2021-06-28-港交所-佰悦集团_2021年报_158页_1mb

GEM of the Stock Exchange of Hong Kong Limited (HKEX) Summary

Core Content

The document provides an overview of the operations, financial performance, and governance structure of Amuse Group Holding Limited, a company listed on the Hong Kong Stock Exchange - GEM (stock code: 8545). It outlines the company's business activities, financial results for the year ended 31 March 2021, and key management and governance details.

Main Points

1. GEM Market Characteristics

• GEM is designed for companies with higher investment risk.
• It is more suitable for professional and sophisticated investors.
• Securities on GEM may experience higher market volatility compared to the main board.
• No assurance of a liquid market is provided for GEM-listed securities.

2. Company Overview

• Amuse Group Holding Limited is incorporated in the Cayman Islands.
• The Group's main business is the design, marketing, distribution, and retail sales of toys and related products.
• The company has 39 employees in Hong Kong as of 31 March 2021.

3. Financial Performance

• Revenue increased by 2.2% to HK$211,467,000 from HK$206,965,000 in the prior year.
• Cost of sales rose by 5.3% to HK$173,503,000, including HK$1,078,000 in inventory write-downs.
• Gross profit declined by 10.0% to HK$37,964,000, with a gross profit margin of 18.0%.
• Other income, net increased by 3.6% to HK$6,477,000.
• Selling expenses decreased by 17.9% to HK$5,649,000, mainly due to the cancellation of exhibitions.
• Administrative expenses rose by 6.0% to HK$25,975,000.
• Finance costs dropped by 43.7% to HK$196,000.
• Income tax expenses decreased by 4.6% to HK$3,694,000.

4. Investments and Capital Use

• The net proceeds from the GEM listing in May 2018 were HK$57.9 million.
• These funds were fully utilized in the year, allocated to:
  • Expanding the product portfolio of own licensed toys: HK$46,200,000
  • Enhancing the overseas distribution network: HK$3,600,000
  • Strengthening manpower: HK$6,000,000
  • Improving IT systems and warehouse renovation: HK$2,100,000

5. Contingent Liabilities

• No significant contingent liabilities were recorded as of 31 March 2021.

Key Information

Director and Management Profiles

• Executive Directors:

  • Mr. Li Wai Keung (Chairman and CEO): Founder of the Group with over 15 years of experience in the ACG toy industry.
  • Mr. To Hoi Pan: Executive Director and Company Secretary, with over 20 years of experience in accounting and financial management.
  • Ms. Lee Kwai Fong: Executive Director and General Manager, with 15 years of experience in the Group.

• Non-Executive Director:

  • Mr. Yu Ziyi: Appointed on 1 February 2021 and resigned on 9 June 2021. Previously worked in valuation and private equity analysis.

• Independent Non-Executive Directors:

  • Mr. Yu Pui Hang: Independent Non-Executive Director since May 2018. Has legal and financial qualifications and experience.
  • Ms. Chow Chi Ling Janice and Ms. Ren Hongyan: Also independent non-executive directors with relevant experience.

Committees

• Audit Committee: Includes Ms. Chow Chi Ling Janice (Chairlady), Mr. Yu Pui Hang, Ms. Ren Hongyan, and Mr. Tung Man (resigned).
• Remuneration Committee: Mr. Yu Pui Hang (Chairman), Ms. Chow Chi Ling Janice, Ms. Ren Hongyan, and Mr. Tung Man (resigned).
• Nomination Committee: Ms. Ren Hongyan (Chairlady), Mr. Yu Pui Hang, Ms. Chow Chi Ling Janice, and Mr. Tung Man (resigned).

Legal and Financial Advisors

• Legal Advisors: Patrick Mak & Tse (Hong Kong).
• Auditor: Grant Thornton Hong Kong Limited (Certified Public Accountants).

Assets and Liabilities

• The Group has HK$6,246,000 in building assets, mortgaged to secure banking facilities.
• Gearing Ratio (debt to equity) was 0.02 times as of 31 March 2021, indicating a low level of leverage.

Foreign Exchange Exposure

• The Group has exposure to foreign currency risk due to trade receivables, bank balances, and payables denominated in USD and JPY.
• No formal foreign currency hedging policy is in place, but management monitors the risk closely.

Strategic Outlook

• The Group plans to adopt conservative strategies for the next 1–2 years due to ongoing challenges such as rising costs and market volatility.
• The company aims to maintain market competitiveness through superior product quality and minimizing high-risk investments.
• It intends to maintain stable performance and development momentum among peers.

Dividend Policy

• No dividend recommendation was made for the year ended 31 March 2021.
• In the prior year (2020), no dividend was also recommended.

Summary of Key Figures

Conclusion

The document highlights the challenges and opportunities faced by Amuse Group Holding Limited in the context of the GEM market, emphasizing the higher risk and volatility associated with the market. It also outlines the financial performance, strategic direction, and governance structure of the company, indicating a conservative approach to future growth and a focus on stability and quality. The company has fully utilized the proceeds from its GEM listing and has no significant contingent liabilities.