HK Stock Market Move | PLAYMATES TOYS (00869) fell more than 15%. The "Teenage Mutant Ninja Turtles" product licensing agreement will not be renewed from 2027 onwards.

PLAYMATES TOYS (00869) fell more than 15%, dropping by 14.71% to HK$0.435 by the time of publication, with a turnover of HK$7,557,000. In terms of news, PLAYMATES TOYS announced that according to the existing licensing agreement signed by Viacom Media Networks as the licensor and the group's wholly-owned subsidiary "PLAYMATES TOYS International Limited" (PICL) as the licensee, PICL has been granted the rights to design, manufacture, distribute, and sell "Teenage Mutant Ninja Turtles" products. The two parties have been negotiating the renewal of the licensing agreement since October this year. However, PICL has recently received formal notice from the licensor that the licensing agreement will not be renewed after it expires on December 31 next year. Therefore, PICL's right to sell licensed products will end on December 31 next year, and its right to dispose of licensed product inventory will end 90 days after the expiration. According to company data, sales of licensed products accounted for approximately 8%, 13%, 77%, 47%, and 36% of the group's total revenue for the fiscal years ending December 31, 2021, 2022, 2023, 2024, and the six months ending June 30, 2025, respectively. After the expiration of the licensing agreement, the group will continue to seek and evaluate potential licensing opportunities that align with its strategic considerations.