Character Licensing Business

Our character licensing business can be broadly divided into five main service types, namely (i) Merchandise Licensing, (ii) Location-based Entertainment (LBE) Licensing, (iii) Promotion Licensing, (iv) Content and Media Licensing, and (v) Design Consultation.

Merchandise Licensing

The main source of our revenue and earnings is merchandise licensing. We license our own and Licensed Characters’ IP rights for use on third-party products in a diverse range of consumer product categories, the most significant of which are broadly divided into six major categories.

1. Home lifestyle and living

2. Apparel and accessories

3. Toys and baby personal care

4. Footwear

5. Consumer electronics

6. Others

Location-based Entertainment (LBE) Licensing

LBE is an emerging consumer product category. We focus on developing LBE in the form of:

Theme parks and attractions

There was one amusement park with B.Duck-themed park areas which was opened in 2020 in Nanjing in collaboration with Nanjing Overseas Chinese Town.

Moreover, we have signed a contract with Nanjing Dream Union Entertainment Co. Ltd.* (南京寶橙文化娛樂發展有限公司), a PRC indoor playground developer, for the cooperation in opening 15 indoor entertainment centres, which comprise B.Duck-themed children’s playground, retail store and restaurant, in the PRC. There are six indoor entertainment centres which have commenced operation in Changsha, Sanya and Nanjing, etc. There are more centres which are planned to commerce operation in Qingdao, Chengdu and Hangzhou.

Catering

We are also developing our catering capabilities which involve the opening of restaurants, concept stores and cafes, hotels and resorts, other recreational and catering facilities, etc. As at 30 June 2021, there were 20 Buffy-featured Canton Dim Sum restaurants in various cities in China, such as Beijing, Shanghai, Suzhou and Chongqing. There are 16 more planned to commence operation in Beijing, Shanghai, Tianjin, Fujian, Chengdu, Wuhan and Hangzhou by 2022 in collaboration with a private PRC Chinese chain restaurant operator, namely Shenzhen Qianhai ShiweixianFood Co. Ltd.* (深圳前海食為先食品有限公司). Besides, we have been in collaboration with Shanghai Zhichao Brand Management Co., Ltd. (上海至潮品牌管理有限公司), a private PRC food and beverage operators, for the operation of B.Duck-featured modern teahouses in the PRC since 2020.

Promotional and marketing events

Events, including exhibitions, trade shows, live shows, etc., in which we were primarily involved from 2018 to the six months ended 30 June 2021 were mainly held in shopping malls in China and China Hong Kong. For example, in summer 2019, B.Duck-themed rooms at six branches of a hotel chain in China Hong Kong, featuring the B.Duck Family Characters themed amusement facilities and themed cuisine

Promotion Licensing

We license our character IP rights for use on third-party promotional and marketing gifts and promotional items in diverse gift categories from basic gift and premium, ordinary corporate gift to designer gift.

The gift categories we offer include apparel and accessories, toys, home lifestyle and living, and consumer electronics specific to customers’ promotional campaign needs.

We have also expanded into retail and membership bonus point gift redemption for qualified merchants who look for credit card gift redemption, welcome gift, staff loyalty programme, VIP gift, membership bonus point programme, etc.

Content and Media Licensing

In anticipation of the rising digital content and media trend, we have extended into content and media licensing business by licensing our character IP rights from offline content, such as children’s books and credit cards, to different digital entertainment and media formats, such as emotion stickers, mobile games, etc.

For example, we cooperated with China Everbright Bank, to issue a B.Duck-featured credit card from 2018 to the six months ended 30 June 2021. We also used our B.Duck Family Characters to create and design paid emotion stickers on popular messaging platforms such as LINE and KakaoTalk from 2018 to the six months ended 30 June 2021.

Design Consultation

Design consultation services are our core business activities supported by a team of creative professionals, including designers and artists, in cooperation with our licensing, sales and marketing personnel. We have an established character and product design process to assist in the development of a wide diversity of merchandise and content on multi-channels specific to various consumer sectors primarily in China, China Hong Kong, southeast Asian countries and other strategic markets. Once we licensed our character IP rights to licensees, we jointly develop products and content with licensees by generating tailor-made style guides specific to their requirements.