QuantaSing Group Q4 2025 Earnings Report

QuantaSing Group EPS Results

• Actual EPS: $0.27
• Consensus EPS: $0.15
• Beat/Miss: Beat by +$0.12
• One Year Ago EPS: N/A

QuantaSing Group Revenue Results

• Actual Revenue: $86.25 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

QuantaSing Group Announcement Details

• Quarter: Q4 2025
• Date: 9/17/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, September 17, 2025
• Conference Call Time: 7:00AM ET

QuantaSing Group (NASDAQ:QSG) Limited provides online learning services in the People's Republic of China. The company offers online courses, including financial literacy, short-video production, personal well-being, electronic keyboard, and meditation courses. It also offers marketing and enterprise talent management services to enterprise customers. In addition, the company provides online and literacy course to adult learners under various brands, including QiNiu, JiangZhen, and QianChi. QuantaSing Group Limited was founded in 2019 and is headquartered in Beijing, the People's Republic of China.

QuantaSing Group Q4 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Strategic Restructuring to Focus on Property Business: QuantaSing plans to divest all non-property operations to dedicate resources to its high-growth IP collectibles segment, sharpening its strategic focus and operational efficiency.
• Positive Sentiment: Robust Q4 Financial Performance: Q4 revenue reached RMB 617.8 million with net income of RMB 108 million and a 17.5% net margin, supported by over RMB 1 billion in cash and equivalents as of June 30, 2025.
• Positive Sentiment: Hit IP Sales Drive Growth: Makuku Fox & Bunny sold over 1 million units since mid-May, while new IP Cinnodle sold 10,000 blind boxes in 10 minutes and has totaled 300,000 units to date, validating strong consumer demand.
• Positive Sentiment: Accelerated Channel Expansion: Online community grew to 250,000 followers with 550 million Douyin views and August GMV of RMB 18 million (9× April), alongside a 10,000+ store wholesale network and upcoming flagship pop-up and permanent stores.
• Positive Sentiment: Confident FY26 Guidance: Management projects property segment revenues of RMB 100–110 million in Q1 and RMB 750–800 million for full fiscal 2026, reflecting strong IP pipeline and international rollout.

Presentation

[Operator]

Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to QuantaSing's Earnings Conference Call. At this time, all participants are in a listen-only mode. We will be hosting a question-and-answer session after management's prepared remarks. Please note that today's event is being recorded. I will now turn the conference over to Ms. Leah Guo, Investor Relations Associate Director of the company. Please go ahead, ma'am.

[Leah Guo, Investor Relations Associate Director at QuantaSing Group Limited]

Thank you. Hello, everyone, and welcome to QuantaSing's Earnings Call for the Fourth Quarter in Fiscal Year 2025. With us today are Mr. Peng Li, our Founder, Chairman, and CEO, and Mr. Tim Xie, our CFO. Mr. Li will provide a business overview for the quarter, and then Ting will discuss the financials in more detail. Following their prepared remarks, Mr. Li and Tim will be available for the Q&A session. I will translate for Mr. Li. You can refer to our quarterly financial results on our website at ii.quantasing.com. You can also access a replay of this call on our ii website, when it becomes available a few hours after its conclusion. Before we continue, I would like to refer you to our safe harbor statement in our earnings press release, which also applies to this call.

[Leah Guo, Investor Relations Associate Director at QuantaSing Group Limited]

As we will be making forward-looking statements, please note that all numbers stated in the following management prepared remarks are in RMB terms, and we will discuss non-GAAP measures today, which are more thoroughly explained and reconciled to the most comparable measures reported in our earnings release and filings with the SEC. I will now turn the call over to CEO and Founder of QuantaSing, Mr. Li.

[Peng Li, Founder, Chairman, and CEO at QuantaSing Group Limited]

Okay. Good morning, everyone. Thank you for joining us today for our Q4 and the Full Fiscal Year 2025 Earnings Call. I'm excited to share some really encouraging results with you today, along with a significant strategic announcement that marks a new chapter for our company. As many of you know, we've been transforming from a traffic-driven to a product-driven business. Furthermore, we have a consolidated controlling stake in Last One since March 31 and have reached an agreement to acquire the remaining equity for a full 100% merger. Before diving into our quarterly results, I want to share important news about our strategic direction. We are announcing our potential business restructuring to divest all our non-property business to focus exclusively on our high-growth property business. This represents a decisive step forward in our transformation. We have been in negotiation with buyers who are interested in acquiring this established business.

