Core Viewpoint - Bloks Group Limited, known as the "Chinese version of LEGO," went public on the Hong Kong Stock Exchange on January 10, 2024, and has rapidly become the largest assembly character toy company in China and the third largest globally, driven by strong IP operation capabilities, cost-effective products, and an efficient supply chain [1][4]. Group 1: Company Overview - Founded in 2014, Bloks focuses on the design, research, and sales of assembly character toys, holding over 50 globally recognized IPs including Ultraman, Transformers, Marvel Heroes, and Naruto [1]. - Bloks has established a market leadership position in the assembly character toy sector since its strategic shift in 2022, particularly after acquiring licenses for Ultraman in 2021 and Transformers in 2022 [4]. Group 2: Financial Performance - According to Citigroup's report, Bloks is expected to achieve a compound annual growth rate (CAGR) of 54% in adjusted net profit and 52% in revenue from 2024 to 2027 [1]. - The company reported a net profit of RMB 74 million for 2023, with projections of RMB 582 million for 2024 and RMB 2.131 billion for 2027, indicating significant growth [2]. Group 3: Competitive Advantage - Bloks' competitive edge lies in its high cost-performance ratio, targeting children aged 6-16 with products priced between RMB 19.9 and RMB 79, significantly lower than competitors like Bandai, which targets adult fans with prices ranging from RMB 99 to RMB 1000 [4]. - The company holds a 30.3% market share in China's assembly character toy market and a 6.3% share globally, ranking first in China and third worldwide [5]. Group 4: IP Strategy - Bloks' business model is heavily reliant on its IP portfolio, with over 50 licensed IPs and two self-developed IPs [6]. - The company plans to diversify its IP strategy to reduce reliance on key IPs, with Ultraman and Transformers expected to contribute 49% and 20% of revenue in 2024, respectively [8][11]. Group 5: Product Development - Bloks employs a "standardized structure + customized appearance" model for product design, allowing for rapid iteration and innovation, with a product development cycle of 6-7 months compared to the industry average of 10-12 months [12]. - The company aims to launch 800-1000 SKUs by 2025, significantly increasing from 197 in 2023 and approximately 400 in 2024 [12]. Group 6: Market Expansion - Bloks plans to increase its sales points in China from 150,000 in 2024 to 250,000-300,000 in 2025, focusing on lower-tier cities [13]. - The company is also expanding its overseas presence, with expectations for international business to grow from 3% of revenue in 2024 to 10% in 2025, targeting regions such as Southeast Asia, North America, and the EU [15].

Core Viewpoint - The company reported impressive financial results for 2024, with revenue reaching RMB 2.241 billion, a year-on-year increase of 155.6%, and a net profit of RMB -0.401 billion, up 94.59% year-on-year [1] Financial Performance - The company achieved a revenue of RMB 2.241 billion in 2024, reflecting a 155.6% increase compared to the previous year [2] - The net profit for 2024 was RMB -0.401 billion, which is a 94.59% increase year-on-year [1] Product and IP Focus - The company shifted its focus to character-building toys, with revenue from this segment reaching RMB 2.201 billion, a year-on-year increase of 186.22%, accounting for 98.2% of total revenue [2] - The four major IPs, Ultraman, Transformers, Hero Infinite, and Kamen Rider, contributed significantly to sales, with Ultraman generating RMB 1.096 billion (48.9% of total revenue) and showing a year-on-year growth of 96.83% [3] Sales Channels and Market Expansion - Offline sales through distributors accounted for the majority of revenue, with RMB 2.063 billion from offline channels, a 181.54% increase year-on-year, representing 93% of total revenue [3] - The domestic market saw revenue of RMB 2.177 billion, a 151.27% increase, while overseas revenue reached RMB 0.064 billion, a remarkable 518.16% increase year-on-year [3] Strategic Initiatives - The company introduced the concept of a "product ecosystem" at the global partner conference, emphasizing user needs and innovation in product development [4] - Plans for future growth include expanding product offerings to target female and adult consumers, deepening market penetration in lower-tier cities, and enhancing overseas market presence [4][5] Future Projections - Revenue projections for 2025-2027 are RMB 4 billion, RMB 6 billion, and RMB 7.8 billion, with year-on-year growth rates of 79%, 50%, and 30% respectively [5] - Expected net profits for the same period are RMB 0.95 billion, RMB 1.55 billion, and RMB 2.18 billion, with significant year-on-year growth rates [5]