Core Viewpoint - The company Quantum Song has reported its financial results for the fourth quarter and the full year of fiscal year 2025, indicating a strategic shift towards the trendy toy business, which has shown growth potential and marks a clear focus on this sector [2][9]. Financial Performance - For the fiscal year 2025, the company achieved total revenue of 2.726 billion yuan and a net profit of 357 million yuan; in the fourth quarter, revenue was 618 million yuan with a net profit of 108 million yuan [9]. - The newly disclosed trendy toy business generated revenue of 65.78 million yuan in the fourth quarter, accounting for approximately 10.6% of total revenue [9]. - The company has cash reserves of 1.041 billion yuan, providing sufficient funding for IP development, channel expansion, and international layout [9]. Strategic Developments - The company has fully acquired Shenzhen Yiqi Culture Co., Ltd. (Letsvan) and completed a brand upgrade, renaming it "Qimeng Island" [9]. - A restructuring of non-trendy toy businesses has been initiated to concentrate resources on high-growth sectors, further clarifying the strategic focus [9]. Product and IP Development - The company has established a diverse IP matrix consisting of 11 proprietary IPs and 4 licensed IPs, operating over 40 blind box product lines and 30 plush card products [10]. - The star IP WAKUKU generated 42.96 million yuan in revenue within three months of the fourth quarter, with over 1 million units sold since its launch in May [10]. - The new IP SIINONO has sold over 300,000 units since its launch in July, while the evergreen IP Youli has continued to grow through high-end brand collaborations, generating 17.51 million yuan in the fourth quarter [10]. Market Strategies - The company is enhancing its IP reserves and market penetration through three main strategies: increasing original investment by establishing design centers in Beijing, Hangzhou, and Shenzhen; advancing IP licensing cooperation; and deepening cross-industry collaborations with brands in sports, entertainment, and consumer sectors [12]. - The company has seen a rapid increase in GMV since launching its online self-operated model, surpassing 18 million yuan in August, which is over nine times the amount in April [12]. - Content marketing efforts have resulted in over 690 million total exposures on major platforms like Douyin and Xiaohongshu, with a follower count exceeding 250,000 [12]. Channel Expansion and Internationalization - The company has partnered with distributors to cover over 10,000 retail terminals and is negotiating to open at least three self-operated stores in major cities by the end of December [14]. - Internationally, the company has entered North American and Southeast Asian markets through platforms like TikTok and Shopee, and has conducted pop-up tests in Jakarta, expanding its distribution network to over 20 countries [14]. Future Projections - The company anticipates revenue from the trendy toy business to reach between 100 million to 110 million yuan in the first quarter of fiscal year 2026, with total revenue projected to be between 750 million to 800 million yuan for the fiscal year 2026 [14].