Here Group Ltd. Q4 FY2025 earnings call

• Strategic shift: Transforming from traffic-driven to product-driven business, consolidated controlling stake in Letsvan, and planning to divest non-Pop Toy business to focus on Pop Toy. - Pop Toy business: Pop Toy business contributed RMB 65.8 million, with IPs like WAKUKU and SIINONO showing strong growth. Built diverse IP portfolio, including 11 self-owned IPs, 2 exclusive licensed IPs, and 2 nonexclusive licensed IPs. - Marketing and channel: Strong online presence with over 250,000 followers on social platforms and GMV growth. Offline with over 10,000 retail stores and pop-up stores. International expansion with e-commerce sites and wholesale networks. - Non-Pop Toy restructuring: Making progress, allowing focus on Pop Toy. - Core priorities: Strengthen IP creation, drive agile execution via supply chain, and deliver sustainable returns to shareholders.

Total revenue for the quarter was RMB 617.8 million. The Pop Toy business contributed RMB 65.8 million, representing 10.6% of total revenue. Individual online learning services generated revenues of RMB 456.9 million. Revenues from enterprise services was RMB 35.7 million. Revenues from our consumer business was RMB 50.5 million. Revenues from others were RMB 8.9 million.

• Expect Pop Toy revenue to be in the range of RMB 100 million to RMB 110 million for the first quarter of fiscal year 2026. - Expect Pop Toy revenue to be in the range of RMB 750 million to RMB 800 million for the full fiscal year 2026.

Q: Could you please share the recent revenue run rate for July to September and quantify the confirmed order backlog in dollar terms?

A: WAKUKU had explosive growth, SIINONO sales exceeded 300,000 boxes. Confirmed order backlog details to be shared in future reports.

Q: Could management introduce your product strategy and whether we will introduce more product categories in the future and what's our pipeline for new categories? And about collaboration with Yuehua?

A: Clear road map for IP launches with pipeline scheduled through end of next year. Exploring new categories like smaller figures and plush products debuting next fourth quarter. Partnership with Yuehua involves joint venture with IP design, supply chain support, and sales operation, with plans for more exclusive IPs.