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Bloks Group Limited

布鲁可集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 0325)

ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2025

The Board of Directors of Bloks Group Limited is pleased to announce the consolidated annual results of the Company and its subsidiaries for the year ended 31 December 2025, together with comparative figures for the year ended 31 December 2024. The below annual results have been prepared in accordance with the IFRSs and have been reviewed by the Audit Committee.

FINANCIAL HIGHLIGHTS
	Year Ended 31 December
	2025	2024	% Change
	(in RMB thousands, except for percentages)
Revenue	2,913,338	2,240,929	30.0%
Gross profit	1,363,984	1,178,806	15.7%
Profit/(Loss) before tax	693,504	(295,682)	N/A
Profit/(Loss) for the year	633,737	(398,044)	N/A
Adjusted profit for the year(1)
(a non-IFRS measure)	674,940	584,588	15.5%
Adjusted net margin(2)	23.2%	26.1%	-2.9
(a non-IFRS measure)			percentage points
Basic earnings/(losses) per share (RMB)	2.58	(2.69)	N/A
Diluted earnings/(losses) per share (RMB)	2.56	(2.69)	N/A
Notes:
(1) We define adjusted profit for the year (a non-IFRS measure) as profit/(loss) for the year adjusted for fair value changes on convertible redeemable preferred shares (a non-cash item), listing expenses and share-based compensations (a non-cash item).
(2) We define adjusted net margin (a non-IFRS measure) as adjusted profit for the year (a non-IFRS measure) as a percentage of our total revenue.

FINANCIAL INFORMATION

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

Year ended 31 December 2025

	Notes	2025 RMB'000	2024 RMB'000
Revenue	4	2,913,338	2,240,929
Cost of sales		(1,549,354)	(1,062,123)
Gross profit		1,363,984	1,178,806
Selling and distribution expenses		(386,789)	(283,122)
Research and development expenses		(264,333)	(192,467)
Administrative expenses		(98,083)	(465,047)
Other income, other gains and losses, net	5	92,756	17,141
Other expenses	6	(12,023)	(4,648)
Provision for impairment losses on financial assets, net		(262)	(2,344)
Finance costs	7	(1,746)	(2,005)
Fair value changes on convertible redeemable preferred shares		-	(541,996)
PROFIT/(LOSS) BEFORE TAX		693,504	(295,682)
Income tax expense	9	(59,767)	(102,362)
PROFIT/(LOSS) FOR THE YEAR		633,737	(398,044)
Attributable to:
Owners of the parent		633,737	(401,047)
Non-controlling interests		-	3,003
		633,737	(398,044)
EARNINGS/(LOSSES) PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT
Basic (RMB)	10	2.58	(2.69)
Diluted (RMB)	10	2.56	(2.69)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended 31 December 2025

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| PROFIT/(LOSS) FOR THE YEAR | 633,737 | (398,044) |
| OTHER COMPREHENSIVE INCOME/(LOSS) | | |
| Other comprehensive income/(loss) that may be reclassified to profit or loss in subsequent periods: | | |
| Exchange differences on translation of foreign operations | (7,663) | 6,282 |
| Other comprehensive loss that will not be reclassified to profit or loss in subsequent periods: | | |
| Exchange differences on translation of the financial statements of the Company and its subsidiaries other than those are foreign operations* | (32,150) | (4,412) |
| OTHER COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR, NET OF TAX | (39,813) | 1,870 |
| TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR | 593,924 | (396,174) |
| Attributable to: | | |
| Owners of the parent | 593,924 | (399,177) |
| Non-controlling interests | - | 3,003 |
| | 593,924 | (396,174) |

The Company and its subsidiaries whose activities are based or conducted in the currency same as that of the Company are not foreign operations.
3 -

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 December 2025

| | Notes | 31 December 2025
RMB'000 | 31 December 2024
RMB'000 |
| --- | --- | --- | --- |
| NON-CURRENT ASSETS | | | |
| Property, plant and equipment | | 279,929 | 153,736 |
| Right-of-use assets | | 36,221 | 57,430 |
| Intangible assets | | 54,906 | 21,432 |
| Deferred tax assets | | 165,213 | 144,953 |
| Prepayments, other receivables and other non-current assets | | 23,850 | 12,015 |
| Pledged deposits-non current | 13 | 985 | 985 |
| Total non-current assets | | 561,104 | 390,551 |
| CURRENT ASSETS | | | |
| Inventories | 11 | 331,487 | 278,539 |
| Trade receivables | 12 | 270,220 | 111,986 |
| Prepayments, other receivables and other current assets | | 51,878 | 72,796 |
| Pledged deposits | 13 | 66,870 | 32,157 |
| Cash and cash equivalents | 13 | 2,325,309 | 719,962 |
| Time deposits over three months | 13 | 514,704 | - |
| Total current assets | | 3,560,468 | 1,215,440 |
| CURRENT LIABILITIES | | | |
| Trade and notes payables | 14 | 753,789 | 566,698 |
| Contract liabilities | | 114,908 | 83,392 |
| Other payables and accruals | 15 | 311,814 | 272,322 |
| Tax payables | | 38,327 | 16,953 |
| Convertible redeemable preferred shares | 16 | - | 2,207,012 |
| Lease liabilities | | 30,061 | 35,126 |
| Total current liabilities | | 1,248,899 | 3,181,503 |
| NET CURRENT ASSETS/(LIABILITIES) | | 2,311,569 | (1,966,063) |
| TOTAL ASSETS LESS CURRENT LIABILITIES | | 2,872,673 | (1,575,512) |

| | Notes | 31 December 2025
RMB'000 | 31 December 2024
RMB'000 |
| --- | --- | --- | --- |
| NON-CURRENT LIABILITIES | | | |
| Lease liabilities | | 3,827 | 25,078 |
| Total non-current liabilities | | 3,827 | 25,078 |
| Net assets/(liabilities) | | 2,868,846 | (1,600,590) |
| EQUITY | | | |
| Equity attributable to owners of the parent | | | |
| Share capital | 17 | 179 | 128 |
| Treasury shares | 17 | (59,596) | – |
| Reserves/(Deficits) | | 2,928,263 | (1,600,718) |
| Total equity | | 2,868,846 | (1,600,590) |

NOTES TO FINANCIAL STATEMENTS
31 December 2025

CORPORATE INFORMATION

Bloks Group Limited (the “Company”) was incorporated in the Cayman Islands on 28 July 2021 as an exempted company with limited liability under the Companies Act (Cap. 22, Law 3 of 1961 as consolidated and revised) of the Cayman Islands. The address of the Company’s registered office is Floor 4, Willow House, Cricket Square, Grand Cayman KY1-9010, Cayman Islands.

The Company is an investment holding company. The Company’s subsidiaries are principally engaged in the design, development and sales of toys.

The Company was listed on the Main Board of The Stock Exchange of Hong Kong Limited on 10 January 2025.

ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION

These financial statements have been prepared in accordance with IFRS Accounting Standards (which include all International Financial Reporting Standards, International Accounting Standards (“IASs”) and Interpretations) as issued by the International Accounting Standards Board (the “IASB”), and the disclosure requirements of the Hong Kong Companies Ordinance. They have been prepared under the historical cost convention, except for financial assets at fair value through profit or loss and convertible redeemable preferred shares, which have been measured at fair value. These financial statements are presented in Renminbi (“RMB”) and all values are rounded to the nearest thousand except when otherwise indicated.

Basis of consolidation

The consolidated financial statements include the financial statements of the Company and its subsidiaries for the year ended 31 December 2025. A subsidiary is an entity (including a structured entity), directly or indirectly, controlled by the Company. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee (i.e., existing rights that give the Group the current ability to direct the relevant activities of the investee).

Generally, there is a presumption that a majority of voting rights results in control. When the Company has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

(a) the contractual arrangement with the other vote holders of the investee;
(b) rights arising from other contractual arrangements; and
(c) the Group’s voting rights and potential voting rights.

The financial statements of the subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies. The results of subsidiaries are consolidated from the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases.

Profit or loss and each component of other comprehensive income are attributed to the owners of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control described above. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, any non-controlling interest and the exchange fluctuation reserve; and recognises the fair value of any investment retained and any resulting surplus or deficit in profit or loss. The Group's share of components previously recognised in other comprehensive income is reclassified to profit or loss or retained profits, as appropriate, on the same basis as would be required if the Group had directly disposed of the related assets or liabilities.

2.2 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES

The Group has adopted amendments to IAS 21 Lack of Exchangeability for the first time for the current year's financial statements. The Group has not early adopted any other standard or amendment that has been issued but is not yet effective.

Amendments to IAS 21 specify how an entity shall assess whether a currency is exchangeable into another currency and how it shall estimate a spot exchange rate at a measurement date when exchangeability is lacking. The amendments require disclosures of information that enable users of financial statements to understand the impact of a currency not being exchangeable. As the currencies that the Group had transacted in and the functional currencies of overseas subsidiaries, branches, joint ventures and associates for translation into the Group's presentation currency were exchangeable, the amendments did not have any impact on the Group's financial statements.

2.3 ISSUED BUT NOT YET EFFECTIVE IFRS ACCOUNTING STANDARDS

The Group has not applied the following new and amended IFRS Accounting Standards, that have been issued but are not yet effective, in the financial statements. The Group intends to apply these new and amended IFRS Accounting Standards, if applicable, when they become effective.

IFRS 18	Presentation and Disclosure in Financial Statements^{2}
Amendments to IFRS 9 and IFRS 7	Amendments to the Classification and Measurement of Financial Instruments^{1}
Annual Improvements to IFRS Accounting Standards – Volume 11	Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7^{1}

Effective for annual periods beginning on or after 1 January 2026
Effective for annual/reporting periods beginning on or after 1 January 2027

Further information about those IFRS Accounting Standards that are expected to be applicable to the Group is described below.

