Playmates Toys : Announced 2017 Interim Results

[For immediate release]

PLAYMATES TOYS ANNOUNCED 2017 INTERIM RESULTS Highlights * * *

For the six months ended 30 June	2017 HK$'000	2016 HK$'000
Revenue	322,285	594,651
Gross profit	180,633	369,391
Operating profit	34,702	138,705
Profit before income tax	43,813	135,076
Income tax expense	(7,222)	(39,879)
Profit attributable to owners of the Company	36,591	95,197
Earnings per share	HK cents	HK cents
- Basic	3.03	7.86
- Diluted	3.01	7.79
Interim dividend per share	3.00	5.00

• Teenage Mutant Ninja Turtles ("TMNT"), Voltron and Ben 10 contributed to Playmates Toys' 1H 2017 revenue.

• Playmates Toys expects strong competitive pressure to persist in 2H 2017.
• TMNT business in transition to its next iteration, Rise of the Teenage Mutant Ninja Turtles, launching Fall 2018.
• Distribution of Voltron and Ben 10 continue to expand.

• Mysticons toy line to launch in early 2018.

- Cont'd -

(August 25, 2017 - Hong Kong) - Playmates Toys Limited ("Playmates Toys" or "the Company", HKEx Stock Code: 869) announced today its interim results for the six months ended 30 June 2017. Group worldwide turnover during the first half of 2017 were HK$322 million (same period in 2016: HK$595 million). Group operating profit for the period was HK$35 million (same period in 2016: HK$139 million). Net profit during the first half of 2017 was HK$37 million (same period in 2016: HK$95 million).

The Company declared an interim dividend payout of HK cents 3 per share (2016 interim dividend: HK cents 5 per share).

Group Chairman Mr. Sidney To commented: "Our 2017 interim results reflected intensified competitive pressure and a higher portion of sales from markets outside the U.S.

"In the second half of 2017, we expect strong competitive pressure to persist. Our TMNT business will continue to contract year-over-year, as the brand transitions into its next iteration.

"In 2018, Nickelodeon will re-imagine the TMNT franchise in an all-new animated series, Rise of the Teenage Mutant Ninja Turtles. The new series, launching Fall 2018, will take the characters in a different direction with more humor, a younger and lighter feel and all-new dimensions to explore. We are developing a whole new line of TMNT products to be introduced in tandem with the launch of the new series."

Mr. To continued, "Netflix released Season 3 of the DreamWorks Animation series Voltron: Legendary Defender in August 2017. The show has garnered positive reviews since its initial debut in June 2016. We launched our line of Voltron toys this Spring, and are continuing to develop new products for Fall 2017 and beyond.

"Cartoon Network's new Ben 10 animated TV series premiered in selected International markets in October 2016 and across North America in April 2017. We began initial shipments of our Ben 10 toy line during the first half of 2017, and will continue to expand distribution in the second half of the year.

"Mysticons, a brand new animated action TV series targeting the girls audience developed by Nelvana Studio in partnership with Nickelodeon and The Topps Company, will debut in Fall 2017. We are gearing up for the launch of our Mysticons toy line in early 2018.

- Cont'd -

"We remain committed to the proven strategy of focusing our resources and efforts to manage our established brands for long term profitability, while actively pursuing selective new opportunities that are good fits for our core competence."

- End -

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