Huangdafu Holdings Co., Ltd. is a toy manufacturer that mainly provides OEM services. The company manufactures finished products according to customer specifications, and the products are sold by the customer's brand. The company's customers include Client A (an internationally renowned toy company based in the US) and several internationally renowned toy brands such as LeapFrog and TollyTots. The company's main business includes injection plastic processing, steel pipe molding, circuit board assembly, and processing decoration processes such as sewing for toy products.

The toy industry is closely related to the overall economic situation and consumers' willingness to spend. Generally speaking, the better the overall economic situation, the greater the wealth of society and the population, and the higher the consumption in the toy market; as the economies of large economies such as the US and Western Europe recover, consumer spending on toys in these countries will gradually increase. However, consumers' willingness to consume is also influenced by alternatives and birth rates. As the digitalization of toys continues to spread, electronic toy products are increasingly replacing traditional toys; at the same time, birth rates in all countries have continued to decline over the past few years, which has posed challenges to the operation of toy manufacturers, and competition is fierce. The company raised 60,000,000 shares this time, and the company's earnings per share for the year ending March 2012 were HK$0.2; net profit for the four months ending July 31, 2012 was HK$5.2 million, a negative increase of 55.9%, a significant decline. Based on the average issue price of HK$1.25, the company's valuation in 2012 was 6.25 times PE. Although it is lower than the average valuation of listed companies in the same industry, considering that the company's operating margin and net profit margin are low, production costs are high, and exports to the European and American markets face great uncertainty, we recommend not participating in the subscription.