[Peng Li, Founder, Chairman, and CEO at QuantaSing Group Limited]

The restructuring will allow us to concentrate all our resources, talent, and capital on the tremendous opportunities we see in the property market while ensuring that our established non-property business finds the right home with a buyer who can continue maintaining the operation of this business and achieve potential further development. We will share further details on timing and transaction terms once they are finalized, subject to final negotiations and customary closing conditions. This quarter marks our first full period with Last One's consolidation. From April through June, the quarter was defined by both challenge and accomplishment. Yet, I'm incredibly proud of what we have achieved with our strategic transitions. Let's look at the numbers. Our revenue reached RMB 617.8 million. Most importantly, our property business contributed RMB 65.8 million, representing our core growth engine moving forward.

[Peng Li, Founder, Chairman, and CEO at QuantaSing Group Limited]

Beyond that, as of June 30, 2025, we held over RMB 1 billion in cash and cash equivalents, restricted cash, and short-term investments for the company. This cash reserve established a strong foundation for our transition into property business. Let me highlight what is driving this growth opportunity with our property business. We are seeing rapid cultural transformation driven by young, digitally savvy consumers who want emotional connection and unique collectible experiences. This is one of the most dynamic segments globally. The brands that win are those that blend creative IP, emotional storytelling, and real-time engagement. These trends have transformed property from nature items into lifestyle essentials for adults and millennials. As a property company, we will be uniquely positioned to capitalize on this massive market opportunity. Each of our property series features unique designs and distinct personalities that resonate on a psychological level.

[Peng Li, Founder, Chairman, and CEO at QuantaSing Group Limited]

For example, Wakuku, our flagship IP, is now one of the most recognized trend toys in China. A skilled hunter full of courage and wisdom, Ziyuli, the Chinese princess that grows by your side, and Cinnodle, a new IP launched in July 2025, an ailing creator from the warm and carefree planet Hassi. Following the strategy we outlined in Q3, we have been operating the property business systematically and have achieved significant results to date. We are seeing strong market validation across our IP portfolio. Next, I will provide further details on our core strategy using the Q3 framework. First, IP, brand development, and product. We have built a diverse portfolio of unique IP designs that resonate deeply with consumers. Let me give you some new recent examples. Our WAKUKU Fox and Bunny series achieved over 1 million units sales since its launch on May 17th.

[Peng Li, Founder, Chairman, and CEO at QuantaSing Group Limited]

During the initial launch of our new IP, Cinnodle, the Want to Tell You a Secret blind box sold out 10,000 units in 10 minutes at our Douyin flagship store and achieved approximately 300,000 units sales to date. Today, we are operating over 40 blind box product lines and over 30+ pendant card products across our IP portfolio. This includes 11 self-owned IPs, including Wakuku and Ziyuli, two exclusive licensed IPs, and two non-exclusive licensed IPs. We are strengthening our IP metrics through three key approaches. First, we are investing in our own original IP development. We will continue to gather artistic and designer resources in various locations, establishing design centers in different cities, such as Beijing, Hangzhou, and Shenzhen. We have a diverse and collaborative team that enables us to continuously innovate, blending artistic vision with cultural insights to create IPs that truly resonate with our fans.

[Peng Li, Founder, Chairman, and CEO at QuantaSing Group Limited]

Second, we are strategically pursuing IP licensing partnerships with proactively exploring and securing exclusive collaborations across design styles, product categories, audiences, and international markets. We've begun collaborating with artists and illustrators through in-depth product co-creation and development to help launch their first-generation blind box, collectibles, and limited edition products, fostering mutually rewarding opportunities. Third, we are building strategic partnerships beyond traditional toy collaborations, linking our product with healthy, optimistic lifestyle brands. For example, we are partnered with the China Open Tennis Tournament, Beijing Fashion Week, Universal Studios, Junqu Forest, a leading health beverage brand, and Fushanghai Hot TV series. These partnerships expand our reach across entertainment, wellness, and lifestyle markets. What truly sets us apart is how we leverage everything, from our strategic partnerships to our product design.

