Here Group Limited (NASDAQ: HERE): Corporate Profile & Financials

Source: Here Group Limited Form 20-F Fiscal Year 2026

📋 Quick Facts / Company Snapshot

🏢 The Corporate Identity: Who They Are & Where They Came From

The Big Picture

Here Group Limited (formerly known as QuantaSing Group Limited) is an exempted company with limited liability incorporated under the laws of the Cayman Islands. The company has undergone a fundamental strategic pivot, transitioning from a traffic-driven online adult learning platform into a consumer-focused, product-driven pop toy company. Operating primarily under the “HERE奇梦岛” brand, the enterprise designs, incubates, commercializes, and distributes collectible pop toys, including plush toys, vinyl figures, blind boxes, and character-based merchandise.

Following a corporate restructuring and the complete divestiture of its legacy individual online learning services and consumer businesses in September 2025, Here Group Limited operates as a pure-play pop toy entity. The company leverages a multi-channel global distribution framework integrating direct-to-consumer (DTC) physical retail stores, automated roboshops, domestic and international e-commerce platforms, and wholesale distributor networks.

• Core Brand Identity: Operates consumer retail and collectible experiences under the “HERE奇梦岛” brand.
• IP Portfolio Expansion: Built a portfolio of 22 intellectual properties as of June 30, 2026, including 13 proprietary IPs and 9 exclusively licensed IPs.
• Corporate Headquarter Location: Principal executive operations are managed out of Two Exchange Square in Central, Hong Kong, with operational hubs across Shenzhen, Beijing, Shanghai, Hangzhou, and Dongguan.

The Founders & Their Legacy

Here Group Limited was founded by Mr. Peng Li, who serves as the Chairman of the Board of Directors and Chief Executive Officer. Prior to founding the group, Mr. Li developed extensive entrepreneurial and leadership expertise in consumer digital platforms and technological operations across major Chinese internet companies, including Baidu.com, Inc. and UCWEB Internet Technology Co., Ltd. Under his stewardship, the organization executed an initial public offering on the Nasdaq Global Market in January 2023 under the ticker “QSG” before rebranding to “HERE” in November 2025.

To spearhead its pop toy division, the company integrated key creative leadership through strategic acquisitions. In March 2025, the group acquired a controlling interest in Shenzhen Yiqi Culture Co., Ltd. (Shenzhen Letsvan), founded by Mr. Huiyu Zhan. Mr. Zhan, who serves as the company’s Chief Product Officer and Director, brought deep operational background in cultural gifts, pop toy incubation, and retail management, establishing the design methodology behind flagship characters such as WAKUKU.

• Founder & CEO: Mr. Peng Li retains majority voting control of the enterprise through Class B ordinary shares.
• Chief Product Officer: Mr. Huiyu Zhan leads IP character creation, product design, and artistic incubation.
• Voting Rights Alignment: Dual-class share structure yields 82.4% aggregate voting power to the founder as of October 21, 2026.

The Journey: History & Evolution

The company originally established its operations in July 2019, providing adult online learning services under consumer brands such as Qiuniu, Jiangzhen, and Qianchi. In anticipation of its U.S. public listing, the group completed a corporate restructuring in May 2022 to separate its core online learning and enterprise service operations into a centralized holding structure under QuantaSing Group Limited. In January 2023, the group completed its initial public offering on the Nasdaq Global Market, raising approximately US$38.6 million in net proceeds.

Recognizing evolving consumer spending patterns toward emotional fulfillment and lifestyle collectibles, the group initiated diversification into consumer goods and e-commerce in early 2023. Between December 2024 and March 2025, the company executed investment agreements to acquire a 61.05% controlling interest in Shenzhen Letsvan for RMB235.0 million. This acquisition marked the company’s formal entrance into the pop toy industry, with consolidated financial results commencing in April 2025.