IFRS 18 replaces IAS 1 Presentation of Financial Statements. While a number of sections have been brought forward from IAS 1 with limited changes, IFRS 18 introduces new requirements for presentation within the statement of profit or loss, including specified totals and subtotals. Entities are required to classify all income and expenses within the statement of profit or loss into one of the five categories: operating, investing, financing, income taxes and discontinued operations and to present two new defined subtotals. It also requires disclosures about management-defined performance measures in a single note and introduces enhanced requirements on the grouping (aggregation and disaggregation) and the location of information in both the primary financial statements and the notes. Some requirements previously included in IAS 1 are moved to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, which is renamed as IAS 8 Basis of Preparation of Financial Statements. As a consequence of the issuance of IFRS 18, limited, but widely applicable, amendments are made to IAS 7 Statement of Cash Flows, IAS 33 Earnings per Share and IAS 34 Interim Financial Reporting. In addition, there are minor consequential amendments to other IFRS Accounting Standards. IFRS 18 and the consequential amendments to other IFRS Accounting Standards are effective for annual periods beginning on or after 1 January 2027 with earlier application permitted. Retrospective application is required. The Group is currently analysing the new requirements and assessing the impact of IFRS 18 on the presentation and disclosure of the Group's financial statements.

Amendments to IFRS 9 and IFRS 7 Amendments to the Classification and Measurement of Financial Instruments clarify the date on which a financial asset or financial liability is derecognised and introduce an accounting policy option to derecognise a financial liability that is settled through an electronic payment system before the settlement date if specified criteria are met. The amendments clarify how to assess the contractual cash flow characteristics of financial assets with environmental, social and governance and other similar contingent features. Moreover, the amendments clarify the requirements for classifying financial assets with non-recourse features and contractually linked instruments. The amendments also include additional disclosures for investments in equity instruments designated at fair value through other comprehensive income and financial instruments with contingent features. The amendments shall be applied retrospectively with an adjustment to opening retained profits (or other component of equity) at the initial application date. Prior periods are not required to be restated and can only be restated without the use of hindsight. Earlier application of either all the amendments at the same time or only the amendments related to the classification of financial assets is permitted. The amendments are not expected to have any significant impact on the Group's financial statements.

Annual improvements to IFRS Accounting Standards – Volume 11 set out amendments to IFRS 1, IFRS 7 (and the accompanying Guidance on implementing IFRS 7), IFRS 9, IFRS 10 and IAS 7. Details of the amendments that are expected to be applicable to the Group are as follows:

IFRS 7 Financial instruments: Disclosures: The amendments have updated certain wording in paragraph B38 of IFRS 7 and paragraphs IG1, IG14 and IG20B of the Guidance on implementing IFRS 7 for the purpose of simplification or achieving consistency with other paragraphs in the standard and/or with the concepts and terminology used in other standards. In addition, the amendments clarify that the Guidance on implementing IFRS 7 does not necessarily illustrate all the requirements in the referenced paragraphs of IFRS 7 nor does it create additional requirements. Earlier application is permitted. The amendments are not expected to have any significant impact on the Group's financial statements.
IFRS 9 Financial Instruments: The amendments clarify that when a lessee has determined that a lease liability has been extinguished in accordance with IFRS 9, the lessee is required to apply paragraph 3.3.3 of IFRS 9 and recognise any resulting gain or loss in profit or loss. However, the amendments do not address how a lessee distinguishes between a lease modification as defined in IFRS 16 and an extinguishment of a lease liability in accordance with IFRS 9. In addition, the amendments have updated certain wording in paragraph 5.1.3 of IFRS 9 and Appendix A of IFRS 9 to remove potential confusion. Earlier application is permitted. The amendments are not expected to have any significant impact on the Group's financial statements.
8 -

IFRS 10 Consolidated Financial Statements: The amendments clarify that the relationship described in paragraph B74 of IFRS 10 is just one example of various relationships that might exist between the investor and other parties acting as de facto agents of the investor, which removes the inconsistency with the requirement in paragraph B73 of IFRS 10. Earlier application is permitted. The amendments are not expected to have any significant impact on the Group’s financial statements.
IAS 7 Statement of Cash Flows: The amendments replace the term “cost method” with “at cost” in paragraph 37 of IAS 7 following the prior deletion of the definition of “cost method”. Earlier application is permitted. The amendments are not expected to have any impact on the Group’s financial statements.

3. OPERATING SEGMENT INFORMATION

Management has determined the operating segments based on the reports reviewed by the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segment, has been identified as the executive Directors of the Company. During reporting period, the Group was principally engaged in the design, development and sales of toys products. Management reviews the operating results of the Group’s business as one operating segment for the purpose of making decisions about resource allocation and performance assessment. Therefore, the chief operating decision maker of the Company regards that there is only one segment which is used to make strategic decisions.

Geographical information

(a) Revenue from external customers

| | 2025
RMB’000 | 2024
RMB’000 |
| --- | --- | --- |
| China | 2,594,407 | 2,176,708 |
| Asia (excluding China) | 132,588 | 39,215 |
| Americas | 149,534 | 16,539 |
| Others | 36,809 | 8,467 |
| Total | 2,913,338 | 2,240,929 |

(b) Non-current assets

As at 31 December 2025, approximately 99% (2024: 100%) of the Group’s non-current assets were located in the Chinese mainland.

Information about major customers

For the years ended 31 December 2025 and 2024, no revenue from a single customer is accounted for 10% or more of the Group’s total revenue.

10 -

4. REVENUE

Revenue primarily represents income from sales of toys during the reporting period.

An analysis of revenue is as follows:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Revenue from contracts with customers | | |
| Offline sales | 2,659,793 | 2,084,861 |
| Distribution sales* | 2,637,294 | 2,062,865 |
| Consignment sales | 22,499 | 21,996 |
| Online sales | 252,732 | 155,675 |
| Others | 813 | 393 |
| | 2,913,338 | 2,240,929 |

Distribution sales primarily include sales transactions to distributors.

The Group derives revenues at a point in time:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Timing of revenue recognition | | |
| Revenue recognised at a point in time | 2,913,338 | 2,240,929 |

The following table shows the amount of revenue recognised in the current reporting period that was included in the contract liabilities at the beginning of the reporting period and recognised from performance obligations satisfied in previous periods:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Revenue recognised that was included in contract liabilities at the beginning of the reporting period: | | |
| Sale of goods | 83,392 | 66,325 |

(a) Performance obligations:

The performance obligation of the sale of goods is recognised at the point in time when control of the assets is transferred to the customer, generally on receipt of the goods by customer or upon the confirmation from customers and payment in advance is normally required, except for customers granted with credit terms where payment is generally due within 1 to 4 months.

11 -

5. OTHER INCOME, OTHER GAINS AND LOSSES, NET

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Other income | | |
| Government grants (i) | 18,589 | 10,166 |
| Bank interest income | 64,207 | 5,765 |
| Interest income from time deposits over three months | 8,547 | – |
| Others | 1,333 | 768 |
| | 92,676 | 16,699 |
| Other gains and losses, net | | |
| Gain on disposal of items of property, plant and equipment | 7 | 270 |
| Fair value changes of cash management products | 73 | 2 |
| Others | – | 170 |
| | 80 | 442 |
| | 92,756 | 17,141 |

(i) The government grants was received from the PRC local government authorities to support certain subsidiaries' operating activities. There are no unfulfilled eligibility requirements and conditions relating to these government grants.

6. OTHER EXPENSES

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Impairment of mold equipment | 979 | 702 |
| Donations | 3,162 | – |
| Bank charges | 3,379 | 1,195 |
| Exchange losses, net | 4,451 | 2,353 |
| Other losses | 52 | 398 |
| | 12,023 | 4,648 |

7. FINANCE COSTS

An analysis of finance costs is as follows:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Interest on lease liabilities | 1,746 | 2,005 |

12 -

8. PROFIT/(LOSS) BEFORE TAX

The Group’s profit/(loss) before tax is arrived at after charging/(crediting):

| | Notes | 2025
RMB’000 | 2024
RMB’000 |
| --- | --- | --- | --- |
| Cost of inventories sold (i) | | 1,549,354 | 1,062,123 |
| Marketing and promotion expenses | | 149,346 | 111,702 |
| Listing expenses | | – | 33,372 |
| Auditor’s remuneration | | 3,200 | 1,521 |
| – audit service | | 3,050 | 1,350 |
| – non-audit service | | 150 | 171 |
| Depreciation of property, plant and equipment | | 87,016 | 35,958 |
| Impairment of property, plant and equipment | | 979 | 702 |
| Depreciation of right-of-use assets | | 30,373 | 24,012 |
| Amortisation of intangible assets | | 80,827 | 27,577 |
| Impairment of inventories | | 4,394 | 202 |
| Lease payments not included in the measurement of lease liabilities | | 4,945 | 1,549 |
| Impairment losses recognised on trade and other receivables, net | | 262 | 2,344 |
| Government grants | 5 | (18,589) | (10,166) |
| Donation | 6 | 3,162 | – |
| Employee benefit expense (including Directors’ and chief executive officer’s remuneration): | | 375,803 | 656,331 |
| Salaries, bonuses, allowances and benefits in kind | | 266,835 | 204,162 |
| Pension scheme contributions | | 67,765 | 44,905 |
| Share-based payment expenses | | 41,203 | 407,264 |
| Bank interest income | 5 | (64,207) | (5,765) |
| Interest income from time deposits over three months | 5 | (8,547) | – |
| Exchange losses, net | 6 | 4,451 | 2,353 |
| Fair value changes on convertible redeemable preferred shares | 16 | – | 541,996 |

(i) Depreciation of mold equipment and amortisation of licensed IP which comprised cost of inventories sold are also included in the respective total amounts disclosed separately in depreciation of property, plant and equipment and amortisation of intangible assets above.

9. INCOME TAX EXPENSE

The Group is subject to income tax on an entity basis on profits arising in or derived from the tax jurisdictions in which members of the Group are domiciled and operate.

