Financial Performance - Playmates Toys reported a global revenue of HKD 625 million for the year ended December 31, 2021, representing a 116% increase compared to HKD 289 million in 2020[10]. - The gross profit margin for toy sales remained at 49%, consistent with the previous year, despite rising costs in finished goods and logistics[10]. - The company recorded an operating profit of HKD 37.8 million in 2021, compared to an operating loss of HKD 32.5 million in 2020[11]. - Net profit attributable to shareholders was HKD 43 million, a significant turnaround from a net loss of HKD 30.1 million in 2020[11]. - The U.S. market accounted for approximately 55% of total revenue, while Europe contributed about 31%[10]. - The company anticipates ongoing operational and cost challenges in 2022 due to the impact of the COVID-19 pandemic and global supply chain disruptions[11]. Product Development and Market Strategy - The company plans to expand the "Miraculous: Tales of Ladybug & Cat Noir" toy line, which is expected to be a major driver of performance in 2022[8]. - New product launches are planned for the "MonsterVerse" and Toho Classic Monsters, alongside a new series of collectibles based on "Star Trek: Prodigy"[8]. - The "Spy Ninjas" product line will continue to expand in 2022, leveraging the popularity of the YouTube series[17]. - The company has become the global licensee for all characters, vehicles, and ships from ViacomCBS's "Star Trek" franchise, with a collectible series set to launch in summer 2022[18]. - A new line of action figures based on the Paramount+ and Nickelodeon animated series "Star Trek: Prodigy" will be released in late 2022[18]. Operational Challenges and Risks - The company is heavily reliant on third-party licenses, with current revenue coming from several brands, indicating potential vulnerability to sales declines in those brands[33]. - The company faces economic and political risks that could impact its strategic execution capabilities[33]. - Compliance risks related to product safety and legal regulations are a priority, with established processes to ensure adherence to applicable laws[33]. - The company acknowledges that reliance on major customers could adversely affect its financial performance if purchasing patterns change[33]. - The largest supplier accounted for 22% of total purchases, while the top five suppliers combined represented 86%[46]. - The largest customer contributed 30% of total sales, with the top five customers together accounting for 75%[46]. Financial Position and Reserves - As of December 31, 2021, trade receivables amounted to HKD 124,378,000, a significant increase from HKD 41,291,000 in 2020[52]. - Inventory stood at HKD 58,007,000, representing 9.3% of revenue, compared to 3.6% in 2020[52]. - The current ratio was 4.8 as of December 31, 2021, down from 7.9 in the previous year[52]. - Cash and bank balances totaled HKD 893,997,000, a decrease from HKD 949,943,000 in 2020[52]. - The company declared an interim dividend of HKD 0.02 per share, totaling HKD 23,600,000 based on 1,180,000,000 shares issued[47]. - The distributable reserves as of December 31, 2021, were HKD 305,049,000, up from HKD 235,860,000 in 2020[51]. Corporate Governance and Management - The company has experienced significant management changes, with key executives having extensive backgrounds in finance and investment management[20][21][22][23][25][26][27]. - The company’s financial performance and future developments are discussed in the annual report, particularly in the "Chairman's Report" and "Management Discussion and Analysis" sections[32]. - The company has a focus on international market operations and product development, with over 25 years of experience in the toy industry among its executives[26]. - The company’s financial key performance indicators are analyzed in the annual report, providing insights into its operational effectiveness[32]. - The board of directors has undergone changes, with several appointments and resignations noted during the year[61]. Risk Management and Compliance - The company has implemented internal controls to protect critical data, including customer and financial information[36]. - The company maintains a strong focus on compliance with applicable laws and regulations, ensuring ongoing training for staff[44]. - The group has established a special bonus system and stock option plan for employees based on performance[56]. - The company has established an internal control system based on the globally recognized COSO framework, which includes five components to ensure effective risk management and compliance[135]. - The board of directors is responsible for overseeing the overall risk management framework, integrating it into daily business activities, including business planning and internal controls[136]. Environmental, Social, and Governance (ESG) Initiatives - The report covers the company's performance in environmental, social, and governance (ESG) aspects for the year 2021, aligning with previous reporting scopes[150]. - The report was prepared in accordance with the Hong Kong Stock Exchange's ESG reporting guidelines and has been reviewed and approved by the board[151]. - The company has established a corporate social responsibility policy focusing on four pillars: business, employees, community, and environment[158]. - An independent consultant was appointed to conduct a materiality assessment to identify significant environmental, social, and governance issues[167]. - The company identified 27 key environmental, social, and governance issues and prioritized them based on stakeholder feedback[167]. Employee and Workplace Safety - The total number of employees at the end of the reporting period was 54[191]. - Employee turnover rate for the overall workforce was 22.22%[197]. - Male employee turnover rate was 20.83%, while female employee turnover rate was 23.33%[197]. - Turnover rate in Hong Kong was 26.92%, compared to 17.86% in the United States[197]. - The company emphasizes the importance of a safe and healthy work environment for employees[198].

