Here Announces Unaudited Financial Results for the First Quarter of Fiscal Year 2026

Core Insights - Here Group Limited reported a total revenue of RMB 127.1 million (approximately US$ 17.9 million) for the first quarter of FY 2026, marking a significant growth of 93.3% quarter-over-quarter [3][4][39] - The company has transitioned to focus solely on the pop toy business following the disposal of its Established Business on September 30, 2025 [2][26] - The gross margin improved to 41.2% from 34.7% in the previous quarter, indicating the strength of the pop toy business model [3] Financial Performance - Revenue for the first quarter of FY 2026 was RMB 127.1 million (US$ 17.9 million), derived entirely from pop toy sales [4] - Cost of revenues was RMB 74.7 million (US$ 10.5 million), primarily related to the cost of goods sold in the pop toy segment [5] - The net loss from continuing operations was RMB 25.8 million (US$ 3.6 million), compared to RMB 21.8 million in the previous quarter [10] Expenses Breakdown - Sales and marketing expenses totaled RMB 27.6 million (US$ 3.9 million), aimed at enhancing brand visibility and market share [6] - Research and development expenses were RMB 15.8 million (US$ 2.2 million), focused on advancing the pop toy portfolio [7] - General and administrative expenses amounted to RMB 38.1 million (US$ 5.4 million), covering core operational functions [9] Future Outlook - The company anticipates revenues for the second quarter of FY 2026 to be between RMB 150.0 million and RMB 160.0 million, and for the full fiscal year 2026, revenues are expected to range from RMB 750.0 million to RMB 800.0 million [13] - The strategic focus on high-growth segments and IP development is expected to drive future growth and competitive advantage in the global pop toy market [3] Balance Sheet Highlights - As of September 30, 2025, the company had cash and cash equivalents, restricted cash, and short-term investments totaling RMB 789.4 million (US$ 110.9 million) [12] - Total assets were reported at RMB 1,661.5 million (US$ 203.1 million) [31] - Total liabilities stood at RMB 728.6 million (US$ 47.1 million) [32]