LEGO® Certified Store Shatin Tops First-Day Sales Record

Kidsland International Holdings Limited (“Kidsland International” or the “Company”; together with its subsidiaries, the “Group”, SEHK stock code: 2122), the largest toy retailer in the PRC, is pleased to announce that its third LEGO® Certified Store (“LCS”) located at New Town Plaza, Shatin, has recorded a single-day sales of over HKD3.2 million on 3 December, topping the first-day sales record set by LCS Times Square in Causeway Bay.
 
With a total area of approximately 2,000 sq ft., LCS New Town Plaza is the third LCS in Hong Kong under the operation of the Group. It is anticipated that the store will attract more mainland Chinese tourists given its location in the New Territories. To achieve a comprehensive branding and location strategy, the Group plans to open the fourth LCS in the second half of 2018. 
 
Dr. William Lo, Vice-Chairman, Chief Financial Officer, and Managing Director Hong Kong of Kidsland International said, “We are delighted to see LCS New Town Plaza in Shatin topping the first-day sales record set by LCS Times Square in Causeway Bay, also setting one of the highest first-day record among LCSs around the world. We anticipate this positive momentum will continue during Christmas. Despite being the smallest in store size compared to our stores at Langham Place and Times Square, LCS New Town Plaza is likely to be more efficient in terms of store productivity. With our insights in market trends and our exclusive partnerships with multiple renowned, international brands, we will continue to expand our sales network to increase our market share, so as to solidify our leading position in the industry.”

Kidsland International’s online sales increases 40% year over year to RMB26 million during “Double 11”

(14 November 2017, Hong Kong) Kidsland International Holdings Limited (“Kidsland International” or together with its subsidiaries, the “Group”; SEHK stock code: 2122), the largest toy retailer in the PRC, is pleased to announce that the Company recorded a sales of RMB26 million from online stores such as Tmall, JD.com, etc during “Double 11”, representing an increase of 40% compare to the same day in 2016. Sales of non-Lego brands increased by 46%, accounting for 61.5% of total sales during “Double 11”.

During the “Double 11” shopping festival, flagship stores operated by the Company ranked highest in sales among multi-brand toys stores on Tmall, whereas increase in sales recorded by the Company during “Double 11” is in line with overall sales increase on Tmall this year, as a result of the Company’s overall strategy in balancing sales and profit margin by controlling discount range. Meanwhile, sales in physical stores operated by the Company in the PRC significantly increased by 146% during “Double 11” compare to the same day in 2016.

To capture and export such opportunity to the Hong Kong market, the Company adopted an “11% Discount Promotion” in the two Lego Certified Stores it operates during “Double 11”, which generated a 350% increase in sales as compared to “Double 11” in 2016 (an increase of approximately 250% as compared to average Saturday sales).

Dr. William Lo, Vice-Chairman, Chief Financial Officer and Managing Director Hong Kong of Kidsland International said, “The Group is pleased to see such an encouraging online and offline results in both the PRC and Hong Kong during “Double 11”. In light of this, we will continue to put emphasis on the development of e-commerce. Leveraging on our extensive distribution network, we seek to optimize O2O (online to offline) integrated sales model in the future to enhance customer shopping experience, so as to capture the enormous opportunity arisen from e-commerce.”

Successful Listing on the Main Board of The Stock Exchange of Hong Kong Limited

(10 November 2017, Hong Kong) Kidsland International Holdings Limited (“Kidsland International” or the “Company”; together with its subsidiaries, the “Group”; SEHK stock code: 2122), the largest toy retailer in the PRC, successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited (“HKEx”) today.

 

 Caption: Mr. Lee Ching Yiu, Chairman and Chief Executive Officer of Kidsland International (8th from right), Dr. Lo Wing Yan William, Vice-Chairman, Chief Financial Officer and Managing Director in Hong Kong (8th from left), Ms. Zhong Mei, Managing Director China (7th from left), management and guests of Kidsland International attended the listing ceremony this morning.

Caption: Mr. Lee Ching Yiu, Chairman and Chief Executive Officer of Kidsland International (8th from right), Dr. Lo Wing Yan William, Vice-Chairman, Chief Financial Officer and Managing Director in Hong Kong (8th from left), Ms. Zhong Mei, Managing Director China (7th from left), management and guests of Kidsland International attended the listing ceremony this morning.

 Caption: Mr. Lee Ching Yiu, Chairman and Chief Executive Officer of Kidsland International (Middle), Dr. Lo Wing Yan William, Vice-Chairman, Chief Financial Officer and Managing Director in Hong Kong (Right) presenting a souvenir (Lego plate symbolizing Kidsland) to Ms. Chan Yuen Shan Clara, Listing Committee Member.

