Here Group, a Beijing-based company developing collectible toys and intellectual property-driven consumer products, reported RMB596.8 million ($88 million) in revenue for fiscal 2026, its first full fiscal year focused on the pop toy business. The company also reported a net loss from continuing operations of RMB254.9 million ($37.6 million), including a substantial goodwill impairment charge associated with its acquisition of Letsvan. Alongside its financial results, Here announced the departure of Liu Xihao from its board of directors and senior management team.
For the fourth quarter ended June 30, 2026, Here generated RMB127.7 million ($18.8 million) in revenue, representing a 94.1% increase from the corresponding quarter a year earlier.
However, quarterly revenue declined 22.5% from RMB164.7 million in the third quarter, primarily reflecting a challenging market environment and lower sales through the company’s distribution channels.
The company attributed its year-over-year growth to higher sales from both established and newly launched intellectual property product lines.
Here has been transitioning its business toward collectible toys built around proprietary and licensed intellectual property.
As of June 30, 2026, the company had 22 intellectual properties, consisting of 13 proprietary IPs and nine exclusively licensed IPs.
Its strategy focuses on developing consumer products around these properties while expanding distribution through self-operated retail stores, online platforms, temporary retail locations, and third-party channel partners.
The company has also been pursuing co-branding partnerships and targeted marketing initiatives to expand its audience and improve brand recognition.
Despite higher year-over-year revenue, Here reported a substantially larger fourth-quarter loss.
Its net loss from continuing operations reached RMB169.6 million ($25 million), compared with RMB34.1 million in the third quarter and RMB21.8 million during the corresponding quarter a year earlier.
The fourth-quarter results included a RMB124.1 million ($18.3 million) goodwill impairment charge related to the acquisition of Letsvan.
The impairment reflected lower-than-anticipated financial performance amid macroeconomic challenges. Following the charge, the remaining goodwill associated with the acquisition stood at RMB63.5 million.
Excluding certain items, Here reported an adjusted fourth-quarter net loss from continuing operations of RMB37.7 million ($5.6 million), compared with RMB22.9 million during the third quarter and RMB19.3 million a year earlier.
The company generated RMB33 million in fourth-quarter gross profit, calculated from revenue of RMB127.7 million and cost of revenue of RMB94.7 million.
However, continued investment in product development, marketing, and retail operations contributed to operating losses.
Fourth-quarter sales and marketing expenses totaled RMB56.2 million ($8.3 million), compared with RMB19.1 million during the prior-year quarter.
Research and development expenses reached RMB9.9 million ($1.5 million), while general and administrative expenses totaled RMB25.8 million ($3.8 million).
Management attributed the elevated expenditure primarily to investment in brand development, product design, personnel, and the expansion of its multichannel distribution infrastructure.
For the full fiscal year, Here reported RMB596.8 million in revenue, compared with RMB65.8 million during fiscal 2025. The company noted that the two periods are not directly comparable because of the presentation of discontinued operations and its transition toward the pop toy business.
Full-year cost of revenue reached RMB399.5 million, while sales and marketing expenses totaled RMB194.4 million.
Research and development spending increased to RMB44.3 million, reflecting continued investment in product design and the development of its intellectual property portfolio.
The company’s full-year adjusted net loss from continuing operations was RMB93.9 million ($13.8 million), compared with RMB19.3 million during fiscal 2025.
Alongside the results, Here provided an update on its $20 million share repurchase program, which was approved in June 2026.
The program authorizes the company to repurchase up to $20 million of its Class A ordinary shares, represented by American Depositary Shares, between July 1, 2026, and June 30, 2027.
As of September 16, Here had repurchased approximately 400,000 ADSs for an aggregate consideration of $700,000.
The company also announced that Liu Xihao resigned from the board and stepped down as Senior Vice President, effective September 22, 2026, to pursue other professional opportunities.
Here stated that her departure was not related to any disagreement with the company, its board, or management regarding its operations, policies, or practices.
Looking ahead, the company intends to strengthen its intellectual property portfolio, improve its retail operations, develop additional co-branding relationships, and implement cost-management initiatives.
Management said these efforts are intended to establish a more efficient operating model and support the company’s longer-term objective of achieving profitability.
KEY QUOTES:
“We closed FY 2026 with fourth quarter revenues of RMB127.7 million, and full-year revenues of RMB596.8 million. FY 2026 was our first full fiscal year focused on the pop toy business, and we made meaningful progress in building the operational foundation and refining our operating model.”
Peng Li, Chairman And CEO Of Here Group
“During the quarter, our revenue grew 94.1% year over year but declined sequentially, primarily due to a challenging market environment and lower channel sales. We continued to invest in our self-operated system, including IP development, store operations, and brand promotion.”
Dong Xie, CFO Of Here Group
