BLOKS' US Expansion Shows Results: Overseas Revenue More Than Doubles in First Half

For BLOKS, whose core business is character-building toys, the growth momentum in the first half clearly shifted towards overseas markets.

On August 12, BLOKS Group released its unaudited interim results for 2026. In the first half, the company's revenue increased by 32.7% year-on-year to RMB 1.776 billion, while profit during the period grew by 30.5% to RMB 387 million; adjusted profit rose by 25.1% to RMB 401 million.

Overseas revenue increased from RMB 111 million in the same period last year to RMB 366 million, a year-on-year surge of 228.5%, with its share of total revenue rising from 8.3% to 20.6%. During the same period, revenue from the Chinese market grew by 14.9% to RMB 1.41 billion.

Based on performance data, overseas markets contributed approximately 58% of the company's incremental revenue in the first half.

Of this, revenue from the Americas increased from RMB 44 million in the same period last year to RMB 198 million, a year-on-year growth of approximately 349%, accounting for about 54% of overseas revenue; revenue from the Asian market (excluding China) grew by approximately 111% to RMB 121 million.

Currently, the United States and Indonesia are the two overseas countries generating the highest revenue for BLOKS.

BLOKS attributes its overseas growth mainly to increased coverage in international markets, achieved through regional distribution networks, global e-commerce platforms, and localized user operations.

In terms of offline channels, the company continues to tap into existing channels and explore new ones in the Americas, enters more new markets in Asia, and uses core countries in Europe as hubs to radiate into surrounding markets.

Online, BLOKS has entered platforms such as Amazon, TikTok, Shopee, and Lazada, and operates its own overseas independent websites.

BLOKS also collaborated with overseas channels to conduct 44 online and offline events, covering 8 countries and regions; the overseas BFC creation competition attracted over 6,600 participants from 17 countries and regions.

Its overseas social media accounts have accumulated nearly 6 million subscribers, and its official fan community app "BLOKEES," along with overseas customer service and self-service replacement parts systems, now cover 42 countries and regions.

From a product structure perspective, BLOKS' current overseas growth still relies mainly on character-building toys. In the first half, overseas revenue from this category reached RMB 348 million, a year-on-year increase of 212.5%, accounting for approximately 95% of total overseas revenue.

However, at the group level, BLOKS has begun replicating the R&D and standardized part systems of character-building products into more categories, extending towards adult consumers and lower price segments.

Character-vehicle building toys, launched in November 2025, generated revenue of RMB 186 million in the first half, accounting for 10.4% of total revenue.

The weight of adult-oriented products has increased. By the end of the first half, BLOKS had 393 SKUs available for sale targeting consumers aged 16 and above, with the revenue share of related products rising from 14.8% to 25%.

Low-priced products continue to play a role in acquiring new customers. In the first half, revenue from BLOKS' RMB 9.9 products reached RMB 347 million, accounting for nearly one-fifth of total revenue; sales volume was 77.5 million units, accounting for nearly half of total sales volume.

Official data shows that among users who activated the Transformers Star Edition via the "BLOKS Brick Man CLUB" mini-program, 60% were new users, and the repurchase rate for this group exceeded 70%.

However, channel and product expansion have also brought cost pressures.

In the first half, BLOKS' cost of sales increased by 43.3% year-on-year to RMB 989 million. Of this, the cost of goods sold increased by 40.6%, and mold depreciation increased by 64.3%.

The company stated that new SKUs require more high-precision, multi-cavity molds, with related capital expenditures amortized into costs during the period. During the same period, the company's gross margin decreased from 48.4% to 44.3%, a drop of 4.1 percentage points; the adjusted net profit margin decreased from 23.9% to 22.6%.

Overseas expansion has also increased operating expenses such as warehousing.

For example, selling and distribution expenses increased by 20.9% to RMB 214 million, including a RMB 30.5 million increase in marketing and promotion expenses and a RMB 10.6 million increase in professional service fees, the latter mainly stemming from warehouse operating expenses incurred due to overseas market expansion.

What remains to be observed is whether the company can replicate its new categories, adult-oriented products, and pricing strategies overseas, further diluting mold and localized operation investments through revenue scale.

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