HERE

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is pivoting from a product-centric model to a full-chain IP operation system, emphasizing long-term emotional connection over short-term sales volume. Performance was driven by the flagship IP WAKUKU, contributing 62.2% of revenue, while the rapid growth of SIINONO (73.1% QoQ) validated the company's internal incubation engine. The company is prioritizing 'Offline First' through D2C stores and roboshops to unify brand expression and establish direct user touchpoints that online channels cannot replicate. Strategic attribution for recent success includes a shift toward 'emotional and experience-based' spending, countering a broader market slowdown in the pop toy industry. Management noted that while 2025 growth benefited from favorable market cycles and celebrity partnerships, future momentum must rely on proprietary brand-building systems. Operational discipline is being enforced through a clear ROI framework, aligning capital allocation with data from membership systems and offline network performance. Fiscal year 2026 revenue guidance was revised to RMB 600 million to RMB 610 million to reflect near-term market realities and a softer demand environment. The company expects a 3 to 6 month development cycle for innovative products around core IPs, with new launches anticipated in the immediate term. Global expansion will follow a measured pace, utilizing pop-up stores in South Korea and trade shows in the U.S. as low-risk initial market tests. Future category expansion will focus on lifestyle merchandise that transforms IPs into 'everyday companions' rather than simply increasing SKU counts. Management is actively researching 'smart companionship' opportunities, exploring the intersection of AI technology and pop toys as a potential long-term growth vector. Gross margin improved by 350 basis points to 34.5% due to strategic cost structure refinements implemented during the quarter. Revenue was temporarily constrained by the Chinese New Year holidays, which reduced effective working days and impacted supply chain delivery capabilities. The 'roboshop' rollout has commenced with 15 units across 3 cities, serving as a cost-effective method to gather consumer data and extend brand reach. Management highlighted a 'market correction' in the plush and bag charm categories, attributing the cooldown to a rapid supply chain expansion that reduced early scarcity. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated that competition is moving from 'grabbing territory' to 'ecosystem capabilities,' where few players can operate self-owned IPs consistently. The company intentionally maintains a portfolio where more than half of IPs are self-owned to avoid the high churn costs and revenue hits associated with 1-3 year licensing deals. IP longevity is driven by a 'light-asset' experience model, such as the IP-themed ferry experience at Hong Kong's Central Pier. Management emphasized that momentum comes from consistent, systematic operations rather than relying on a single 'hit' product. The company rejected the industry trend of broad SKU coverage, opting instead to 'go deep' with core IPs to ensure every new category supports emotional user connections. Expansion into lifestyle products is prioritized to move IPs from 'collectibles on a shelf' to functional daily items.

This article first appeared on GuruFocus. Release Date: June 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Here Group Ltd (NASDAQ:HERE) achieved RMB165 million in revenue for the quarter, exceeding the high end of their guidance. The company reported a gross margin improvement to 34.5% from 31% in the previous quarter, reflecting effective cost management. Wakuku, the flagship IP, contributed RMB102 million in revenue, accounting for 52.2% of total revenue. The company is expanding its offline presence with seven D2C brand stores and 15 RoboShops, enhancing brand reach and user interaction. Here Group Ltd (NASDAQ:HERE) is focusing on long-term IP development, with a diversified portfolio of 20 IPs, including 12 proprietary and 8 exclusive licensed IPs. Total revenue decreased from the previous quarter's RMB177.3 million, indicating a decline in sales. The company reported a net loss of RMB34.1 million, an increase from RMB25.4 million in the previous quarter. Sales and marketing expenses increased to 35% of total revenue from 29.6% in the previous quarter, impacting profitability. The market environment remains challenging, with a cooling down in the pop toy industry due to rapid supply chain growth. Here Group Ltd (NASDAQ:HERE) revised its fiscal year 2026 revenue guidance to a range of RMB600 million to RMB610 million, reflecting near-term market challenges. Warning! GuruFocus has detected 6 Warning Signs with HERE. Is HERE fairly valued? Test your thesis with our free DCF calculator. Q: Could management elaborate on changes in consumer demand within the PopToy market and how competition has shifted? A: (CFO) Emotional consumption is driven by companionship and collectible value. Consumers seek products with character and solid operations. The market has cooled due to rapid supply chain growth, leading to a correction. The focus is shifting from scarcity to emotional connection. Competition is moving towards ecosystem capabilities, with a focus on self-owned IPs and long-term partnerships. Q: How does the company plan to maintain the momentum of its successful IPs? A: (CEO) IP momentum relies on characteristics and successful operations. We focus on core IPs, delivering consistent events and experiences. We strengthen user engagement through high-quality products and expand into new categories. Partnerships and offline touchpoints are crucial for maintaining IP influence. Q: What are the company's plans for category expansion in the future? A: (CEO) We explore category expansion by extending from our IPs, focusing on merchandise, disciplined expansion, and smart companionship. We aim to transform IPs into everyday companions and align expansion with user needs, rather than broad SKU coverage. Q: What is the company's strategy for global expansion? A: (CEO) We plan a measured pace for global expansion, starting with a pop-up store in South Korea and participating in a US trade show. We aim to optimize business cooperation with channel partners for mutual benefits and promote IPs and products effectively. Q: How is the company addressing the challenging market environment? A: (CFO) Despite a softer demand environment, we exceeded expectations in revenue and gross margin. We focus on strategic cost management and core IP portfolio to position for sustainable growth. We revised fiscal year 2026 revenue guidance to reflect market realities and maintain transparent guidance. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

