Dream International Limited is a Hong Kong-based company. It is engaged in the design, development, manufacture and sale of plush stuffed and steel and plastic toys and investment holding. The Company operates in two segments: Plush stuffed toys and Steel and plastic toys. Plush stuffed toys segment is engaged in the design, development, manufacture and sale of plush stuffed toys, its manufacturing facilities located primarily in the People鈥檚 Republic of China and Vietnam. Steel and plastic toys segment is engaged in the design, development, manufacture and sale of steel and plastic toys, these products are manufactured in the People鈥檚 Republic of China and sold in the People鈥檚 Republic of China and Japan. The subsidiaries of the Company include Dream International USA, Inc, J.Y. Toys Co., Limited, J.Y. International Company Limited, Jung Yoon Toys (Shanghai) Co., Limited, Dream Vina Co., Limited and C & H Toys (Suzhou) Co., Limited.

INDUSTRIAL OVERVIEW

Hong Kong has established a worldwide reputation in the toy industry for its production and re-export of a wide range of well-designed and high-quality toys. Almost all the toys export from Hong Kong were re-export trade for the goods made in PRC.
A large proportion of Hong Kong toy exports are derived from licensing and contract manufacturing for overseas manufacturers. Production specifications and product designs are usually provided by customers. This type of arrangement is used to minimise the local manufacturers' risks to invest in product design, inventory taking and marketing. However, Hong Kong manufacturers are increasingly offering expertise in design, engineering, modelling, tooling, quality control and other technical know-how to its customers in order to maintain their close relationship with large buyers and to keep abreast of market trend.

Industry Trend

Nowadays, in order to enhance its competitive edge and bargaining power against other countries, Hong Kong toys manufacturers have been actively seeking low-cost offshore production facilities not only in the PRC but also in other low production cost countries such as Vietnam, Indonesia, Malaysia, the Philippines and Thailand. Hong Kong toys manufacturers have been striving to diversify their exports into emerging markets such as Latin America, Eastern Europe, the Middle East, Russia, India. Of course, the vast Chinese Mainland where the burgeoning market of international branded high quality toys was found promising for Hong Kong based manufacturer to leverage on the Closer Economic Partnership Arrangement CEPA advantages.

As a result, Hong Kong toys manufacturers have to differentiate themselves from their Mainland counterparts by shifting from OEM towards ODM and OBM focusing on unrivaled new material exploration, state-of-arts manufacturing technology, trendy product design, impeccable quality control, international brand building, world-class promotion & marketing, and global supply chain production management to cater for the need of the targeted customers.

Hong Kong and the PRC are major players for plush stuffed toys. Hong Kong has other well-established supporting industries such as electronics, plastics, textiles and clothing industries so that the quality in each toy segment can be improved and controlled since accessories in toys are well produced.