Chinese mainland

PRC corporate income tax has been provided at the rate of 25% on the taxable profits of the Group’s PRC subsidiaries during the year.

One of the Group’s PRC subsidiaries, Shanghai Bloks Bricks Technology Co., Ltd., was accredited as a “High and New Technology Enterprise” under the relevant tax rules and regulations in December 2024, and accordingly, was entitled to a reduced preferential CIT rate of 15% for three years. This qualification is subject to review by the relevant tax authority in the PRC for every three years.

13 -

USA

The subsidiary incorporated in the USA is subject to statutory United States federal corporate income tax at a rate of 21%.

Hong Kong

The subsidiaries incorporated in Hong Kong is subject to Hong Kong profits tax at the statutory rate of 16.5% on any estimated assessable profits arising in Hong Kong during the year, except for two subsidiaries of the Group which are qualified entities under the two-tiered profits tax rates regime. The first HK$2,000,000 of assessable profits of these subsidiaries are taxed at 8.25% and the remaining assessable profits are taxed at 16.5%.

Cayman Islands

Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains. In addition, upon payments of dividends by the Company to its shareholders, no withholding tax is imposed on the Company incorporated in the Cayman Islands.

The income tax expense of the Group for the reporting period is analysed as follows:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Current tax | 80,347 | 43,520 |
| Deferred tax | (20,580) | 58,842 |
| | 59,767 | 102,362 |

10. EARNINGS/(LOSSES) PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT

(a) Basic earnings/(losses) per share

The calculation of the basic loss per share amount is based on the loss attributable to ordinary equity holders of the parent, and the weighted average number of ordinary shares of 245,961,676 (2024: 148,844,005) outstanding during the year. The weighted average number of shares was after taking into account the effect of treasury shares held.

Basic earnings/(losses) per share	2025	2024
Profit/(Loss)
Profit/(Loss) attributable to ordinary equity holders of the parent (RMB'000)	633,737	(401,047)
Shares
Weighted average number of ordinary shares outstanding during the period used in the basic earnings/(losses) per share calculation ('000)	245,962	148,844
Basic earnings/(losses) per share (RMB)	2.58	(2.69)

(b) Diluted earnings/(losses) per share

The calculation of the diluted earnings/(losses) per share amounts is based on the profit/(loss) for the year attributable to ordinary equity holders of the parent and the weighted average number of ordinary shares of 247,838,606 outstanding during the year after adjustment for assumed conversion of all convertible redeemable preferred shares of 39,582,875 and Series Angel Preferred Shares of 28,925,065 as if such shares have been converted at no consideration on the deemed conversion of all dilutive potential ordinary shares into ordinary shares as at the beginning of the year.

No adjustment has been made to the basic loss per share amount presented for the year ended 31 December 2024, in respect of a dilution as the impact of convertible redeemable preferred shares had an anti-dilutive effect on the basic loss per share amount presented.

Diluted earnings/(losses) per share	2025	2024
Profit/(Loss)
Profit/(Loss) attributable to ordinary equity holders of the parent (RMB’000)	633,737	(401,047)
Shares
Weighted average number of ordinary shares outstanding during the period used in the basic earnings/(losses) per share calculation (’000)	245,962	148,844
Adjustment for assumed conversion of convertible redeemable preferred shares into ordinary shares (’000)	1,877	–
Weighted average number of shares used in the diluted earnings/(losses) per share calculation (’000)	247,839	148,844
Diluted earnings/(losses) per share (RMB)	2.56	(2.69)

INVENTORIES

| | 2025
RMB’000 | 2024
RMB’000 |
| --- | --- | --- |
| Finished goods | 263,615 | 228,209 |
| Raw materials | 66,499 | 49,739 |
| Goods in transit | 15,134 | 9,967 |
| | 345,248 | 287,915 |
| Less: provision for impairment | (13,761) | (9,376) |
| | 331,487 | 278,539 |

12. TRADE RECEIVABLES

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Trade receivables | 271,838 | 114,245 |
| Less: allowance for impairment | (1,618) | (2,259) |
| Net carrying amount | 270,220 | 111,986 |

Advance payment is normally required except for certain customers where credits are granted. The credit period is generally 1 to 4 months. The Group seeks to maintain strict control over its outstanding receivables and has a credit control department to minimise credit risk. Overdue balances are reviewed regularly by senior management. The Group does not hold any collateral or other credit enhancements over its trade receivable balances. The balances of trade receivables are non-interest-bearing.

An aging analysis of the trade receivables as at the end of the year, based on the billing date and net of loss allowance, is as follows:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Within 3 months | 244,815 | 110,409 |
| 3 to 6 months | 23,463 | 1,182 |
| 6 to 9 months | 1,831 | 180 |
| 9 months to 1 year | 111 | 158 |
| Over 1 year | - | 57 |
| | 270,220 | 111,986 |

The movements in the loss allowance for impairment of trade receivables are as follows:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| At beginning of year | 2,259 | 708 |
| Impairment losses, net | 1,577 | 1,698 |
| Write-off | (2,218) | (147) |
| At end of year | 1,618 | 2,259 |

15 -

16 -

13. CASH AND CASH EQUIVALENTS/TIME DEPOSITS OVER THREE MONTHS

Cash and cash equivalents

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Cash at bank | 2,891,020 | 747,118 |
| Cash equivalents (i) | 16,848 | 5,986 |
| Subtotal | 2,907,868 | 753,104 |
| Less: | | |
| Pledged deposits for letters of guarantee | (985) | (985) |
| Pledged deposits for notes payable | (66,870) | (32,157) |
| Time deposits over three months (ii) | (514,704) | - |
| Cash and cash equivalents | 2,325,309 | 719,962 |

(i) Cash equivalents represent cash balances kept in third party payment platforms, such as Alipay and WeChat accounts which can be withdrawn by the Group at any time.

(ii) Time deposits over three months

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Time deposits over three months | 514,704 | - |
| Denominated in | | |
| RMB | 441,578 | - |
| USD | 73,126 | - |

The time deposits are with a term of over three months upon placement, which carry interest at a fixed rate between 1.10% and 4.16% per annum as at 31 December 2025.

Cash and cash equivalents and pledged deposits are denominated in the following currencies:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| RMB | 1,327,005 | 714,439 |
| USD | 1,540,822 | 36,156 |
| Others | 40,041 | 2,509 |
| | 2,907,868 | 753,104 |

The RMB is not freely convertible into other currencies, however, under the Chinese mainland's Foreign Exchange Control Regulations and Administration of Settlement, and Sale and Payment of Foreign Exchange Regulations, the Group is permitted to exchange RMB for other currencies through banks authorised to conduct foreign exchange business.

Cash at banks earns interest at floating rates based on daily bank deposit rates. The bank balances and deposits are deposited with creditworthy banks with no recent history of default. The carrying amounts of the cash and cash equivalents approximated to their fair values.

14. TRADE AND NOTES PAYABLES

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Trade payables | 438,018 | 360,069 |
| Notes payable | 315,771 | 206,629 |
| | 753,789 | 566,698 |

Trade and notes payables are non-interest bearing and normally settled on terms of 3 months to 7 months.

An aging analysis of the trade and notes payables as at the end of the year, based on the invoice date, is as follows:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Within 3 months | 408,937 | 246,556 |
| 3 to 6 months | 251,335 | 260,724 |
| 6 to 12 months | 93,389 | 58,931 |
| Over 1 years | 128 | 487 |
| | 753,789 | 566,698 |

As of 31 December 2025, the Group had bank loan facilities of RMB962.0 million, of which RMB730.8 million remained unutilized.

As of 31 December 2024, the Group had bank loan facilities of RMB200.0 million, of which RMB103.3 million remained unutilized.

15. OTHER PAYABLES AND ACCRUALS

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Payables for purchase of non-current assets | 81,931 | 89,146 |
| Accrued expenses | 104,905 | 56,582 |
| Salaries and benefits payables | 62,506 | 52,521 |
| Tax payables other than corporate income tax | 49,542 | 41,186 |
| Accrued listing expenses | - | 25,068 |
| Customer deposits | 4,125 | 5,393 |
| Others | 8,805 | 2,426 |
| | 311,814 | 272,322 |

CONVERTIBLE REDEEMABLE PREFERRED SHARES

Series Angel

In February 2018, October 2018, May 2019, November 2019 and March 2020, Shanghai Bloks Technology Group Co., Ltd. raised up to RMB857,000,000 from shareholders and certain onshore investors. On 24 April 2021, after 2021 April capital swap transaction as mentioned below, there was 7,038,460 shares (deemed as 35,192,300 shares with a par value of USD0.0001 each after Reorganization) of Series Angel Preferred Shares, included 1,253,447 shares (deemed as 6,267,235 shares with a par value of USD0.0001 each after Reorganization) with redemption rights was recorded as Series Angel Convertible Redeemable Preferred Shares. 7,038,460 shares (deemed as 35,192,300 shares with a par value of USD0.0001 each after Reorganization) was fully reclassified and redesignated to Series Angel Preferred Shares of the Company in July 2022.

Series Pre-A

In July 2020 and November 2020, Shanghai Bloks Technology Group Co., Ltd. raised up to RMB330,000,000 from certain onshore investors and a shareholder. On 24 April 2021, there was 2,632,258 shares (deemed as 13,161,290 shares with a par value of USD0.0001 each after Reorganization) of Series Pre-A Preferred Shares with redemption rights was fully recorded as Series Pre-A Convertible Redeemable Preferred Shares. 2,632,258 shares (deemed as 13,161,290 shares with a par value of USD0.0001 each after Reorganization) were fully reclassified and redesignated to Series Pre-A Preferred Shares of the Company in July 2022.

Series A

In April 2021, Shanghai Bloks Technology Group Co., Ltd. raised up to RMB599,999,631 from certain onshore investors. On 24 April 2021, there was 3,718,661 shares (deemed as 18,593,305 shares with a par value of USD0.0001 each after Reorganization) of Series A Preferred Shares with redemption rights.

