About KIDDIELAND Company

We are one of the leading toy manufacturers and toy exporters, mainly engaged in the design, development, manufacture and sale of various types of outdoor sports toy products and infant and preschool toy products. Most of our products are co-branded products granted entertainment property rights for popular or classic characters in animated TV series or animated movies by internationally renowned franchisors. We also manufacture and sell our branded products, and manufacture private label products for customers according to original design and manufacturing standards. According to the insight report, in 2015, we ranked first in terms of the total value of outdoor sports toy products exported by Guangdong Province, while ranking sixth in terms of the total value of outdoor sports toy products exported by China. We started our business in 1998. We are headquartered in Hong Kong, China, and production facilities are located in Dongguan, Guangdong, China. Since starting the business, during the track record period and until the last practical date, we have been launching new products in various types of outdoor sports toy products and infant and preschool toy products to meet market demand and meet customer needs based on market trends and customer feedback. We are proud to have successfully maintained close cooperation with major entertainment franchisors of popular entertainment properties, making our products popular among customers from all over the world. While we focus on designing, developing, manufacturing and selling toy products, we also implement a global licensing strategy to seek and obtain entertainment property concessions from major entertainment franchisees. Most of our products are co-branded products related to licensed entertainment property rights, which capture the marketing benefits of internationally renowned entertainment property rights, thereby enhancing popularity among consumers and establishing reputation and market recognition from the mass market. Throughout our year of operation, we have developed business relationships with many major entertainment franchisees, and we have entered into franchise arrangements all over the world. In sub-developed markets (such as Russia, Poland, and Ukraine), we focus on branded products, followed by our co-branded products and our customers' private labels. As of the last practical date, we have been granted entertainment property concessions under eight licence agreements with franchisors (such as Disney, Sesame Workshop, and VimN), covering all types of outdoor sports toy products and preschool toy products for infants and toddlers. We have strong and vertically integrated manufacturing capabilities that allow us to carry out most of the manufacturing processes in-house. Over the course of our track record, our sales network has penetrated over 70 countries on six continents. We mainly sell products to different types of retailers (such as toy specialty chains, multinational mass market retailers, local retailers, wholesalers or distributors, and products) and buyer banks. We have appointed sales representatives to serve our customers in multiple regions, including the US, Japan, Taiwan, Korea, Australia, the UAE, and Latin America. During the track record period, most of our sales to customers were based on sell-out benchmarks. In fiscal year 2014, fiscal year 2015 and fiscal year 2016, and the six months ending October 31, 2016, sales based on sell-out benchmarks accounted for approximately 99.1%, 99.0%, 98.9% and 99.7% of total revenue, respectively. Under sell-out sales, a number of customers have entered into distribution agreements with us, and revenue from such customers accounted for approximately 9.2%, 8.0%, 4.4% and 5.1% of our total revenue for the fiscal year 2014, fiscal year 2015, fiscal year 2016 and the six months ended October 31, 2016, respectively. During the track record period, we also carried out consignment and retail business in China. The revenue contributed to the Group was not significant, and as of the last practical date, we stopped operating the relevant business.