BEIJING, June 05, 2026 (GLOBE NEWSWIRE) -- Here Group Limited (NASDAQ: HERE) (“Here” or the “Company”), an IP1-based pop toy company dedicated to creating beloved collectibles and trend-defining experiences, today announced its unaudited financial results for the third quarter of the fiscal year ending June 30, 2026 (the “third quarter of FY 2026”, which refers to the quarter from January 1, 2026 to March 31, 2026). Financial Highlights for the Third Quarter of FY 20262 Revenues for the third quarter of FY 2026 were RMB164.7 million (US$23.9 million), compared to RMB177.3 million in the second quarter of the fiscal year ending June 30, 2026 (the “second quarter of FY 2026”). Net loss for the third quarter of FY 2026 was RMB34.1 million (US$4.9 million), compared to RMB25.4 million in the second quarter of FY 2026. Adjusted net loss3 for the third quarter of FY 2026 was RMB22.9 million (US$3.3 million), compared to RMB16.1 million in the second quarter of FY 2026. The Company has a total of 20 IPs as of March 31, 2026, including 12 proprietary IPs and 8 exclusive licensed IPs. Mr. Peng Li, Chairman and Chief Executive Officer of Here, commented, "We delivered revenues of RMB164.7 million with improved gross margin this quarter, exceeding expectations despite seasonally softer conditions. Our strategic focus remains on IP momentum and user engagement as the fundamental drivers of sustainable growth. We have adjusted our product launch cadence and sales approach to align with market demand. Through disciplined execution, we are rolling out new IP products at a measured pace and opening additional self-operated stores to build the foundation for the planned accelerated expansion. We remain confident in our long-term competitive positioning and value creation for shareholders.” Mr. Dong Xie, Chief Financial Officer, added, “Our quarterly results exceeded expectations on both revenue and gross margin. This quarter, we implemented strategic cost structure refinements that position us for enhanced margin performance in future periods. We maintain disciplined capital allocation and focus on building long-term financial health and operational efficiency. We are confident in our ability to navigate near-term headwinds and emerge as a stronger, more efficient organization positioned for long-term success as a leading global IP trend company.” Financial Results for the Third Quarter of FY 2026 Revenues Revenues were RMB164.7 million (US$23.9 million) in the third quarter of FY 2026, primarily generated from sales of the three flagship IPs – WAKUKU, SIINONO, and ZIYULI. The change compared to the second quarter of FY 2026 was primarily driven by the cadence of new product launches and the impact of the Chinese New Year holidays, which materially reduced effective working days and temporarily constrained supply chain and delivery capabilities. Cost of revenues Cost of revenues was RMB107.9 million (US$15.6 million) in the third quarter of FY 2026, primarily composed of costs associated with pop toy products sold. Sales and marketing expenses Sales and marketing expenses were RMB57.7 million (US$8.4 million) in the third quarter of FY 2026, primarily consisting of advertising and promotion expenses and staff compensation. Research and development expenses Research and development expenses were RMB9.5 million (US$1.4 million) in the third quarter of FY 2026, primarily consisting of IP design and product development expenses. General and administrative expenses General and administrative expenses were RMB33.6 million (US$4.9 million) in the third quarter of FY 2026, primarily associated with core corporate functions, including employee compensation, professional service fees, and other operational expenses. Net loss and adjusted net loss Net loss was RMB34.1 million (US$4.9 million) in the third quarter of FY 2026. Adjusted net loss was RMB22.9 million (US$3.3 million) in the third quarter of FY 2026. Net loss per ordinary share and adjusted net loss per ordinary share4 Basic and diluted net loss per ordinary share were RMB0.21 (US$0.03) in the third quarter of FY 2026. Basic and diluted adjusted net loss per ordinary share were RMB0.14 (US$0.02) in the third quarter of FY 2026. Financial Outlook Based on currently available information, the Company expects its revenues to be in the range of RMB130.0 million to RMB140.0 million for the fourth quarter of FY 2026 (which refers to the quarter from April 1, 2026 to June 30, 2026). The Company is revising its revenue guidance from the previously announced range of RMB750.0 million to RMB800.0 million to a new range of RMB600.0 million to RMB610.0 million for FY 2026 (which refers to the year from July 1, 2025 to June 30, 2026). This revision reflects near-term market realities and demonstrates our commitment to providing transparent guidance aligned with current industry conditions. We remain focused on disciplined execution and building a sustainable foundation for long-term growth. The forecasts reflect the Company’s current and preliminary views on the market and its operating conditions, which are subject to change. Recent Developments 2025 Share Repurchase Program On June 6, 2025, the Company announced that the Board had approved a new share repurchase program of up to US$20.0 million of the Company’s Class A ordinary shares in the form of ADSs for a purchase period beginning on June 11, 2025 and ending on June 30, 2026 (the “2025 Share Repurchase Program”). As of June 1, 2026, a total of 2.3 million ADSs had been repurchased for an aggregate consideration of US$12.8 million under the 2025 Share Repurchase Program. 