Financial Performance - Total revenues for Q4 FY2025 were RMB 6178 million[8], with Pop Toy Business contributing RMB 658 million[8] - Adjusted Net Income for Q4 FY2025 was RMB 1112 million[8], a YoY decrease of 426%[8] - The company reported Cash and Cash Equivalents, Restricted Cash and Short-term Investments of RMB 10409 million[8] Pop Toy Industry and Letsvan Acquisition - The global toy market grew at a CAGR of 52% from RMB 6312 billion in 2019 to RMB 7731 billion in 2023[9], and is expected to reach RMB 9937 billion in 2028[9] - China's blind box market is projected to reach RMB 58 billion by 2025, accounting for 65% of the global share[10] - Letsvan was acquired and fully consolidated, focusing on IP commercialization and targeting the younger generation[6, 12] Strategic Initiatives and Partnerships - Letsvan became a core marketing partner of the 2025 China Open, launching 10 co-branded WAKUKU x China Open products[18] - Strategic distribution partnerships include a wholesale network of over 10000 retail stores domestically and expansion to over 20 countries internationally[28] - Online GMV in China Market achieved RMB 18M+ in August 2025, representing 9x April's level[29] IP Portfolio and Product Development - The company has a portfolio of 15 IPs, including 11 self-owned, 2 exclusive licensed, and 2 non-exclusive[8, 39] - The company focuses on data-driven IP incubation, end-to-end supply chain management, and omni-channel distribution network[13]

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].