S―Strength

1) Comparing to the international animation, Alpha’s toy has cost-effective. Comparing to domestic animation companies, Alpha’s toy has competitive advantage.

2) The acquisitions increased rapidly the market share and development capabilities of Alpha.

3) Alpha, domestic listed company, has a strong refinancing base.

4) Alpha’s brand recognition is high, with good sales channels and customer resources base.

5) With the improvement of the organization, management and operation mechanism is relatively efficient, nurturing an experienced management and technical team.

6) Alpha has a good manufacturing ability. Use a zero before decimal points: “0.25”, not “.25”. Use “cm³”, not “cc”.

W―Weakness

1) Alpha is one of the leaders at present. But the future will gradually fall behind, if it is unable to innovate.

2) Animation research and development technology foundation is weak.

3) Less cash flow and net asset share, Alpha still need to improve the anti-risk ability.

4) The synergy of the whole industry chain resources should be improved.

5) The core business of R & D investment and technology should be improved.

6) Limited sales channels, and less electricity suppliers combined market coverage is not high.

O―Opportunity

1) Toy industry is in a great opportunity for development. Because the national “single second child” policy-related startup drive consumer demand.

2) The “Eleventh Five-Year Plan” was first proposed to develop cultural and creative industries, high value-added industries such as the animation. According to incomplete statistics, there are more than two dozen cities across the country’s animation industry as an emerging industry will strongly support.

3) SARFT issued the latest, from January 1, 2014, every TV broadcast at least 30 minutes per day of domestic animation or children’s programs. Further analysis, once the country’s 30 TV stations were to broadcast animation, then the quality of animation will become a scarce resource.

4) Alpha is the focus of state and government to support development projects. Guangdong Animation City animation business through the introduction of large international groups, the introduction of international advanced technology to support domestic original animation development, foster domestic original animation and production personnel, to build the animation industry chain integration platform.

5) The state has increased business innovation and industrial upgrading activity subsidies, effectively reducing the enterprises to upgrade to high-end industrial development costs and risks.

T―Threat

1) Animation from Europe, America and Japan, have a glorious development history and a mature development, and they have a stable customer base.

2) In recent years, the top 10 ranking of global toy sales companies, such as Japan Bandai, Hasbro United States, Denmark has adopted higher music sales agent or establishment of foreign toy companies to enter the Chinese market, China Market, and to invest in China’s toy production.

3) Teenager in China can say a few well-known homemade brands, more discussion is still Disney, Hasbro, Bandai, Mattel and other such international big companies.

4) China’s toy industry are export-oriented industries and export markets single, mainly in the US, EU and Japan. The export market is too concentrated will make China’s toy industry in the face of the international economic situation and falling trade barriers in major exporting countries, exports suffered a significant reduction in risk.

5) The increase the cost of exports further reduces the profits. In recent years, a series of international and domestic factors have led to increased cost of China’s exports of toys, including: a) revaluation; b) the United States and Europe and other major toy export market continues to raise the threshold for China’s toy exports, resulting in China’s toy enterprises in product quality and safety control and a significant increase in investment in equipment modification.