On December 14, the Yueyue Group submitted an application to the Hong Kong Stock Exchange, marking the toy company that has grown and developed due to the design and sales of Marvel and Disney. It finally launched a sprint to the Hong Kong stock market IPO.
Hand to do. A subdivision of many enthusiasts in the ACG industry is somewhat mysterious and unfamiliar to the public. Most people mentioned that they are still stunned and do not know why.
But in fact, in Japan and the United States, this is already a very mature field. This is a peculiar phenomenon in the ACG field. The cartoon characters are made into detachable toys, which can be assembled at will. To some extent, the hand is a toy. It is just a toy of a specific title in the ACG field.
The company is a Hong Kong-based toy company engaged in the design, marketing, distribution and retail of toys and related products. The most well-known product is its design and distribution in Japan as a distributor in Greater China or Southeast Asia. Practice, Marvel, Disney's many classic images of the hand. The company's product portfolio includes a variety of hand-made toys based on popular ACG characters owned by third parties, as well as other related products (such as pens and hair bands).
If nothing else, this will be the first ACG in the Greater China region, which has important implications for the development of the entire industry in Greater China.
1 Yueyue Group's revenue
The revenues of the Group's fiscal year 2016, fiscal year 2017 and April-July 2017 were HK$123 million, HK$137 million and HK$40.418 million respectively; gross profit for the same period was HK$32.212 million, HK$40.12 million and HK$11.256 million respectively.
Summary of consolidated statement of profit and loss and other comprehensive income for the Track Record Period:
main products:
Mickey, Minnie’s hand
Iron Man Hand
Altman Hand
Details of the revenue by business segment during the Track Record Period:
2 Three modes of OEM, ODM and OBM in the toy industry
There are three main business models in this industry, namely OEM, ODM and OBM.
1. OEM is OEM production, OEM production, brand manufacturers do not directly produce products.
Instead, it uses its core technology to design and develop new products and control sales channels. Product processing is commissioned by other manufacturers of similar products through contract ordering, and then the products are bought at low prices and branded. Trademark. China's toy companies mostly provide OEM services for internationally renowned toy brand manufacturers.
2. ODM refers to the purchaser entrusting the manufacturer, the manufacturer from the design to the production, and the purchaser is responsible for the production method of the sale, the purchaser usually authorizes the manufacturer to produce the product with the brand. OEM and ODM are the most common business models of domestic toy companies.
3. OBM is the production of its own brand, which means that the manufacturer establishes its own brand, independently designs, purchases and produces, and develops the market with its own brand.
The Yueyue Group basically started from the second in the early days. Now it is the second and third leg walks. At the same time, it also distributes some famous Japanese hands-on exercises.
The main business income of the Group is from the sales of ODM toys, which accounted for 69.5% and 61.3% of the total revenue in FY2016 and FY2017, respectively.
In FY2016 and FY2017, sales of ODM toys were HK$85.525 million and HK$83.88 million, down by 1.9% respectively; the distribution of imported toys was HK$22.675 million and HK$27.58 million, an increase of approximately 21.6%; The sales volume was HK$149.54 million and HK$25.42 million, an increase of approximately 70.0%, which was the fastest growth.
From the perspective of the partners, the partners of the Yueyue Group have thousands of training in Japan, Wing Co.Ltd, Marvel and Disney in the United States, among which the thousand-value training is the largest partner of Moet. It is worth mentioning that the company's predecessor is the value of Hong Kong---the founder and chairman of the group, Li Weiqiang, and the two Japanese people jointly established in Hong Kong, a toy wholesale and design company. .
In order to avoid hindering the development of the company due to the Group's excessive dependence on the value-added practice, the Group has broadened the scope of its partners since 2013. The Group's first choice is American anime, which also has a broad consumer base. At present, the Yueyue Group has signed the authorization of three entertainment media companies, and has obtained the authorization of hundreds of American cartoon superheroes in Greater China or Southeast Asia.
Revenue by geographical market during the Track Record Period:
Revenue from the Group's customers in Japan and the United States in 2016 was approximately 66.9% and 5.5%, respectively, which was approximately 62.4% and 4.3% in FY2017.
In addition, the Group has established its own licensed toys using the “SENTINEL/Thousands of Values†and “TOPI†brands, and expects to launch the new brand “FLAME TOYS†by the end of 2017.
Revenue breakdown of products sold under the “SENTINEL/Thousand Values†and “TOPI†brands during the Track Record Period:
Although the licensed toy of the family is the "old lady" in the family, it has performed well. The total income of "SENTINEL / Qian Qian Lian" and "TOPI" in FY2016 is about 150 million Hong Kong dollars. It is directly chasing the toys imported from Japan. Revenue was HK$166 million. In FY2017, it was more than HK$254 million, far exceeding the toy income of HK$68.76 million imported from Japan.
From the perspective of sales channels, the main sales channels of the Group are distributors, flagship stores, online stores and consignment arrangements: the online store “D4TOYS.COM†was established in 2012 to sell toys and related products to customers around the world; The Group has been established in Hong Kong in 2015 to promote and sell toy products to retail customers. During the Track Record Period, the Group also worked with a number of shopping malls, chain department stores, chain toy stores and chain convenience stores in Hong Kong. A consignment arrangement was made.
Product revenue, sales volume and average selling price breakdown by product category during the Track Record Period:
The ACG model of the Yueyue Group is mainly aimed at adult consumers. In this target group, the group launched a premium toy and ordinary toys for the more detailed customer stratification: the super hero of the “SENTINEL/Thousands of Values†brand. Hand-made toys focus on high-end consumers and superhero movies and related products lovers; "SENTINEL / thousand value training" brand polygon dolls and "TOPI" brand mini toy series is the main consumer of the mass market.
It can also be seen from the data that the revenue of ordinary ODM toys accounts for 43.1% and 40.3% of the total revenue of FY2016 and FY2017, and the income of ordinary imported toys accounts for 5.6% of the total revenue in FY2016 and FY2017. 9.5%, ordinary toys with more "grounded gas" prices have shown strong competitiveness.
3 Business strategy
1. Expanding its own licensed toy product portfolio
The development of its own licensed toys allows the Group to obtain a stable source of licensed toy supply for distribution platforms, rather than relying solely on purchasing imported toys from overseas toy licensees, which allows the Group to expand its existing product portfolio for sale.
The Group's profit from the sale of its own licensed toys increased significantly during the Track Record Period, and the gross profit increased from HK$6.6 million in FY2016 to HK$11.4 million in FY2017, representing an increase of approximately 72.2%, plus the gross profit margin of selling its own licensed toys. Sales of ODM toys are high. Excluding unforeseen circumstances, it can be predicted that the profit contributed by its own licensed toys will continue to grow in the future. The development of its own licensed toys enhances the independence of the group and helps maintain its profitability and maintain its competitiveness.
2. Establish an overseas office
In order to better coordinate overseas distributors and strengthen overseas distribution networks, the Group plans to establish three overseas representative offices in the sales region (including the United States, Taiwan and Singapore).
First of all, the establishment of the office will facilitate the promotion and sales of these overseas regions, including organizing marketing activities and participating in trade shows and toy exhibitions, as well as actively engaging and liaising with potential distributors in these regions for future cooperation. In addition, this initiative allows the Group to closely monitor the sales performance of local distributors, and also by hiring local residents in these regions, reducing the time lag for processing overseas purchase orders and shipments, reducing costs, increasing efficiency, and expanding and deepening the sales market. . The office can provide after-sales service to end customers in the region more efficiently and enhance customer satisfaction, thereby strengthening the Group's market share in the local ACG toy market.
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