On September 30, 2025, Here Group Limited completed a comprehensive business restructuring by executing a VIE Termination Agreement and equity transfer agreements to sell 100% of its legacy individual online learning and legacy consumer businesses to a third-party buyer for approximately RMB180 million. Effective September 30, 2025, the group deconsolidated the legacy variable interest entities (Beijing Feierlai and Beijing Chuangyuqizhi) and fully transitioned its operational model into a pure-play pop toy company.

• January 2023: Completed initial public offering on Nasdaq raising US$38.6 million in net proceeds.
• March 2025: Acquired controlling equity stake in Shenzhen Letsvan to launch the pop toy division.
• September 2025: Terminated variable interest entity (VIE) contracts and fully divested legacy online learning operations.
• November 2025: Officially changed corporate legal name to Here Group Limited and updated Nasdaq ticker symbol to “HERE”.

The Corporate Umbrella

Here Group Limited functions as a Cayman Islands holding company that conducts its primary business operations through operating subsidiaries in the People’s Republic of China, Hong Kong, Singapore, the British Virgin Islands, and selective international markets. Current operations are carried out directly through wholly-owned or majority-owned subsidiaries, eliminating single variable interest entity (VIE) structure dependency following the VIE Termination in September 2025.

The operational backbone of the pop toy business comprises Shenzhen Chaowan World Information Technology Co., Ltd. (a wholly-owned PRC subsidiary), Shenzhen Yiqi Culture Co., Ltd. (Shenzhen Letsvan, in which the group held 76.3% equity as of June 30, 2026), Beijing Qimengdao Technology Co., Ltd., and specialized regional operating entities across Shanghai, Chongqing, Xi’an, Changchun, and Dongguan.

⚙️ The Business Engine: What They Do & Where They Operate

The Core Divisions

Following the total divestiture of its legacy individual learning and enterprise service segments, Here Group Limited operates a single reporting segment centered on pop toy design, IP incubation, manufacturing coordination, and omni-channel distribution. The business engine derives revenue through distinct commercial sales channels, primarily categorizing performance by distribution partner sales, direct online platforms, and physical retail touchpoints.

The primary growth engine shifted rapidly toward wholesale distribution partnerships, which accounted for the vast majority of physical product volume during the initial expansion phase. Online platforms—including brand flagship storefronts on Tmall, Douyin, and rednote—serve as secondary conversion channels. Direct-to-consumer physical touchpoints, while currently representing a smaller revenue share, provide crucial experiential brand building and direct consumer engagement.

• Distributor Networks: Product placements span over 10,000 partner retail stores across Mainland China and distribution agreements in more than 20 overseas countries.
• Online Storefronts: Active e-commerce sales executed via Chinese social commerce platforms alongside international storefronts on Shopee, TikTok Shop, and North American direct sites.
• Direct Retail Footprint: Operating 8 flagship DTC stores and 25 automated roboshops across core metropolitan markets as of September 30, 2026.

The Global Product Catalog

Here Group Limited develops collectible pop culture goods categorized across plush toys, soft vinyl figure toys, blind boxes, and character-themed peripheral merchandise. Products are designed to offer multi-sensory experiences utilizing slow-rebound foam, soft vinyl, and specialized textiles. Retail unit pricing spans from RMB69.8 for entry-level collectible items up to RMB1,099 for premium limited-edition artist figures.

The company maintains a structured six-phase product development lifecycle: Precise Targeting, Creative Development, Market Testing, Production and Quality Control, Marketing and Launch, and Post-Launch Management. Before initiating full-scale manufacturing, small-scale product validation runs are performed to assess consumer demand, reducing inventory risk.

• Plush Toys: High-tactile soothing characters constructed from soft vinyl accents and plush textiles, exemplified by “The Handicraft World of WAKUKU” series.
• Figure Toys: Detailed soft vinyl collectible figures built around character storylines and thematic blind box series.
• IP Merchandise: Functional character peripherals including earphone pouches, phone lanyards, mouse pads, throw pillows, and tissue box covers.

The Names You Know

The company’s commercial monetization depends on its intellectual property matrix. Revenue is generated across proprietary character creations, exclusively licensed IPs from independent designers, and co-branded intellectual properties developed alongside external partners.

