions to enhance our manufacturability on the material modification and production application of aluminum, green polyethylene (“Green PE”) and recycled polyethylene terephthalate (“rPET”).

During the year of 2022, more than 26% of our total sales were committed by fully or partially using sustainable raw materials in production of our toys and consumer premiums. The Group's sustainable manufacturing journey is ongoing, with their target to expand this figure to more than 35% in 2023, demonstrating our commitment to making a positive environmental impact. The Group's efforts in sustainability not only prove our corporate social responsibility, but also reflect the increasing importance of sustainability in business practices.

In support of the Group's green manufacturing journey, we have commenced three additional paper production lines in our factories located in Heyuan, China and Sragen, Indonesia in the year 2022. Furthermore, the Group is currently setting up the second paper production line in the Sragen, Indonesia plant, which is expected to commence operations in the first quarter of 2023. By that time, the Group will have a total of five paper production lines, thereby significantly enhancing our overall paper production capability and capacity. In addition, during the year, the Group will not only commit to improving quality control, automation development, and design development, but will also prioritize carbon emission reduction and collaborate on carbon neutralization roadmap as part of sustainability initiatives.

In 2023, inflation and recession will be the focal point, despite some indications that inflation may have peaked. The three leading economies in the world, the US, the European Union and China, are all slowing down, and uncertainties surrounding geopolitical tension, such as the Russia-Ukraine war, are likely to persist. All these factors fuel concerns over a looming recession, which may result in global market fluctuations in the year to come. However, we remain optimistic about Asia's economic growth, especially with China's reopening. The Group remains confident of our ability to navigate challenges in the broader economic environment, and we will stay cautiously optimistic about our growth opportunities in Indonesia plant in the long term.