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

Core Insights - Here Group Limited reported a revenue of RMB177.3 million (US$25.3 million) for the second quarter of FY 2026, marking a 39.4% increase quarter-over-quarter, and this is the first full quarter operating as a fully independent IP trend company [3][4][8]. Financial Performance - Revenues for the second quarter of FY 2026 were RMB177.3 million (US$25.3 million), reflecting the performance of the high-growth pop toys business [4]. - The cost of revenues was RMB122.3 million (US$17.5 million), leading to a decline in gross margin due to the strategic expansion of offline channels [5]. - Sales and marketing expenses amounted to RMB52.8 million (US$7.6 million), primarily for advertising and promotion [6]. - Research and development expenses were RMB9.1 million (US$1.3 million), focused on IP design and product development [9]. - General and administrative expenses totaled RMB31.3 million (US$4.5 million), covering core corporate functions [10]. - The net loss from continuing operations was RMB25.4 million (US$3.6 million), with an adjusted net loss of RMB16.1 million (US$2.3 million) [12][8]. Strategic Focus - The company is committed to enhancing its IP development and product iteration while refining its organizational structure and operational foundation [3]. - There is a strategic emphasis on increasing the contribution from offline sales channels to enhance user engagement and emotional connection with IPs [3][5]. - The company aims to capture significant opportunities in the global IP trend market and deliver long-term value to shareholders [3]. Future Outlook - The company expects 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 and RMB750.0 million to RMB800.0 million for FY 2026 [14]. Recent Developments - As of March 6, 2026, the company has repurchased a total of 1.7 million ADSs for an aggregate consideration of US$10.8 million under the 2025 Share Repurchase Program [15].