The proprietary IP “WAKUKU” serves as the foundational commercial pillar of the business, depicting a courageous hunter aesthetic that resonates strongly with fashion-forward youth demographics. “SIINONO”, an exclusively licensed IP launched in July 2025 depicting an alien creature from planet Hacci, demonstrated rapid scaling by surpassing RMB90 million in sales within its first full fiscal year. “ZIYULI” captures female demographic demand through a whimsical Chinese princess character persona.

• WAKUKU: Flagship proprietary character generating RMB369.3 million in fiscal year 2026.
• SIINONO: Exclusive licensed IP under an eight-year global contract running from February 2025 to February 2033.
• Exclusive Licensed Matrix: Contracts secured for external IPs including IMPOPO PIX, YEAOHUA, VIVIMANI, fluffy lili, LucStarry, Clomii, NAAYE, and mix angel.
• Co-Branded IPs: Character series such as “AOO”, launched in April 2026, targeting bold fashion-forward demographics.

Mapping the Global Reach

Substantially all of Here Group Limited’s physical long-lived assets and primary operational facilities are located within the People’s Republic of China. While Mainland China represents the primary consumer market, the company has initiated international sales expansion across Southeast Asia (including Vietnam, Indonesia, and Singapore), Europe, North America, and the Middle East.

International market entry is executed through a combination of cross-border e-commerce storefronts, localized social commerce platforms, and wholesale agreements with regional overseas distribution partners. As of June 30, 2026, cash and capital holdings held outside Mainland China were distributed across Hong Kong, Singapore, the United States, Vietnam, and Indonesia.

The Brick & Mortar Footprint

The physical footprint of Here Group Limited combines leased office premises, specialized design studios, logistics warehouses, direct-to-consumer flagship retail stores, pop-up experience spaces, and automated roboshop vending locations.

As of June 30, 2026, the company leased approximately 25,769 square meters of aggregate space across Mainland China for corporate offices, stores, and Dongguan warehouse hubs, with lease terms ranging from three months to three years. The group also maintains an executive office lease of approximately 110 square meters in Central, Hong Kong. As of September 30, 2026, the company operated 8 direct-to-consumer retail stores and 25 roboshops across major Chinese cities including Beijing, Shenzhen, Chongqing, Xi’an, and Guangzhou.

📊 The Financial Health: The Global Numbers Simplified

Earnings, Expenses, & Take-Home Profits

The consolidated financial results of Here Group Limited reflect the total operational transition executed during fiscal year 2026. Financial metrics for the legacy individual online learning and consumer businesses have been fully classified under Discontinued Operations. Continuing Operations reflect solely the pop toy business acquired via Shenzhen Letsvan in March 2025.

Gross profit from continuing operations reached RMB197.3 million in fiscal year 2026. Cost of revenues totaled RMB399.5 million, primarily driven by raw product manufacturing costs (RMB336.7 million), warehousing and logistics (RMB19.9 million), and licensing royalties (RMB16.1 million). Operating expenses expanded due to marketing campaigns, designer team expansion, and a non-cash goodwill impairment charge of RMB124.1 million recognized on the Shenzhen Letsvan reporting unit due to macroeconomic headwinds.

Net income from discontinued operations contributed RMB318.5 million in fiscal year 2026, which included a pre-tax gain on the disposal of the legacy divested business amounting to RMB284.7 million. On a total consolidated basis, net income attributable to ordinary shareholders reached RMB62.4 million in fiscal year 2026.

• Goodwill Impairment: Non-cash impairment charge of RMB124.1 million recorded against Shenzhen Letsvan goodwill in fiscal year 2026, reducing net carrying value to RMB63.5 million.
• Discontinued Operations Gain: Pre-tax disposal gain of RMB284.7 million realized upon the September 30, 2025 divestiture of legacy online learning operations.
• Adjusted Net Loss (Non-GAAP): Adjusted net loss from continuing operations (excluding share-based compensation of RMB37.0 million and goodwill impairment of RMB124.1 million) stood at RMB93.9 million for fiscal year 2026.