2026 Share Repurchase Program On June 5, 2026, the Company announced that the Board had approved a new share repurchase program of up to US$20.0 million of the Company’s Class A ordinary shares in the form of ADSs for a purchase period beginning from July 1, 2026 and ending on June 30, 2027 (the “2026 Share Repurchase Program”). Repurchases under the 2026 Share Repurchase Program may be made from time to time through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means. The repurchases will be subject to all applicable rules and regulations, including Rule 10b-18 and Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, as well as the Company’s insider trading policy. The number of ADSs repurchased and the timing of repurchases will also depend on a number of factors, including, but not limited to, price, trading volume and general market conditions, along with the Company’s working capital requirements, general business conditions and other factors. The Board will review the 2026 Share Repurchase Program periodically, and may authorize adjustment of its terms and size or suspend or discontinue the program. The Company plans to fund the repurchases from its existing cash balance. Conference Call Information The Company’s management will hold an earnings conference call at 07:00 A.M. Eastern Time on Friday, June 5, 2026 (07:00 P.M. Beijing Time on the same day) to discuss the financial results. Details for the conference call are as follows: Event Title: Here Group Limited Q3 FY2026 Earnings Call Pre-register Link: https://dpregister.com/sreg/10209499/10419223c89 All participants may use the link provided above to complete the online registration process in advance of the conference call. Upon registration, each participant will receive an email with a set of participant dial-in numbers, a passcode, and a unique PIN to join the conference call. A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://ir.heregroup.com. Non-GAAP Financial Measures To supplement the Company’s consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, the Company uses adjusted net loss and basic and diluted adjusted net loss per ordinary share as its non-GAAP financial measures. Adjusted net loss represents net loss excluding share-based compensation expense. Basic and diluted adjusted net loss per ordinary share represents adjusted net loss attributable to Here Group Limited divided by weighted average number of ordinary shares outstanding during the periods used in computing adjusted net loss per ordinary share, basic and diluted. The Company believes that the non-GAAP financial measures provide useful information about the Company's results of operations, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making. The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company's operating performance, investors should not consider them in isolation, or as a substitute for net loss, net loss per ordinary share, basic and diluted or other consolidated statements of operations data prepared in accordance with U.S. GAAP. The Company's definition of non-GAAP financial measures may differ from those of industry peers and may not be comparable with their non-GAAP financial measures. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company's performance. For more information on these non-GAAP financial measures, please see the table captioned “Here Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this release. Exchange Rate Information This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from Renminbi to U.S. dollars were made at the rate of RMB6.8980 to US$1.00, the exchange rate on March 31, 2026, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred to could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all. Safe Harbor Statements This announcement contains forward-looking statements within the meaning of Section 27A of Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding the Company’s financial outlook, beliefs and expectations. These statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “potential,” “continue,” “ongoing,” “targets,” “guidance” and similar statements. Among other things, the Financial Outlook in this announcement contains forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases, and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies; its future business development, results of operations and financial condition; its ability to attract and retain new consumers and to increase the spending and revenues generated from consumers; its ability to maintain and enhance the recognition and reputation of its brands; its expectations regarding demand for and market acceptance of its services and products; expected growth, future trends and competition in the markets that it operates in; changes in its revenues and certain cost or expense items; PRC governmental policies and regulations relating to its business lines and industries, general economic and political conditions in China and globally, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties, or factors is included in the Company’s filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof. About the Company The Company, through its HERE奇梦岛 brand, creates collectible pop toys that spark joy and inspire global culture. With innovative design and storytelling at its core, the Company delivers immersive experiences that connect deeply with collectors worldwide. Guided by joy, integrity, wonder, and co-creation, the Company is building vibrant cultural ecosystems where fans shape and share dreams. For more information, please visit: https://ir.heregroup.com. Contact Investor RelationsTina TangHere Group LimitedEmail: [email protected]: +852 2988-8279 Robin Yang, PartnerICR, LLCEmail: [email protected]: +1 (212) 537-0429 ____________________________1 “IP” refers to the design of a single or a series of characters and the underlying intellectual property rights.2 As previously reported, the Company completed the disposal of its Established Business (all the business operations established prior to the acquisition of Shenzhen Yiqi Culture Co., Ltd., including the individual online learning services business, consumer businesses and other businesses aside from the pop toy business) on September 30, 2025. As the disposal met the definition of discontinued operations in accordance with ASC 205-20, the related assets and liabilities associated with discontinued operations in the prior year consolidated balance sheets were classified as assets/liabilities held for sale.3 Adjusted net loss is a non-GAAP financial measure. For a reconciliation of net loss to adjusted net loss, see the “Non-GAAP Financial Measures” section and the table captioned “Here Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” below.4 Basic and diluted adjusted net loss per ordinary share are non-GAAP financial measures. For a reconciliation of basic and diluted net loss per ordinary share to basic and diluted adjusted net loss per ordinary share, see the “Non-GAAP Financial Measures” section and the table captioned “Here Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” below. The following table below sets forth a reconciliation of net loss to adjusted net loss and basic and diluted net loss per ordinary share to basic and diluted adjusted net loss per ordinary share for the periods indicated: The following table below sets forth a breakdown of revenue by IPs for the periods indicated: (1) “Others” refers to revenue generated from all other IPs, such as “MEMIMO”, "FUNII", "FIILA", "impopo pix" and "YEAOHUA", and other revenues, aggregated and presented as “Others”.

