Core Insights - The article highlights the launch of a pop-up event by the company Qimengdao Group in Shanghai, showcasing its new WAKUKU brand collaboration and emphasizing the experiential consumption trend in the local toy market [2][3]. Group 1: Event Highlights - The pop-up event at Shanghai K11 features the debut of the WAKUKU Frida limited edition tags, attracting numerous fans of trendy toys [2]. - The event includes immersive experiences with vibrant displays, particularly the large WAKUKU mascot, and showcases other IPs like Youli and SIINONO [2]. - Consumers express enthusiasm for the limited-time nature of the event, highlighting the unique in-person experience compared to online shopping [2]. Group 2: Business Performance - In the fourth quarter of fiscal year 2025, the WAKUKU IP generated revenue of 42.96 million yuan, indicating strong market performance since its breakout in late 2024 [3]. - The plush toy "Fox Rabbit Mischief Diary" has sold over 1 million units since its launch in May, while the new IP SIINONO surpassed 300,000 units in sales shortly after its July debut [3]. - The original IP Youli also showed steady growth, contributing 17.51 million yuan in revenue during the same quarter [3]. Group 3: Strategic Initiatives - Qimengdao is expanding its pop-up store strategy, with plans for a "dual-city" event in Beijing and Shanghai during the 2026 New Year, featuring exclusive city-themed activities [2]. - The company has established a presence in Southeast Asia and North America, leveraging pop-up events and local partnerships to gain recognition among overseas consumers [2][3]. - The combination of capital investment, IP incubation, and multi-channel operations is becoming a mainstream development path for local toy brands [3].

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]