Here Group Reports 35.4% QoQ Growth, 31% Margin and RMB 140–150M Q3 Guidance
Here Group delivered 35.4% quarter-over-quarter revenue growth in Q2 2026, led by flagship IP WAKUKU's 73% share and RMB 19.2 million from emerging IP SIINONO. Management forecasts RMB 140–150 million in Q3 revenue and full-year sales of RMB 750–810 million while margins dip to 31%.
1. Q2 Financial Performance
Here Group posted 35.4% quarter-over-quarter revenue growth in Q2 2026, with flagship IP WAKUKU contributing 73% of total sales and emerging IP SIINONO generating RMB 19.2 million. The shift from opportunistic creativity to a data-driven IP factory model supported this performance.
2. Growth Outlook and Guidance
The company set Q3 revenue guidance at RMB 140–150 million, reflecting seasonal distributor slowdowns and a proactive product launch schedule. Full-year 2026 revenue is projected between RMB 750 million and RMB 810 million as management scales its IP portfolio.
3. Operational Adjustments
Gross margin declined to 31% from 41% due to a strategic pivot toward lower-margin offline distributor channels. Inventory levels rose to RMB 111.8 million to mitigate Chinese New Year factory closures, while accounts receivable fell thanks to tighter collection discipline.
4. Strategic Initiatives and Expansion
Here Group has expanded its offline footprint with five new direct-to-consumer stores and additional distributor channels, scaled production capacity roughly 50-fold since early 2025, and formed a joint venture with Enlight Media for content and film development. Plans include launching live content strategies, deploying AI-driven sales robots, and pursuing international IP collaborations.