On 24 April 2021, certain investors purchased 1,465,773 shares (deemed as 7,328,865 shares with a par value of USD0.0001 each after Reorganization) from certain shareholders and these shares were entitled with Series A Preferred Shares (“2021 April capital swap”) with redemption rights, together with 3,718,661 shares (deemed as 18,593,305 shares with a par value of USD0.0001 each after Reorganization) of Series A Preferred Shares with redemption rights, were fully recorded as Series A Convertible Redeemable Preferred Shares.

25,922,170 Series A Preferred Shares were reclassified and redesignated to Series A Preferred Shares of the Company in July 2022. The 25,922,170 Series A Convertible Redeemable Preferred Shares includes 5,767,820 warrant shares issued to Yunfeng Tuoyuan.

Details of the key terms of the above convertible redeemable preferred shares were set out in note 29 of Appendix I in the prospectus published on 31 December 2024.

The Group has designated the convertible redeemable preferred shares as whole as financial liabilities measured at fair value through profit or loss and presented as convertible redeemable preferred shares in the statements of financial position. The change in fair value of the convertible redeemable preferred shares is charged to profit or loss.

All issued convertible redeemable preferred shares were automatically converted into 39,582,875 ordinary shares upon the successful Global Offering of the Company on 10 January 2025 and the fair value of financial liabilities of RMB2,207,012,000 had been reclassified to equity accordingly.

18 -

The movements of the convertible redeemable preferred shares as at the end of the year are set out below:

	Series Angel Convertible Redeemable Preferred Shares		Series Pre-A Convertible Redeemable Preferred Shares		Series A Convertible Redeemable Preferred Shares		Total
	Number of shares	RMB'000	Number of shares	RMB'000	Number of shares	RMB'000	RMB'000
As at 1 January 2025	6,267,235	349,440	13,161,290	733,831	20,154,350	1,123,741	2,207,012
Conversion of convertible redeemable preferred shares into ordinary shares	(6,267,235)	(349,440)	(13,161,290)	(733,831)	(20,154,350)	(1,123,741)	(2,207,012)
As at 31 December 2025	-	-	-	-	-	-	-
As at 1 January 2024	6,267,235	216,405	13,161,290	505,575	25,922,170	1,126,036	1,848,016
Termination of warrant agreement	-	-	-	-	(5,767,820)	(183,000)	(183,000)
Changes in fair value	-	133,035	-	228,256	-	180,705	541,996
As at 31 December 2024	6,267,235	349,440	13,161,290	733,831	20,154,350	1,123,741	2,207,012

17. SHARE CAPITAL/TREASURY SHARES

Authorised

The Company was incorporated in the Cayman Islands on 28 July 2021.

The Company has redesigned and reclassified all the issued and unissued preferred shares as ordinary shares on a 1:1 basis, ranking pari passu in all respects with the ordinary shares of the Company having the rights and restrictions, with effect immediately prior to the Global Offering, such that the authorised share capital of the Company would be USD50,000 divided into 500,000,000 ordinary shares of par value of USD0.0001 each, with effect from the Listing Date. As at 31 December 2025, the authorised share capital of the Company was USD50,000.

In January 2025, the Company successfully completed its Global Offering of 27,738,300 shares with the Offer Size Adjustment Option exercised at an offer price of HK$60.35 per share on the Main Board of The Stock Exchange of Hong Kong Limited.

In February 2025, the underwriters of the Global Offering fully exercised the over-allotment option, and an aggregate of 4,160,700 shares at an offer price of HK$60.35 per share were newly allotted and issued by the Company.

Upon listing, pursuant to the Articles and the written resolutions of the Shareholders dated 18 December 2024, each preferred shares shall automatically be converted, by reclassification and redesignation, into Ordinary Shares on a one-for-one basis upon the closing of the Global Offering pursuant to the automatic conversion mechanism under Article 51 of the Articles of Association (the "Conversion") each ranking pari passu in all respect with the existing Ordinary Shares in the share capital of the Company. Following the completion of conversion of all preferred shares into ordinary shares upon listing, no further fair value changes in respect of the convertible redeemable preferred shares incurred during the year.

Issued and fully paid

	Number of shares	Nominal value of shares USD	Nominal value of shares RMB
As at 1 January 2024, 31 December 2024 and 1 January 2025	177,769,070	17,777	127,581
Issuance relating to initial public offering	27,738,300	2,774	19,941
Exercise of over-allotment option	4,160,700	416	2,984
Conversion of convertible redeemable preferred shares into ordinary shares	39,582,875	3,958	28,457
As at 31 December 2025	249,250,945	24,925	178,963

Treasury shares

	Number of shares repurchased	Treasury shares RMB'000
As at 1 January 2024, 31 December 2024 and 1 January 2025	-	-
Shares repurchased	704,100	59,596
At 31 December 2025	704,100	59,596

A total of 704,100 shares were repurchased at a total consideration of HK$65,353,000 (equivalent to approximately RMB59,596,000) for the year ended 31 December 2025 (2024: Nil).

18. DIVIDENDS

No dividends were paid or declared by the Company during the years ended 31 December 2025 and 2024.

MANAGEMENT DISCUSSION AND ANALYSIS

I. BUSINESS REVIEW

In 2025, we embarked on a new journey, a year filled with both opportunities and challenges. We adhered to and continued to deepen our growth strategy of covering all demographics, all price segments, and all global consumers. We encouraged product and technological innovation. Leveraging our portfolio of nearly 550 patents and the standardization advantages of the Bloks System, through efficient collaboration, we continuously provided global consumers with quality-for-money toy products that offer an exceptional assembling experience. In 2025, our products, backed by their superior quality, won the favor of even more consumers. During the Reporting Period, our sales revenue amounted to RMB2,913.3 million, representing a year-on-year increase of 30.0%; our adjusted profit amounted to RMB674.9 million, representing a year-on-year increase of 15.5%; and our profit for the year amounted to RMB633.7 million, turning from loss to profit compared with 2024.

Enhance R&D Capabilities and Deepen the Bloks System

The Bloks System comprises the standardization of product design, research and development and production, a self-compatible product system and a consumer ecosystem. Leveraging our patent-protected "Bloks System", which covers the full-chain standardized process from design to production, we have successfully forged assembly character toys that combine standardization with individuality. We also replicated our success in the assembly character toy category across a wider range of toy categories, such as the assembly vehicle toys.

We firmly believe that exceptional R&D capabilities serve as the solid foundation driving the continuous evolution of the Bloks System and fortifying our brand's competitive moat. We have a robust and efficient research and development team. As of the end of the Reporting Period, our R&D team comprised 618 employees, accounting for 66.1% of our total employees. Our R&D team members possess deep experience and understanding of toys, consumer goods and popular culture. We follow a consumer-centric research and development philosophy, with a particular focus on consumer feedback and consumer experience, and we apply our consumer insights throughout the entire process, from product design to launch. During the Reporting Period, we filed patent applications for inventions related to joint building block assembly and other relevant technologies. As of the end of the Reporting Period, we had 548 domestic authorized patents, 24 overseas authorized patents, and 83 domestic invention patents. During the Reporting Period, our R&D expenditure amounted to RMB264.3 million, representing 9.1% of our revenue and a year-on-year increase of 37.3%.

21 -

We have always adhered to driving business growth through innovation. During the Reporting Period, leveraging our deep technical expertise and keen market insights, we conducted comprehensive category exploration centered on core user needs. We achieved significant R&D results in themes including vehicles, animals, and dress-up, further enriching our product matrix and receiving positive market feedback. During the Reporting Period, we launched the assembly vehicle toys series “BLOKEES WHEELS”. This product series features gameplay that combines “easy assembly” with “easy modification”. In terms of themes, leveraging our rich IP resources, it innovatively integrates diverse subjects with automotive culture. Regarding materials, in collaboration with professional materials research institutions, we jointly developed an innovative high-density material with independent intellectual property rights. We also developed animal-themed assembly toys under the “TERRAVENTURE” series, such as dinosaur-themed assembly toys. Through the innovative “Bone-Skin-Feature System”, we meticulously restored dinosaur forms, perfectly integrating the three core modules of “assembling, articulation, and detailed skin texture”. Furthermore, we introduced the dress-up themed assembly toy series “DaaLaMode 1/12”. This series features a new body specifically designed for dress-up play, built on our modular figure technology, complemented by standardized joint interfaces and paired with clothing made of fabric material, allowing adaptation to various life scenes.

Continuously Expand Our IP Portfolio to Enrich Our Product Offering

We effectively commercialize our self-developed and licensed IPs and continuously expand our IP portfolio to strengthen and rapidly broaden our product offering. As of the end of the Reporting Period, we have two self-developed IPs, namely the children-development-oriented MAGIC BLOCKS (百變布魯可) and the Chinese culture-themed HEROSPIRE (英雄無限), and 73 licensed IPs. As of the end of the Reporting Period, the number of our self-developed IPs remains stable compared to that as of 31 December 2024 and the number of our licensed IPs increased from 50 as of 31 December 2024 to 73 as of the end of the Reporting Period including but not limited to TOY STORY, ZOOTOPIA, FROZEN, DISNEY PRINCESS, STITCH, FAST & FURIOUS, JURASSIC PARK, ANPANMAN, GODZILLA, ROCKMAN, THE MONKEY KING, NEZHA CONQUERS THE DRAGON KING, and JOJO'S BIZARRE ADVENTURE: STARDUST CRUSADERS. As of 31 December 2025, we had commercialized 29 IPs. During the Reporting Period, TRANSFORMERS, ULTRAMAN, KAMEN RIDER and HEROSPIRE were our four best-selling product series. The revenue generated by each series was RMB951.0 million, RMB814.9 million, RMB331.2 million and RMB264.0 million respectively.

