- Net Profit Surges by 65% to Around HK$53.7 Million
- Continues to Promote B2B2C Online Platform “Q P Market Network”
Q P Group Holdings Limited (Q P Group or the Group; HKG: 1412), one of the leading manufacturers of paper-based tabletop games and paper-based greeting cards in the People’s Republic of China (the PRC), recorded total revenue of approximately HK$657.8 million, representing a year-on-year increase of approximately 11.6% for the six months ended 30 June 2022 (6M2022 or the Period). The Group’s profit attributable to equity holders of the Company was approximately HK$53.7 million, up by approximately 65.1% as compared with that of the six months ended 30 June 2021 (6M2021). Basic earnings per share was approximately HK10.09 cents (6M2021: HK6.11 cents).
The Board of Directors has resolved to declare an interim dividend of HK3.0 cents per share for 6M2022 (6M2021: HK2.0 cents).
Business Review
During the Period, the COVID-19 pandemic continued to affect the global economy and business operations. Despite the challenges, the Group weathered the global supply chain chaos over the past year and its order fulfillment resumed to normal during the Period. Also, the Group successfully captured the business opportunities derived from the strong demand for tabletop games and educational items in the European and the USA markets extending from the previous years and achieved growth in OEM business, with the revenue derived from OEM sales increased by approximately 14.2% year-on-year to approximately HK$566.8 million for 6M2022, which drove the increase in total revenue of approximately 11.6% year-on-year to approximately HK$657.8 million and the increase in net profit of approximately 65.1% year-on-year to approximately HK$53.7 million for 6M2022. Meanwhile, the revenue derived from web sales business during 6M2022 was approximately HK$91.0 million (6M2021: approximately HK$93.2 million); the number of active registered user accounts, which refers to the number of registered user accounts with orders placed via the Group’s major websites, amounted to approximately 53,300 as at 30 June 2022 (approximately 54,700 as at 31 December 2021).
Prospects
The Group will continue to stay highly focused on consolidating its business while remaining cautious about the business environment for the rest of the year. As many countries are accelerating steps to roll back COVID-19 restrictions, the Group will actively engage with existing and potential corporate customers in the USA and Europe through exhibitions, trade shows and client visits by its overseas sales representatives to explore OEM business opportunities and foster business relationships.
For the web sales business, the development of Q P Market Network (QPMN), a business-to-business-to-consumer (B2B2C) online platform offering one-stop product customisation solutions, will continue to be the Group’s key strategic focus. Q P Group will make determined efforts to promote the mutually beneficial business model of QPMN to potential partners including brand owners, enterprises, designers and organisations. It will actively network with design communities and institutes to build up QPMN’s brand awareness and reputation in the field. Expansion of the product range will be another important part of QPMN’s development in the long run, so that the platform can cater to the market demand for diversified customised products and the needs of potential business partners. Besides QPMN, the Group will also introduce new products for its other web sales platforms and market its new launch through crowdfunding so as to further increase its brands’ market presence and brand exposure in the global online market.
In addition, Q P Group is developing a comprehensive supply chain in Vietnam to expand production capacity and diversify operational risk. The development of a self-owned production plant in Ha Nam Province, Vietnam is in progress, with completion expected to take place in the third quarter of 2023.
Mr. Cheng Wan Wai, Founder, Chairman and CEO of Q P Group concluded: “The global economy is widely expected to be buffeted by various uncertain factors and challenges. Q P Group will stay alert and take proactive measures to strengthen our foundation through the application of innovative business operating models, steady business expansion and continuous improvement in our operational excellence, so as to pursue business success through stability and create value for our shareholders and society.”
About Q P Group Holdings Limited (HKG: 1412)
Established in Hong Kong in 1985, Q P Group is one of the leading paper-based tabletop games and paper-based greeting card manufacturers in the PRC, with production sites in Dongguan and Heshan. Its principal product categories include tabletop games, greeting cards, educational items and premium packaging. Since 2010, the Group has operated web sales businesses to provide online solutions for diversified customised paper products and gift items. Currently, the number of active registered users has reached over 50,000.
Q P Group’s major websites are:
www.makeplayingcards.com
www.boardgamesmaker.com
www.createjigsawpuzzles.com
www.printerstudio.com
www.gifthing.com
www.maketotebags.com
Q P Market Network:
www.qpmarketnetwork.com
For more information, please visit: https://www.qpp.com/