Core Viewpoint - The company has successfully transitioned to focus on the trendy toy business, demonstrating growth potential and marking a clear strategic shift towards this sector [1] Financial Performance - For the fiscal year 2025, the company reported total revenue of RMB 2.726 billion and a net profit of RMB 357 million; in Q4 alone, revenue was RMB 618 million with a net profit of RMB 108 million [1] - The newly disclosed trendy toy business generated revenue of RMB 65.78 million in Q4, accounting for approximately 10.6% of total revenue [1] - The company holds cash reserves of RMB 1.041 billion, providing ample funding for IP development, channel expansion, and internationalization [1] Strategic Focus - The company has fully acquired Shenzhen Yiqi Culture Co., Ltd. ("Letsvan") and rebranded it as "Qimengdao" [1] - A restructuring of non-trendy toy businesses has been initiated to concentrate resources on high-growth areas, further clarifying the strategic focus [1] IP Development and Product Strategy - 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 [2] - The star IP WAKUKU generated revenue of RMB 42.96 million in Q4, with its plush product achieving over 1 million units sold since its launch [2] - The new IP SIINONO sold out 10,000 units in just 10 minutes on Douyin, with total sales exceeding 300,000 units [2] - The long-standing IP Youli has shown sustained growth, generating RMB 17.51 million in Q4 [2] Market Penetration Strategies - The company is enhancing its IP reserve and market penetration through three main strategies: increasing original content investment, advancing IP licensing partnerships, and deepening cross-industry collaborations [3] - WAKUKU has become the first and only official trendy toy partner for the 2025 China Tennis Open, marking a significant integration of trendy toys with top international sports events [3] - Collaborations with Universal Studios, Yuanqi Forest, Beijing Fashion Week, and the popular series "To the Mountains and Seas" are expanding the IP's value boundaries [3] Channel Expansion and Internationalization - Since launching online self-operated channels in April 2025, the company's GMV has surged, surpassing RMB 18 million in August, which is over nine times the figure from April [5] - The company has achieved over 690 million total exposures across two major platforms, with Douyin accounting for over 550 million [5] - Offline, the company has partnered with distributors to cover over 10,000 terminals and is negotiating flagship stores in top-tier cities, aiming to open at least three self-operated stores by the end of December [5] Supply Chain and Future Outlook - The company is making steady progress in internationalization, entering North America and Southeast Asia through platforms like TikTok and Shopee, and expanding its distribution network to over 20 countries [6] - In August 2025, the monthly production of plush products exceeded 1 million units, a growth of over 20 times since the beginning of the year [6] - The company projects Q1 2026 revenue from the trendy toy business to be between RMB 100 million and RMB 110 million, with total revenue for fiscal year 2026 expected to reach RMB 750 million to RMB 800 million [6]

Core Viewpoint - Quantum Song (NASDAQ: QSG) is undergoing a strategic transformation focusing on the潮玩 (trendy toy) business, which is now entering a critical implementation phase, as evidenced by its financial performance and operational developments [1] Financial Performance - For the fiscal year 2025, the company reported total revenue of RMB 2.726 billion and a net profit of RMB 357 million, with Q4 revenue at RMB 618 million and net profit at RMB 108 million [1] - The潮玩 business generated revenue of RMB 65.78 million in Q4, accounting for approximately 10.6% of total revenue [1] - The company has cash reserves of RMB 1.041 billion, providing sufficient funding for IP development, channel expansion, and internationalization [1] Strategic Focus - The company has fully acquired Shenzhen Yiqi Culture Co., Ltd. ("Letsvan") and rebranded it as "Qimeng Island" [1] - A restructuring of non潮玩 businesses is underway to concentrate resources on high-growth areas, further clarifying the strategic focus [1] IP Development and Product Strategy - 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 [2] - The star IP WAKUKU generated revenue of RMB 42.96 million in Q4, while the plush product "Fox Rabbit Diary" sold over 1 million boxes since its launch in May [2] - The new IP SIINONO achieved explosive sales, with 10,000 boxes sold out in 10 minutes on Douyin, and cumulative sales exceeding 300,000 boxes [2] Market Penetration Strategies - The company is enhancing its IP reserve and market penetration through three strategies: increasing original content investment, advancing IP licensing cooperation, and deepening cross-industry collaborations [3] - WAKUKU has become the first and only official潮玩 partner of the 2025 China Tennis Open, marking a significant integration of潮玩 with top international sports events [3] Channel Expansion and Internationalization - Since launching its online self-operated model in April 2025, the company's GMV has surged, surpassing RMB 18 million in August, which is over nine times the figure from April [4] - The company is negotiating to open at least three self-operated stores in top shopping centers in first-tier cities by the end of December [4] - Internationally, the company has entered North American and Southeast Asian markets through platforms like TikTok and Shopee, and is expanding its distribution network to over 20 countries [4] Growth Guidance - The company projects潮玩 business revenue of RMB 100 million to RMB 110 million for Q1 of fiscal year 2026, with total revenue expectations of RMB 750 million to RMB 800 million for the entire fiscal year [5] - The focus will remain on潮玩 strategy, emphasizing product-driven growth, full-channel self-operation, and international expansion [5]