BLOKS Reports 32.7% Revenue Growth and 30.5% Profit Surge in 1H26

Bulletin Express
2 hours ago

BLOKS Group Limited released its 2026 interim results, highlighting solid top-line expansion and sustained profitability.

Revenue reached RMB 1.78 billion, up 32.7% year-on-year, driven chiefly by assembly character toys (RMB 1.59 billion, +19.6%) and the November-launched assembly vehicle line (RMB 185.48 million, 10.4% of total sales). Overseas revenue more than trebled to RMB 365.90 million, while China sales rose 14.9% to RMB 1.41 billion.

Gross profit climbed 21.5% to RMB 786.44 million; gross margin slipped 4.1 percentage points to 44.3% on higher mold depreciation and product-mix shifts. Operating expenses remained contained: selling and distribution rose 20.9% to RMB 213.84 million (12.0% of revenue), R&D edged up 2.0% to RMB 131.44 million (7.4% of revenue), and administrative costs increased 34.4% to RMB 63.48 million.

Profit before tax advanced 28.1% to RMB 430.87 million, and profit for the period increased 30.5% to RMB 387.08 million. Adjusted profit (excluding share-based payments) totaled RMB 400.83 million, up 25.1%, yielding an adjusted net margin of 22.6%. Basic and diluted EPS both rose to RMB 1.56.

The balance sheet remained robust with RMB 3.18 billion in cash and bank balances, including RMB 2.15 billion in time deposits over three months. Inventories stood at RMB 431.94 million (73 turnover days), and the gearing ratio was 29.3%. No borrowings or significant contingent liabilities were reported.

BLOKS declared an interim dividend of HK$0.3247 per share, payable on or around 24 September 2026 to shareholders of record on 10 September 2026.

Management reiterated its “all-demographic, all-price, global” strategy, citing continued R&D investment, channel expansion and IP diversification. Key franchises—including Transformers, Ultraman and Naruto—accounted for 77.6% of sales, while new vehicle and dinosaur lines contributed incremental growth.

After the reporting date, the company repurchased 1.10 million shares, subsequently cancelled on 26 August 2026, and rolled out its original IP series “ASTRAL RALLY,” receiving positive initial feedback.

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