Guangzhou International Toys and Gifts Centre, which is partly invested by companies of Asia's richest man, Li Ka-shing, is expected to have a turnover of over 20 billion yuan (US$2.4 billion) annually when it opens for business next April.

The estimation was made by Chen Borong, general manager of the centre.

Involving an investment of 1.5 billion yuan (US$108.7 million), the business centre is jointly invested by Hong Kong's property giants Cheung Kong (Holdings), Hutchison Whampoa and Guangzhou International Toy Centre.

Total space of the project is 320,000 square metres, which makes the centre one of the largest facilities of its kind in China.

The centre will offer services ranging from R&D and production to sales and logistics to more than 3,000 toy suppliers.

Li Zhouming, vice-chairman of the Guangdong Toy Association, said the toy centre will be a new platform for the trade of toys and gifts and it will play well its role in helping to build up China's toy and gift brand names.

The centre will also put into practice a modern business model by highlighting logistics and e-commerce, setting an example for the future toy business trade in China, said Li.

The foreign brands to be secured at the centre will not only enable domestic consumers to get access to toys and gifts made around the world, but also keep domestic toy and gift manufacturers informed of global market developments.

Foreign business people from a dozen countries and regions - including the United Arab Emirates, Brazil, Japan, South Korea, Thailand and the United States - have booked booths at the centre.

China has 70 per cent of the world's toy market, while Guangdong Province produces 70 per cent of the nation's total.

The province is expected to realize a gross production output value of 43.05 billion yuan (US$5.19 billion) and exports of US$4.41 billion in 2004 from the toy industry, up 5 per cent respectively from 2003, official sources say.

"Nonetheless, we still have a long way to go in terms of R&D and design capabilities for the sustained development of the industry," Li said.

Most of the toy enterprises in the province and in China as a whole have relied on processing and the compensation trade (whereby enterprises pay for imported equipment with products they make using the machines).

They have paid far from enough attention to research, design or building their own brands, the expert said.

Editor: Olivia