Management Discussion and Analysis
(Continued)
KADER HOLDINGS COMPANY LIMITED
Model Trains
The turnover for model trains for the year ended 31 December 2012 was approximately HK$693.18
million, representing a decrease of approximately 19.48% as compared to last year.
During the year under review, the Group has continued to improve the quality of the products,
develop innovative products, enrich the product line and promote the product image and brand
name. This strategy has succeeded in receiving encouraging responses from customers and
gaining their loyalty, which in turn has helped maintain our leading position in the industry. In
2012, the Group has continued to grow its range of licensed products, including the introduction
of the Chuggington™ line of train sets and accessories. The Group expanded its Ringling
Bros. and Barnum & Bailey™ circus-themed choices in HO, O and LS in 2012. The Group also
successfully introduced the Li’l Big Haulers
® (including three ready-to-run sets and a full selection
of separate-sale engines and rolling stock) with a compact size and colorful designs to act as
a gateway to LS model railroading. In addition, the Group’s Sound Value™ Digital Command
Control (“DCC”) sound-equipped locomotives have proven to be strong sellers, and the Group
continued to expand its offerings with many new models. Moreover, Williams by Bachmann line
rolled out the GP30, its first locomotive with True Blast Plus™ 16-bit polyphonic sound.
The Group is proud to announce that during the year, our subsidiary, Bachmann Europe Plc.,
was awarded “Manufacturer of the Year 2012” in the overall category and also for the OO scale
and N scale model trains category by Model Rail Magazine, RM Web and MREMAG. Bachmann
Europe Plc. has received the “Manufacturer of the Year” award in the overall category for
five continuous years. Moreover, Bachmann Branchline has received the “Manufacturer of the
Year” in the overall OO scale model trains category. In addition, our OO scale model trains,
“Branchline Pillbox Brake Van”, “Midland Pullman Multiple Unit”, “Class 85 Electric Locomotive” and
“C Class Steam Locomotive” were awarded “Model of the Year 2012” under different categories.
Moreover, our Graham Farish N scale model trains “WD Steam Locomotive”, “Class 20 Diesel
Locomotive”, “Midland Pullman Multiple Unit”, “Pillbox Brake Van”, “JJA Auto Ballaster” and
“LMS Inspection Coach” were awarded “Model of the Year 2012” while Graham Farish has
received the “Manufacturer of the Year” in the overall N scale model trains category. In addition,
our Liliput brand N scale “Karwendel DRG/DB” was awarded first place in “Model of the Year”
in the category express coaches type by German Magazine “eisenbahnmagazin”.
