Core Viewpoint - Here Group Ltd., formerly known as QuantaSing, has successfully transitioned from an adult education company to a pop toy maker, reporting significant revenue growth in its new business segment [1][2][4]. Business Transformation - The company entered the pop toy market in 2023 by acquiring Shenzhen Yiqi Culture Ltd., which owns the Wakuku franchise [3]. - Here Group has rebranded itself, dropping the QuantaSing name and ticker symbol, and began trading under the Here Group name on November 11 [4]. Financial Performance - In the latest quarter, Here Group reported revenue of 127 million yuan ($18 million), nearly doubling from 65.8 million yuan in the previous quarter [10]. - The company anticipates revenue growth to between 150 million yuan and 160 million yuan in the current quarter, with a projected total revenue of 750 million yuan to 800 million yuan for the fiscal year [11]. Market Position and Strategy - Here Group's revenue is primarily driven by its proprietary intellectual properties (IPs), with 97% of the latest quarter's revenue coming from three IPs, including 71% from Wakuku [8]. - Unlike competitors, Here Group focuses on self-developed and exclusively licensed IPs, which can lead to higher margins but also requires significant marketing efforts to establish brand recognition [9]. Stock Performance and Valuation - The stock price of Here Group has shown volatility, initially rising sixfold before experiencing a decline of over 60%, yet it remains more than double its starting value for the year [12]. - The current price-to-sales (P/S) ratio for Here Group is approximately 2.5, significantly lower than Pop Mart's 10.3, indicating potential upside if growth targets are met [13][16]. Marketing and Expansion Plans - The company is actively marketing its products through various initiatives, including a themed street in Shanghai and partnerships with state-run media [14]. - Here Group has opened its first offline stores in Beijing and Chongqing, with plans for further expansion into 20 other markets [14]. Profitability and Margins - The gross margin for Here Group's toy business improved to 41.2% from 34.7% in the previous quarter, although it remains below Pop Mart's 66.8% [15]. - The company reported an adjusted net loss of 17.1 million yuan for the latest quarter, showing slight improvement from a 19.3 million yuan loss in the previous period [15].