Company: KMRK
Filing Date: 2025-05-19
Form Type: F-1
Source: 0001213900-25-045262
Chunk: 109

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-05-19
Form: F-1
Chunk 109
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 report, unless otherwise noted. The following discussion includes projections for future growth, which may not occur at the rates that are projected or at all. Overview of the Toys Industry in Hong Kong Hong Kong exporters have a reputation for producing high -qualitytoys. Contract manufacturing with overseas manufacturers and license holders generates a significant share of the industry’s revenues. To reduce operating costs and remain competitive, the majority of toy brand owners have established production facilities offshore, particularly in the PRC and Southeast Asia. The role of Hong Kong toy exporters has shifted towards quality control, management, marketing, product design, and production planning. In 2023, Hong Kong ranked as the world’s ninth -largesttoy exporter. Amid growing concerns in overseas markets regarding product safety and environmental protection, toy safety standards and regulations have become increasingly stringent. Hong Kong toy exporters are advised to stay informed about regulatory changes in different markets and ensure compliance with new requirements. Production on the PRC is facilitated by an efficient network of supporting industries and services. This has greatly enhanced the competitiveness of the Hong Kong toy industry in terms of its productivity, quality, reliability and delivery. Building on a base of their expertise in plastic molded toys, Hong Kong toy exporters have added production skills from the clothing industry, the electronics industry and the metal goods industry. Toys Product Market in Hong Kong The toys product market is diverse and encompasses a wide range of categories, each appealing to different age groups, interests, and consumer preferences. Below is an overview of the main segments within the toys product market, along with the trends and characteristics of each. Source: Migo 66 Toys Industry Chain Analysis The value chain of the toys industry is mainly consist of upstream raw material suppliers and manufacturers, midstream brand owners, distributors, retailers and consumers. The following chart illustrates the value chain of the toys industry. Source: Migo The value chain of the toy industry encompasses a progression from raw material procurement to consumer engagement. The upstream segment involves securing raw materials used in production, such as rubber, plastic, and alloy steel. Manufacturers produce products tailored to the specifications of brands and subsequently deliver the finished toys to them. Some manufacturers also develop and market their own private brands. The midstream segment primarily consists of brands that focus on brand operations and marketing. In the downstream segment, brand owners distribute products primarily through distributors to retailers or sell directly to retailers and consumers. Consumers can purchase products through both online and offline channels, such as e -commerceplatforms, toy stores, and department stores. Toy manufacturers can be categorized into three groups