Bloks Group (0325) H2 2025 earnings summary

Executive summary

• Revenue rose 30.0% year-over-year to RMB2,913.3 million, driven by strong sales of assembly character toys and expansion into new product categories and overseas markets.

• Adjusted profit for the year increased 15.5% to RMB674.9 million, while net profit turned positive at RMB633.7 million from a loss in 2024.

• Gross profit grew 15.7% to RMB1,364.0 million, with gross margin impacted by higher cost of sales and increased R&D investment.

• The company completed a successful IPO in January 2025, raising HK$1,790.4 million in net proceeds.

Financial highlights

• Revenue: RMB2,913.3 million (+30.0% YoY); gross profit: RMB1,364.0 million (+15.7% YoY).

• Net profit: RMB633.7 million (vs. loss of RMB398.0 million in 2024); adjusted profit: RMB674.9 million (+15.5% YoY).

• Adjusted net margin: 23.2% (down from 26.1% in 2024).

• Basic EPS: RMB2.58 (vs. loss per share RMB2.69 in 2024); diluted EPS: RMB2.56.

• Cash and cash equivalents: RMB2,907.9 million at year-end.

Outlook and guidance

• Plans to further enhance R&D and leverage AI tools for product development and original IP creation.

• Focus on expanding global presence, especially in North America and Europe, and deepening the "Three-Alls" strategy (all demographics, all price segments, all global consumers).

• Continued investment in sales, marketing, and overseas channel expansion.