Sep 22, 2026 earnings call — Shift to D2C closed-loop IP strategy
Q4 revenue was CNY 127.7 million, up 94.1% year-over-year, full-year revenue CNY 596.8 million.
Revenue $0.1B (est $0.2B) · EPS $-0.12 (est $0.16)
Key quotes
"To protect our brand from external volatility, we are shifting our business model into a strategic closed loop."
"As of June 30, 2026, our total portfolio expanded to 22 IPs, compromising 13 proprietary IPs and nine exclusively licensed IPs."
"Each D2C store is integrated into our self-operated brand system with a unified IP expression, serving not only as a sales channel but also as a core space for user interaction."
Analyst Q&A 3
creating and selling new character brands
Q (Liping Zhao · CICC): The analyst asked about plans for exploring, incubating, and commercializing new IPs (character brands).
A: They have a systematic approach covering the full IP life cycle: discovery, incubation, and commercialization, and they currently have 22 properties. Discovery uses both in-house creation and artist collaborations; incubation uses data and emotional positioning; commercialization includes rolling out new products and cross-industry partnerships such as beverages, museums, and fashion, plus event partnerships.
"In terms of new IP discovery, incubation, and commercialization, we have developed a systematic approach that takes our IPs from zero to one with, as we mentioned, 22 properties." — Tina Tang
offline stores and expansion plans
Q (Yikun Zheng · CITICS): The analyst asked for an update on current offline channels and the company's expansion plans given recent industry fluctuations.
A: They have opened seven D2C brand stores across four core cities since the end of last year, and this quarter opened a new store at Beijing Daxing International Airport to reach travel consumers. They treat each D2C store as a branded user interaction space, prioritize quality over quantity, have largely completed Roboshop rollout, and will only open new locations after strict ROI and site reviews.
"Currently, we have opened seven D2C brand stores across four core cities in China since end of last year." — Tim Xie (CFO)
inventory levels and management plans
Q (Di Shi · Huatai): The analyst asked how recent sell-in and sell-through performed and how the company expects to manage inventory going forward.
A: Channel inventory ran higher than their normal operating range this quarter, caused by a structural mismatch between a cooling macro environment and their historical operating pace and limited real-time visibility from traditional wholesale. They will use omni-channel tactics, moderated international sell-in, targeted channel clearing offers, and tighter self-operated forecasting via D2C stores and Roboshops to work down inventory over time; they expect the process to take time and will avoid aggressive brand-damaging clearances.
"The channel inventory did run higher than our normal operating range this quarter." — Tim Xie (CFO)