Here Group reported fourth-quarter revenue of CNY127.7 million for fiscal 2026, an increase of 94.1% from a year earlier, as sales of existing and newly launched pop-toy intellectual property products rose. Full-year revenue reached CNY596.8 million, according to Founder, Chairman and Chief Executive Officer Peng Li.
The company said the quarter marked the conclusion of its first full fiscal year focused on the pop-toy business. Management emphasized a strategy centered on proprietary IP development and direct-to-consumer, or D2C, operations, rather than relying primarily on third-party distribution channels.
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“We have made a deliberate strategic choice to prioritize long-term IP assets value over short-term wholesale sales volume,” Li said. He said the company aims to create a closed-loop model combining proprietary IP, product design and direct customer channels, giving it more control over product launches, presentation and customer experience.
IP Portfolio Expands as SIINONO Gains Scale
As of June 30, Here Group had a portfolio of 22 IPs, including 13 proprietary IPs and nine exclusively licensed IPs. Its flagship WAKUKU IP generated CNY47.7 million in fourth-quarter revenue and CNY369.3 million for the full fiscal year, representing 61.9% of annual revenue.
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SIINONO, which launched in the second half of 2025, generated CNY27.3 million in fourth-quarter revenue, or 21.4% of quarterly revenue. For fiscal 2026, SIINONO contributed CNY92.7 million, representing 15.5% of full-year revenue.
Li said revenue from the company’s other IP category, including Xiao, Mimimo, Funi, Fila and Inpoppo Pigs, rose 661% year over year to CNY39.8 million in the fourth quarter from CNY5.2 million a year earlier. ZIYULI contributed CNY12.8 million during the quarter. Together, those IPs accounted for more than 41% of quarterly revenue, according to management.
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The company continued to extend its IPs into consumer and lifestyle partnerships. SIINONO introduced a limited-edition sparkling-water collaboration with Genki Forest, worked with French fashion house IRO Paris on plush pendants, and participated in an exclusive partnership with the Museum of Fine Arts, Boston. Here Group also said SIINONO will serve as the headline IP for the 2026 China Open.
Management introduced Yuna as a new IP and cited seasonal collections for Inpoppo Pigs and Fluffy Lily. Fluffy Lily collaborated with CASETiFY during the Qixi Festival and served as an official event partner for the 38th Hundred Flowers Awards.
Direct Retail Strategy Focuses on Returns
Here Group operated seven D2C stores across four metropolitan areas at the time of the call. During the quarter, it opened a store at Beijing Daxing International Airport, entering a transportation-hub retail setting aimed at business and travel consumers.
Chief Financial Officer Tim Xie said the company is prioritizing operating quality and return on investment rather than store count. The company also has 25 Roboshops across six cities and said it has moved from an expansion-focused rollout phase to improving per-machine efficiency and extracting consumer data.
Here Group’s Hong Kong Central Pier cruise experience was in final decoration, with ticket sales beginning Sept. 21 on Ctrip ahead of an Oct. 1 maiden voyage. Management said the project will create a multilayered experiential space on Victoria Harbor and target National Day Golden Week tourist traffic.
In response to a question about new IP development, Investor Relations Manager Tina Tang said the company uses an IP life-cycle process spanning discovery, incubation and commercialization. The company draws on sales and consumer feedback from D2C stores and Roboshops when shaping IP designs, while also collaborating selectively with international IP partners.
Margins Narrow and Loss Widens
Fourth-quarter cost of revenue rose to CNY94.7 million from CNY43 million a year earlier, reflecting higher IP product costs, logistics, labor and IP licensing expenses. Gross margin declined to 25.8% from 34.7% a year ago and 34.5% in the preceding quarter.
Total operating expenses were CNY216.1 million. Sales and marketing expense increased to CNY56.2 million from CNY19.1 million a year earlier, driven by advertising, promotion and employee compensation. Research and development expense totaled CNY9.9 million, while general and administrative expense was CNY25.8 million.
The company recorded a net loss from continuing operations of CNY169.6 million, compared with a CNY21.8 million loss a year earlier. Adjusted net loss from continuing operations was CNY37.7 million, compared with CNY19.3 million in the prior-year quarter.
Here Group also recorded a CNY124.1 million goodwill impairment charge related to its Fastone acquisition, citing lower-than-expected financial performance amid macroeconomic headwinds. The company said the charge was non-cash, and remaining goodwill associated with the acquisition was CNY63.5 million as of June 30.
Inventory and Capital Allocation
Management said channel inventory was above its normal operating range during the quarter, attributing the situation to a mismatch between a cooling consumer environment and the company’s historical operating pace. Xie said the company had relied heavily on distributors to assess end-market demand and did not have sufficiently precise real-time visibility into sell-through.
To address inventory, Here Group is increasing exposure through D2C online channels, stores, Roboshops, pop-up events and experiential initiatives. It has also moderated shipments to wholesale distributors, introduced selected bundle offers and purchase incentives, and said it does not plan to use aggressive clearance measures that could harm brand pricing or premium positioning.
The board approved a $20 million American depositary share repurchase program in June. As of Sept. 16, the company had repurchased about 0.4 million ADSs for approximately $0.7 million. Xie said Here Group would continue to assess repurchases and other capital-return opportunities alongside investment needs.
About QuantaSing Group (NASDAQ:QSG)
QuantaSing Group Limited is a China-based online adult learning services provider. The company offers digital courses and related learning services designed to help users develop professional skills, improve financial literacy and pursue personal interests.
Its platform provides live-streamed and recorded educational content, along with learning communities and other supporting services. Course categories have included personal development, business and workplace skills, financial education, health and wellness, and family- or lifestyle-related subjects.
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