Assets, Debts, & Corporate Wealth

The consolidated balance sheet of Here Group Limited reflects a debt-free capital structure following the full repayment of all short-term bank borrowings during fiscal year 2026. The asset base is characterized by significant liquidity in cash, short-term investments, and long-term receivables from the business divestiture.

Working capital remains robust, backed by cash, cash equivalents, restricted cash, and short-term investments totaling RMB610.3 million as of June 30, 2026. Prepayments and other current assets include RMB77.4 million in short-term consideration receivables associated with the sale of the divested legacy business.

Inventories increased to RMB134.7 million as of June 30, 2026, up from RMB16.2 million in 2025, reflecting inventory build required to support the scaling pop toy commercial operations. Mezzanine equity increased to RMB221.4 million as of June 30, 2026, representing the non-controlling interest in Shenzhen Letsvan held by founder Mr. Huiyu Zhan pending final share settlement.

• Total Cash & Liquid Investments: Combined holdings of RMB610.3 million across cash, bank deposits, and institutional wealth management products.
• Zero Outstanding Bank Borrowings: Fully settled all short-term bank loans (RMB11.1 million repaid in fiscal year 2026).
• Shareholders’ Equity: Total equity stood at RMB628.7 million as of June 30, 2026.

Cash Flow: Tracking the Money Movement

Cash movements reflect the capital reallocation out of legacy online learning operations into pop toy manufacturing, retail expansion, non-controlling equity buyouts, share repurchases, and dividend distributions.

Net cash used in continuing operating activities was RMB223.1 million in fiscal year 2026, primarily reflecting the working capital outflow required to scale inventory (RMB120.7 million cash outflow) and settle employee and operational liabilities. Cash provided by discontinued operations contributed RMB83.7 million prior to final deconsolidation.

Financing activities consumed RMB212.5 million in fiscal year 2026. Key financing cash outflows included RMB130.0 million paid to buy out minority equity interests in Shenzhen Letsvan, RMB77.0 million allocated to American Depositary Shares (ADS) repurchases, and RMB11.1 million to extinguish all short-term bank debt.

• Buyout of Non-Controlling Interest: Cash outflows of RMB130.0 million deployed in fiscal year 2026 to acquire minority shares in Shenzhen Letsvan.
• Capital Return via ADS Repurchases: Deployed RMB77.0 million (US$11.3 million) to repurchase ADSs in open market transactions during fiscal year 2026.
• Special Cash Dividend Payment: Distributed a special cash dividend of US$0.201 per ADS in November 2024, totaling US$10.9 million (RMB78.1 million).

Funding the Future: R&D and Expansion Spending

Capital expenditures for physical assets reached RMB23.1 million in fiscal year 2026, driven by investments in manufacturing molds for new product lines, leasehold improvements for direct-to-consumer flagship retail stores, and computing infrastructure. Purchases of software and intangible assets accounted for an additional RMB7.4 million.

Research and development expenditure for continuing operations reached RMB44.3 million in fiscal year 2026. R&D investments are directed toward in-house character design studios, 3D modeling, material prototyping, soft vinyl technique refinement, and digital mini-program development.

🗺️ The Corporate Family Tree: Structure & Investments

Subsidiaries, Associates, & Shared Ventures

Here Group Limited maintains a holding company structure. Operating activities are conducted through wholly-owned and majority-owned subsidiaries located across Mainland China, Hong Kong, Singapore, and the British Virgin Islands.

Strategic Investments & Minority Stakes

Long-term investments totaled RMB20.4 million as of June 30, 2026. The group maintains an equity method investment in Nanjing Shangdehehua Equity Investment Partnership (Limited Partnership), a limited partnership formed in March 2024 in which the group holds a 43.29% limited partner interest. As of June 30, 2026, the carrying value of this limited partnership investment was RMB18.7 million. During fiscal year 2026, the group received a cash distribution of RMB7.3 million from this partnership entity.

