Here Group Ltd. Q3 FY2025 earnings call

• Completed consolidation of Letsvan on March 31, with profit consolidation starting April 1. - Existing businesses: Financial literacy programs expanded with anti-fraud education initiatives; senior recreation classes (calligraphy with over 55% repeat purchase rate) and study tours (16 cities, over 60 sessions) performed well; health and wellness products business stable. - Letsvan's Pop Toy business: Focus on IP development (WAKUKU, Ziyuli); omnichannel expansion (pop-up stores, international expansion to Indonesia, Thailand, Malaysia); demonstrated strong sales with WAKUKU products. - Financials: Total operating expenses decreased by 45.2%, net income was RMB 41.1 million with a net margin of 7.2%.

In Q3 2025, QuantaSing achieved revenue of RMB 570.7 million. Individual online learning services generated revenues of RMB 467.2 million, accounting for 81.9% of total revenues. Enterprise services revenue was RMB 48.1 million, representing 8.4% of total revenues. Consumer business revenue was RMB 48.7 million, slightly down from the prior year. Revenues from Others were RMB 6.7 million, significantly up from the same period last year. Gross profit for the quarter was RMB 474.2 million with a gross margin of 83.1%.

• Q4 will reflect full consolidation of Letsvan's operations. - Focus on accelerating Pop Toy business growth through dedicated teams and strategic resource allocation. - Confident in executing strategic transformation with disciplined capital allocation and strong cash generation capabilities. - Expect Pop Toy business to show strong growth trend in subsequent quarters.

Q: Speak more to the strategic vision for Letsvan and leveraging marketing expertise to enhance growth.

A: Letsvan aims to be a global leader in IP and cultural innovation. QuantaSing will leverage its marketing expertise, data-driven approach, and community management to drive Letsvan's omnichannel expansion, creating a complete IP ecosystem.

Q: Revenue contribution from Letsvan in Q4 and balancing traffic allocation between lines of business.

A: Q4 is expected to show significant contribution from Pop Toy business. The decline in education-related revenue is part of strategic transformation to product-driven model. Will continue evaluating ROI and long-term user value of businesses, with Letsvan's Pop Toy business having strong growth potential.