Achieved 35.4% quarter-over-quarter revenue growth, driven by the transition to a dedicated IP-trained company model and flagship IP performance. Flagship IP WAKUKU contributed 73% of Q2 revenue, while emerging IP SIINONO demonstrated potential as a secondary flagship with RMB 19.2 million in quarterly revenue. Shifted from opportunistic creativity to a systematic 'IP factory' approach, utilizing data-driven mechanisms for IP planning, production, and promotion. Expanded offline presence through five new D2C stores and distributor channels to enhance intuitive user interaction and brand loyalty beyond online sales. Scaled production capacity to approximately 50 times the levels seen at the start of 2025, providing a foundation for rapid product deployment. Refined the organizational structure to be leaner and more focused, improving operational efficiency and cost structures compared to the first fiscal quarter. Q3 revenue guidance of RMB 140 million to RMB 150 million accounts for seasonal distributor slowdowns during the Spring Festival and a proactive product launch schedule. Full fiscal year 2026 revenue is projected between RMB 750 million and RMB 810 million, reflecting confidence in the scaling IP portfolio. Management plans to transition IPs from 'physical spaces' to 'narrative spaces' through a new live content strategy and short-form storytelling. International expansion will focus on domestic distribution partners for export sales and seeking local overseas partners for IP collaborations. Deployment of intelligent sales robots to offline locations is planned to innovate user interaction through AI-driven smart terminals. Gross margin decreased to 31% from 41% due to a strategic shift toward offline distributor channels, which carry lower per-unit margins than direct online sales. Inventory increased significantly to RMB 111.8 million to mitigate risks from Chinese New Year factory closures and support upcoming product launches. Accounts receivable decreased despite revenue growth, attributed to intensified collection discipline and improved customer engagement management. Established a joint venture with Enlight Media to integrate professional content creation and film/television development into the IP ecosystem. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Attributed the decline to standard industry seasonality where distributors reduce stocking during the Spring Festival holiday. Clarified that the product pipeline is being proactively managed, with major new launches scheduled to begin successively at the end of March. The partnership aims to add cultural depth and emotional resonance to IPs through film, television, and derivative content. Management views content support as essential for transforming 'trendy toys' into enduring cultural symbols. Initial performance of the five new stores met or exceeded expectations, with most achieving near breakeven in their first month. Stores are positioned as brand landmarks and interaction hubs rather than just sales points, supported by a newly established user operation center. Moving toward a 'replicable assembly line' for IPs, using a product committee to select IPs based on visual distinctiveness and storytelling potential. Implementing a 'playbook' approach to marketing that allows for differentiated strategies across various IP characteristics and collaborations. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

This article first appeared on GuruFocus. Total Revenue: RMB177.3 million, a 39.4% quarter-over-quarter growth. Gross Profit: RMB55 million. Gross Margin: 31%, down from 41% in the previous quarter. Adjusted Net Loss from Continuing Operations: RMB16.1 million, down from RMB17.1 million in the previous quarter. Sales and Marketing Expenses: RMB52.8 million, 29.6% of total revenue. Research and Development Expenses: RMB9.1 million, 5.1% of total revenue. General and Administrative Expenses: RMB31.3 million, 12.7% of total revenue. Net Loss from Continued Operations: RMB25.4 million. Accounts Receivable: RMB32.6 million as of December 31, 2025. Inventories: RMB111.8 million as of December 31, 2025. Revenue Guidance for Q3 FY2026: RMB540 million-RMB550 million. Revenue Guidance for FY2026: RMB750 million-RMB800 million. Warning! GuruFocus has detected 3 Warning Signs with HERE. Is HERE fairly valued? Test your thesis with our free DCF calculator. Release Date: March 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Here Group Ltd (NASDAQ:HERE) reported a 39.4% quarter-over-quarter revenue growth, reaching RMB177.3 million, exceeding the high end of their guidance. The company's flagship IP, Makuku, contributed significantly to revenue, accounting for 73% of Q2 revenue. Here Group Ltd (NASDAQ:HERE) expanded its sales contribution from offline distributor channels, enhancing user experience and brand interaction. The company opened five offline D2C stores, which serve as dedicated venues for brand-user interaction, validating their offline experiential approach. Here Group Ltd (NASDAQ:HERE) has a diversified IP portfolio with 18 IPs, including proprietary and licensed IPs, forming a strong foundation for their IP ecosystem. Gross margin decreased from 41% in the previous quarter to 31% this quarter due to strategic expansion of offline channels, which have lower per unit margins. The company reported an adjusted net loss from continuing operations of RMB16.1 million, although it narrowed from the previous quarter. Sales and marketing expenses increased as a percentage of total revenue, reflecting higher costs for advertising and promotion. Research and development expenses decreased as a percentage of total revenue, which may impact future product development. Revenue guidance for the third quarter suggests a quarter-over-quarter decline of about 15% to 20%, attributed to seasonality and product launch schedules. Q: The revenue guidance for the third quarter suggests a quarter-over-quarter decline of about 15-20%. Is this primarily due to seasonality or specific adjustments related to your IP launch schedule? A: Dong Xie, CFO, explained that both factors contribute to the decline. Seasonality affects distributor operations during the Spring Festival, leading to slower inventory stocking. Additionally, the product launch schedule is a proactive arrangement based on annual planning, with major new products expected to launch from the end of March. This short-term dip is a normal seasonal fluctuation, and the company is preparing for a new product cycle. Q: Regarding the cooperation with Enlight Media, does this partnership mean you will work closely with them in content creation and IP development? A: Peng Li, CEO, stated that the partnership with Enlight Media is crucial for deepening their IP strategy. The joint venture aims to explore possibilities for IPs in film, television content, and