[Peng Li, Founder, Chairman, and CEO at QuantaSing Group Limited]

Around emotional connection, we are not just making toys; we are creating meaningful products that foster companionship and speak to real emotional needs. By weaving rich growth stories into our classic IPs, we transform them into emotional companies that resonate on personal levels. The second pillar of our strategic focus is on marketing and channel expansion, which is driving growth both domestically and internationally. In our home market, our momentum is impressive. On the online front, we've built a community of over 250,000 followers on the two largest local social platforms. Our content has achieved remarkable viral reach with over 550 million views on Douyin and 140 million views on Xiaohongshu. Regarding GMV, since officially launching online operations in April, our GMV had already exceeded RMB 18 million in August, which is over nine times that of April. Offline, our multi-channel presence is equally robust.

[Peng Li, Founder, Chairman, and CEO at QuantaSing Group Limited]

We've established a widespread wholesale network of over 10,000 retail stores through our distributor partners and actively participate in property exhibitions in top-tier cities such as Beijing, Shanghai, and Shenzhen, significantly enhancing brand visibility. At our partnership retail stores, the launch of Cinnodle achieved more than 10,000 units sold in just 10 seconds. This underscores our strong capability to generate marketing impact and rapid sale through physical locations. Our self-operated retail strategy is a key driver of our offline expansion, with a focus on innovative pop-up stores and high-impact launch events. As we mentioned before, we are actively developing our flagship retail stores. In the meanwhile, we have already demonstrated strong offline capabilities through large-scale pop-up installations and exclusive product launches. For example, on August 30, we launched a pop-up store at Beijing Chaoyang Hopson One.

[Peng Li, Founder, Chairman, and CEO at QuantaSing Group Limited]

In addition to a selection of our best-selling products, these limited-time activations allow us to create immersive IP-driven environments that generate significant social buzz and translate excitement into direct sales. We are currently in negotiations with top-tier shopping malls in several first-tier cities to open flagship stores, with at least three to five locations expected to open by the end of December. These events boost brand visibility to act as community touchpoints, featuring interactive content and limited edition releases. This defines emotional connections with fans and builds lasting brand loyalty. While still in the early stages of our international expansion, we are encouraged by the strong growth momentum we are seeing overseas. On the online front, we have established the North American independent e-commerce site, launched flagship stores on TikTok for both North America and Southeast Asia, as well as an official online store on Shopee in Southeast Asia.

[Peng Li, Founder, Chairman, and CEO at QuantaSing Group Limited]

We have achieved significant breakthroughs in these markets. For offline channels, we have established a wholesale network in over 20 countries through our distribution partners, such as Japan, major Southeast Asian countries, the United States, Canada, Australia, the United Kingdom, France, Germany, Italy, and Saudi Arabia. Self-operated stores are a key part of our long-term global strategy. Though we are still in the planning phase for our fiscal store rollout, we intend to take a data-informed, test-and-learn approach once we enter new markets, using real-world insights, including sales performance, customer engagement, and market feedback to strategically guide our expansion and brand engagement. In July, we opened an approximately 30-square-meter pop-up store at Central Park Mall in Jakarta, Indonesia, to test the local market, which successfully validated both market demands and our team's operational capabilities. Regarding our non-property business restructuring, we are making strong progress.

[Peng Li, Founder, Chairman, and CEO at QuantaSing Group Limited]

This move will ensure the established business continues to operate smoothly and provides better development opportunities for the team. While the process from the sale will strengthen the company's own equity, more importantly, the transaction allows us to concentrate all resources on operating our property business with maximum focus, transforming the company into a global trendsetter and creating substantial long-term value for the shareholders. We are confident this move delivers clear value to our shareholders and sharpens our strategic focus. As we transition into the property business, our strategy will be built around three core priorities. First, we are strengthening IP creation and incubation by refreshing content, expanding product lines, and collaborating across sectors. We are building an emotion-driven ecosystem that boosts users' loyalty and brand value. Second, we are driving agile execution by refining supply chain operations, optimizing inventory and logistics, and building flexible production partnerships.

[Peng Li, Founder, Chairman, and CEO at QuantaSing Group Limited]

Speed and efficiency are key to our market responsiveness and cost control. We have made significant progress in the product capability. In August, the output of our mainstream plush products had already increased more than 20-fold since the beginning of the year in January, exceeding 1 million units. Third, we are dedicated to delivering sustainable returns to our shareholders. Our focus remains on calculating high-valued IP, expanding global channels, and maintaining disciplined profitability and cash flow management. In summary, Q4, fiscal year 2025, represents a defining moment in our transformation journey. Our potential business restructuring reflects our confidence in the exceptional growth potential of this market. This sharper focus means we can really build on our early winnings in properties, speed up our growth in a sustainable way, and deliver even more value to our shareholders. We have shown we know how to execute in this business.