0 中 期 報 告 Playmates ( TOYS ) 目錄 概覽 2 品牌概覽 3 簡明綜合財務資料 簡明綜合收益表及簡明綜合全面收益表 5 簡明綜合財務狀況表 6 簡明綜合現金流量表 8 簡明綜合權益變動表 9 簡明綜合財務資料附註 10 按上市規則所需提供之資料 21 公司資料 28 管理層討論及分析 本報告內所用之商標及版權如下： Godzilla vs. Kong©2021之版權屬於傳奇影業，版權所有，不得翻印。©2021之版權屬於TOHO CO., LTD，版權所有， 不得翻印。• Guru Studio ©2021之版權屬於Guru Animation Studio Ltd.，版權所有，不得翻印。• 傳奇影 業TM & ©2021之版權屬於傳奇影業，版權所有，不得翻印。• Miraculous：Tales of Ladybug & Cat Noir – Miraculous™之商標屬於ZAGTOON-METHOD，版權所有，不得翻印。©2021 ZAGTOON－版權所有，不得 翻印。• Pikwik Pack ©2021之版權屬於Guru Animation Studio Ltd，版權所有，不 ...

Playmates (TOYS) PLAYMATES TOYS LIMITED 彩星玩具有限公司 (於百慕達註冊成立之有限公司) (股份代號：869) 二零二零年年報 目錄 | --- | --- | |------------------------|-------| | | | | | 頁 | | 公司資料 2 | | | 主席報告書 3 | | | 管理層討論及分析 4 | | | 董事及高級管理人員 | 8 | | 董事會報告書 10 | | | 企業管治報告書 26 | | | 環境、社會及管治報告書 | 37 | | 獨立核數師報告書 48 | | | 綜合收益表 54 | | | 綜合全面收益表 55 | | | 綜合財務狀況表 56 | | | 綜合現金流量表 57 | | | 綜合權益變動表 58 | | | 財務報表附註 60 | | | 五年財務摘要 108 | | 1 公司資料 | --- | --- | |----------------------------------|-------------------------------------| | 董事 | 法律顧問 | | ...

| --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------| | | | | | | | | | | | | @ 目錄 品牌概覽 3 簡明綜合財務資料 簡明綜合收益表及簡明綜合全面收益表 5 簡明綜合財務狀況表 6 簡明綜合現金流量表 8 簡明綜合權益變動表 9 簡明綜合財務資料附註 10 按上市規則所需提供之資料 21 公司資料 28 管理層討論及分析 概覽 2 本報告內所用之商標及版權如下： Ben 10TM & © 2020之版權屬於時代華納旗下的Cartoon Network，版權所有，不得翻印。• Billboard © 2020 Billboard，版權 所有，不得翻印。• Billie Eilish © 2020 LASH Music, LLC.，版權所有，不得翻印。• Bravado © 2020之版權屬於Bravado International Group Merchandising Services, Inc.，版權所有，不得翻印。‧ Cartoon NetworkTM & © 2020之版權屬於時代華 ...

