Company: KMRK
Filing Date: 2025-07-16
Form Type: 424B4
Source: 0001213900-25-064537
Chunk: 108

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-07-16
Form: 424B4
Chunk 108
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 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 based on their production methods: Original Brand Manufacturer (OBM), Original Equipment Manufacturer (OEM), and Original Design Manufacturer (ODM). OBMs create and manufacture their own branded items while also contracting production to external manufacturers. OEMs produce items according to the designs and specifications provided by brand owners or other manufacturers. ODMs, on the other hand, offer design and manufacturing services based on specifications provided by brand owners or other manufacturers. Owners of toy brands primarily focus on managing their brands and selling products, often choosing to collaborate with OEMs or ODMs for production outsourcing. ODMs and OEMs, due to their adaptable and robust manufacturing capabilities, also have the capability to create and market their own brands. Performance of Toys Exports in Hong Kong Following weak export performance in 2022 and 2023, Hong Kong’s toys and games exports remained sluggish during the first nine months of 2024, recording a 24% year-on-year decline. As many Hong Kong companies shift the roles of their local offices to support their global expansion, Hong Kong toys and games exporters are increasingly focusing on handling offshore trade. The continuous improvement in technological literacy and evolving play preferences have increased the importance of non-traditional toys, such as electronic toys and video games. Consumers are increasingly drawn to toys that integrate technology and offer interactive experiences. The following table sets out the Hong Kong Toy Exports Amount as of end of September 2024. In terms of the export market, according to Hong Kong Trade Statistics from the Census and Statistics Department, the PRC is the largest market, accounting for about 19.4% of Hong Kong’s total toys and sports equipment exports as of the end of September 2024. Together with the U.S., Japan, Poland, Germany, Taiwan, Vietnam, Cambodia, Singapore, and the UK, these ten major