"Profit Warning" PLAYMATES TOYS expects to incur a loss of HKD 15 million for the full year

PLAYMATES TOYS (00869.HK) announced that it expects revenue for the year ending December 31, 2025, to be HKD 512 million, compared to HKD 931 million for the same period in 2024; the net loss for the period is expected to be HKD 15 million, compared to a net profit of HKD 132 million for the same period in 2024.

The company explained that the decrease in revenue is due to the inability to benefit from the release of the movie "Godzilla x Kong: The New Empire" as it did last year, with product shipments for "Godzilla x Kong" expected to decline; at the same time, there are no major entertainment events to promote the "Teenage Mutant Ninja Turtles" brand, leading to a slowdown in demand for the "Teenage Mutant Ninja Turtles" product line. Additionally, the escalation of trade tensions has hindered shipments to the U.S. market in April, although some of the impact has been offset by the company's launch of "Power Rangers" products in the fall.

Furthermore, starting from the second quarter of 2025, tariffs will negatively impact profits from sales in the U.S. market, with some of the impact being offset by selective price adjustments implemented in the third quarter of 2025. As of the end of last year, the group's treasury investments in listed securities had unrealized and realized net gains and interest income of approximately HKD 19 million and HKD 40 million, respectively, compared to HKD 32 million and HKD 55 million in the previous year