Sunday, April 18, 2021
Martin Hennecke
HKEx Stock Code : 00869 
Corporate Profile
Principal engaged in the design, development, marketing and distribution of toys and family entertainment activity products.

Business Review - For the year ended December 31, 2012

Playmates Toys group worldwide turnover for the year ended 31 December 2012 was HK$372 million (2011: HK$45 million), an increase of 727% compared to the prior year. The majority of our new products launched in the second half of 2012, notably the Teenage Mutant Ninja Turtlesc line of toys, performed well at retail and achieved intended sales results. The group reported an operating profit of HK$52 million (2011: operating loss HK$86 million) and net profit attributable to shareholders of HK$43 million (2011: net loss HK$91 million). Basic earnings per share was HK Cents 3.87 (2011: basic loss per share HK Cents 8.67). The Board does not recommend the payment of a dividend for 2012 but will consider dividend distribution in 2013 depending on the performance of the Group.

Gross profit ratio on toy sales was 60.3% (2011: 28.6%). The improvement in gross profit ratio was attributable to a significant increase in sales volume of products with higher margin and more efficient utilization of investments in product design, development and tooling. Recurring operating expenses were higher than last year, reflecting increases in marketing, selling and distribution expenses to support the significantly higher sales volume, yet administration expenses were managed to similar level as in 2011.

Brand Overview

Hearts For Hearts Girls, the line of beautiful award-winning dolls with a philanthropic theme, continued to steadily build upon its base of consumers and social media supporters with its positive message of empowerment. With the addition of Mosi, an American Indian, and Shola from Afghanistan in 2013, a total of 10 Hearts For Hearts Girls, each representing a different culture and ethnicity from different parts of the world, will champion their individual good causes.

The Build-A-Bear Workshop line of collectible characters was discontinued after recording limited sales.

In 2012 Playmates successfully re-launched Waterbabiesc, the classic water-filled baby doll line, with a fresh new look. The brand is expected to further grow in 2013 with a substantial expansion in distribution and the introduction of a series of collectible Wee Waterbabies in a brand new size.

Nickelodeon's ground breaking CGI animated Teenage Mutant Ninja Turtlesc (ˇ§TMNTˇ¨) TV series premiered as planned in September 2012. It was an immediate hit ˇV scoring top ratings with its core kids' audience from the first episode and has consistently rated among the top 3 kids shows in the US. With Season 2 currently in production Nickelodeonc has already announced the Season 3 pick up of the TMNT TV series and the release date of the Michael Bay produced live-action movie by Paramount Pictures in 2014.

In tandem with the popularity of the TV show, Playmates' TMNT toys performed well at retail, quickly becoming a top selling brand and winning multiple awards and accolades from the trade.

Retail shelves were clean at the end of the year, setting the stage for even stronger support for the brand in 2013. NPD, the leading provider of consumer market research data, reported TMNT Figures ranked number one among sales of all action figures in the US in 2012. At the 2013 Toy of the Year Awards ceremony of the US Toy Industry Association, Nickelodeon's Teenage Mutant Ninja Turtles won Property of the Year award and Playmates' TMNT Shellraiser vehicle won Boy Toy of the Year.

In the few International markets that already have TMNT toys on retail shelves, including Canada, the UK and Australia, similarly rapid rises in ratings and popularity were experienced. Distribution partners reported TMNT became the number one best selling action figure brand in Australia and TMNT Figure was the number one best selling item among all action figures in the UK after less than 2 months on shelf in those markets.

Business Outlook - For the year ended December 31, 2012

Playmates' 2013 TMNT toy line will triple in size with line extensions and expansions into new categories. Distribution is expected to reach over 60 countries before the end of the year. Successive waves of new products planned for 2014 and beyond are under active development.

Based on the sustained positive market response to our program in the beginning months of this year, management is optimistic that the Group can achieve further improvement in operating results in 2013.

Source: Playmates Toys (00869) Annual Results Announcement
Chairman CHAN Chun Hoo, Thomas Issued Capital (shares) 1,174M
Par Value HKD 0.01 Market Capitalisation (HKD) 2,535M
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