Xinghui Entertainment: Toys business revenue of 260 million in the first half of the year, the game business performance is eye-catching

In the first half of 2018, Xinghui Entertainment Toys business revenue was 260 million yuan, accounting for 15.86% of total operating income, down 11.65% year-on-year. Genuine license and high quality products are one of the core competitiveness.

Xinghui Entertainment (300043) recently released the semi-annual report for 2018: In the first half of the year, the company achieved a total operating income of 1.639 billion yuan, an increase of 25.58% year-on-year, and realized a net profit attributable to owners of the parent company of 141 million yuan, a year-on-year decrease of 14.32%. (The decrease in net profit was mainly due to the decrease in profit recognized by the company's non-recurring profit and loss items in the first quarter of 2018.) Excluding the impact of the first quarter of 2018, the company's net profit attributable to owners of the parent company in the second quarter was significantly higher than that of the previous year. The increase was 138.35%.

Chinese and foreign toy network (ctoy-gdta) was informed that the main business of Xinghui Entertainment includes three major sections: game business, toy business and football club business. In the first half of 2018, the game business realized operating income of 867 million yuan, accounting for 52.90% of total operating income, up 34.97% year-on-year; toy business income was 260 million yuan, accounting for 15.86% of total operating income, down 11.65% year-on-year (of which car model) Toy business revenue was 175 million yuan, down 15.52% year-on-year; baby products business revenue was 85 million yuan, down 2.47% year-on-year.); Football Club operating income was 484 million yuan, accounting for 29.53% of total operating income, up 67.26%.

According to the data, Xinghui Entertainment started with toys and mainly focused on the production, research and development and sales of key baby products such as dynamic car models, static car models, collectible models and electric baby carriages, and children's bicycles. After years of accumulation, the toy brand “RASTAR” has trademark intellectual property rights in 50 countries and regions, and has obtained brand authorization for over 300 models of automobile models produced by more than 20 world-renowned automobile brands such as BMW, Mercedes-Benz, Audi and Lamborghini. It is one of the most authorized companies in the domestic car model enterprises.

Xinghui Entertainment at 2018 Guangzhou International Toy Fair & Baby Car Show

During the reporting period, Xinghui Entertainment continued to optimize its product structure and build intellectual property highland. The intelligent space series-Intelligent Special Dog-Du Gao, Space No. 2 - Future Warrior, Land Rover Children's Bicycle and other key new products were launched one after another. There are 11 patents, including 7 utility model patents and 4 appearance patents.

Genuine authorized and high-quality products are one of the core competitiveness of Xinghui Entertainment Toys and Derivatives business. In January 2018, Xinghui Entertainment and German BMW Automobile Company officially signed a six-year global exclusive licensing contract to become BMW. The world's only licensor of the company's dynamic car models and children's bicycle products. Based on the original "BMW MINI" brand, Xinghui Entertainment has obtained the global exclusive license of the main brand "BMW BMW" children's bicycle series. Up to now, Xinghui Entertainment has cooperated with MONDO in Italy, TESCO and Argos in the UK. German Jamara, BigToys USA and Sams of the United States, Color baby sl of Spain, TNG of Russia, HO'S TEAM of South Africa, LA NOVIA DE VILLA of South America and other countries have established long-term and stable cooperative relations. More than 190 countries and regions in the world.

In addition, the main raw materials for toy business products are plastic raw materials, packaging materials, electronic components and so on. Plastic raw materials, as a downstream product of petroleum, will have a certain impact on the cost of toys as large fluctuations in oil prices.

Recently, Sino-US trade disputes have intensified, but Xinghui Entertainment said that the company's game business and football club business have no US business, and the toy business accounts for less than 1% of total sales, which is hardly affected by the external environment. .