Bloks Group (0325) H1 2025 earnings summary

Executive summary

• Achieved revenue of RMB1,338.0 million for the six months ended June 30, 2025, up 27.9% year-over-year, driven by strong sales of assembly character toys and new product launches.

• Adjusted profit reached RMB320.3 million, up 9.6% year-over-year; net profit turned positive at RMB296.5 million from a loss of RMB254.9 million in the prior year.

• Overseas revenue surged 898.6% to RMB111.4 million, reflecting accelerated international expansion, especially in Asia.

• R&D investment increased significantly, with 599 R&D staff and 273 new SKUs launched, supporting product innovation and IP portfolio growth.

Financial highlights

• Gross profit rose 16.9% to RMB647.5 million; gross margin declined due to higher cost of sales from increased molds and SKUs.

• Adjusted net margin decreased to 23.9% from 27.9% year-over-year, reflecting higher personnel and R&D costs.

• Basic and diluted EPS were RMB1.22 and RMB1.20, respectively, compared to a loss per share of RMB1.73 last year.

• Cash and cash equivalents stood at RMB2,641.2 million as of June 30, 2025, bolstered by IPO proceeds.

Outlook and guidance

• Plans to further invest in R&D, expand IP portfolio, and strengthen sales and marketing in China and overseas.

• Focus on enhancing brand recognition, product quality, and expanding market coverage in the second half of 2025.