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 rights to popular or classic characters for animated TV series or animated movies by internationally renowned franchisees. 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 it ranked sixth in terms of the total value of outdoor sports toy products exported from China. We started our business in 1998. We are headquartered in Hong Kong, China and our production facility is located in Dongguan, Guangdong Province, 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 partnerships with major entertainment franchisees in popular entertainment property rights, making our products popular with customers from all over the world. While we focus on designing, developing, manufacturing and selling toy products, we are also implementing a global licensing strategy to seek and obtain entertainment property concessions from major entertainment franchisees, and most of our products are co-branded products related to licensed entertainment property rights to seize the marketing benefits of internationally renowned entertainment property rights, thereby increasing popularity among consumers and establishing reputation and market recognition from the mass market. Throughout our operating year, we have developed business relationships with a number of major entertainment franchisees, and we have established licensing arrangements all over the world. In the next development market (such as Russia, Poland and Ukraine), we focus on branded products, followed by our co-branded products and customers' private labels. As of the last practical date, we have been granted entertainment property concessions under eight licensing agreements with licensors (such as Disney, Sesame Workshop and VIMN), covering all types of outdoor sports toy products and preschool toy products for infants and young children. We have strong and vertically integrated manufacturing capabilities, which allows us to carry out most manufacturing processes in-house. During 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, international mass market retailers, local retailers, wholesalers or distributors, and products) and buyers. We hire sales representatives in various regions (including the US, Japan, Taiwan, South Korea, Australia, UAE, and Latin America) to serve our customers. During the track record period, most of our sales to customers were based on a sell-out basis. In FY2014, FY2015 and FY2016, and for the six months ended October 31, 2016, sales on a sell-out basis accounted for approximately 99.1%, 99.0%, 98.9% and 99.7% of total revenue, respectively. Under the sell-out sale, a number of customers have entered into distribution agreements with us, and revenue from these customers accounted for approximately 9.2%, 8.0%, 4.4% and 5.1% of our total revenue for FY2014, FY2015, FY2016 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 it contributed to the Group was not significant, and on the last practical date, we stopped operating the related business.