Here Group Ltd. published the transcript of its Q2 FY 2026 earnings call (March 12, 2026). The call featured Founder, Chairman and CEO Peng Li, CFO Tim Xie, and Investor Relations Manager Tina Tang, with analysts including Alice Cai (Citi), Liping Zhao $(CICC)$, Yikun Zheng (CITIC Securities), and Di Shi (Huatai Securities). Management reported Q2 revenue of RMB 177.3 million, up 39.4% quarter over quarter, driven primarily by offline channel sales. The company’s flagship IP WAKUKU generated RMB 129.4 million (73% of revenue), while SIINONO delivered RMB 19.2 million and showed accelerating traction. Gross margin fell to 31% from 41% as the company expanded lower-margin offline distributor channels, which management framed as a strategic investment to deepen user engagement through physical retail experiences. The company also highlighted five new offline DTC stores opened since December 2025, improving supply-chain capacity to roughly 50 times early-2025 levels, and building “light content” to expand IP storytelling. “This quarter marks a significant milestone. It’s our first full quarter operating as a dedicated IP trend company,” the CEO said, adding that “Total revenue reached RMB 177.3 million… [and] reflects sustained and steady momentum.” On profitability, the CFO said, “Our gross margin decreased… The margin decline reflects our strategic expansion of offline channels… aligning with the Company’s long-term vision as a leading IP trend company.” Looking ahead, the CFO guided Q3 FY2026 revenue to RMB 140 million to 150 million, citing Spring Festival seasonality and distributor stocking behavior, while noting “major new products expected to launch successively starting from this end of March.” Management also addressed a partnership with Enlight Media, saying it supports a “Product and Content” dual-drive approach and could expand into film and television content and derivatives, with further details to be disclosed when there is “substantial progress.” The full transcript can be accessed through the link below.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Here Group Ltd. published the original content used to generate this news brief on March 13, 2026, and is solely responsible for the information contained therein.
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