Caption: Mr. Lee Ching Yiu, Chairman and Chief Executive Officer of Kidsland International (Middle), Dr. Lo Wing Yan William, Vice-Chairman, Chief Financial Officer and Managing Director in Hong Kong (Right) presenting a souvenir (Lego plate symbolizing Kidsland) to Ms. Chan Yuen Shan Clara, Listing Committee Member.

Mr. Lee Ching Yiu, Chairman and Chief Executive Officer of Kidsland International, commented during the listing ceremony, “The successful listing of Kidsland International on the main board of HKEx will further enhance our brand awareness and attract more international brands owners to cooperate with us. We will keep up our effort so as to generate sustainable and attractive returns for our shareholders.”

Kidsland International, the Largest Toy Retailer in the PRC, Announces Proposed Listing on the Main Board of The Stock Exchange of Hong Kong

[This press release is not for publication, dissemination or distribution to persons in the United States, and does not form an offer, or any part of any offer, for the sale within the United States of any equity shares or any other securities of Kidsland International Holdings Limited. No public offering of securities of Kidsland International holdings Limited will be made in the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration under thE Securities Act or an available exemption from it.] 

 

Kidsland International, the Largest Toy Retailer in the PRC, Announces Proposed Listing on the Main Board of The Stock Exchange of Hong Kong

Global Offering of 200,000,000 Offer Shares

Offer Price Range of HK$1.50 to HK$2.20 Per Offer Share

 

(30 October 2017, Hong Kong) Kidsland International Holdings Limited (“Kidsland International” or the “Company”; together with its subsidiaries, the “Group”, SEHK stock code: 2122), the largest toy retailer in the PRC, announces today the details of the Global Offering of its shares and its proposed listing on the Main Board of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”).

 

200,000,000 Shares (subject to the Over-allotment Option) (the “Offer Shares”) are being offered initially under the Global Offering, comprising an International Offering of 180,000,000 Shares (subject to adjustment and the Over-allotment Option) (the “International Offering”) and a Hong Kong Public Offering of 20,000,000 Shares (subject to adjustment) (the “Hong Kong Public Offering”), representing 90.0% and 10.0% of the total number of the Offer Shares respectively. The Offer Price is expected to be not less than HK$1.50 per Offer Share and not more than HK$2.20 per Offer Share. Over-allotment Option allows the issue of up to 30,000,000 Shares, or the equivalent of approximately 15% of the Offer Shares.

 

Haitong International Capital Limited is the Sole Sponsor. Haitong International Securities Company Limited is the Sole Global Coordinator, the Sole Bookrunner, the Sole Lead Manager and the Stabilising Manager of the Global Offering.

 

The net proceeds from the Global Offering of approximately HK$339.4 million after deducting the underwriting fees and estimated expenses payable by the Group in the Global Offering, assuming no Over-allotment Option is exercised with an Offer Price of HK$1.85 per Offer Share, being the mid-point of the indicative Offer Price range. The Group intends to use the net proceeds for the following purposes:

  • Approximately 61% or HK$207.0 million of the total estimated net proceeds for expanding its retail network in the PRC and Hong Kong.
  •  Approximately 18% or HK$61.1 million of the total estimated net proceeds for strengthening its capabilities in product development under its existing or new brands.
  •  Approximately 11% or HK$37.3 million of the total estimated net proceeds for developing experience centres and associated products.
  •  Approximately 10% or HK$34.0 million of the total estimated net proceeds for working capital and other general corporate purposes.

 

Kidsland International is principally engaged in the retail and wholesale of mainly toy and infant products in the PRC and is engaged in the retail of toy in Hong Kong. According to the Euromonitor Report, the Group is the largest toy retailer in 2016 in terms of retail sales value in the PRC with approximately 14% market share. With Kidsland and Babyland being two self-operated retail brands, the Group also distributes products of renowned international toy brands such as LEGO, Silverlit® and Schleich; and infant product brands such as Chicco and Aprica, among others. As at 31 August 2017, the Group has a brand portfolio of 27 international brands of toy and infant products, most of whom have granted the Group exclusivity to sell designated products in the PRC.

