Changes in Hong Kong stocks | Color Star Toys (00869) fell by more than 15% “Ninja Turtle” product concession agreement will not be renewed from 2027

The Zhitong Finance App learned that Caixing Toys (00869) fell by more than 15%. As of press release, it fell 14.71% to HK$0.435, with a turnover of HK$755,700.

According to the news, Color Star Toys announced that PICL has been granted the right to design, manufacture, distribute and sell “Ninja Turtle” products according to the current concession agreement signed by Viacom Media Networks as the concessionaire and “Color Star Toys International Co., Ltd.” (PICL), a wholly-owned subsidiary of the group, as the concessionaire. Since October of this year, the two parties have been discussing the renewal of the concession agreement. However, PICL has recently received an official notice from the concessionaire that the concession agreement will not be renewed after it expires on December 31 next year. As a result, PICL's right to sell the licensed products will end on December 31 next year, and according to the concession agreement, PICL's right to dispose of the concession product inventory will end 90 days after its expiration.

According to company data, sales revenue from licensed products accounted for about 8%, 13%, 77%, 47% and 36% of the Group's consolidated revenue for the year ended December 31, 2022, December 31, 2024, and the six months ended June 30, 2025, respectively. After the expiration of the concession agreement, the Group will continue to seek and evaluate potential concession opportunities in line with its strategic considerations, as appropriate.