[Peng Li, Founder, Chairman, and CEO at QuantaSing Group Limited]

Now, with total focus, dedicated resources, and a stronger financial position, we are ready to become a true leader in this dynamic, high-growth industry. Thank you for your continued trust and support. Our performance to date gives us strong confidence in our future transition. I will now turn it over to the Tim for a detailed review of our financial results. Thank you, everyone.

[Tim Xie, CFO at QuantaSing Group Limited]

Thank you. Before I go into the details of our financial results, please note that all amounts are in RMB terms, that the reporting period is the fourth quarter of fiscal year 2025, ended on June 30, 2025, and that in addition to GAAP measures, we'll also be discussing non-GAAP measures to provide greater clarity on the trends in our actual app operations. We are pleased to report solid financial performance this quarter, making our first full reporting period since completing the Last One acquisition in March 2025. Total revenue reached RMB 617.8 million with net income of RMB 108 million, achieving a strong net profit margin of 17.5%. These results reflect our intentional strategic transformation from traffic-driven growth to a more sustainable product-focused business model. This transition is already showing clear results, with sales and marketing expenses improving significantly to 47.6% of revenue from 69.2% in the previous quarter.

[Tim Xie, CFO at QuantaSing Group Limited]

Our property business now accounts for 10.6% of total revenue, and it's becoming a significant part of our revenue base. Breaking down our revenue composition, revenues from the property business totaled RMB 65.8 million. With a continued momentum in this business, we expect it to drive meaningful growth in future quarters. Individual online learning services generated revenues of RMB 456.9 million compared to RMB 906.7 million in the fourth quarter of 2024. This change was primarily due to decreases in skills upgrading courses, financial literacy courses, and recreation and leisure courses. Revenues from enterprise services were RMB 35.7 million compared to RMB 56.6 million a year ago. The change was primarily due to a deliberate reduction in the marketing services provided to a customer. Revenues from our consumer business were RMB 50.5 million compared to RMB 33.3 million a year ago.

[Tim Xie, CFO at QuantaSing Group Limited]

The change was primarily driven by the increase in revenue from wellness product sales. Finally, revenues from others were RMB 8.9 million compared to RMB 3.5 million a year ago. Gross profit for the quarter was RMB 467.6 million, with a gross margin of 75.7% compared to 85.9% in the same period last year. This margin change reflects our strategic shift towards more product-focused offerings, which naturally carry a different cost structure. On the operational front, we continued to prioritize effective cost management while focusing our resources on the property business. Total operating expenses were RMB 344.2 million, a decrease of 44.7% from RMB 622.9 million in the same period last year. To break this down, sales and marketing expenses decreased by 49.3% to RMB 294.1 million, mainly due to lower marketing and promotion costs, reduced labor outsourcing, and lower staff expenses.

[Tim Xie, CFO at QuantaSing Group Limited]

This decrease was partially offset by new sales and marketing costs for the property business following the Last One acquisition. As a percentage of total revenue, non-GAAP sales and marketing expenses, which exclude share-based compensation, decreased to 47.6% from 57.4% a year ago. Research and development expenses slightly declined by 0.1% to RMB 21.2 billion, mainly due to lower staff costs, excluding share-based compensation expenses of the established business. This decline was partially offset by the new research and development expenses for the property business following the Last One acquisition and by an increase in share-based compensation expenses of the established business. As a percentage of total revenue, non-GAAP R&D expenses, which exclude share-based compensation, were 3.4% compared to 3% a year ago. General and administrative expenses were RMB 29 million compared to RMB 11.6 million a year ago.

[Tim Xie, CFO at QuantaSing Group Limited]

The change was mainly due to the newly added general and administrative expenses for the property business resulting from the acquisition of Last One and an increase in share-based compensation expenses of the established business. As a percentage of total revenue, non-GAAP G&A expenses, which exclude share-based compensation, were 4.3% compared to 2.5% a year ago. We achieved a net income of RMB 108 million, representing a net margin of 17.5%. Our adjusted net income, which excludes share-based compensation, was RMB 111.2 million, representing an adjusted net margin of 18%. Basic and diluted net income per share were RMB 0.67 and RMB 0.65 during the quarter. Adjusted basic and diluted net income per share were RMB 0.69 and RMB 0.67 during the quarter.