Financial Performance - For the year ended December 31, 2019, Playmates Toys reported a global revenue of HKD 359 million, a decrease of 24% compared to HKD 474 million in 2018[10]. - The company reported a loss before tax of HKD 16 million, compared to a profit of HKD 4.4 million in 2018, with a net loss attributable to shareholders of HKD 37 million[11]. - Total revenue for the year ended December 31, 2019, was $45.992 million, a decrease from $474.182 million in 2018, representing a decline of approximately 90.3%[195]. - Gross profit for the same period was $23.622 million, down from $250.889 million in 2018, indicating a decrease of about 90.6%[195]. - Operating loss for the year was $4.561 million, compared to an operating profit of $13.318 million in 2018, reflecting a significant downturn[195]. - Net loss attributable to shareholders for the year was $4.779 million, compared to a profit of $0.562 million in 2018, marking a shift from profit to loss[195]. - Basic and diluted loss per share was $(0.41) for 2019, compared to earnings of $0.05 per share in 2018[195]. - Cash and bank balances as of December 31, 2019, stood at $128.917 million, a slight decrease from $1,008.131 million in 2018[199]. - Total current assets amounted to $146.635 million, down from $1,190.045 million in 2018, indicating a significant reduction in liquidity[199]. - Total equity as of December 31, 2019, was $126.318 million, compared to $1,017.739 million in 2018, showing a substantial decline in shareholder equity[199]. - The company reported a net cash outflow from operating activities, reflecting challenges in maintaining cash flow[200]. Market and Product Development - The United States remained the largest market, accounting for 56.6% of total revenue, while Europe contributed 29.1%, other Americas 9.2%, and Asia-Pacific 4.9%[10]. - New product launches planned for 2020 include "Power Players," "MonsterVerse," and "Disney Frozen 2 Storytelling Dolls"[7]. - The company is focusing on maintaining the long-term success of established brands like "Teenage Mutant Ninja Turtles" and "Ben 10" while introducing new products[7]. - The fourth season of "Ben 10" is set to premiere in spring 2020, with expectations for continued positive contributions to revenue[14]. - "Power Players" toys are scheduled for release in the U.S. in early 2020, with plans for international market expansion throughout the year[15]. - The company has partnered with Legendary Pictures and Toho to develop a new product line based on the "MonsterVerse" series, coinciding with the release of "Godzilla vs. Kong" in fall 2020[17]. - The animated series "Miraculous: Tales of Ladybug & Cat Noir" is currently broadcast in over 120 countries, with plans to launch a new line of toys in specific international markets starting in fall 2020[18]. - The company has launched Disney's "Frozen 2" storytelling dolls featuring interactive technology, with the first batch including Elsa, Anna, and Olaf, set to release in spring 2020[19]. - A new toy line based on the artist Billie Eilish, who has over 19 billion streams and more than 100 million social media followers, is being developed in collaboration with Bravado[21]. - The company is collaborating with Guru Studio to launch a new line of preschool toys based on the "Pikwik Pack" series, which will air on Disney Junior in the U.S. and other major markets[22]. Risk Management and Compliance - The anticipated impact of the COVID-19 pandemic is expected to severely affect the supply chain at least in the first half of 2020[11]. - The company is closely monitoring risks related to the pandemic and collaborating with suppliers to mitigate adverse impacts[11]. - The company faces economic and political risks that could impact its strategic execution capabilities[37]. - The toy industry is inherently unpredictable, with reliance on third-party licenses and major customers, which could adversely affect financial performance if sales decline[37]. - Compliance risks related to product safety and legal regulations are a priority, with established processes to ensure adherence to applicable laws[37]. - The company has implemented internal controls to protect critical data, including customer and financial information, from fraud or theft[40]. - The company has established procedures and policies to ensure compliance with insider information disclosure regulations, providing guidelines to all directors and relevant employees regarding insider trading restrictions[131]. - The company has not faced any legal actions related to corruption or money laundering during the reporting year[169]. Environmental Impact - The company is committed to reducing its environmental impact and requires suppliers to comply with applicable environmental laws[47]. - Direct greenhouse gas emissions (Scope 1) increased to 20,731 kg CO2 equivalent in 2019 from 18,752 