Dream International Limited reported revenue of HK$2.90 billion for the six months ended 30 June 2026, up 12.30% year on year, supported by stronger order flows in plush toys, plastic figures and tarpaulin.
Gross profit fell 13.94% to HK$0.45 billion as higher labour, raw-material and logistics costs compressed the gross margin to 15.4% from 20.1% a year earlier. Profit from operations dropped 34.3% to HK$258.39 million, while finance costs eased 14.0% to HK$3.09 million. After tax, net profit declined 33.2% to HK$0.20 billion, taking net margin to 7.1% (1H25: 11.9%).
Basic earnings per share fell to HK$0.304 from HK$0.4542. The board maintained the interim dividend at HK$0.25 per share, equivalent to a payout of HK$0.17 billion, payable on 15 October 2026 to shareholders on record as at 30 September 2026.
Segment performance • Plush stuffed toys: Revenue rose 17.0% to HK$1.55 billion, contributing 53.5% of group turnover. • Plastic figures: Revenue increased 8.0% to HK$1.15 billion, accounting for 39.9% of turnover. • Tarpaulin: Revenue gained 4.1% to HK$0.19 billion, representing 6.6% of turnover.
Adjusted EBITDA for the three segments totalled HK$345.40 million, down 24.8% from a year earlier.
Regional mix The United States remained the largest market with 45.3% of sales, followed by Japan (30.1%), Chinese Mainland (14.5%), Hong Kong (3.9%) and Europe (3.0%).
Balance sheet and cash flow Cash, cash equivalents and time deposits stood at HK$1.43 billion at 30 June 2026, down from HK$1.80 billion at end-2025, reflecting higher working-capital needs and dividend payments. Net current assets were HK$2.74 billion (31 Dec 2025: HK$2.83 billion). Bank borrowings declined to HK$28.12 million, trimming the gearing ratio to 0.7% from 1.0%. Total equity edged up to HK$4.21 billion.
Operational footprint The group operated 31 factories—nine in Chinese Mainland, 21 in Vietnam and one in Indonesia—with an average utilisation rate of 87.5%. Investments during the period included HK$103.51 million for property, plant and equipment and HK$45.90 million in new right-of-use assets, supporting capacity expansion and automation initiatives.
Outlook Management anticipates persistent macroeconomic and geopolitical headwinds in the second half but remains “cautiously optimistic,” citing continued demand for licensed merchandise and collectible toys. Planned expansion of the Indonesian plant in August 2026 and ongoing automation, cost-engineering and diversified sourcing initiatives are expected to underpin supply-chain resilience and support long-term growth.
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