Bloks Group (0325) H2 2024 earnings summary

Executive summary

• Revenue surged 155.6% year-over-year to RMB2,240.9 million, driven by assembly character toys and expanded IP portfolio.

• Loss for the year widened 91.8% to RMB398.0 million, mainly due to higher administrative and R&D expenses, and fair value changes on preferred shares.

• Adjusted profit (non-IFRS) reached RMB584.6 million, up 702.1%, with adjusted net margin at 26.1%.

• Gross profit margin improved to 52.6% from 47.3% year-over-year, reflecting economies of scale and product mix shift.

• Successful Hong Kong IPO in January 2025, with all preferred shares converted to ordinary shares.

Financial highlights

• Assembly character toys contributed 98.2% of total revenue, with sales volume up 269.3% to 134.7 million units.

• Gross profit rose 184.1% to RMB1,178.8 million; gross margin increased to 52.6%.

• Administrative expenses jumped 844.6% to RMB465.0 million, mainly due to one-off share-based compensation and listing expenses.

• R&D expenses doubled to RMB192.5 million, supporting product innovation and IP expansion.

• Cash and cash equivalents nearly doubled to RMB720.0 million.

Outlook and guidance

• Plans to further enhance R&D, expand IP portfolio, and strengthen overseas presence, especially in the US, Europe, and Southeast Asia.

• Focus on content-driven marketing and investment in production capacity.

• No dividend recommended for 2024.