kg in 2018, representing an increase of 10.4%[147]. - Indirect greenhouse gas emissions (Scope 2) decreased to 38,784 kg CO2 equivalent in 2019 from 46,785 kg in 2018, a reduction of 17.1%[147]. - Total greenhouse gas emissions (Scope 1, 2, and 3) decreased to 75,237 kg CO2 equivalent in 2019 from 84,214 kg in 2018, a decline of 10.7%[147]. - Total waste generated in 2019 was 76,741 kg, down from 78,143 kg in 2018, indicating a reduction of 1.8%[148]. - Total energy consumption decreased to 69,164 MWh in 2019 from 81,131 MWh in 2018, a decrease of 14.7%[150]. - Total packaging material used decreased to 1,517 tons in 2019 from 1,939 tons in 2018, a reduction of 21.8%[152]. - The total water consumption was 3,508 cubic meters in 2019, slightly down from 3,580 cubic meters in 2018[151]. - The company plans to enhance environmental performance by identifying and managing environmental risks and improving resource efficiency[154]. - The company has complied with all applicable environmental laws and regulations during the year[145]. Corporate Governance - The board does not recommend the payment of dividends for the year[52]. - The company has established an audit committee, remuneration committee, and nomination committee, primarily composed of independent non-executive directors[110]. - The audit committee consists of three independent non-executive directors, ensuring independent oversight of financial reporting and risk management[92]. - The company has not changed its auditor in the past three years, indicating stability in its financial oversight[94]. - The company has adopted the corporate governance code principles and complied with all applicable code provisions, except for the separation of roles between the chairman and CEO[99]. - The board is responsible for maintaining a comprehensive risk management and internal control system, ensuring shareholder interests and asset protection[125]. - The internal control system is evaluated based on the globally recognized COSO framework, focusing on monitoring environment, risk assessment, and communication[126]. - The board conducted an annual review of the risk management and internal control systems, finding them effective and sufficient without identifying significant issues affecting financial, operational, compliance controls, and risk management functions[129]. - The company emphasizes the importance of communication with shareholders, ensuring that all significant matters are presented for individual resolutions at the annual general meeting[134]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance group performance[99]. Employee and Community Engagement - The group had a total of 66 employees in Hong Kong and the United States as of December 31, 2019, down from 70 employees in 2018[59]. - Charitable donations for the year amounted to HKD 518,000, a decrease of 59.3% from HKD 1,272,000 in 2018[60]. - The company encourages employees to participate in local charitable organizations and has supported several charities during the year[170]. - The company has established a whistleblowing policy for reporting suspected criminal activities, including corruption and fraud[170].

Financial Performance - Revenue for the first half of 2019 was HKD 157.156 million, a 15% increase from HKD 136.694 million in the same period of 2018[5] - Gross profit for the first half of 2019 was HKD 80.014 million, compared to HKD 64.490 million in 2018, resulting in a gross margin of 51% versus 47% in the previous year[6] - Operating loss for the first half of 2019 was HKD 31.071 million, improved from a loss of HKD 41.536 million in 2018[5] - Net loss attributable to shareholders for the first half of 2019 was HKD 19.901 million, compared to HKD 30.543 million in the same period of 2018[5] - Revenue for the six months ended June 30, 2019, was HKD 157,156 thousand, a decrease from HKD 136,694 thousand in the same period of 2018, representing a decline of approximately 15%[17] - Gross profit for the same period was HKD 80,014 thousand, compared to HKD 64,490 thousand in 2018, indicating an increase of about 24%[17] - Operating loss for the six months was HKD 31,071 thousand, an improvement from a loss of HKD 41,536 thousand in the previous year, reflecting a reduction of approximately 25%[17] - The group reported a pre-tax loss of HKD 19,901,000 for the six months ended June 30, 2019, compared to a loss of HKD 30,543,000 in the same period of 2018[59] - Basic and diluted loss per share for the period was HKD 1.69, compared to HKD 2.58 in the previous year, reflecting a reduction of approximately 34%[17] Cash Flow and Assets - Net cash generated from operating activities was HKD 48,314 thousand, compared to HKD 53,591 thousand in the same period of 2018, showing a decrease of about 10%[23] - Cash and cash equivalents as of June 30, 2019, totaled HKD 1,065,127 thousand, an increase