HERE Dream Island Q2 Financial Report: Revenue of 177 million yuan, exceeding the upper limit of performance guidance

On March 12, HERE Qimengdao (NASDAQ: HERE) released its unaudited financial results for the second quarter of fiscal year 2026 (from October 1, 2025 to December 31, 2025). In this quarter, Qimengdao achieved operating revenue of RMB 177 million, up 39.4% quarter-over-quarter, exceeding the upper limit of the company’s prior performance guidance. This marks the company’s first complete operating quarter since its transformation into a trendy toy business, delivering strong growth.

The IP matrix continues to expand, and the operating system is steadily improved

In this quarter, HERE Qimengdao’s three major core IPs—WAKUKU, SIINONO, and ZIYULI—performed remarkably well, becoming the core drivers of revenue growth. Among them, WAKUKU generated revenue of RMB 129 million, firmly remaining the company’s largest revenue source; SIINONO’s revenue reached RMB 19.229 million, and ZIYULI’s revenue was RMB 9.504 million. The three main IPs have validated the effectiveness of the company’s product strategy of “focusing on core IP with IP at the center.”

As of December 31, 2025, HERE Qimengdao had 11 owned IPs and 7 licensed IPs, covering multiple styles such as cutie/anime-like, trend-driven, fantasy, and healing, meeting the needs of different consumer groups. Around core IPs such as WAKUKU, SIINONO, ZIYULI, FILLA, and FUNII, Qimengdao continued to launch a series of new products, enriching product lines and consumption scenarios, including plush blind boxes, accessories, figurines, and everyday-use items. This has formed a complete consumption closed loop of “content + products + experiences.”

Of note, HERE Qimengdao quickly achieved large-scale operations. In early 2026, monthly production capacity was about 50 times that of early 2025. Its supply chain and operating system were gradually improved, and responsiveness was significantly enhanced, providing strong support for fast onboarding of hit products and broader market coverage.

Cross-industry collaborations accelerate the “breakout,” and IP influence continues to expand

In this quarter, HERE Qimengdao, guided by its brand philosophy of “joy, sincerity, curiosity, and co-creation,” continued to push cross-industry collaborations to break through the mainstream. Its core IP product lines continued to unlock commercial value, while brand heat and market influence rose in tandem.

Qimengdao and Beijing Radio and Television Station entered into a strategic cooperation. WAKUKU made an appearance at the opening dance performance of Beijing TV’s Spring Festival Gala, and “Snow Fu Ti Ti” sold out immediately upon launch, achieving efficient conversion from the media side to the consumer side.

Qimengdao and the China Tennis Open launched co-branded WAKUKU products, and the “Entering the Painting Like a Dream” series of ZIYULI products were both recognized as “Beijing Gifts” among the top ten winning works. Through activities such as the “Hello, China” international promotion, trendy toys have become a new carrier for going global with culture and internationally communicating the achievements of civilization.

In terms of brand heat, Qimengdao’s official accounts across all platforms saw its follower count exceed 700,000. The cumulative number of exposures related to the brand across social media and information platforms exceeded 1.8 billion times. User engagement and content dissemination capabilities were significantly enhanced. In particular, by breaking into broader mainstream reach through collaborations with celebrities, the brand’s visibility was expanded and the influence on younger consumer groups was increased.

Creating an immersive experience to enhance brand perception

To strengthen its connection with consumers and improve brand perception, HERE Qimengdao has continued to build immersive experience spaces offline. To date, five Qimengdao brand image stores have opened in core commercial districts in places including Beijing, Shenzhen, and Chongqing. Through scenario-based displays and interactive experiences, Qimengdao brand image stores provide consumers with comprehensive brand perception, further enhancing user stickiness and brand loyalty.

Qimengdao has creatively launched “WAKUKU Take You to Tour Chaoyang,” co-developed the 2026 new spring trendy toy fair and themed street zones. The Box’s themed landscape belt along Liangma River has become a check-in hotspot, showcasing a Beijing vibe, highlighting the new rhythm of an ancient capital, and helping a fashion city. In places such as Tianjin and Xiamen, it has carried out city cultural and tourism cooperation to promote deep integration between IP and city culture. In core commercial districts such as Beijing Wangfujing (600859), Tianjin Drum Tower, and Shanghai K11, it has built year-end themed exhibitions to achieve high-traffic, city-level brand exposure.

HERE Qimengdao Chairman Li Peng said: “In this quarter, the company achieved its first full operating quarter as an independent IP trendy toy company. Focusing on ‘IP products, content, and experiences,’ the company has built a replicable IP asset operations system: continuously enriching the IP matrix, accelerating product iteration, and optimizing content creativity. At the same time, it is expanding diversified sales channels, achieving a synchronized increase in brand momentum and sales capability. With the continuous improvement of the organization and operating system, we are confident in seizing opportunities in the global IP trendy toy market and continuously unlocking IP value, delivering long-term, steady returns to shareholders.”

HERE Qimengdao’s founder, CEO, and Chief Product Officer Zhan Huiyu added: “We adhere to putting users’ emotional needs at the starting point, and focus on deep operations of core IPs. In the past year, our product strength has not only been reflected in breakthroughs in IP and products, but also in our precise control over the IP lifecycle. We do not chase short-term hype; instead, we are converting ‘momentary popularity’ into IP’s ‘long-term companionship’ through continuous product innovation, building an IP moat, and making every product a medium for conversation with users.”