Toy foundry "Delin International", last year's revenue was 5 billion!
author：Chinese and foreign toy network
introduction
A few days ago, DL International (HK.1126) released its 2023 annual performance report. According to the announcement, the company's revenue in 2023 will be HK $5.352 billion (about RMB 4.94 billion), a year-on-year decrease of 14.4%, gross profit will be HK $1.345 billion (about RMB 1.241 billion), gross profit margin will increase by 5.4 percentage points to 25.1%, and profit attributable to shareholders will be HK $830 million (about RMB 766 million), an increase of 20.78% year-on-year.
Toy foundry "Delin International", last year's revenue was 5 billion!
Plush toys are growing strongly
According to the Chinese and foreign toy network, DL International began to carry out toy business in South Korea in 1984, entered China in 1992, and successively set up factories in Shenzhen, Shanghai, Anhui and other places in China. In February 2002, it was listed on the main board of the Hong Kong Stock Exchange, becoming the first Korean company to be listed in Hong Kong, China. At present, the group has a total of 30 subsidiaries, covering Hong Kong, Chinese mainland, Vietnam, the United States, Singapore, South Korea and other countries and regions.
DL International's main products are: plush toys, plastic prototype models, tarpaulin covers and injection molding products. As the company's main growth engine, the sales of the plush toys segment increased by 19.6% in 2023 to HK$2.74 billion (about RMB 2.526 billion), accounting for 51.1% of the group's total revenue. This growth was driven by strong orders with theme parks and long-standing relationships with character owners and licensors.
Toy foundry "Delin International", last year's revenue was 5 billion!
DL International said that despite the uncertain global economic situation, the company remains cautiously optimistic about the outlook for the plush toy business, and expects demand for Asian theme parks to continue, and with the release of a number of films, it will stimulate demand for related toy products.
In the past few years, the revenue of plastic prototype models has exceeded that of the plush toys segment, but due to the impact of the economic downturn, customers are more conservative in order placement and inventory management, and the revenue of this segment was HK$1.928 billion last year (HK$3.233 billion in 2022, a year-on-year decrease of more than 40%), accounting for 36.0% of the Group's total revenue.
Toy foundry "Delin International", last year's revenue was 5 billion!
During the year, DL International took a number of measures to attract orders and was committed to maintaining a reasonable utilization rate. For example, actively solicit additional orders from existing customers by offering competitive prices. At the same time, explore new opportunities and get positive responses from new customers.
The proportion of revenue in Chinese mainland is rising
DL International is an export-oriented enterprise with a business mainly focused on North America and Japan, with revenue from these two places accounting for 44.91% and 25.58% respectively in 2023.
Toy foundry "Delin International", last year's revenue was 5 billion!
It is worth noting that DL International's revenue from Chinese mainland has been rising in recent years: in 2020, the revenue was HK$185 million, accounting for 4.89%, in 2021, the revenue was HK$290 million, accounting for 6.04%, in 2022, the revenue was HK$898 million, accounting for 14.36%, and in 2023, the revenue was HK$909 million, accounting for 16.98%.
It is reported that DL International has long been OEM toys for Disney, such as Xingdelou and Lena Belle toys in Shanghai Disneyland, which are produced by DL International's factories in Lingshan County, Guangxi and Chaohu, Anhui. The increase in the proportion of revenue in Chinese mainland may be related to the demand for theme parks.
A number of initiatives to enhance competitiveness
Despite the decline in revenue, DL International's gross profit, operating profit, profit before tax and annual profit all increased, demonstrating an improvement in cost control and profitability. In the face of global economic uncertainty, DL International has successfully strengthened its competitiveness in the plush toy market through effective marketing strategies and production efficiency improvements.
In terms of production efficiency, DL International operates a total of 27 factories, seven of which are located in Chinese mainland and the other 20 in Vietnam, with an average utilization rate of about 84%. The company maintains strict cost control by investing in production tools, automation, and analyzing the work environment to identify improvements and reduce unnecessary losses.
Toy foundry "Delin International", last year's revenue was 5 billion!
In terms of sustainability, DL International plans to explore and use recycled materials in its new products to promote sustainable development. This strategy not only helps to improve the company's environmental image, but also meets the growing demand for sustainable products.
