Bloks Group (0325) investor relations material

Executive summary

• Revenue rose 32.7% year-over-year to RMB1,775.7 million for the six months ended June 30, 2026, driven by strong growth in assembly character and vehicle toys, and robust expansion in both domestic and overseas markets.

• Adjusted profit increased 25.1% to RMB400.8 million, while profit for the period grew 30.5% to RMB387.1 million, reflecting higher sales volumes and successful product launches.

• The company continued to invest in R&D, launching 426 new SKUs and expanding its IP portfolio, with a focus on both licensed and self-developed IPs.

• Overseas sales surged 228.5% year-over-year, with notable growth in the Americas and Asia, supported by channel expansion and localized marketing.

Financial highlights

• Gross profit increased 21.5% to RMB786.4 million, with gross margin declining due to higher cost of sales and increased depreciation of molds.

• Adjusted net margin decreased from 23.9% to 22.6% year-over-year.

• Basic and diluted EPS rose to RMB1.56, up 27.9% and 30.0% respectively.

• Inventories increased to RMB431.9 million, with inventory turnover days improving to 73.

• Cash and bank balances stood at RMB3,178.4 million as of June 30, 2026.

Outlook and guidance

• Plans to further enhance R&D, deepen the Bloks System, and accelerate new product launches in assembly vehicle and character toys.

• Continued focus on expanding channel presence, brand-building, and user engagement globally.

• Strategy includes accelerating adult-fan product lines and refining overseas market operations.