derivative development, enhancing IPs with cultural meaning and strengthening user connections. Specific future plans will be disclosed when substantial progress is made. Q: Are there any new strategies for IP operation and marketing this year? A: Dong Xie, CFO, highlighted a comprehensive upgrade from opportunistic creativity to a systematic IP factory. This involves building a replicable assembly line for IPs, developing an omni-channel marketing methodology, and empowering IPs with live content. The goal is to transform trendy toys into cultural symbols with enduring value. Q: How is the performance of recent offline stores, and what is the channel expansion plan for 2026? A: Dong Xie, CFO, reported that newly opened stores have met or exceeded expectations, achieving nearly breakeven. The stores serve as brand landmarks and user touchpoints, integrating online and offline data for cohesive interactive activities. The focus is on brand showcasing and user connection rather than just sales figures. Q: What are the financial highlights for the second quarter of fiscal year 2026? A: Dong Xie, CFO, reported total revenue of RMB177.3 million, a 39.4% increase from the previous quarter. Gross profit reached RMB55 million with a gross margin of 31%. The adjusted net loss from continuing operations narrowed to RMB16.1 million. The results reflect the growing traction of pop toy products and operating leverage in the focused business model. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Total revenue reached RMB 177.3 million, up 39.4% QoQ and beating guidance, led by flagship Makuku (RMB 139.4m, 73% of sales); management guided pop toy revenue of RMB 540–550 million for Q3 and RMB 750–800 million for full fiscal 2026. Expansion into offline channels drove the quarter’s revenue growth but compressed profitability — gross profit was RMB 55 million with a 31% margin versus 41% last quarter, a tradeoff management described as an investment in IP engagement. The company is scaling an IP-driven ecosystem (now 18 IPs, including 11 proprietary), expanding D2C stores and social reach (~700,000 followers, >1.8 billion exposure), increasing production capacity ~50x, and has narrowed adjusted net loss to RMB 16.1 million while inventories rose to RMB 111.8 million. Interested in QuantaSing Group Limited Unsponsored ADR? Here are five stocks we like better. HERE Group reported a strong second quarter of fiscal 2026 as the company completed its first full quarter operating as a dedicated IP-trend business, with management emphasizing an “IP-first” strategy focused on long-term brand vitality rather than near-term sales alone. The company highlighted growth driven by offline channel expansion, continued traction in flagship IPs, and ongoing work to build a more systematic pipeline for IP development and commercialization. Management said total revenue for the quarter reached RMB 177.3 million, representing 39.4% quarter-over-quarter growth and exceeding the high end of the company’s guidance. CEO Peng Li characterized the quarter as a milestone, calling it the first full quarter as a “pure-play IP company” and a “dedicated IP-trend company.” → Microsoft Positioned to Win AI Race With Dual-Model Strategy Makuku remained the largest contributor, generating RMB 139.4 million, or 73% of second-quarter revenue, according to management. The company also pointed to Fenono as an emerging “potential flagship IP,” noting it generated over RMB 19.2 million in revenue during the quarter following its initial launch in July 2025. CFO Tim Xie said the quarter’s sequential revenue growth was “primarily driven by our offline channel sales.” The company expanded its offline distributor channel contribution and continued to build out its direct-to-consumer footprint. → FuelCell Energy Is Burning Cash Faster Than It’s Building Momentum Gross profit was RMB 55 million with a 31% gross margin, compared with gross profit of RMB 52.4 million and a 41% gross margin in the prior quarter. Xie attributed the margin decline to the company’s strategic expansion of offline channels, which generate lower per-unit margins than direct online sales. Management framed the tradeoff as an investment intended to deepen customer loyalty by allowing consumers to experience products in physical settings. Li said the company is working to move “from creative hits to a systematic pipeline,” and described the firm’s IP and product development as increasingly driven by a data-informed engine and end-to-end mechanisms spanning planning, production, and promotion. → Why This Defense ETF Could Keep Rallying as the Iran Conflict Escalates As of December 31, 2025, HERE said it had 18 IPs in total: 11 proprietary IPs 5 exclusive licensed IPs 2 non-exclusive licensed IPs Management highlighted several recent launches and performance metrics. The “Wakoku on the Road” series, launched in late November 2025, delivered total omni-channel sales of more than RMB 18 million within one week, alongside over 84,000 pre-sale registered participants, over 56,000 peak concurrent online users, and over 100 million in total new product exposure, according to the company. For Kinomo, management said the “Whispers of Series” vinyl plush doll recorded over RMB 11 million in omni-channel sales within a week, with total exposure reaching 170 million. Beyond product sales, Li pointed to brand-building initiatives, including Wakoku being invited by the Tianjin Municipal Bureau of Culture and Tourism to serve as a promotion ambassador, and a co-branding collaboration with Lukfook Jewellery. The company also discussed plans to expand IP narrative development through a “live content strategy,” described as short-form storytelling intended to deepen emotional connections and extend IP influence beyond physical retail touchpoints. On the omni-channel front, management described channels as “portals for IP user interaction and experience,” not just points of sale. As of February 26, 2026, HERE reported approximately 700,000 cumulative followers across major social platforms in China and cumulative social media exposure exceeding 1.8 billion. Offline, the company said it has opened five D2C stores since December 2025 in Beijing, Shenzhen, and Chongqing, with two additional stores in preparation. Li cited the opening of a Shenzhen Upper Hills flagship store on February 1, where a celebrity appeared as store manager for a day, generating approximately RMB 250,000 in same-day sales. The company also referenced a Shanghai K11 pop-up that generated significant social media attention and was described as a driver of foot traffic and sales, as well as New Year’s Eve exhibitions and light shows in commercial districts including Wangfujing in Beijing, Gulou in Tianjin, and K11 in Shanghai. In addition, management said it is leveraging “the powerful and creative tools