BRIEF: Bloks Group secures CSRC approval for Hong Kong IPO

Toy manufacturer Bloks Group Ltd. received a listing approval notice from the China Securities Regulatory Commission (CSRC) last Friday, a necessary step before it can complete its pending Hong Kong IPO. The company subsequently updated its prospectus with the Hong Kong Stock Exchange, with Goldman Sachs and Huatai International serving as joint sponsors.

According to Frost & Sullivan, Bloks is the largest assembly character toy company in China, boasting over 500 patents and original IPs. It has established partnerships with approximately 50 renowned IPs, including Ultraman and Transformers. The company says it uses a value-for-money strategy by offering relatively low prices for its products, which typically range from 9.9 yuan to 399 yuan ($1.36 to $55).

In 2023, the company’s gross merchandise value (GMV) grew by 170%, reaching 1.7 billion yuan. During the first half of this year, its revenue soared by 2.4 times year-on-year to 1.05 billion yuan. Its non-GAAP adjusted profit for the period was 290 million yuan, compared to a loss of 11.1 million yuan during the same period last year. In 2023 and the first half of this year, its products using Ultraman IP accounted for 63.5% and 57.4% of total revenue, respectively.

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