 

For the past three financial years and the four months ended 30 April 2017, purchases of LEGO products accounted for over 60% of Kidsland International’s total purchases. The Group opened its first LEGO Certified Store in Hong Kong in August 2016 which quickly gained popularity among consumers, followed by the opening of its first LEGO Certified Store in the PRC in May 2017, the Group currently operates a total of 3 LEGO Certified Stores in the PRC. Having taken into account the unaudited consolidated management accounts for the four months ended 31 August 2017, the Group’s revenue attributable to LEGO products for the first eight months of 2017 continued to record positive growth as compared to the same period in 2016.

 

The Group has established stable business relationships with international brand owners ranging from 2-16 years. Owing to its leadership in the PRC’s toy retail market, extensive distribution network, outstanding track record, diversified brand mix and experienced management team, the Group is considered as the preferred business partner to assist brand owners to tap into the PRC market.

 

Another competitive edge of Kidsland International is its diverse retail network that covers superior geographic locations which comprises 222 retails shops in shopping malls, 532 consignment counters in department stores and a renowned toy store chain, and ten online stores on Tmall and JD.com, as at 30 April 2017. In addition to a solid presence of 564 retail points in Tier 1 and Tier 2 cities in the PRC, the Group also strategically established retail points in Tier 3 cities in the PRC, which it believes have high growth potential.

 

Kidsland International is also engaged in the distribution of toy and infant products via its wholesale channel. As at 30 April 2017, the Group had 878 distributors which operated a total of over 2,700 retail shops in 129 cities across 31 provinces, autonomous regions and municipalities in the PRC; the Group sold products to 12 hypermarket and supermarket chains which operated a total of 635 physical retail shops in the PRC, among which 493 shops are located in Tier 1 and Tier 2 cities and 142 shops in Tier 3 cities; the Group sold products to 15 online key accounts who purchase products from the Group and then on-sell on their online platforms, including JD.com, Amazon, VIP.com, Dangdang and Suning. Leveraging on a portfolio of different brands and product offerings, the Group benefits from the brand synergies therein created, along with increased bargaining power when dealing with department stores, shopping malls and potential brand owners or end-customers.

 

To capture the opportunities arising from the PRC’s expanding online retail market, the Group had launched its first Kidsland flagship store on Tmall.com in 2011, and 7 more thereafter as at 30 April 2017, as a retail and distribution channel in the PRC. The Group had also launched 2 online stores on JD.com including a Kidsland flagship store and a Babyland flagship store.

 

Mr Lee Ching Yiu, Chairman and Chief Executive Officer of Kidsland International said, “One of the key highlights of the 13th Five Year Plan is the abolition of“one-child policy” and couples are allowed to have two children. An increase in the number of children is expected to be a driver of the demand for toy and infant products. To capture the opportunities arisen from this “two-child policy”, the Group will continue to develop the retail network by expanding our retail shops in Tier 1 and Tier 2 cities, including our self-operated retail brands Kidsland and Babyland, along with retails shops selling products of individual brands. To enhance the shopping experience of our customers and potential customers, we also plan to open more flagship stores in Tier 1 cities. Meanwhile, we also intend to expand our retail points by leveraging the network of our current distributors as well as by increasing the number of distributors, thereby enabling us to further penetrate into the PRC’s urban areas, including particularly Tier 3 cities.

 

Dr. William Lo, Vice-Chairman, Chief Financial Officer, and Managing Director Hong Kong of Kidsland International said, “Hong Kong is a relatively mature market with consumers demanding more sophisticated products and exemplary services. Therefore, in order to enhance customer’s shopping experience and the Group’s strategic positioning, we plan to increase the number of our retail points as well as introducing toy products and brands specially catering to customers in Hong Kong. Leveraging on the foundation established by our multi-brand portfolio strategy over the years, and our extensive retail and distribution network in the PRC, we are confident about maintaining and enhancing our leading position in China’s toy and infant products market while developing a strong platform in toy retailing in Hong Kong so that we will continue to be the preferred business partner of international brand owners of toys and infant products in the PRC and Hong Kong.”

 

The Hong Kong Public Offering is expected to commence at 9:00 am on 31 October 2017 (Tuesday) and is expected to close at 12:00 noon on 3 November 2017 (Friday). Allotment results and the final Offer Price is expected to be announced or published via various channels on 9 November 2017 (Thursday). Dealings in Shares on the Stock Exchange are expected to commence on 10 November 2017 (Friday), with 2122 as the stock code.

 

White Application Forms and prospectuses of the Company can be obtained from designated offices of Haitong International Securities Company Limited and designated branches of The Bank of East Asia, Limited. Applicants may also apply on-line via the designated White Form eIPO service provider at www.eipo.com.hk. Applicants can also use the Yellow Application Forms or give electronic application instructions to Hong Kong Securities Clearing Company Limited to process their applications.