Through Shenzhen Letsvan, the group held a 46.55% equity interest in Yuhuatongxing (Beijing) Cultural Development Co., Ltd. (“Yuhuatongxing”), an entity collaborating on IP licensing, marketing, and pop toy distribution. In September 2026, subsequent to the fiscal year end, the group entered into an agreement to sell its entire 46.55% stake in Yuhuatongxing to its controlling shareholder for RMB4.0 million.

👥 Power & Control: Who Pulls the Strings?

The Brain Trust: Board of Directors & Executive Leadership

The Board of Directors of Here Group Limited consists of seven members, three of whom are independent directors. Executive leadership is comprised of industry veterans spanning digital technology, retail product design, capital markets, and corporate governance.

• Peng Li (Chairman of the Board, Director, and Chief Executive Officer): Founder of the group. Oversees overall strategic direction, corporate growth, and executive management. Previously co-founded and led major digital platforms including Beijing Renjuren Network and Qianpin Online, following managerial roles at Baidu.com, Inc. and UCWEB.
• Huiyu Zhan (Director and Chief Product Officer): Founder and CEO of Shenzhen Letsvan. Appointed as Director in August 2025 and Chief Product Officer in October 2025. Leads IP character incubation, product design strategies, and manufacturing coordination.
• Frank Lin (Director): General Partner of DCM Ventures. Served on the board since May 2022. Co-founded SINA Corporation and served as its Chief Operating Officer. Holds an MBA from Stanford University and a engineering degree from Dartmouth College.
• Dong Xie (Director, Chief Financial Officer, and Senior Vice President): Chief Financial Officer since January 2021 and Director since June 2022. Manages global financial operations, capital markets, and legal compliance. Former Partner at PGAdvisory and CFO at Finup Financial Technology; previously Associate Director at Deloitte China. Chinese CPA and CIA holder.
• Pei Hua (Helen) Wong (Independent Director): Independent Director since January 2023. Managing Partner of ACV Capital and former Partner at Qiming Ventures and GGV Capital. Holds degree in PPE from Oxford University and an MBA from INSEAD.
• Hongqiang Zhao (Independent Director): Independent Director since January 2023. Serves as Audit Committee Chairman. Currently Independent Director at Li Auto, Inc. and HUYA Inc., former CFO at Bairong Inc., and former Assistant Chief Auditor at the PCAOB.
• Shunyan Zhu (Independent Director): Independent Director since January 2025. Executive Director and Chairman of Alibaba Health Information Technology Ltd., Partner of Alibaba Partnership, and former founding executive at UC Browser.
• Guangqiang Shi (Senior Vice President): Senior Vice President since June 2024. Manages government relations, public strategy, and administrative functions. Formerly Assistant to the Chairman at 360 Security Technology Inc.

Who Owns the Stock?

The share capital of Here Group Limited consists of Class A ordinary shares (one vote per share) and Class B ordinary shares (ten votes per share). As of October 21, 2026, a total of 156,594,292 ordinary shares were issued and outstanding, comprising 106,735,243 Class A ordinary shares and 49,859,049 Class B ordinary shares.

Mr. Peng Li beneficially owns 100% of the Class B ordinary shares through Even Par Holding Limited and NICE PAR TRUST, granting him 82.4% voting control over all shareholder decisions. Major institutional investors include entities affiliated with venture capital firms DCM Ventures (15.6% equity share) and K2 Partners (14.8% equity share).

🎯 The Strategic Outlook: Future Plans & Potential Pitfalls

Competitive Advantages & Economic Moats

Here Group Limited has established an integrated business model spanning IP incubation, in-house product design, agile supply chain management, and omni-channel retail distribution. The company leverages several structural advantages within the pop toy sector.

The internal design network operates studios across Beijing, Shanghai, and Shenzhen, enabling end-to-end control over character modeling, material innovation, and rapid prototyping. This closed-loop design feedback cycle reduces time-to-market for new trend-responsive collectible series. In addition, the IP matrix balances proprietary creations (WAKUKU, ZIYULI) with exclusive long-term global licensing contracts (SIINONO), reducing reliance on any single character.