of the AI era” and expects to deploy intelligent sales robots to more offline locations for user interaction in the near future. Xie reported total operating expenses of RMB 93.2 million, including sales and marketing expenses of RMB 52.8 million, research and development expenses of RMB 9.1 million, and general and administrative expenses of RMB 31.3 million. The company also discussed certain expense ratios on a non-GAAP basis. Net loss from continuing operations was RMB 25.4 million, compared to RMB 25.8 million in the previous quarter. Adjusted net loss from continuing operations “continued to narrow” to RMB 16.1 million, down from RMB 17.1 million in the prior quarter, according to the CFO. On the balance sheet, management said accounts receivable were $32.6 million as of December 31, 2025, primarily tied to offline channel sales, and noted the balance declined compared with September 30, 2025 despite higher offline revenue, citing strengthened collections discipline. Inventories rose to RMB 111.8 million, which the company attributed to expanded supply chain capacity and proactive inventory build ahead of Chinese New Year factory closures and upcoming product launches. Looking ahead, the company guided for pop toy revenue of RMB 540 million to RMB 550 million for the third quarter of fiscal 2026, and RMB 750 million to RMB 800 million for full fiscal 2026. In Q&A, management attributed the implied sequential revenue decline for the third quarter to seasonality tied to Spring Festival impacts on distributor operations and to product launch timing, noting major new products are expected to launch successively starting from the end of March. Management also addressed cooperation with Enlight Media, describing it as part of a “product and content dual drive strategy” intended to enhance IP cultural meaning and emotional connection, with potential exploration in areas such as film and television content and derivative development. The company said it would disclose specific plans when there is substantial progress. QuantaSing Group (NASDAQ:QSG) also discussed organizational and operational initiatives during the call, including refining its cost structure and building an integrated operating system. Li said production capacity is now approximately 50 times higher than at the beginning of 2025, positioning the company to support scaled product creation during the year. QuantaSing Group Limited provides online learning services in the People's Republic of China. The company offers online courses, including financial literacy, short-video production, personal well-being, electronic keyboard, and meditation courses. It also offers marketing and enterprise talent management services to enterprise customers. In addition, the company provides online and literacy course to adult learners under various brands, including QiNiu, JiangZhen, and QianChi. QuantaSing Group Limited was founded in 2019 and is headquartered in Beijing, the People's Republic of China. The article "QuantaSing Group Q2 Earnings Call Highlights" was originally published by MarketBeat.

BEIJING, March 12, 2026 (GLOBE NEWSWIRE) -- Here Group Limited (NASDAQ: HERE) (“Here” or the “Company”), an IP1-based pop toy company dedicated to creating beloved collectibles and trend-defining experiences, today announced its unaudited financial results for the second quarter of the fiscal year ending June 30, 2026 (the “second quarter of FY 2026”, which refers to the quarter from October 1, 2025 to December 31, 2025). Financial Highlights for the Second Quarter of FY 20262 Revenues for the second quarter of FY 2026 were RMB177.3 million (US$25.3 million), representing an increase of 39.4% from the first quarter of the fiscal year ending June 30, 2026 (the “first quarter of FY 2026”). Net loss from continuing operations, net of income tax for the second quarter of FY 2026 was RMB25.4 million (US$3.6 million), compared with RMB25.8 million in the first quarter of FY 2026. Adjusted net loss from continuing operations3 for the second quarter of FY 2026 was RMB16.1 million (US$2.3 million), compared with RMB17.1 million in the first quarter of FY 2026. The Company has a total of 18 IPs as of December 31, 2025, including 11 proprietary IPs, 5 exclusive licensed IPs, and 2 non-exclusive licensed IPs. Mr. Peng Li, Chairman and Chief Executive Officer of Here, commented, "This quarter we achieved revenues of RMB177.3 million, representing a 39.4% increase quarter-over-quarter. It also marks a significant milestone as our first full quarter operating as a fully independent IP trend company. We are firmly committed to executing our strategy centered on IP products and operations, with a sharp focus on IP development and product iteration, while continuously refining our organizational structure and operational foundation. Concurrently, we are strengthening our diversified sales channels to further amplify our IP momentum and drive sustainable sales growth. Our solid execution and strategic clarity position us well to capture the significant opportunities ahead and deliver long-term value to our shareholders as we advance toward our vision of becoming a leading global IP trend company." Mr. Dong Xie, Chief Financial Officer of Here, added, "Our revenues exceeded the high end of our guidance, driven by the continued execution of our core IP operation strategy. We are proactively optimizing our revenue mix, with a strategic emphasis on increasing the contribution from offline channels. We believe offline experiences are crucial for IP empowerment, as they effectively enhance user engagement and emotional connection with our IPs. Furthermore, as a dedicated IP trend company, we further refined our cost structure this quarter to better align with our asset-light, high-value-added model centered around IP. We anticipate that these ongoing adjustments will consistently improve our operational efficiency and financial health, solidifying our foundation for sustainable, long-term growth in the global IP trend market." Financial Results for the Second Quarter of FY 2026 Revenues Revenues were RMB177.3 million (US$25.3 million) in the second quarter of FY 2026, exclusively reflecting the performance of the high-growth pop toys business. Cost of revenues Cost of revenues was RMB122.3 million (US$17.5 million) in the second quarter of FY 2026, primarily composed of costs associated with pop toy products sold. The decline in gross margin was mainly attributable to the Company’s strategic expansion of offline channels, which generated lower per-unit margins than direct online sales. This channel diversification strategy is designed to enhance IP engagement and strengthen customer loyalty through physical retail experiences, aligning with the Company's long-term vision as a leading IP trend company. Sales and marketing expenses Sales and