QuantaSing Group Extends Business Portfolio into Pop Toys Sector through Letsvan Investment

Core Viewpoint - QuantaSing Group Limited has entered into definitive agreements to invest in Shenzhen Yiqi Culture Co., Ltd. (Letsvan), marking its strategic entry into the pop toys market and broader consumer goods sector [1] Group 1: Investment and Strategic Entry - The investment will make Letsvan a controlled subsidiary of QuantaSing, with its financial results consolidated into QuantaSing's financial statements [1] - This move reflects QuantaSing's strategy to utilize its cash reserves to capture opportunities in the consumer sector [5] Group 2: Market Potential - The global character toy market reached RMB345.8 billion in 2023 and is expected to grow at a CAGR of 9.3% to RMB540.7 billion by 2028 [2] - The China character toy market was valued at RMB40.3 billion in 2023, projected to grow at a CAGR of 17.7% to RMB91.1 billion by 2028 [2] - Character-based figurines, a key segment in Letsvan's portfolio, have shown a 17.8% CAGR from 2017 to 2023 and are expected to maintain a 16.8% growth through 2027 [2] Group 3: Letsvan's Position and Strategy - Letsvan has developed a strong IP matrix with popular characters and has expanded its distribution channels through partnerships with major retail chains and e-commerce platforms [3] - The company is currently pursuing international expansion, including operations in Southeast Asia to meet growing regional demand [3] - QuantaSing plans to implement an omni-channel strategy for Letsvan, integrating online and offline retail experiences [4] Group 4: Leadership and Vision - The growth strategy for Letsvan will be executed by a dedicated team led by Mr. Peng Li, the founder and CEO of QuantaSing [4] - Letsvan's CEO, Huiyu (Zack) Zhan, expressed optimism about the growth opportunities from the partnership, aiming to become a leading player in the pop toys industry [5]