Given our strong IP commercialization performance, the terms and territorial scope of our IP licenses have been continuously extended and expanded. As of 31 December 2025, we have successfully renewed or extended key licenses, including but not limited to KAMEN RIDER, MARVEL, STAR WARS, DISNEY PRINCESS, TOY STORY, STITCH, ZOOTOPIA, NARUTO, and POKÉMON. During the Reporting Period, the licensed territories for IPs such as TRANSFORMERS, IPs involved in selected MARVEL product, IPs involved in selected STAR WARS product, EVANGELION, and ZOOTOPIA have been expanded to cover most countries and regions globally.

22 -

During the Reporting Period, we newly launched 913 SKUs. As of 31 December 2025, the number of SKUs available for sale totaled 1,447, comprising 158 SKUs primarily designed for children under the age of 6, representing a year-on-year increase of 19.7%; 1,002 SKUs primarily designed for consumers aged 6 to 16, representing a year-on-year increase of 93.1%; and 287 SKUs primarily designed for consumers aged 16 and above, representing a year-on-year increase of 825.8%. Products for consumers between the ages of 6 to 16 remained our primary revenue driver, accounting for 81.1% of total revenue. Revenue contribution from products for consumers over the age of 16 increased from 11.4% in 2024 to 16.7% in 2025. Products targeted at consumers aged 16 and above have grown steadily in recent years. We will continue to strengthen our advantage in toys for adult fan groups.

Leveraging our efficient research and development and partner factory network with cost advantages and consistent quality, we are able to launch highly popular quality-for-money products covering all price segments. We further expanded our price segment coverage of our products and launched products in the value price segment offering extreme cost-performance at a price point of RMB9.9 by the end of 2024. In 2025, sales revenue from this price segment reached RMB540.5 million, with sales volume amounting to 122.2 million units, accounting for 18.6% of our total revenue.

Leveraging the strong expandability of the Bloks System, and through the combination of our product strength and supply chain capabilities, we can not only maintain our cost advantages but also continuously expand our product categories to enrich our product portfolio. We primarily offer assembly character toys, and we also provide other brick-based toys, such as assembly vehicle toys and brick-based toys. During the Reporting Period, revenue generated from assembly character toys amounted to RMB2,842.7 million, representing 97.6% of our total revenue, a year-on-year increase of 29.1%; revenue generated from assembly vehicle toys and brick-based toys amounted to RMB69.8 million, representing 2.4% of our total revenue, a year-on-year increase of 77.0%.

Our Sales Channels and Marketing Performance

During the Reporting Period, we sold our products through a multi-channel sales network, which consisted of (i) offline sales channels, including distributors and consignment sales, and (ii) online sales channels, including various e-commerce platforms.

Offline Sales Channels

Our offline sales channels included distribution sales and consignment sales. During the Reporting Period, our offline distribution sales amounted to RMB2,637.3 million and our consignment sales amounted to RMB22.5 million.

We partner with distributors that have specific regional coverage and established local sales networks, with backgrounds in toys and cultural and creative products, as well as with large-scale distributors whose business operations span nationwide. During the Reporting Period, our offline distribution sales increased from RMB2,062.9 million in 2024 to RMB2,637.3 million in 2025, accounting for 90.5% of our total revenue, representing a year-on-year increase of 27.8%.

23 -

We also sell our products offline through consignment sales. Ownership of the goods remains with us until sales to consumers occur. During the Reporting Period, we had three consignment sales partners, which remained stable compared with 2024. During the Reporting Period, our consignment sales increased from RMB22.0 million in 2024 to RMB22.5 million in 2025, accounting for 0.8% of our total revenue.

Online Sales Channels

Our online sales channels mainly include (i) the flagship stores on Tmall, JD.com, Douyin, Pinduoduo, TikTok, Shopee, Lazada and other e-commerce platforms in China and overseas; and (ii) our Weixin mini program BLOKEES CLUB. During the Reporting Period, our revenue from online channels increased from RMB155.7 million in 2024 to RMB252.7 million in 2025, accounting for 8.7% of our total revenue. Revenue from online channels grew by 62.3% year-on-year, a growth rate higher than that of overall revenue, demonstrating a strong development momentum.

Sales from China and Overseas

During the Reporting Period, our sales from China increased by 19.2% from RMB2,176.7 million in 2024 to RMB2,594.4 million in 2025.

Apart from China, we also sell our products in overseas markets. In 2025, we continued to expand our overseas markets and simultaneously deepened overseas user operations, launched "BLOKEES", an official fan community APP covering 12 countries and regions in the Asia Pacific, to build a global fan base for Bloks and support the sustainable expansion of overseas business. Our overseas sales revenue increased from RMB64.2 million in 2024 to RMB318.9 million in 2025, representing a year-on-year increase of 396.6%. Among these, sales revenue from Asia (excluding China) grew from RMB39.2 million in 2024 to RMB132.6 million in 2025, a year-on-year increase of 238.1%; sales revenue from Americas grew from RMB16.5 million in 2024 to RMB149.5 million in 2025, a year-on-year increase of 804.1%. During the Reporting Period, the United States and Indonesia were the two countries with the highest revenue contribution from our overseas markets.

Marketing

Leveraging the strong interactivity of assembly toys and the dissemination potential of IP content, we adhere to a content-driven marketing strategy. In 2025, we utilized multiple communication channels (such as official accounts, KOLs, KOCs, and fans) on social media platforms to systematically disseminate product related contents. Through BFC engagement, global marketing activities, and in-depth user operations, we continuously enhanced our brand influence, improved product promotion efficiency, and deepened communication with consumers and partners worldwide.

In March 2025, we held our annual Global Partner Conference (GPC) in Shanghai, inviting business partners such as Shanghai Character License Administrative Co., Ltd. (上海新創華文化發展有限公司) ("SCLA"), Hasbro and NBC Universal, along with our distributors, KOLs, BFCs, and others to jointly witness our innovation achievements and future development plan. During the conference, we introduced the concept of a product ecosystem, further solidifying the Company's leading position in the assembly

24 -

character toy market. During the Reporting Period, we actively participated in various toy fairs globally including but not limited to Wonder Festival Shanghai 2025, the 2025 CTE China Toy Expo, as well as Toy Fair New York, Spielwarenmesse, and Indonesia International Toy Fair. Through a closed-loop operation of “exhibition-interaction-dissemination-conversion”, we effectively promoted our global brand presence. At overseas exhibitions, we specially set up a “BFC Works Display Area” to showcase the creative achievements of BFCs from around the world, elevating brand presentation into a community platform that empowers user creation and inspires the collision of ideas. Concurrently, we implemented a precise strategy for new product launches, integrating local market trends and consumer preferences to deepen localized operations and form a long-term, win-win business ecosystem.

In 2025, the Company continued to deepen its BFC community operations. The third BFC Creation Contest officially launched with systematic operations, expanding from online to offline and from China to the global stage. Across four seasons, it attracted nearly 60,000 participants and close to 130,000 submitted works. Concurrently, the BFC Creation Contest expanded into a “thousand stores across a hundred cities” initiative, with over 8,000 offline events held throughout the year, covering more than 100 cities in China and engaging over 120,000 participants. This established a nationwide competition network embodying the concept that “where there is a BFC, there is a BFC Creation Contest in your city”, significantly lowering the barrier to participation for players and markedly enhancing the activity level of the BFC community and user stickiness.

In 2025, we advanced our official accounts to form a community ecosystem focused on user growth and creativity stimulation, based upon product marketing. We established the “BFC Stories” column, conducting in-depth interviews with outstanding creators to convey the brand’s recognition of the value of user-generated content. We regularly held “New Product BFC Creation Activities” and published tutorial videos on “Figure Modification Techniques” to ignite user creativity. We launched the “Listening Series” content column to incorporate user suggestions and ideas for products to cultivate user trust. Furthermore, through regular features such as monthly birthday celebrations and interactive rankings, we strengthened the sense of belonging among core users and enhanced community cohesion.

Focus on Enhancing Product Quality and Actively Fulfilling Corporate Social Responsibilities

Product quality is paramount to our success. We place strong emphasis on product quality and have a dedicated quality control team. We adopt a comprehensive quality control system that covers product design and development, raw material suppliers, production, warehousing and logistics. During the Reporting Period, we consistently adhered to a quality-centric approach, achieving systematic upgrades from the design source to terminal delivery by constructing a full-link quality control system spanning the entire product lifecycle. In the product design and development phase, we formulated specifications adapted to global standards and introduced DQEs (Design Quality Engineers) at the factory level to deeply participate in safety regulations assessment, ensuring product quality stability. In raw material supplier management, we established a “Supplier Quality Information Sharing Platform” and adopted rigorous standards to evaluate raw material supplier qualifications. In the production and manufacturing stage, we enhanced product quality through collaboration with factories utilizing

25 -

automated equipment, such as automated production machinery, automated UV printing equipment, and automated spraying equipment; we improved quality control by optimizing production processes, such as adopting a new baking finish process for the assembly vehicle toys series to enhance metallic texture; we revised the "Blokees Product Inspection and Testing Specifications", upgrading inspection standards and specifications for different product categories and strictly adhered to them. In the warehousing and logistics stage, we utilized a dedicated team to manage the central warehouse and ensure proper storage; we selected logistics service providers using strict criteria and conducted continuous performance evaluations to prevent physical damage to our products during transit. These initiatives demonstrate that our quality control has advanced to an industry-leading level, providing a solid quality moat for the global expansion of the Bloks System.