marketing expenses were RMB52.8 million (US$7.6 million) in the second quarter of FY 2026, primarily consisting of advertising and promotion expenses and staff compensation. These investments supported brand building and customer acquisition efforts across multiple platforms. Research and development expenses Research and development expenses were RMB9.1 million (US$1.3 million) in the second quarter of FY 2026, primarily consisting of IP design and product development expenses. General and administrative expenses General and administrative expenses were RMB31.3 million (US$4.5 million) in the second quarter of FY 2026, primarily associated with core corporate functions, including employee compensation, professional service fees, and other operational expenses. Others, net Others, net were RMB9.6 million (US$1.4 million) in the second quarter of FY 2026, primarily comprising net income from support service fees charged to the Established Business during the service support period following the deal closing, as well as investment income from both equity-method investment and wealth management products. Net loss from continuing operations, net of income tax and adjusted net loss from continuing operations Net loss from continuing operations, net of income tax was RMB25.4 million (US$3.6 million) in the second quarter of FY 2026. Adjusted net loss from continuing operations was RMB16.1 million (US$2.3 million) in the second quarter of FY 2026. Net loss from continuing operations per share and adjusted net loss from continuing operations per share4 Basic and diluted net loss from continuing operations per share were RMB0.16 (US$0.02) in the second quarter of FY 2026. Basic and diluted adjusted net loss from continuing operations per share were RMB0.10 (US$0.01) in the second quarter of FY 2026. Financial Outlook Based on currently available information, the Company expects its revenues from the pop toy business to be in the range of RMB140.0 million to RMB150.0 million for the third quarter of FY 2026 (which refers to the quarter from January 1, 2026 to March 31, 2026) and in the range of RMB750.0 million to RMB800.0 million for FY 2026 (which refers to the year from July 1, 2025 to June 30, 2026). The forecasts reflect the Company’s current and preliminary views on the pop toy market and its pop toy business operating conditions, which are subject to change. Recent Developments 2025 Share Repurchase Program On June 6, 2025, the Company announced that the Board had approved a new share repurchase program of up to US$20.0 million of the Company’s Class A ordinary shares in the form of ADSs for a purchase period beginning on June 11, 2025 and ending on June 30, 2026 (the “2025 Share Repurchase Program”). As of March 6, 2026, a total of 1.7 million ADSs had been repurchased for an aggregate consideration of US$10.8 million under the 2025 Share Repurchase Program. Conference Call Information The Company’s management will hold an earnings conference call at 07:00 A.M. Eastern Time on Thursday, March 12, 2026 (07:00 P.M. Beijing Time on the same day) to discuss the financial results. Details for the conference call are as follows: Event Title: Here Group Limited Q2 FY2026 Earnings Call Pre-register Link: https://dpregister.com/sreg/10207117/103685ff5fa All participants may use the link provided above to complete the online registration process in advance of the conference call. Upon registration, each participant will receive an email with a set of participant dial-in numbers, a passcode, and a unique PIN to join the conference call. A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://ir.heregroup.com. Non-GAAP Financial Measures To supplement the Company’s consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, the Company uses adjusted net loss from continuing operations and basic and diluted adjusted net loss from continuing operations per ordinary share as its non-GAAP financial measures. Adjusted net loss from continuing operations represents net loss from continuing operations, net of income tax excluding share-based compensation expense. Basic and diluted adjusted net loss from continuing operations per ordinary share represents adjusted net loss from continuing operations attributable to Here Group Limited divided by weighted average number of ordinary shares outstanding during the periods used in computing adjusted net loss from continuing operations per ordinary share, basic and diluted. The Company believes that the non-GAAP financial measures provide useful information about the Company's results of operations, enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making. The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools, and when assessing the Company's operating performance, investors should not consider them in isolation, or as a substitute for net loss from continuing operations, net of income tax, net loss from continuing operations per ordinary share, basic and diluted or other consolidated statements of operations data prepared in accordance with U.S. GAAP. The Company's definition of non-GAAP financial measures may differ from those of industry peers and may not be comparable with their non-GAAP financial measures. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company's performance. For more information on these non-GAAP financial measures, please see the table captioned “Here Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this release. Exchange Rate Information This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from Renminbi to U.S. dollars were made at the rate of RMB6.9931 to US$1.00, the exchange rate on December 31, 2025, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred to could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all. Safe Harbor Statements This announcement contains forward-looking statements within the meaning of Section 27A of Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1955. