In June 2026, BLOKEES’ (HK:00325) share price fell to a 52-week low of HKD 39.2 (approx. USD 5.03); a little over a month later, its share price had rebounded to nearly HKD 80 (approx. USD 10.26), a rebound of more than 100%. If one looks only at revenue growth, BLOKEES has delivered a report card continuing its high growth; on a closer read, this half-year report may reveal the important significance of “all demographics, all price points, globalization” transforming from a strategic slogan into an observable source of growth.
Beneath the Growth: More Than Just Selling More “Building-Block Figures”
In the first half of 2026, BLOKEES (HK:00325) achieved revenue of RMB 1.776 billion (approx. USD 262 million), up 32.7% year-on-year; profit for the period of RMB 387 million (approx. USD 57.1 million), up 30.5% year-on-year; and adjusted profit of RMB 401 million (approx. USD 59.1 million), up 25.1% year-on-year. For a toy company still in a period of category expansion, the simultaneous growth of revenue and profit shows that scale expansion has not yet come at the obvious cost of sacrificing profitability.
What deserves more attention is the structural change. Building-block character toys brought in revenue of RMB 1.585 billion (approx. USD 234 million), still contributing 89.3% of revenue; building-block vehicle toys, launched in November 2025, have already contributed RMB 185 million (approx. USD 27.3 million), a share of 10.4%. At the same time, the revenue share of the top six best-selling IPs fell from 88.8% in the same period last year to 77.6%, and the revenue share of products for ages 16 and above rose from 14.8% to 25.0%. This means that BLOKEES is simultaneously lowering the concentration of a single category, top-tier IPs, and the child customer group, and its second growth curve no longer remains at the level of new-product launches.
In-Depth Study: Price, Channels, and Overseas
First is low price. Products priced at RMB 9.9 brought in revenue of RMB 347 million (approx. USD 51.2 million) in the first half, accounting for 19.5% of total revenue; sales volume was 77.5 million units, accounting for 47.6% of total sales volume. One example: among users who completed the activation of the Transformers Starlight Edition within the mini-program, 60% were new users, and the repurchase rate of this batch of new users exceeded 70%, which shows that low-price products are not simply “cutting prices to trade for volume,” but are taking on the functions of a customer-acquisition entrance, reaching down-market segments, and serving as a genuine-product substitute.
But the boundary of the low-price strategy is equally clear. Sales volume of building-block character toys grew 26.5%, while revenue grew only 19.6%; the company’s gross margin fell 4.1% year-on-year, and its adjusted net margin fell 1.3%. Although this “tiny” change has not proven the problem that the channel end previously worried about — that selling the same IP across price bands would divert products priced at RMB 39 and above — it does suggest that in the next phase management should focus on “whether, after acquiring customers at low prices, they can be upgraded to higher price points,” and not just on sales volume.
Second is channels. Offline distribution revenue was RMB 1.592 billion (approx. USD 235 million), up 31.4% year-on-year, accounting for 89.7% of total revenue; online revenue was RMB 181 million (approx. USD 26.7 million), up 68.1% year-on-year. Offline provides broad coverage and instant experience, while online supplements user data and content dissemination, and this combination remains BLOKEES’ efficiency advantage. But the risk lies in the fact that the company’s revenue is mainly from sales to distributors. According to the BCC Research, the company’s distributor-system adjustment last year brought a relatively high degree of inventory saturation, and the essence of that adjustment was to achieve inventory transfer by splitting up large regions, shifting the metrics downward within regions and toward newly added distributors. From the financial report data, the company’s own inventory rose from RMB 331 million (approx. USD 48.8 million) to RMB 432 million (approx. USD 63.7 million), but its turnover days fell from 75 days to 73 days; at the present stage this looks more like stocking up for growth than a deterioration in inventory efficiency. However, the financial report cannot directly present terminal sell-through and distributor inventory, and whether the more clearly structured channel system after adjustment can raise terminal sell-through capability is worth watching.
Third is overseas. First-half overseas revenue was RMB 366 million (approx. USD 54.0 million), up 228.5% year-on-year, with its revenue share rising to 20.6%; the United States and Indonesia were the two countries with the highest overseas revenue, and revenue in the Americas in particular grew about 349% year-on-year, showing that BLOKEES has moved from testing the waters of going overseas toward large-scale channel expansion. Experts interviewed by BCC once specifically emphasized that North American consumers present thresholds of brand awareness, price expectations, and cultural adaptation. The latest performance proves that overseas demand has already been opened up, but local IP selection, retail display, compliance, and warehousing costs still determine whether growth can settle into profit; the increase in professional service fees related to overseas warehouse operations in this period is precisely a necessary investment in building globalization capabilities.
China’s Building-Block Toys Enter “Competition of Systematic Capabilities”
The base of China’s toy consumption is still expanding. Data from the China Toy and Juvenile Products Association shows that in 2025, domestic toy (excluding trendy toys) retail sales were RMB 103.53 billion (approx. USD 15.3 billion), up 5.8% year-on-year; trendy and collectible toy retail sales were RMB 67.69 billion (approx. USD 9.98 billion), up 45.4% year-on-year, with 56.8% of surveyed consumers regarding IP as the factor they pay the most attention to when choosing trendy toys.
The demand side is not just “young people buying toys,” but even more so adult emotional consumption. According to supplementary views from the BCC Research, the Chinese market is considered similar to Japan’s consumption stage around 2004: when expectations are under pressure, those born in the 1990s and 2000s tend to obtain instant gratification through low-threshold consumption; this same source also states that consumers aged 16–25 account for about 60% of the toy market, with males in the majority. The above proportions have not been seen in public statistics of the same caliber, and this article treats them as trend observations rather than definite shares; but their direction mutually corroborates with BLOKEES’ revenue share of products for ages 16 and above rising to 25.0%.
Industry competition has therefore been upgraded from “who can make a product” to four systematic capabilities: continuously obtaining and operating IP, rapidly engineering designs and mass-producing them, covering different demographics with multiple price bands, and completing localization within global channels. It is worth noting that the “2025 China Toy and Juvenile Products Industry Development White Paper” shows that China’s toy exports in 2025 were USD 34.81 billion, down 12.7% year-on-year, indicating that the industry’s overseas expansion has not been a universal tailwind, which further highlights how “rare and commendable” BLOKEES’ high overseas growth is.
Overall, BLOKEES has handed in an “answer sheet” that supports its reversal; the key to the next phase is not to prove that it can still sell more SKUs, but to prove that new users can be upgraded, that distribution channels can turn over healthily, and that overseas revenue can be converted into stable profit. If these three points continue to be delivered, BLOKEES’ story may further move from “a high-growth toy company” toward “a globalized IP consumer-goods platform.”
[Disclaimer]: The above content reflects analysis of publicly available information, expert insights, and BCC research. It does not constitute investment advice. BCC is not responsible for any losses resulting from reliance on the views expressed herein. Investors should exercise caution.