Furthermore, we resolutely combat infringement. In 2025, we constructed a long-term rights protection system from legal, technical, and channel perspectives to comprehensively protect our product quality reputation and intellectual property rights. On the legal front, we deeply coordinated with market supervision and management departments in multiple regions to combat illegal and unfair competitive practices such as "counterfeiting" and "repackaging," leading to the investigation and prosecution of 15 unscrupulous merchants according to law. Regulatory authorities issued a total of 7 rectification notices and 3 administrative penalty decisions. On the technical front, our official BLOKEES CLUB mini-program launched features including "Authentic Product Verification", "Original Factory Configuration Verification for Box Sets", and "Counterfeit Reporting and Product Feedback" to assist consumers in identifying genuine products. On the channel front, we conducted online and offline infringement investigations, focusing on rectifying infringements in high-risk scenarios such as e-commerce platforms and wholesale markets, and urged consumers to purchase products through official channels and enhance their anti-counterfeiting awareness. We maintain a "zero-tolerance" policy towards actions that harm consumer interests and disrupt market order. In the future, we will continue to deepen collaboration with law enforcement authorities, continuously improve our regular rights protection mechanisms, resolutely eliminate various forms of infringement, effectively safeguard the legitimate rights and interests of consumers, jointly uphold a healthy development ecosystem for the industry, and fulfill our corporate social responsibilities.

During the Reporting Period, the Shanghai Bloks Charity Foundation (上海布魯可公益基金會) (the "Bloks Foundation") was formed and funded by Shanghai Bloks Technology Group Co., Ltd. The Bloks Foundation operates independently while maintaining strategic alignment with the Company's corporate social responsibility goals. In 2025, the Bloks Foundation organized two donation projects: In September 2025, it donated materials to Nanjian Yi Autonomous County, Dali Bai Autonomous Prefecture, Yunnan Province, including 500 sets of height-adjustable desks and chairs and 4,400 sets each of two Blokees figure products; in November 2025, it donated HKD1.5 million to support relief and assistance projects related to the fire at Wang Fuk Court in Hong Kong's Tai Po district, funding emergency rescue, temporary shelter, and living supplies for affected residents. Moving forward, the Company will continue to actively fulfill its social responsibilities, support and participate in social welfare activities aligned with our values, and create long-term value for society through concrete actions.

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II. BUSINESS OUTLOOK

Looking forward to 2026, we will continue to enhance our R&D capabilities related to product design and development, and fully leverage AI tools for empowerment to improve our product development efficiency, deepen the Bloks System, and form a product ecosystem. Through various AI tools, we will further strengthen our capability in original IP creation, continue to develop original IPs, enrich the diversity of licensed IPs, expand our product portfolio, refine our self-system of components and improve our product system. By strengthening our patent layout and integrating the Bone-Skin-Feature System, we will continue to perfect the core of our design, R&D, and production. We will persistently maintain interaction with consumers and fans, increase BFC promotion, and form a consumer-centric content ecosystem. We will further consolidate our triple growth engines covering all demographics, all price segments and all global consumers, deepening the effectiveness of this “Three-Alls” strategy to drive sustained, stable, and robust business growth. We will continue to increase investment in sales and marketing, with a focus on deepening overseas channel expansion, particularly in North America and Europe, further strengthening our brand momentum in both Chinese and overseas markets, and providing global consumers with quality-for-money toy products that offer an exceptional assembling experience.

FINANCIAL REVIEW

Revenue

During the Reporting Period, we primarily generated revenue from sales of toys, including assembly character toys and brick-based toys, as well as from other businesses to a much lesser extent. Our revenue was recorded net of discount and rebate.

By Business Nature

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Revenue | | |
| Toys | | |
| Assembly character toys | 2,842,711 | 2,201,104 |
| Assembly vehicle toys and brick-based toys | 69,814 | 39,432 |
| Sub-total | 2,912,525 | 2,240,536 |
| Others | 813 | 393 |
| Total | 2,913,338 | 2,240,929 |

Our revenue increased by 30.0% from RMB2,240.9 million in 2024 to RMB2,913.3 million in 2025 primarily attributable to the increase of revenue from assembly character toys as a result of a significant increase in sales volume of assembly character toys, primarily due to (i) our revenue from value price segment (i.e. retail price of RMB9.9) reached revenue of RMB540.5 million with sales volume of 122.2 million units in 2025, accounting for 47.8% of our sales volume, and (ii) we launched 913 new SKUs during the Reporting Period and recorded a 36.3% increase in the revenue of our new SKU products from RMB1,465.0 million in 2024 to RMB1,997.1 million in 2025.

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Assembly Character Toys

Our revenue from assembly character toy sales increased by 29.1% from RMB2,201.1 million in 2024 to RMB2,842.7 million in 2025. This is because that (i) we recorded an 85.6% increase in the sales volume of our assembly character toys from 134.7 million units in 2024 to 250.0 million units in 2025, and (ii) our revenue from value price segment (i.e. retail price of RMB9.9) reached revenue of RMB540.5 million with sales volume of 122.2 million units in 2025, accounting for 47.8% of our total sales volume. The performance above was mainly attributable to the successful commercialization of an expanding and diversifying products portfolio of self-developed and licensed IPs with rapid expansion of our sales network inter alia overseas market.

Assembly Vehicle Toys and Brick-based Toys

Our revenue from assembly vehicle toy and brick-based toy sales increased by 77.0% from RMB39.4 million in 2024 to RMB69.8 million in 2025, primarily due to our revenue from assembly vehicle toy reached revenue of RMB43.1 million with sales volume of 5.7 million units since its launch in November 2025 as our new product line.

During the Reporting Period, we established a multi-channel sales network, consisting of (i) offline sales channels, including distribution and consignment sales, and (ii) online sales channels, primarily including various e-commerce platforms.

Our revenue from offline sales continued to increase, accounting for a substantial majority of our total revenue in the Reporting Period.

By Region

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| China | 2,594,407 | 2,176,708 |
| Asia (excluding China) | 132,588 | 39,215 |
| Americas | 149,534 | 16,539 |
| Others | 36,809 | 8,467 |
| Total | 2,913,338 | 2,240,929 |

Our revenue from overseas sales increased by 396.6% from RMB64.2 million in 2024 to RMB318.9 million in 2025, primarily because we accelerated our international market expansion strategy, which also expedited our overseas market coverage and presence.

Cost of Sales

Our cost of sales increased by 45.9% from RMB1,062.1 million in 2024 to RMB1,549.4 million in 2025, primarily due to (i) a 41.6% increase in the cost of goods sold in line with the increase in the sales volume, and (ii) a 120.6% increase in the depreciation of molds since the numbers of our molds increased due to the necessity for high accuracy and multi-cavity molds to satisfy the newly launched SKUs and growing market demand for our quality-for-money products brought by our business expansion. These necessary capital expenditures were amortised as cost in 2025.

Gross Profit

Our gross profit increased by 15.7% from RMB1,178.8 million in 2024 to RMB1,364.0 million in 2025, primarily due to a 15.2% increase in gross profit from assembly character toy sales from RMB1,163.8 million in 2024 to RMB1,341.3 million in 2025.

Assembly Character Toys

Our gross profit from assembly character toy sales increased by 15.2% from RMB1,163.8 million in 2024 to RMB1,341.3 million in 2025, primarily due to an increase in the sales volume of our assembly character toys.

Assembly Vehicle Toys and Brick-based Toys

Our gross profit from assembly vehicle toy and brick-based toy sales increased by 50.4% from RMB14.6 million in 2024 to RMB21.9 million in 2025, primarily due to an increase in the sales of our assembly vehicle toys as our new product line.

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Selling and Distribution Expenses

Our selling and distribution expenses increased by 36.6% from RMB283.1 million in 2024 to RMB386.8 million in 2025. Our selling and distribution expenses as a percentage of our total revenue increased from 12.6% in 2024 to 13.3% in 2025, primarily due to (i) an increase in marketing and promotion expenses of RMB37.7 million mainly for promoting our new products in line with our business growth, and (ii) an increase in employee benefit expenses of RMB18.6 million as a result of an increase in the number of selling and distribution personnel, which was in line with our rapid growth.

R&D Expenses

Our R&D expenses increased by 37.3% from RMB192.5 million in 2024 to RMB264.3 million in 2025. Our R&D expenses as a percentage of our total revenue increased from 8.6% in 2024 to 9.1% in 2025, primarily due to an increase in salaries, compensations and benefits of RMB63.1 million as a result of an increase in number of personnel engaging in R&D function, which was consistent with our commitment to R&D.

Administrative Expenses

Our administrative expenses decreased by 78.9% from RMB465.0 million in 2024 to RMB98.1 million in 2025. Our administrative expenses as a percentage of our total revenue decreased from 20.8% in 2024 to 3.4% in 2025, primarily due to (i) a decrease in one-off share-based compensation of RMB359.3 million for share options granted under the Share Incentive Scheme in April 2024, and (ii) the decrease in listing expenses of RMB33.4 million we incurred in 2024.

Other Income, Other Gains and Losses, Net

Other income, other gains and losses, net, increased from RMB17.1 million in 2024 to RMB92.8 million in 2025, primarily due to an increase in bank interest income and interest income from time deposits over three months of RMB67.0 million.

Other Expenses

Other expenses increased from RMB4.6 million in 2024 to RMB12.0 million in 2025, primarily because of the donation of RMB3.2 million and the increase of exchange losses of RMB2.1 million in 2025.

Income Tax Expense

Income tax expense decreased by 41.6% from RMB102.4 million in 2024 to RMB59.8 million in 2025, primarily due to an increase in the current tax expense of RMB36.8 million and a decrease in the deferred tax expense of RMB79.4 million in 2025 compared with the same year as 2024.

Profit/(Loss) for the Year

As a result of the foregoing, our profit for the year turned from a loss of RMB398.0 million in 2024 to a profit of RMB633.7 million in 2025.

