Playmates : Announced 2018 Annual Results

[For immediate release]

PLAYMATES ANNOUNCED 2018 ANNUAL RESULTS ** *

Highlights

For the year ended 31 December
2018 HK$'000	2017 HK$'000
Revenue	733,559	1,009,261
-from toy business	474,182	758,329
- from property investments & associated businesses	247,482	245,454
-from portfolio investments	11,895	5,478
Gross profit	488,844	642,037
Revaluation surplus on investment properties	333,223	81,136
Operating profit	507,701	374,857
Profit attributable to shareholders	520,625	282,196
HK cents	HK cents
Earnings per share
- Basic	25.74	13.54
- Diluted	25.74	13.54
Full year dividends per share	14.50	6.00

•  Playmates' property investments and associated businesses revenue remains stable in 2018.

•  Playmates continues to adjust of balance of portfolio of investment properties to achieve strategic objective of long term growth in asset value as well as recurring income.

•  Playmates Toys' 2018 turnover decrease was a result of planned limiting of supply of Teenage Mutant Ninja Turtles ("TMNT") products during the first nine months of 2018, in preparation for the brand's relaunch in the fourth quarter.

- Cont'd -

(February 28, 2019 - Hong Kong) - Playmates Holdings Limited ("Playmates" or "the Group", HKEx Stock Code: 635) announced today its results for the year ended 31 December 2018. The Group global revenue for the year ended 31 December 2018 was HK$733.6 million (2017: HK$1,009.3 million); reflected a decrease of 27.3% compared to the prior year. The Group reported an operating profit of HK$507.7 million (2017: HK$374.9 million) and net profit attributable to shareholders was HK$520.6 million (2017 HK$282.2 million). Basic earnings per share was HK cents 25.74 (2017: HK cents 13.54). Net asset value per share was HK$3.33 as at 31 December 2018 (2017: HK$3.32).

The Board declared a second interim dividend of HK cents 1.50 per share and a second special interim dividend of HK cents 1.50 per share, making total dividends in 2018 of HK cents 14.50 per share (2017: total dividends - HK cents 6.00 per share).

In 2018, revenue from the property investments and property management businesses increased 1.1% to HK$225.1 million (2017: HK$222.7 million). The Group's investment properties were revalued at the fair value of HK$5.8 billion (2017: HK$5.5 billion). Segment operating profit including revaluation surplus was HK$522.8 million (2017: HK$267.2 million).

Group chairman, Mr. Sidney To said, "While we maintain a long term view of our property investments and associated businesses, we will continue to adjust the balance of our property portfolio to achieve our strategic objective of seeking investment returns through capital appreciation and growth in recurring income".

Playmates Toys worldwide turnover for the year ended 31 December 2018 was HK$474 million (2017: HK$758 million), a decrease of 37.0% compared to the prior year. According to Mr. To, the decrease turnover was a result of the planned limiting of the supply of Teenage Mutant Ninja Turtles ("TMNT") products during the first nine months of 2018, in preparation for the brand's relaunch in the fourth quarter.

Mr. To continued: "TV show, Rise of the Teenage Mutant Ninja Turtles is off to a good start, Nickelodeon has already announced that Season 2 will premiere in Fall 2019. We remain confident in Nickelodeon's long-term TMNT plans to maintain the brand as an evergreen entertainment franchise."

- End -

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