Color Star Toys (00869): The main concession agreement will not be renewed from 2027

According to the Zhitong Finance App News, Caixing Toys (00869) issued an announcement that PICL has been granted the right to design, manufacture, distribute and sell “Ninja Turtle” products (“Licensee”) in accordance with the current concession agreement (“License Agreement”) signed between Viacom Media Networks as the licensor (“Licensee”) and Caixing Toys International Co., Ltd. (“PICL”), a wholly-owned subsidiary of the Group, as the licensee. Since October 2025, the two parties have been negotiating the renewal of the concession agreement. Although PICL has recently received an official notice from the concessionaire, the concession agreement will not be renewed after it expires on December 31, 2026. As a result, PICL's right to sell the licensed product will end on December 31, 2026, and PICL's right to dispose of the inventory of the concession product will end 90 days after its expiration in accordance with the concession agreement.

According to the company's 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 end of the concession agreement, the Group will continue to seek and evaluate potential concession opportunities in line with its strategic considerations, as appropriate, and will continue to work to develop and manage existing product lines, including but not limited to “Power Rangers”, “MonsterVerse” and “Winx”.