Company: KMRK
Filing Date: 2025-04-07
Form Type: DRS/A
Source: 0001213900-25-029283
Chunk: 109

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-04-07
Form: DRS/A
Chunk 109
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 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 markets accounted for about 71.7% of total toys and sports equipment exports from Hong Kong. The following is a breakdown of total exports to major markets by Hong Kong’s toy exporters from 2022 to the end of September 2024. 69 Source: Hong Kong Trade Statistics, Census and Statistics Department, Migo Overview of Global Toy Market According to the International Council of Toy Industries, the global toy market’s revenue in 2023 was valued at approximately US$108.7 billion, reflecting a modest 2.0% decline compared to the previous year. Despite this minor contraction, the overall growth of the toy market has been positive, with a CAGR of 4.0%, rising from US$92.9 billion in 2019 to US$108.7 billion in 2023. This indicates a steady increase in demand over the four -yearperiod. While 2023 experienced a slight downturn, it presents opportunities for OEM and ODM companies to innovate and expand their offerings, ensuring a dynamic and resilient future for the toy market. The following chart illustrates the total global toy sales from 2019 to 2023. Source: International Council of Toy Industries, Migo Market Drivers E-commerce Growth Online sales and distribution channels for toys and games have grown exponentially since the onset of the COVID -19pandemic, now accounting for about half of all global sales. In the post -pandemicera, retailers are expected to continue adopting an omni-channel approach, offering customers a seamless shopping experience to drive both traffic and sales. 70 Aggressive Advertising and Promotions on Social Media Marketing: Targeting the mass market requires aggressive advertising campaigns and promotional tie-ins to succeed. An increasing number of toy manufacturers are partnering with companies from other industries, especially fast-food chains, to enhance their promotions. Additionally, toy makers are entering licensing agreements with movie studios to produce merchandise featuring film characters such as Minions, Marvel heroes, Batman, and Disney characters. Successful products also often emerge from popular mobile and video games like Pokémon