NON-IFRS MEASURES

We believe that these non-IFRS measures facilitate comparisons of operating performance from year to year by eliminating potential impact of certain items. We believe that these measures provide useful information to investors and others in understanding and evaluating our consolidated financial statements in the same manner as they help our management. However, our presentation of adjusted profit for the year (a non-IFRS measure) and adjusted net margin (a non-IFRS measure) may not be comparable to similar item measures presented by other companies. The use of these non-IFRS measures has limitations as an analytical tool, and you should not consider them in isolation from, or as substitute for analysis of, our consolidated financial statements or financial condition as reported under IFRSs. We define adjusted profit for the year (a non-IFRS measure) as profit/(loss) for the year adjusted for fair value changes on convertible redeemable preferred shares (a non-cash item), listing expenses and share-based compensations (a non-cash item). In particular, following the completion of conversion of all preferred shares into ordinary shares by January 2025 upon listing, no further fair value changes in respect of the convertible redeemable preferred shares will be incurred. We define adjusted net margin (a non-IFRS measure) as adjusted profit for the year (a non-IFRS measure) as a percentage of our total revenue.

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Profit/(Loss) for the year | 633,737 | (398,044) |
| Add: | | |
| Fair value changes on convertible redeemable preferred shares | - | 541,996 |
| Listing expenses | - | 33,372 |
| Share-based compensations | 41,203 | 407,264 |
| Adjusted profit for the year (a non-IFRS measure) | 674,940 | 584,588 |
| Adjusted net margin (a non-IFRS measure) | 23.2% | 26.1% |

31 -

In 2025, we recorded an adjusted profit for the year (a non-IFRS measure) of RMB674.9 million and an adjusted net margin (a non-IFRS measure) of 23.2%, as compared with an adjusted profit for the year (a non-IFRS measure) of RMB584.6 million and an adjusted net margin (a non-IFRS measure) of 26.1% in 2024. This is primarily due to the increase in the following cost and expense:

(i) Increased personnel expenses to support the Group’s business scale expansion

To facilitate the Group’s strategic business expansion, we recruited more employees at different departments and levels including R&D, sales and administration team, which directly resulted in a significant increase in our employment costs during the Reporting Period.

(ii) Increased investments to satisfy the growing market demand for our quality-for-money products

We substantially increased investments in enhancing our R&D capabilities in relation to product design and development, such as high accuracy and multi-cavity molds to satisfy the growing market demand for our quality-for-money products brought by our business expansion. These necessary capital expenditures were recognised as R&D expenses and cost in the current period. We aim at enhancing our sales performance and enlarging our products offering to match with those capital expenditures and realize the effect of scale.

Inventories

Our inventories include finished goods, raw materials and goods in transit. Our inventories increased from RMB278.5 million as of 31 December 2024 to RMB331.5 million as of 31 December 2025. Inventory turnover days increased from 64 days as of 31 December 2024 to 75 days as of 31 December 2025. The increase was primarily due to the increase in product inventories to match with our sales performance.

Trade Receivables

Our trade receivables primarily arise from sales of our products on credit. Advance payment is normally required except we granted credits to certain distributors with good track record and liquidity position, and consignment sales partners. The credit period granted is generally one to four months.

Our trade receivables increased from RMB112.0 million as of 31 December 2024 to RMB270.2 million as of 31 December 2025, primarily due to the increase of sales volume through key customers and online channels.

Trade and Notes Payables

Our trade and notes payables primarily comprise payables to our suppliers, mainly our partner factories. Our trade and notes payables are non-interest bearing and normally settled on terms of three to seven months.

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Our trade and notes payables increased from RMB566.7 million as of 31 December 2024 to RMB753.8 million as of 31 December 2025, primarily due to the continuous growth of our business.

Cash and Cash Balances

In 2025, we received net proceeds from the Global Offering of approximately HK$1,790.4 million. As of 31 December 2025, we had cash and cash balances of RMB2,907.9 million, including approximately RMB514.7 million time deposits over three months.

Foreign Currency Risk

We have transactional currency exposures. Such exposures arise from sales or purchases by operating units in currencies other than the units' functional currencies. In addition, we have currency exposures from our cash and cash equivalents. Our management considers our exposure to foreign currency risk is not significant.

OTHER INFORMATION

Human Resources

As of the end of Reporting Period, we had a total of 935 employees, including 229 sales personnel, and 618 R&D personnel. During the Reporting Period, we incurred staff costs (including remuneration, payrolls, allowances and benefits) of RMB375.8 million, of which RMB41.2 million was attributed to share-based compensations.

Material Acquisitions and Disposals

During the Reporting Period, we had not conducted any material acquisition or disposal of subsidiaries, associates and joint ventures.

Final Dividend

The Board has resolved not to recommend the payment of a final dividend for the year ended 31 December 2025.

Use of Proceeds from the Global Offering

The Shares were listed on the Main Board of the Stock Exchange on 10 January 2025. The net proceeds received from the Global Offering (after deducting the underwriting commissions and other estimated expenses in connection with the Global Offering) was approximately HK$1,790.4 million.

There has been no change in the intended use of the net proceeds as set out in the Prospectus under the section headed "Future Plans and Use of Proceeds". The net proceeds from the Global Offering (adjusted on a pro rata basis based on the actual net proceeds) will be utilized in the manner as set out in the Prospectus under the section headed "Future Plans and Use of Proceeds".

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The following table sets forth a summary of the intended use of net proceeds from the Global Offering and their expected timeline of full utilization. Set out below are details of the utilization of net proceeds from the Global Offering during the Reporting Period.

	Percentage of net proceeds from the Global Offering (%)	Net proceeds from the Global Offering (HK$ in million)	Utilized amount as at 31 December 2025 (HK$ in million)	Unutilized amount as at 31 December 2025 (HK$ in million)	Expected timeline for unutilized net proceeds
Enhance our R&D capabilities in relation to product design and development	25	447.7	48.5	399.2	Before 30 June 2028
Invest in core production resources and our own scaled factories specializing in the production of assembly character toys	25	447.7	94.0	353.7
- Invest in molds	15	268.7	94.0	174.7	Before 30 June 2028
- Partially fund the establishment of our own production capacity	10	179.0	-	179.0	Before 30 June 2027
Further enrich our IP portfolio	20	358.0	78.7	279.3
- Continue to invest in content production relating to our self-developed IPs, primarily in the form of animation	5	89.5	14.0	75.5	Before 30 June 2028
- Strengthen our efforts in IP development through collaboration	10	179.0	28.9	150.1	Before 30 June 2028
- Solidify and expand our licensed IP portfolio	5	89.5	35.8	53.7	Before 31 December 2027
Sales and marketing efforts	20	358.0	89.0	269.0
- Marketing and promotion in China and overseas markets	10	179.0	44.8	134.2	Before 30 June 2028
- Expanding the sales and marketing team and other purposes in relation to sales, marketing and promotion	10	179.0	44.2	134.8	Before 30 June 2028
Working capital and other general corporate purposes	10	179.0	50.1	128.9	Before 30 June 2028
Total	100	1,790.4	360.3	1,430.1

Subsequent Event after the Reporting Period

Saved as disclosed in this announcement, the Group has no significant events which occurred after the Reporting Period requiring additional disclosures or adjustments as of the date of this announcement.

Closure of Register of Members

The AGM will be held on Tuesday, 9 June 2026. The register of members of the Company will be closed from Thursday, 4 June 2026 to Tuesday, 9 June 2026, both days inclusive, in order to determine the identity of the Shareholders who are entitled to attend the AGM. To be eligible to attend the AGM, all properly completed transfer documents accompanied by the relevant share certificates must be lodged for registration with the Company’s share registrar in Hong Kong, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong not later than 4:30 p.m. on Wednesday, 3 June 2026.

Corporate Governance Practice

The Group is committed to maintaining high standards of corporate governance to safeguard the interests of its Shareholders and to enhance corporate value and accountability. The Company has adopted the requirements and code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules.

Save for the deviation from code provisions C.2.1 and D.1.2 as set out in Part 2 of the Corporate Governance Code, which is explained in the following paragraph, the Company has complied with all applicable code provisions as set out in Part 2 of the Corporate Governance Code during the Reporting Period.

Pursuant to code provision C.2.1 of the Corporate Governance Code, the roles of chairman and chief executive should be separate and should not be performed by the same individual. Mr. Zhu is currently the chairman and the chief executive officer of the Company. He is the founder of the Group and has been operating and managing the Group since its establishment. The Board believes that Mr. Zhu has been instrumental to the growth and business expansion of the Group. The Board is of the view that the vesting the roles of the chairman and chief executive officer on him is beneficial to the management of the Company and therefore currently does not propose to separate the roles of chairman and chief executive officer.

While this will constitute a deviation from code provision C.2.1 of the Corporate Governance Code, the Board believes that this structure will not impair the balance of power and authority between the Board and the management of the Company, given that:

(i) there is sufficient check and balance in the Board as the decision to be made by the Board requires approval by at least a majority of the Directors, and the Board has two non-executive Directors as well as three independent non-executive Directors out of the seven Directors, which is in compliance with the Listing Rules;

(ii) Mr. Zhu and the other Directors are aware of and undertake to fulfill their fiduciary duties as Directors, which require, among other things, that they act for the benefit and in the best interest of the Company and make decisions for the Company accordingly;

(iii) the balance of power and authority is ensured by the operations of the Board which comprises experienced and high caliber individuals who meet regularly to discuss issues affecting the operations of the Company; and

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(iv) the overall strategic and other key business, financial, and operational policies of the Company are made collectively after thorough discussion at both Board and senior management levels. The Board will continue to review the effectiveness of the corporate governance structure of the Company to assess whether separation of the roles of the chairman of the Board and the chief executive officer of the Company is necessary.

Pursuant to code provision D.1.2 of the Corporate Governance Code, the management of the Group is required to provide all members of the Board with monthly updates on the Company's business. The management of the Group currently reports to the Board quarterly on the Group's performance, position and prospects. The Board believes that with the executive Directors overseeing the daily operation of the Group and the effective communication between the executive Directors, the management and the non-executive Directors (including the independent non-executive Directors) on the Group's affairs, the current practice is sufficient enough for the members of the Board to discharge their duties. However, this will constitute a deviation from code provision D.1.2 of the Corporate Governance Code. The Board will continue to review this practice and shall make necessary changes when appropriate and report to the Shareholders accordingly.

