Core Viewpoint - The潮玩 (trendy toy) sector is experiencing significant growth globally, becoming a notable force in the consumer market, as evidenced by the market capitalization of leading companies like Bubble Mart surpassing HKD 400 billion, highlighting the lucrative potential of the industry [1][3]. Group 1: Industry Trends - The潮玩 market in China is projected to grow from RMB 22.9 billion in 2020 to RMB 76.3 billion by 2024, with a compound annual growth rate (CAGR) of 35.11%, while the global潮玩 industry is expected to increase from USD 20.3 billion to USD 41.8 billion during the same period, with a CAGR of nearly 20% [3]. - The shift in consumer motivation from functional satisfaction to emotional value acquisition is driving the demand for潮玩 products, particularly among younger consumers who prefer products that resonate emotionally and allow for personalized expression [3][4]. Group 2: Company Strategy - Quantum Song has fully acquired the潮玩 brand Letsvan and rebranded it as "奇梦岛," marking a strategic pivot towards the潮玩 sector, while also initiating the divestment of non潮玩 businesses to concentrate resources on this high-growth area [5][8]. - The company aims to transition from a "traffic-driven" to a "product-driven" model, focusing on潮玩 to unlock greater growth potential and shareholder value [8]. Group 3: Financial Performance - For the fourth quarter of the 2025 fiscal year, Quantum Song reported total revenue of RMB 618 million and a net profit of RMB 108 million, with潮玩 business contributing RMB 65.78 million, accounting for 10.6% of total revenue [2][8]. - The company anticipates潮玩 business revenue to reach between RMB 750 million and RMB 800 million for the entire 2026 fiscal year, indicating a projected quarter-on-quarter growth rate exceeding 50% [10]. Group 4: IP Development and Market Expansion - Quantum Song has developed a diverse IP matrix, operating 11 proprietary IPs and 4 licensed IPs, covering over 40 blind box product lines and 30 plush products, which enhances its market competitiveness [11][12]. - The company is expanding its IP portfolio through increased original investment, IP licensing partnerships, and cross-industry collaborations, such as partnerships with major events and brands to enhance brand visibility and emotional connection with consumers [12][14]. Group 5: Channel Strategy - Quantum Song employs a comprehensive channel strategy that includes online self-operated platforms, offline distribution, and international expansion, significantly increasing market coverage and consumer reach [14][16]. - The online self-operated channel has seen rapid growth, with GMV surpassing RMB 18 million by August 2025, reflecting the effectiveness of the self-operated model [14]. Group 6: Supply Chain Management - The company has optimized its supply chain management to enhance production capacity and responsiveness, achieving a monthly output of over 1 million plush products by August 2025, which is a more than 20-fold increase since the beginning of the year [17][19]. - This supply chain enhancement supports current operations and future business expansion, ensuring timely product availability and reducing potential sales losses due to stockouts [19]. Group 7: Conclusion - Quantum Song's commitment to潮玩 represents a strategic alignment with the emotional value consumption trend, leveraging IP, multi-channel strategies, and supply chain capabilities to drive sustainable growth [20]. - With a robust cash reserve of RMB 1 billion and clear performance guidance, the company is well-positioned for future growth and value re-evaluation as it expands its IP ecosystem and global presence [20].