Comprehensive Overview

The Group is a supplier of intelligent interactive entertainment products, which mainly designs, develops, manufactures and sells high-quality smart car models, smart interactive toys and traditional toys. According to an insightful consulting report, based on sales revenue in 2018, the Group ranked 9th in the domestic toy manufacturing market in China, with a market share of 0.1%.

The group focuses on overseas markets and sells products directly to overseas customers through Chinese export-oriented wholesalers. The Group's retail customers mainly include multinational and national market retailers that operate large mass market retail chains, including full-scale retailers and toy retailers. The group also sells products to wholesalers, mainly overseas wholesalers and Chinese export-oriented wholesalers. The Group also sells products to Chinese retailers and Chinese domestic distributors, and overseas customers who have contracted the Group to manufacture under ODM and OEM models. The Group's products are (i) products of the “Kishida” brand, (ii) joint brand products launched by owners of popular entertainment characters or toy brands portrayed by well-known automobile manufacturers, animated TV series or movies, and (iii) products using the Group's brands of overseas customers, and products sold to customers using their respective brands.

Risk Factors

If the group's new product design is not well received by the market, and if the group is unable to successfully develop new products or innovate ways to meet changing market demand for products, the group may lose competitiveness.