[Tim Xie, CFO at QuantaSing Group Limited]

Regarding our balance sheet position, as of June 30, 2025, we held RMB 1,040.9 million in cash and cash equivalents, restricted cash, and short-term investments, representing an increase of RMB 14.6 million from RMB 1,026.3 million as of June 30, 2024. Both our established business and the property business are cash self-sustaining and don't require significant additional capital. This allows us to focus our available cash reserves on strategically expanding the property business to accelerate its growth and market presence. Looking ahead, we are excited about the growth prospects for our property business. Based on currently available information, we expect revenues from our property business to be in the range of RMB 100 million-RMB 110 million for the first quarter of fiscal year 2026, and in the range of RMB 750 million-RMB 800 million for the full fiscal year 2026.

[Tim Xie, CFO at QuantaSing Group Limited]

These forecasts reflect our confidence in the property market opportunity and our ability to scale our IP portfolio and expand internationally. That concludes my prepared remarks. Operator, let's open up the call for questions. Thank you.

[Operator]

Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. When asking a question in Chinese, please translate your question in English for the convenience of everyone on the call. Please ask one question at a time. At this time, we will pause momentarily to assemble our roster. The first question today comes from Alice Cai of Citi. Please go ahead.

[Alice Cai, Analyst at Citi]

Good evening, ladies and gentlemen. Thanks for taking my questions and congratulations on the strong results. I have several topics to cover, and let me begin with what I think most investors care most about, which is the total revenue trajectory recently. Given that Wakuku could contribute RMB 43 million in Q4 and by normal that's launched in July, you now have 15 IPs in total. Could you please share the recent revenue run rate for July to September? Manchun mentioned that the demand is outpacing supply with all the books through Q1 next year. Could you please quantify the confirmed order backlog in dollar terms? Thanks so much.

[Tim Xie, CFO at QuantaSing Group Limited]

Thank you, Alice. I've answered this question. Regarding the growth curve, Wakuku began operations last December, and we saw sustained volume expansion starting in March right after the Spring Festival of China. Its growth rate can be described as explosive out of the gate, gaining momentum very rapidly. By August, its monthly production capacity had reached approximately 20x the level at the beginning of the year. Strong demand from channels, our distributor partners, and also the online and high user repurchase behavior provide strong visibility for our performance over the next several quarters. Also, regarding the new IP, Cinnodle, launched in July, Cinnodle demonstrated our accelerating growth momentum. As a completely new IP that has been on the market for only a few months, its initial sales were explosive. As of recently, the sales of Cinnodle have exceeded 300,000 boxes.

[Tim Xie, CFO at QuantaSing Group Limited]

This reflects our continuous evolution in product design, marketing, and channel execution. When viewed together, the combined effect of these two engines, explosive new releases, and sustained classic performance, is accelerating our overall revenue growth rapidly. This powerful momentum is the core reason for our confidence in future performance, and we look forward to sharing more detailed figures in the next earnings report. Regarding confirmed order value, our front-end sales team schedules production based on market feedback. For products already ordered by sales, the current delivery rate is less than 50%. That means a huge pipeline in process. Production planning for future quarters is proceeding in an orderly manner. Yeah, I think that will help to answer your question.

[Alice Cai, Analyst at Citi]

Thank you. It's helpful. My next question is on the duration of Last One because some investors are calculating Last One's duration at RMB 1.7 billion based on the $8x18 million common shares divided by 20%. These 18 million shares are granted in three tranches with a vesting period over several years, right? Could you please walk us through the specific arrangements for these three tranches? Are they tied to performance milestones? If performance targets cannot be met, will later tranches be adjusted or canceled? Thanks so much.

[Tim Xie, CFO at QuantaSing Group Limited]

Okay. The acquisition of the remaining equity is currently still in the settlement process, and further details will be disclosed in due course. I think I can give you some key points to help everyone to understand the transaction. First, Mr. Zhen, Zhang Huiyu, the founder and CEO of Last One, he represents the product strengths of our property business, and he himself is a seasoned entrepreneur with years of experience in this sector. He's highly optimistic about the future of the property market and believes in the long-term value of fully committing to this field together with us. For this transaction, Mr. Zhen opted to receive shares as consideration for his remaining equity with no cash involved. The second point is that approximately 60% of the consideration was paid in newly issued shares in exchange for Mr.