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding the Company’s financial outlook, beliefs and expectations. These statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “potential,” “continue,” “ongoing,” “targets,” “guidance” and similar statements. Among other things, the Financial Outlook for Pop Toy Business in this announcement contains forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases, and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies; its future business development, results of operations and financial condition; its ability to attract and retain new consumers and to increase the spending and revenues generated from consumers; its ability to maintain and enhance the recognition and reputation of its brands; its expectations regarding demand for and market acceptance of its services and products; expected growth, future trends and competition in the markets that it operates in; changes in its revenues and certain cost or expense items; PRC governmental policies and regulations relating to its various business lines and industries, general economic and political conditions in China and globally, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties, or factors is included in the Company’s filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof. About the Company The Company, through its HERE奇梦岛 brand, creates collectible pop toys that spark joy and inspire global culture. With innovative design and storytelling at its core, the Company delivers immersive experiences that connect deeply with collectors worldwide. Guided by joy, integrity, wonder, and co-creation, the Company is building vibrant cultural ecosystems where fans shape and share dreams. For more information, please visit: https://ir.heregroup.com. Contact Investor Relations Tina Tang Here Group Limited Email: [email protected] Tel: +852 2988-8279 Robin Yang, Partner ICR, LLC Email: [email protected] Phone: +1 (212) 537-0429 ________________________ 1 “IP” refers to the design of a single or a series of characters and the underlying intellectual property rights. 2 As previously reported, the Company completed the disposal of its Established Business (all the business operations established prior to the acquisition of Shenzhen Yiqi Culture Co., Ltd., including the individual online learning services business, consumer businesses and other businesses aside from the pop toy business) on September 30, 2025. As the disposal met the definition of discontinued operations in accordance with ASC 205-20, the historical financial results of the Established Business were reflected as discontinued operations in the Company’s consolidated financial statements, and the related assets and liabilities associated with discontinued operations in the prior year consolidated balance sheets were classified as assets/liabilities held for sale. 3 Adjusted net loss from continuing operations is a non-GAAP financial measure. For a reconciliation of net loss from continuing operations, net of income tax to adjusted net loss from continuing operations, see the “Non-GAAP Financial Measures” section and the table captioned “Here Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” below. 4 Basic and diluted adjusted net loss from continuing operations per share are non-GAAP financial measures. For a reconciliation of basic and diluted net loss from continuing operations per share to basic and diluted adjusted net loss from continuing operations per share, see the “Non-GAAP Financial Measures” section and the table captioned “Here Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” below. (1) “Others” refers to revenue generated from all other IPs, such as “MEMIMO”, "FUNII", "FIILA" and "impopo pix", and other revenues, aggregated and presented as “Others”.

This article first appeared on GuruFocus. Release Date: December 02, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Here Group Ltd (NASDAQ:HERE) reported a significant increase in total revenue, reaching RMB 127.1 million, up from RMB 65.8 million in the previous quarter. Gross margins improved to 41.2% from 34.7% in the previous quarter, indicating enhanced profitability. The company successfully completed the disposal of non-core businesses, allowing a focused strategy on high-growth pop toy segments. Here Group Ltd (NASDAQ:HERE) launched new IPs and products, such as the Wauu series, which have received positive market feedback and contributed to sales growth. The company has established strategic partnerships, including with Beijing Radio and Television Station, to enhance cultural influence and brand visibility. Despite revenue growth, Here Group Ltd (NASDAQ:HERE) reported a net loss from continuing operations of RMB 25.8 million. The company faces challenges in scaling its overseas market presence, with current overseas revenue proportion remaining low. High operational expenses, including sales and marketing, remain a concern, although they have decreased as a percentage of revenue. The company is still in the early stages of its DTC store strategy, with profitability and impact yet to be validated. Supply chain shortages in the first half of the year impacted the company's ability to meet demand, particularly in overseas markets. Warning! GuruFocus has detected 8 Warning Signs with HERE. Is HERE fairly valued? Test your thesis with our free DCF calculator. Q: Based on the second quarter guidance, the first half revenue is around RMB 280 million. To hit the full-year target of RMB 800 million, the second half revenue needs to nearly double. What drives this confidence, and do we expect to turn profitable in the second half?A: The revenue forecast is based on product launch timelines, production capacity, and order placements from channel partners. Production capacity is expected to reach 400,000 sets per month by year-end, supporting the revenue guidance. The focus is on balancing IP operations and sales growth. Losses are narrowing, and cost structures are being optimized. We aim for profitable growth in the coming quarters. (CFO) Q: Could you share updates on the DTC stores and the future opening pipeline in 2026? How should we expect the sales value of these DTC stores?A: The first batch of DTC stores will open between late December and early 2026. These stores will serve as brand experience centers, enhancing brand momentum through immersive experiences. Future expansion will follow a phased strategy, validating profitability before replication. (CFO) Q: Will the overseas market be a focus for the next year, and what is the strategy for the overseas market?A: The overseas market is a focus, especially after addressing supply chain shortages. We are increasing production capacity and collaborating with distribution partners. Efforts include building online platforms like TikTok in North America and Southeast Asia. While domestic sales remain a priority, we aim to replicate domestic market strengths overseas. (CFO) Q: What is the revenue structure breakdown by IP this year, and how do we foresee the drivers from new IPs next year?A: This quarter, the IP 'Cuckoo' accounted for 71% of total revenue, with 'Julie' contributing 16% and 'Sinono' 10%. The focus will be on top IPs like 'Cuckoo' and 'Sinono'. The strategy involves deepening core IPs and incubating new ones, aiming for a balanced growth portfolio. (CFO) Q: Do we expect any impact on revenue momentum?A: The pop toy market is growing rapidly, with an expected growth rate of over 18% in the next five years. We will prioritize IP operations, new product launches, and brand building. The market has validated the appeal of our IPs, and we aim to maintain their long-term vitality. (CFO) For the complete transcript of the earnings call, please refer to the full earnings call transcript.