Gifts / Sports & Toys

Kaizhile International (02122) issued an announcement that in the first half of 2021, the company's revenue was 750 million yuan (the same unit below), an increase of 17.6% year-on-year; the profit attributable to company owners was 12.314 million yuan, and a loss of 130 million yuan in the same period last year; basic Earnings per share were 1.54 cents.

According to the announcement, in the first half of the year, the group's gross profit was 317 million yuan, a year-on-year increase of 48%; gross profit margin increased from 33.4% to 42.1%.

Compared with 2020, the company's revenue in 2020 is 1.375 billion yuan, a year-on-year decrease of 19.6%; a loss of 130 million yuan during the period, a loss of 79.48 million yuan in the same period in 2019; a loss of 15.89 cents per share.

Kaizhile International Holdings Co., Ltd. (Kidsland, 02122.HK), the toy company acting for Lego's business in Mainland China and Hong Kong, was listed on the Hong Kong Stock Exchange on November 10, 2017. The company issued 200 million shares at an issue price of 1.5-2.2 Hong Kong dollars per share. According to a report by Euromonitor, a well-known research institution, ChemChina was the largest toy retailer in China in 2016 in terms of retail sales value, accounting for approximately 14% of the market share.

After the FAO Schwarz flagship store was reopened in New York in November 2018, it achieved great success, and then opened a store in Beijing, China. The leading domestic toy retailer and agent kidsland will be an internationally renowned toy store with a history of 157 years. The brand FAO Schwarz was introduced to China, and Asia's first boutique toy flagship store settled in Beijing International Trade Commercial District. Its over 2,600 square meters and nearly 50 brands of toy experience space set a record for the largest single toy store in Beijing’s CBD landmark, China World Trade Center.

Recently, Kaizhile disclosed that its innovative trend and collectible toy platform kkplus, located in Langham Place, Hong Kong, just opened a concept store last month. After expanding the store, the sales performance is satisfactory. The turnover in the first weekend exceeded 1 million yuan, the largest single sale 28 products are released.

Li Chengyao, Chairman and Chief Executive Officer of Kaizhile, said that kkplus performed satisfactorily after its opening in September last year. The group decided to open a concept store and expand kkplus's storefront to further develop the growing trendy toy market and promote the group's strategic upgrade.

Kk plus-FB

By expanding into areas other than children's toys, Kaizhile hopes to reverse the 20% decline in revenue in 2020.

Currently, Kaizhile’s offline sales network includes approximately 670 self-operated stores and counters, and another 3,000 distribution points. In addition to acting for the Lego brand, Kaizhile also distributes many well-known brand products from the United States, Japan, Germany and other countries.

Company executive Sherman Hung said that during the epidemic, toys that have social interaction elements or rely on impulsive consumption have been impacted, but "homestay" products such as board games and puzzles are still very popular. .

According to Kaizhile’s 2020 financial report, the group’s revenue decreased by 19.6% from approximately RMB 1.71 billion in the previous period to approximately RMB 1.375 billion during the reporting period. Fortunately, the impact of the epidemic has eased in the second half of 2020, so the decline in revenue in the second half of 2020 has narrowed compared with the first half of 2020. In addition to the 5.8% year-on-year decrease in revenue from self-operated retail channels, in the second half of 2020, the revenue of Kaizhile retail stores and online stores actually increased by 1.9% and 11.3% respectively compared with the same period in 2019.