Core Insights - Quantum Song reported a revenue of approximately 571 million yuan and a net profit of about 41.14 million yuan for the third quarter of the fiscal year 2025, marking the eighth consecutive quarter of profitability [1] - The company has optimized its business structure and improved operational efficiency, with a significant 45.8% year-on-year decrease in sales expenses, indicating effective cost control [1] - Quantum Song has strategically shifted its focus towards product-driven growth and expansion into high-growth markets, successfully navigating a challenging quarter [1] Investment and Acquisition - Quantum Song completed a controlling acquisition of approximately 61% of Shenzhen Yiqi Cultural Co., Ltd. (Letsvan) for a total cash consideration of 235 million yuan, marking its entry into the trendy toy sector [1] - The acquisition is expected to provide Letsvan with new development opportunities, supported by Quantum Song's strategic investment and resources [2] Brand and Market Performance - Letsvan's popular IPs, such as WAKUKU and ZIYULI, have gained significant traction on social media, with the theme song for WAKUKU surpassing one billion views, enhancing brand recognition [2] - Letsvan's trendy toy products have consistently ranked among the bestsellers on Tmall, with the WAKUKU "Mao Mao Trendy Party" series selling over 20,000 units and the second-generation plush product selling over one million units on its launch day [3] Future Outlook - The acquisition and subsequent business expansion are expected to provide Quantum Song with new growth avenues, with plans to continue deepening its presence in the trendy toy sector [3] - The company aims to further optimize its product structure and enhance operational efficiency to solidify and expand its market share [3]

Core Viewpoint - Quantum Song reported a significant decline in revenue and net profit for the third quarter of fiscal year 2025, indicating challenges in its core online learning business while exploring new opportunities in the trendy toy industry [1][2]. Financial Performance - The company's revenue for the third quarter was 570.7 million yuan, a decrease of 21.5% quarter-on-quarter and 39.6% year-on-year [1]. - Net profit stood at 41.1 million yuan, down 67.5% quarter-on-quarter but up 181.2% year-on-year [1]. - Adjusted net profit was 37.8 million yuan, reflecting a 71.3% decline quarter-on-quarter and an 18.5% increase year-on-year [1]. Business Segment Analysis - Revenue from personal online learning services was 467.2 million yuan, a year-on-year decrease of 43.6% [1]. - The decline in online learning revenue was attributed to a reduction in skills enhancement course income by 268.3 million yuan, financial literacy course income by 74.1 million yuan, and leisure and entertainment course income by 18.5 million yuan [1]. - Other business revenue increased to 6.7 million yuan from 3 million yuan year-on-year, driven by new business initiatives [1]. Strategic Shift - The company is transitioning from a traffic-driven growth model to a focus on high-quality growth, as indicated by a 45.8% decrease in sales and marketing expenses to 395.2 million yuan [2]. - Quantum Song is investing in the trendy toy industry, having acquired Shenzhen Yiqi Culture Co., Ltd. (Letsvan), which operates multiple established IPs [2]. - The chairman stated that the company aims to enhance operational efficiency and expand its trendy toy business, focusing on retail partnerships, self-operated retail spaces, and online brand development [2]. Cash Position - As of March 31, 2025, the company held cash and cash equivalents, restricted cash, and short-term investments totaling 1.1349 billion yuan, an increase from 1.0263 billion yuan as of June 30, 2024 [3].