The following is a summary of work performed by the Board in determining the policy for the corporate governance of the Company during the year ended 31 December 2025:

(1) Developed and reviewed the Company's policies and practices on corporate governance;
(2) Reviewed and monitored the training and continuous professional development of Directors and senior management;
(3) Reviewed and monitored the Company's policies and practices on compliance with legal and regulatory requirements;
(4) Developed, reviewed and monitored the code of conduct and other rules applicable to employees and Directors; and
(5) Reviewed the Company's compliance with the Corporate Governance Code and disclosure in the corporate governance report.

We will continue to review and enhance its corporate governance practices to ensure compliance with the Corporate Governance Code.

Model Code for Securities Transactions by Directors

The Company has adopted the Model Code as set out in Appendix C3 to the Listing Rules as its code of conduct for securities transactions by the Directors. Having made specific enquiries to all Directors, each Director has confirmed that he/she has complied with the required standards as set out in the Model Code during the Reporting Period.

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Purchase, Sale or Redemption of Listed Securities

During the Reporting Period, the Company repurchased an aggregate of 704,100 shares on the Stock Exchange at a total consideration of approximately HK$65,353,000 (including fees), and such shares were held by the Company as treasury shares. As at 31 December 2025, the Company held 704,100 treasury shares, which will be used for subsequent employee equity incentive schemes. Details of the repurchased shares are as follows:

2025 Month of Purchase	Number of Shares Purchased	Purchase Consideration per Share		Total Consideration Paid (HK$)
		Highest Price Paid (HK$)	Lowest Price Paid (HK$)
August	264,900	121	102.5	28,349,970
September	180,600	104.8	93.05	17,700,090
October	41,400	92	90.2	3,762,855
November	150,300	73	70.15	10,742,220
December	66,900	69.5	68.35	4,620,120.02

Save as disclosed above, neither the Company nor any of its subsidiaries has purchased, sold or redeemed any of the Company's listed securities (including sale of treasury shares) during the Reporting Period.

Audit Committee

The Audit Committee, after the discussion with the Auditor, has reviewed the Group's consolidated financial statements for the year ended 31 December 2025. The Audit Committee has reviewed the accounting principles and practices adopted by the Company and discussed matters in respect of risk management and internal control of the Company. There is no disagreement between the Board and the Audit Committee regarding the accounting treatment adopted by the Company.

The Group's consolidated financial statements for the year ended 31 December 2025 have been prepared in accordance with IFRS Accounting Standards.

Scope of Work of Auditor on the Annual Results Announcement

The figures set out in this preliminary results announcement for the year ended 31 December 2025 have been compared by the Group's independent auditor, Ernst & Young, Certified Public Accountants in Hong Kong, to the amounts set out in the Group's consolidated financial statements for the year. The work performed by Ernst & Young in this respect did not constitute an assurance engagement in accordance with Hong Kong Standards on Auditing, Hong Kong Standards on Review Engagements or Hong Kong Standards on Assurance Engagements issued by the Hong Kong Institute of Certified Public Accountants and consequently no assurance on this preliminary results announcement has been expressed by Ernst & Young.

Publication of Annual Results and 2025 Annual Report

The annual results announcement is published on the website of the Stock Exchange (www.hkexnews.hk) and that of the Company (www.blokees.com.cn). The annual report will be dispatched to the Shareholders (if requested) and will be available on the website of the Stock Exchange and that of the Company in due course.

By order of the Board
Bloks Group Limited
Mr. Zhu Weisong
Chairman of the Board, Executive Director and
Chief Executive Officer

Hong Kong, 13 March 2026

As of the date of this announcement, the Board comprises Mr. Zhu Weisong and Mr. Sheng Xiaofeng as executive Directors; Mr. Chang Kaisi and Mr. Chen Rui as non-executive Directors; and Mr. Gao Pingyang, Ms. Huang Rong and Mr. Shang Jian as independent non-executive Directors.

DEFINITION

In this announcement, the following expressions have the meanings set out below unless the context requires otherwise:

"AGM" the annual general meeting of the Company to be held on 9 June 2026

"AI" artificial intelligence

"Articles" or "Articles of Association" the articles of association of the Company adopted on 18 December 2024, as amended from time to time

"Audit Committee" the audit committee of the Board

"Auditor" Ernst & Young, the external auditor of the Company

"BFCs" Blokees Figures Creator, person who re-creates our products or produces creative content related to our products, and shares such content

"Board" or "Board of Directors" the board of directors of the Company

"China", "mainland China" or "the PRC" the People's Republic of China, excluding, for the purposes of this announcement only, the regions of Hong Kong, Macau and Taiwan of the People's Republic of China, except where the content or context requires otherwise

38 -

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“Companies Ordinance” the Companies Ordinance (Chapter 622 of the Laws of Hong Kong), as amended or supplemented from time to time

“Company” or “our Company” Bloks Group Limited (布魯可集團有限公司), an exempted company incorporated under the laws of Cayman Islands with limited liability on 28 July 2021

“Corporate Governance Code” the Corporate Governance Code as set out in Appendix C1 to the Listing Rules

“Director(s)” the director(s) of the Company

“Global Offering” the global offering of the Ordinary Shares

“Group”, “our Group” or “we” the Company and its subsidiaries (or the Company and any one or more of its subsidiaries, as the content may require), or where the context so requires, in respect of the periods before the Company became the holding company of its present subsidiaries, such subsidiaries as if they were subsidiaries of the Company at the relevant time

“Hong Kong” Hong Kong Special Administrative Region of the PRC

“Hong Kong dollars” or “HK$” Hong Kong dollars, the lawful currency of Hong Kong

“IFRS Accounting Standards” International Financial Reporting Standards, amendments and interpretations issued by the International Accounting Standards Board

“IFRSs” International Financial Reporting Standards, which include standards, amendments and interpretations promulgated by the International Accounting Standards Board

“IP” characters, films or other artistic works and their underlying intellectual property rights

“KOC” key opinion consumer

“KOL” key opinion leader

“Listing Date” 10 January 2025

40 -

"Listing Rules" the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (as amended, supplemented or otherwise modified from time to time)

"Main Board" the stock market (excluding the option market) operated by the Stock Exchange which is independent from and operated in parallel with GEM of the Stock Exchange

"Model Code" Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules

"Mr. Zhu" Mr. Zhu Weisong (朱偉松), founder, Chairman, executive Director, chief executive officer of the Company

"Ordinary Share(s)" ordinary share(s) in the share capital of our Company, of nominal value of US$0.0001 each

"Prospectus" prospectus of the Company dated 31 December 2024

"R&D" research and development

"Reporting Period" the year ended 31 December 2025

"RMB" Renminbi, the lawful currency of the PRC

"Share(s)" the Ordinary Shares, Series Angel Preferred Shares, Series Pre-A Preferred Shares and Series A Preferred Shares in the capital of our Company, as the context so requires

"Shareholder(s)" holder(s) of the Shares

"Share Incentive Scheme" the share incentive scheme adopted by the Company on 12 January 2023 and amended and restated on 29 March 2024

"SKU(s)" stock keeping units, being the smallest unit of inventory available for sale

"Stock Exchange" The Stock Exchange of Hong Kong Limited

"US$" or "USD" the lawful currency of the United States of America

"UV printing" a printing technique that utilizes ultraviolet light to dry or cure ink

"%" per cent

AI assistant

Bloks Group Limited — Earnings Release 2025

49127_rns_2026-03-13_6e01b373-5abd-42f5-ae9b-ae519c9e7242.pdf

Bloks Group Limited

布鲁可集團有限公司

ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2025

2.2 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES

2.3 ISSUED BUT NOT YET EFFECTIVE IFRS ACCOUNTING STANDARDS

3. OPERATING SEGMENT INFORMATION

Geographical information

(a) Revenue from external customers

(b) Non-current assets

Information about major customers

4. REVENUE

(a) Performance obligations:

5. OTHER INCOME, OTHER GAINS AND LOSSES, NET

6. OTHER EXPENSES

7. FINANCE COSTS

8. PROFIT/(LOSS) BEFORE TAX

9. INCOME TAX EXPENSE

Chinese mainland

USA

Hong Kong

Cayman Islands

10. EARNINGS/(LOSSES) PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT

(a) Basic earnings/(losses) per share

12. TRADE RECEIVABLES

13. CASH AND CASH EQUIVALENTS/TIME DEPOSITS OVER THREE MONTHS

Cash and cash equivalents

14. TRADE AND NOTES PAYABLES

15. OTHER PAYABLES AND ACCRUALS

17. SHARE CAPITAL/TREASURY SHARES

Authorised

18. DIVIDENDS

I. BUSINESS REVIEW

Enhance R&D Capabilities and Deepen the Bloks System

Continuously Expand Our IP Portfolio to Enrich Our Product Offering

Our Sales Channels and Marketing Performance

Offline Sales Channels

Online Sales Channels

Sales from China and Overseas

Marketing

Focus on Enhancing Product Quality and Actively Fulfilling Corporate Social Responsibilities

II. BUSINESS OUTLOOK

FINANCIAL REVIEW

Revenue

By Business Nature

Assembly Character Toys

Assembly Vehicle Toys and Brick-based Toys

By Sales Channel

Selling and Distribution Expenses

R&D Expenses

Administrative Expenses

Other Income, Other Gains and Losses, Net

Other Expenses

Income Tax Expense

NON-IFRS MEASURES

Cash and Cash Balances

Foreign Currency Risk

OTHER INFORMATION

Human Resources

Material Acquisitions and Disposals

Final Dividend

Use of Proceeds from the Global Offering

Subsequent Event after the Reporting Period

Model Code for Securities Transactions by Directors

Purchase, Sale or Redemption of Listed Securities

Audit Committee

Scope of Work of Auditor on the Annual Results Announcement

DEFINITION

More from Bloks Group Limited

Bloks Group Limited Earnings Release 2025