Core Insights - The company achieved a 35.4% quarter-over-quarter revenue growth, primarily driven by the transition to a dedicated IP-trained company model and strong performance from flagship IPs [5] - Flagship IP WAKUKU contributed 73% of Q2 revenue, while emerging IP SIINONO generated RMB 19.2 million in quarterly revenue, indicating potential for future growth [5] - The company is shifting to a systematic 'IP factory' approach, utilizing data-driven mechanisms for IP planning, production, and promotion [5] Growth Outlook and Strategic Initiatives - Q3 revenue guidance is projected between RMB 140 million and RMB 150 million, accounting for seasonal distributor slowdowns and a proactive product launch schedule [5] - Full fiscal year 2026 revenue is expected to be between RMB 750 million and RMB 810 million, reflecting confidence in the scaling IP portfolio [5] - Management plans to transition IPs from 'physical spaces' to 'narrative spaces' through a new live content strategy and short-form storytelling [5] Operational Adjustments and Strategic Partnerships - The company expanded its offline presence with five new D2C stores and distributor channels to enhance user interaction and brand loyalty [5] - A joint venture was established with Enlight Media to integrate professional content creation and film/television development into the IP ecosystem [6] - The deployment of intelligent sales robots to offline locations is planned to innovate user interaction through AI-driven smart terminals [5] Financial Metrics - Gross margin decreased to 31% from 41% due to a strategic shift toward offline distributor channels, which have lower per-unit margins compared to direct online sales [5] - Inventory increased significantly to RMB 111.8 million to mitigate risks from Chinese New Year factory closures and support upcoming product launches [5] - Accounts receivable decreased despite revenue growth, attributed to improved collection discipline and customer engagement management [5]