Playmates Toys Limited (00869) reported a sharp downturn for the financial year ended 31 December 2025, shifting to a net loss of HK$15.35 million from a profit of HK$131.63 million a year earlier.
Revenue dropped 45.02 % to HK$512.21 million, primarily due to lower Godzilla x Kong shipments, softer demand for Teenage Mutant Ninja Turtles products and shipment disruptions to the U.S. market. The United States remained the largest geographic contributor, accounting for 76 % of revenue.
Gross profit contracted to HK$247.83 million, with the gross margin narrowing to 48 % from 54 % amid higher U.S. tariffs and increased product-development costs. Operating expenses decreased 38 % year-on-year, yet the Group swung to an operating loss of HK$49.29 million (2024: operating profit of HK$94.29 million).
Other net income totalled HK$59.68 million, comprising HK$40.20 million in interest income and a net fair-value gain of HK$18.67 million on listed equity investments. Finance costs were HK$2.23 million. As a result, profit before tax fell 95.42 % to HK$8.16 million, while the effective tax charge of HK$23.52 million drove the full-year loss.
Basic and diluted loss per share were HK1.30 cents, compared with earnings of HK11.15 cents in 2024.
Balance-sheet strength was maintained. Cash and bank deposits stood at HK$969.39 million, and the current ratio improved slightly to 6.4. Net assets were HK$1.10 billion, with treasury investments in listed equities valued at HK$94.87 million, equal to 7.20 % of total assets.
The Board declared a first interim dividend of HK1 cent per share, paid in September 2025, and proposed no second interim dividend.
Management flagged 2026 as another transition year, citing the absence of major entertainment events for core franchises. Continued distribution of the Power Rangers line and ongoing shipments of TMNT and MonsterVerse products are expected to underpin sales, while U.S. tariff developments remain a key profitability variable.
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