from HKD 1,011,879 thousand at the beginning of the period[23] - Total assets less current liabilities amounted to HKD 1,003,158 thousand, a slight decrease from HKD 1,017,739 thousand as of December 31, 2018[18] - The company’s total equity as of June 30, 2019, was HKD 1,001,536 thousand, down from HKD 1,017,739 thousand at the end of 2018[21] - The group’s total assets included right-of-use assets amounting to HKD 5,482,000 as of January 1, 2019, reflecting the impact of the new lease accounting standard[43] - As of June 30, 2019, the net book value of property, plant, and equipment was HKD 4,351,000, a decrease from HKD 6,773,000 as of December 31, 2018, reflecting a depreciation of HKD 2,396,000 during the period[60] - Trade receivables as of June 30, 2019, amounted to HKD 47,170,000, significantly down from HKD 159,458,000 as of December 31, 2018, with an allowance for customer discounts of HKD 15,300,000[62] - The group's inventory as of June 30, 2019, was HKD 18,567,000, down 23.4% from HKD 24,237,000 as of December 31, 2018[81] Marketing and Product Development - Regular expenses increased by 15% compared to the previous year, reflecting higher marketing and sales costs associated with the "Ninja Turtles" brand[6] - The second season of "Rise of the Teenage Mutant Ninja Turtles" is set to premiere in fall 2019, with product launches in multiple international markets[8] - The company is developing a product line for the upcoming "Godzilla vs. Kong" movie, expected to be released in 2020[12] - A new animated series "ZAG HEROEZ: Power Players" is scheduled to air in fall 2019, with toy lines launching in early 2020[11] - The company plans to expand its product offerings for "Ben 10" in 2019 and 2020, with the third season continuing to air[10] Financial Commitments and Liabilities - The total financial commitments under licensing agreements as of June 30, 2019, amounted to HKD 120,934,000, an increase from HKD 87,220,000 as of December 31, 2018, indicating growth in licensing activities[74] - The company reported a total of 4,174 million HKD in liabilities as of June 30, 2019, indicating a significant financial position[28] Accounting and Compliance - The implementation of Hong Kong Financial Reporting Standard 16 resulted in the capitalization of leases, affecting the financial statements from January 1, 2019[32] - The incremental borrowing rate used for discounting lease liabilities was set at 5%[39] - The company has not applied any new standards or interpretations that are not yet effective during the reporting period[32] - The transition to the new lease accounting standard did not have a significant impact on the company's existing contracts[35] - The company expects to reflect changes in accounting policies in the annual financial statements for 2019[31] - The total issued shares were reported at 2,131 million as of June 30, 2019[28] - The company has recognized a cumulative impact adjustment to the equity balance as of January 1, 2019, due to the new lease standard[39] - The company continues to assess the impact of the new lease standard on its financial position and performance[36] - As of January 1, 2019, the lease liabilities recognized amounted to HKD 5,482,000 after accounting for operating lease obligations and discount effects[41] Corporate Governance - The company has adopted the corporate governance code and complied with all applicable code provisions, except for the separation of the roles of Chairman and CEO[100] - The company has not designated a CEO; the board oversees management and business strategies[100] - The company’s directors confirmed compliance with the standard code of conduct during the reporting period[101] - The company’s directors hold various stock options, with Du Shusheng holding 2,000,000 options[91] - The company has a strong internal control system reviewed by the audit committee[100] Employee and Shareholder Information - The group had a total of 66 employees in Hong Kong and the United States as of June 30, 2019[83] - The company’s directors collectively hold 600,000,000 shares, representing 50.85% of the issued share capital[94] - Director Du Shusheng holds 10,000,000 shares, accounting for 0.85% of the company’s total shares[91] - Director Chen Guangqiang holds 2,600,000 shares, which is 0.13% of the total shares[93] - The total issued share capital remained at HKD 30,000,000 as of June 30, 2019, with 3,000,000,000 shares outstanding, consistent with the previous reporting period[69] - The group did not declare any interim dividend for the current period, compared to HKD 35,409,000 declared in the same period of 2018[57] Miscellaneous - Playmates Toys Limited is listed on the Hong Kong Stock Exchange under the stock code 869[110] - The company is headquartered in Hong Kong, with its main office located at 100 Canton Road, Tsim Sha Tsui, Kowloon[109] - The registered office is located at Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda[108] - The auditor for Playmates Toys Limited is Crowe (HK) CPA Limited[110] - The company's website is www.playmatestoys.com[111]