[Tim Xie, CFO at QuantaSing Group Limited]

Zhen's remaining equity, while the remaining 40% was granted as long-term incentives, which will vest gradually over a period of about eight years. It is a very long time, and it means the commitment with us, and we can do that in the long term. I think the third one is this structure reflects our shared commitment to long-term collaboration and value creation. Also, for the remaining one, except Mr. Zhen's shares, the remaining equity held by other shareholders was acquired for cash, for pure cash, at a valuation not exceeding RMB 1 billion. This portion of the transaction has been completed as of today. I think that's the information I can give to the market. Maybe we can give details when we fully completed the transaction. Thank you.

[Alice Cai, Analyst at Citi]

Thank you. It's helpful. I have another question. Looking at the timeline going forward, because you are guiding for RMB 100 million-RMB 110 million in Q1 and around RMB 750 million for the full-year guidance, right? Given that Q4 already hit RMB 66 million with just three months of contribution, are these targets conservative? When does the maintenance back to is that the top revenue to toy revenue to surpass the education business? Thanks.

[Tim Xie, CFO at QuantaSing Group Limited]

Okay. I think first, our guidance for FY2025 and FY2026 were made based on a prudent assessment of the market environment and the pace of product and channel development when we formulated our strategy earlier this year. As you can see from the performance figures just released, growth across several key metrics has already outpaced our earlier expectations. Based on the recent business process and our updated market outlook, we are issuing our first formal earnings guidance for the property business. This guidance is supported by the following factors. The first is better-than-expected performance of hit products and a mature IP matrix. Our established IPs such as Makuku and Ziyuli have demonstrated strong longevity, and new generations of these IPs are already in the pipeline. In addition, the successful launch of our new IP, Cinnodle, in July has been very well received, with robust ongoing sales momentum.

[Tim Xie, CFO at QuantaSing Group Limited]

The next generation of products is already scheduled. This success validates our exclusive artist IP partnership model and sets a solid foundation for continuously introducing new artist IPs. In addition to the 15 IPs we had as of June 30, we recently signed two additional new exclusive licensed IPs. We have initially established a healthy product vision and pace, combining new explosive releases and sustained classic performance, driven jointly by product strength and brand power. This indicates our IP operation capabilities and user loyalty are reaching a new level. The second is continuous expansion of online and offline sales channels. Our online GMV reached over RMB 18 million in August. We continue to deepen partnerships with offline distributors and self-operated pop-up stores as well as permanent flagship stores either under negotiation or in the process of opening.

[Tim Xie, CFO at QuantaSing Group Limited]

We expect to open three to five flagship stores by end of year, laying a solid foundation for the expansion of self-operated stores next year. Also, accelerated global expansion. We have established initial channel and marketing presence in Southeast Asia and North America. Although still in the early stages of expansion, the growth rate in these regions has exceeded our initial expectations, and the market potential appears more promising than originally anticipated. This confirms our strategic direction is correct and has positioned the company to capture future growth opportunities. I think based on these three areas of our outperformance and current business momentum strongly supports a more optimistic outlook for future growth. As disclosed in our earnings release, given the rapid growth and market potential of the property business, we're concentrating all of our resources on this segment.

[Tim Xie, CFO at QuantaSing Group Limited]

We are currently in discussions with potential buyers regarding a group restructuring plan, which may include divesting non-profit businesses. Details will be announced promptly upon the completion of any relevant transactions. All of the actions and plans will be conducted in accordance with the principles of business focus, enhancement of shareholder value, and sustainable development of each business unit. We believe that upon completion of the restructuring, we'll achieve greater strategic focus, utilize resources more efficiently, seize exceptional growth opportunities in the IP and the property sectors, and create greater long-term value for shareholders. In summary, I think the forecasts all reflect our focus on this business sector and also our methodology to do the business and also our principle to do everything very seriously. That figure reflects our confidence to deliver that. I think we will adjust the annual forecast based on new information.

[Tim Xie, CFO at QuantaSing Group Limited]

Maybe in the next quarter, we'll adjust and based on the ongoing development of the business we can give the market very serious and confident figures. Yeah.

[Alice Cai, Analyst at Citi]

Thank you. I have a follow-up question on the restructuring. I think that you are considering sale on the education segment, right? If so, what's the pipeline looking like? Thanks.

