Playmates Toys : Profit Warning

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

PLAYMATES TOYS LIMITED

(Incorporated in Bermuda with limited liability)

(Stock Code: 869)

PROFIT WARNING

This announcement is made by Playmates Toys Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited ("Listing Rules") and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).

The board of directors ("Board") wishes to inform shareholders of the Company and investors that based on a review of the Group's preliminary financial results for the year ended 31 December 2018, the revenue and profit before income tax of the Group for the year are expected to record decreases as compared to those of 2017. The unaudited revenue of the Group for the year ended 31 December 2018 is expected to be approximately HK$474 million as compared to the audited revenue of HK$758 million in 2017, and the unaudited profit before income tax of the Group for the year ended 31 December 2018 is expected to be approximately HK$4 million as compared to the audited profit before income tax of HK$89 million in 2017. The decrease in profit was mainly attributable to lower sales in 2018.

The Company is in the process of finalizing the financial statements of the Group for the year ended 31 December 2018. The information contained in this announcement is only a preliminary assessment by the Board and is not based on any figures or information audited or reviewed by the Company's auditors. The Group's annual results for the year ended 31 December 2018 are expected to be announced in February 2019.

Shareholders of the Company and investors are advised to exercise caution in dealing in shares of the Company.

By order of the Board

Ng Ka Yan

Company Secretary

Hong Kong, 25 January 2019

As at the date hereof, the Board comprises the following directors:

Mr. To Shu Sing, Sidney (Chairman); Mr. Chan Kong Keung, Stephen (Executive Director); Mr. Cheng Bing Kin, Alain (Executive Director); Mr. Chow Yu Chun,

Alexander (Independent Non-executive Director); Mr. Lee Ching Kwok, Rin (Independent Non-executive Director) and Mr. Yang, Victor (Independent Non-executive Director)