Financial Performance - For the fiscal year ending December 31, 2018, Playmates Toys reported a global revenue of HKD 474 million, a decrease of 37% compared to HKD 758 million in 2017[11]. - The gross profit margin for toy sales was 52.9%, down from 54.2% in 2017, primarily due to increased development and mold costs for new products[11]. - The net profit attributable to shareholders was HKD 600,000, significantly down from HKD 55.8 million in 2017, which included a write-off of HKD 5.3 million related to Toys"R"Us receivables[12]. - Total revenue for the year ended December 31, 2018, was USD 60,793 thousand, a decrease from HKD 758,329 thousand in 2017[198]. - Gross profit for the same period was USD 32,166 thousand, compared to HKD 411,326 thousand in 2017, indicating a decline[198]. - Operating loss for the year was USD 1,708 thousand, a significant drop from the operating profit of HKD 74,131 thousand in 2017[198]. - Net income attributable to shareholders for the year was USD 71 thousand, an increase from HKD 55,764 thousand in 2017[198]. - Basic earnings per share for the year was USD 0.01, compared to HKD 4.63 in 2017[198]. - The company incurred financing costs of USD 401 thousand, down from HKD 5,735 thousand in the previous year[198]. - The company reported a net other income of USD 2,669 thousand, slightly up from HKD 20,263 thousand in 2017[198]. Market Overview - The U.S. remained the largest market, accounting for 63.9% of total revenue, while Europe contributed 19.8%, other Americas 8.4%, and Asia-Pacific 6.9%[11]. - The overall U.S. toy market contracted by 2.0% in 2018, influenced by the closure of Toys"R"Us and a weak consumer sentiment in the fourth quarter[11]. Strategic Initiatives - The company plans to launch multiple new brands supported by market research in 2019 and 2020, aiming to mitigate the impact of ongoing trade disputes and economic uncertainties[8]. - The new brand "Rise of the Teenage Mutant Ninja Turtles" was successfully launched in the last quarter of 2018, with expectations for continued contributions[7]. - The company is collaborating with ZAG to launch the animated series "ZAG HEROEZ: Power Players," with toy lines expected to debut in early 2020[17]. - A partnership with Guru Studio for the "Pikwik" series will introduce a new range of toys, anticipated to hit the market in 2020[18]. Risk Factors - The company faces economic and political risks that may impact its strategic execution capabilities[32]. - The toy industry is inherently unpredictable, and reliance on third-party licenses means that a decline in brand product sales could adversely affect financial performance[33]. - Compliance risks related to product safety and legal regulations are critical, as non-compliance could lead to financial losses and reputational damage[34]. - Financial risks include exposure to currency, pricing, credit, and liquidity issues, which are detailed in the financial statements[36]. Corporate Governance - The company has adopted the corporate governance code and complies with all applicable provisions, except for one regarding the separation of roles of chairman and CEO[102]. - The board of directors consists of three executive directors and three independent non-executive directors, ensuring a balanced governance structure[103]. - The audit committee consists of three independent non-executive directors, ensuring independent opinions on financial reporting and risk management[95]. - The majority of members in the committees are independent non-executive directors, ensuring good corporate governance[114]. Environmental Performance - The total greenhouse gas emissions for the year 2018 amounted to 84,214 kg CO2 equivalent, an increase from 60,590 kg in 2017[150]. - The total amount of non-hazardous waste generated in 2018 was 78 tons, up from 63 tons in 2017[152]. - Total energy consumption in 2018 reached 81,131 MWh, significantly higher than 54,310 MWh in 2017[154]. - The company plans to enhance environmental performance by improving energy, water, and material usage, and increasing waste recycling and reuse[159]. Compliance and Ethics - The company adheres to ethical business practices and complies with all applicable laws in the regions where it operates[174]. - All products are subject to rigorous quality control systems and must meet international safety standards before shipment[168]. - The company adheres to the U.S. Consumer Product Safety Commission regulations for toys sold in the U.S., ensuring compliance with federal laws[168]. - The group has established a whistleblowing policy for reporting suspected criminal activities, including corruption and fraud[175].