• Full-Chain Design Capabilities: In-house artist network managing character creation, 3D modeling, soft vinyl molding, and visual design.
• Agile Supply Chain: Diversified network of specialized manufacturing partners across 8 Chinese provinces supporting low minimum order quantities and flexible ramp-ups.
• Multi-Channel Reach: Distribution extending through 10,000 retail placements, DTC flagship stores, automated roboshops, and cross-border e-commerce.

What Could Go Wrong? Key Challenges & Business Risks

The company faces operational, market, regulatory, and corporate transition risks that could impact business execution and financial performance.

A primary risk involves the company’s limited operating history in the pop toy sector. The pop toy market is characterized by rapidly shifting youth consumer tastes, unpredictable popular trends, and short character lifecycles. If new IP launches fail to achieve market acceptance, or if flagship IPs such as WAKUKU experience popularity declines, revenue performance could be adversely impacted.

• IP Concentration Risk: The flagship IP “WAKUKU” generated 61.9% of total continuing operations revenue in fiscal year 2026.
• Goodwill Impairment Volatility: Following the RMB124.1 million goodwill impairment recognized in 2026, further adverse changes in market conditions could force additional non-cash write-downs against the remaining RMB63.5 million goodwill balance.
• Manufacturing & Quality Control: Dependence on third-party partner factories exposes the business to potential product quality defects, supply chain bottlenecks, or raw material cost inflation.
• Regulatory Compliance: Operations are subject to evolving PRC regulations governing blind box sales guidelines, product safety standards (such as GB 6675 toy safety codes), data security, and cross-border filing rules under the CSRC.
• Auditor Inspection Status under HFCAA: The company’s independent auditor, PricewaterhouseCoopers Zhong Tian LLP, is headquartered in Shanghai. While the PCAOB vacated its negative determination in December 2022, any future restriction on PCAOB audit inspections in Mainland China could reinstate trading prohibition risks under the Holding Foreign Companies Accountable Act.

The Next Chapter: Growth & Expansion Initiatives

Here Group Limited’s future strategy focuses on expanding its IP portfolio, strengthening direct retail engagement, executing strategic brand collaborations, and expanding international distribution presence.

In retail experiences, the group is expanding beyond traditional store formats. In Hong Kong, the company completed the decoration of a multi-layered vertical experiential space on a landmark cruise vessel at Central Pier on Victoria Harbour. The project launched ticket sales via Ctrip in September 2026 ahead of its maiden voyage, positioning the brand to capture tourist traffic during peak Golden Week travel periods.

• IP Matrix Diversification: Incubating new proprietary characters (such as YONNNA) while securing exclusive global licenses for emerging artist creations (such as fluffy lili, LucStarry, and mix angel).
• Strategic Co-Branding: Executing high-profile brand collaborations across consumer goods, fashion, automotive, and sports sectors, including partnerships with Luk Fook Jewellery, Baidu Apollo Go, Genki Forest, IRO Paris, and serving as an official partner of the China Open tennis tournament.
• Global Footprint: Scaling wholesale distributor networks and direct e-commerce storefronts across Southeast Asia, North America, and Europe.

The Verdict: Strategic Outlook & Conclusion

Here Group Limited has completed a fundamental transformation, fully divesting its historical adult online learning infrastructure to re-emerge as a debt-free, consumer-focused pop toy company. Backed by RMB610.3 million in total cash and liquid investments, zero debt, and a flagship IP portfolio led by WAKUKU and SIINONO, the group possesses the financial resources necessary to execute its retail and IP expansion initiatives. The company’s long-term performance will depend on its ability to sustain creative innovation, manage character lifecycle transitions, optimize supply chain costs, and build a lasting global retail footprint.

Official Site: https://www.heregroup.com

Note: Financial ratios, margins, year-over-year (YoY) growth rates, and percentage shares of revenue are calculated by FirmsWorld based on figures reported in the company’s official SEC filing.