Business summary

Kaizhiker International Holdings is mainly engaged in the retail and wholesale of toys and baby products in China, as well as in toy retail in Hong Kong. The toys distributed by the group generally include building toys, wooden toys, electronic toys, anime figures and collectible metal models. At the same time, the group's brand portfolio consists of 27 international brands, including LEGO, Yinhui, Zhigao, Siku, Silo, Brio, Quirky and Aprica.

Competitive advantage

Diversified retail network with specially selected strategic geographical locations

The Group has established stable partnerships with well-known international brands and can purchase and distribute diversified, popular or high-quality toys and baby products

The multi-brand strategy allows the group to increase bargaining power and attract a wider customer base. Risk factors

The Group may lose exclusive distribution rights to sell LEGO products on several distribution channels or fail to renew the 2016 LEGO agreement with the LEGO Group, which may adversely affect business

There may be competition between wholesale customers from the Group and new business partners of the LEGO Group

A rise in the level of rent expenses will increase the Group's sales and distribution expenses, which may adversely affect operations and profitability. Use of proceeds

Approximately 61% was used to expand retail networks in the Mainland and Hong Kong

About 18% is used for product development

About 11% is used in development experience centers

Approximately 10% is used for general working capital