Playmates Toys : Announced 2018 Annual Results

[For immediate release]

PLAYMATES TOYS ANNOUNCED 2018 ANNUAL RESULTS ** *

Highlights

For the year ended 31 December
2018 HK$'000	2017 HK$'000
Revenue	474,182	758,329
Gross profit	250,889	411,326
Operating (loss)/profit	(13,318)	74,131
Profit attributable to shareholders	562	55,764
HK cents	HK cents
Basic earnings per share	0.05	4.63
Full year cash dividends per share	-	6.00

•  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.

•  All-new animated series, Rise of the Teenage Mutant Ninja Turtles, launched during Fall 2018, Season 2 will premiere in Fall 2019.

•  Ben 10 animated TV series continues to be popular in US and many international markets, developing product line extensions for Fall 2019 and beyond.

•  Playmates Toys secured master toy rights for "ZAG HEROEZ: Power Players". All new animated series scheduled to debut in Fall 2019.

- Cont'd -

(February 28, 2019 - Hong Kong) - Playmates Toys Limited ("Playmates Toys" or "the Group", HKEx Stock Code: 869) announced today its results for the year ended 31 December 2018. The Group 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. Net profit attributable to shareholders was HK$0.6 million (2017: HK$55.8 million). Basic earnings per share was HK cents 0.05 (2017: HK Cents 4.63). The board did not recommend the payment of dividend.

Group Chairman Mr. Sidney To said: "The decrease in 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.

"Nickelodeon re-launched the TMNT franchise in an all-new animated series, Rise of the Teenage Mutant Ninja Turtles, during Fall 2018. The TV show is off to a good start, and will be supported by regular airings, on-air promotions, as well as additional short-form content throughout 2019. 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."

Mr. To continued: "Cartoon Network's Ben 10 animated TV series continues to be popular in the US and in many international markets. Season 3 will premiere in Spring 2019 and introduce plenty of transformations and never-before-seen aliens and foes. We are actively developing product line extensions for Fall 2019 and beyond."

Playmates Toys has partnered with ZAG, a global independent entertainment studio, on the upcoming animated series, ZAG HEROEZ: Power Players. Cartoon Network has secured the television rights to the series, which is scheduled to debut in Fall 2019. Playmates Toys' multi-segment toy line is in development and will launch in early 2020.

Mr. To concluded, "While the operating environment remains challenging, we will continue to prudently manage operating costs and adhere to the stated strategy of nurturing our established brands while investing selectively in new opportunities. There are multiple new brands in the pipeline with confirmed trade support to be introduced throughout 2019 and 2020."

- End -

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