Hong Kong toy manufacturer Harbour Ring International Holdings is cautiously optimistic that sales in the United States - which takes 50 per cent of its output - will increase about 10 per cent this year.
'We believe the USA should be a little bit better than last year because most of our customers are predicting a better year than last year,' executive director Lewis Luk Tei said.
This year Harbour Ring posted dismal results with net profit falling 67 per cent to $33.3 million mainly on the strength of a $70.1 million exceptional loss and a $23.4 million provision.
Mr Luk said US retailer sentiment had improved last year but it was too early to predict a large increase in orders for toys.
'The number of orders is similar to last year,' he said.
Improved economic performance of the US did not guarantee increased toy sales, he said.
'The toy market does not link with the performance of the economy of a country,' he said.