[Tim Xie, CFO at QuantaSing Group Limited]

Yes, the pipeline is very, very strong. As I just mentioned in several situations to the market, we will consider the different development direction of our existing business based on the performance of the property business and other performances of the existing business. As we announced, since we have started the process of this restructuring, that means we are very confident of the existing property business's performance and also the development of this performance so that we can deliver long-term value based on the solid foundation we have set up during the past months since the acquisition and controlling of the property business.

[Alice Cai, Analyst at Citi]

Thank you. That's very helpful. That's all of my questions.

[Tim Xie, CFO at QuantaSing Group Limited]

Okay.

[Tim Xie, CFO at QuantaSing Group Limited]

Thank you.

[Operator]

The next question comes from Brenda Zhao with CICC. Please go ahead.

[Brenda Zhao, Analyst at CICC]

Good evening, Peng Li and Tim Xie. Thanks for taking my questions. I got two questions here. The first relates to the pop toys business because we've recently seen that Popmart's launch of Mini Labubu. Could management introduce your product strategy and whether we will introduce more product categories in the future, and what's our pipeline for new categories? My second question is related to the collaboration with Juehua Entertainment. I'm wondering whether there will be new business model and innovations. If so, could you elaborate more on that side? Thank you.

[Peng Li, Founder, Chairman, and CEO at QuantaSing Group Limited]

Okay. Thank you for your question. I will answer in Chinese. [Foreign language]

[Leah Guo, Investor Relations Associate Director at QuantaSing Group Limited]

Okay. We have a clear and structured roadmap for IP launches. Our IP pipeline is already scheduled through the end of next year.

[Peng Li, Founder, Chairman, and CEO at QuantaSing Group Limited]

[Foreign language]

[Leah Guo, Investor Relations Associate Director at QuantaSing Group Limited]

Both our fundamental art library and product design reserves ensure a consistent and well-placed rollout of our new products.

[Peng Li, Founder, Chairman, and CEO at QuantaSing Group Limited]

[Foreign language]

[Leah Guo, Investor Relations Associate Director at QuantaSing Group Limited]

In terms of the category innovation, we're also actively exploring and developing new directions. In addition to our core slime box series, coming up the categories will include smaller size divider figures and plush products, which will also include mini versions featuring more adorable designs and accessible price. This will cater to various user preferences for collecting and consumption, further expanding our market presence. Products in these new categories are set to debut in the next fourth quarter. We can't wait to share them with you soon.

[Peng Li, Founder, Chairman, and CEO at QuantaSing Group Limited]

[Foreign language]

[Leah Guo, Investor Relations Associate Director at QuantaSing Group Limited]

First, in terms of the cooperation with Juehua Entertainment, as you can see, our partnership with them is a strategic initiative built on the complementary strength.

[Peng Li, Founder, Chairman, and CEO at QuantaSing Group Limited]

[Foreign language] Okay.

[Leah Guo, Investor Relations Associate Director at QuantaSing Group Limited]

We have established a joint venture with Juehua Entertainment. In terms of the business model, we primarily provide a joint venture with IP design, supply chain support, and sales operation capabilities, while Juehua Entertainment will leverage its extensive cross-industry resources in the film, television, and celebrities field to drive promotion and strengthen IP breakout and enlarge the user engagement.

[Peng Li, Founder, Chairman, and CEO at QuantaSing Group Limited]

[Foreign language]

[Leah Guo, Investor Relations Associate Director at QuantaSing Group Limited]

In the future, we are planning to develop more IPs exclusively for the joint venture. These IPs will also incorporate Juehua Entertainment's strengths and also their capabilities. We will also continue to utilize these IPs and to promote them and operate using both companies' resources. We'll focus on IP design and product development while jointly building a closed-loop ecosystem, carving the IP incubation, promotion, and formalization.

[Peng Li, Founder, Chairman, and CEO at QuantaSing Group Limited]

Okay, thank you.

[Operator]

That is all the time we have for Q&A. I'd like to hand the conference back over to management for any closing remarks.

[Leah Guo, Investor Relations Associate Director at QuantaSing Group Limited]

Thank you, everyone, for joining our call today. If you have any further questions, please feel free to contact us or submit a request through our IR website. We look forward to speaking with everyone in our next call. Have a good day.

[Operator]

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Executives

• Peng Li, Founder, Chairman, and CEO
• Tim Xie, CFO
• Leah Guo, Investor Relations Associate Director

Analysts

• Alice Cai, Analyst at Citi
• Brenda Zhao, Analyst at CICC