Pursuing Growth by Responding to Rapid Market Changes and Promoting Swift Business Expansion

The entertainment industry in China is trending upward, and the Toys and Hobby Business in the region has continued to grow, achieving increases in both sales and profits in FY2025.3. Meanwhile, the market environment has become increasingly competitive, with a growing number of local competitors.
Among the strengths of the Toys and Hobby Business in China is a diverse lineup of Japanese IPs with which local fans have a strong affinity. Another strength is our ability to both develop and produce a wide range of products in-house. Such strengths provide us with a significant competitive advantage. Leveraging these strengths, we are bolstering our market presence in various business categories, such as toys, model kits, figurines, capsule toys, and confectionery.
In particular, our confectionery business has been steadily growing due to our efforts to strengthen product rollouts since 2023. Our main focus for the confectionery business is Chocobi, a snack supported by the strong popularity of Crayon Shin-chan in China. We are also placing emphasis on product development tailored to the characteristics of the Chinese market, including offering unique flavors that appeal to local tastes. At the same time, we are exploring the potential of new product develop­ment as we work to further expand the business. (Please see this page for more details.)
Furthermore, the level of recognition of the Gundam series, our largest IP in the Chinese market, is gradually increasing. We released the theatrical version of Mobile Suit Gundam GQuuuuuuX in the region, which we feel is helping grow our fan base. Regarding product development and marketing initiatives, we opened three new THE GUNDAM BASE stores, our flagship store for Gundam model kits, in FY2025.3, and we will increase the number of store openings moving forward. By the end of September 2025, we expect to be operating a total of 12 THE GUNDAM BASE stores in inland China. Additionally, sales of Gundam model kits have been robust, supported by initiatives such as limited-time pop-up stores. In these ways, we have been steadily building a foundation for our Gundam business in China. Looking ahead, we will continue to open more THE GUNDAM BASE stores and further expand the QMSV Series of figurines, which have been developed specifically for the Chinese market and are now celebrating their fifth year since launch. We will also introduce locally developed Gundam products under the new BN FIGURE Q Series.
Furthermore, from the perspective of local production for local consumption, we aim to strengthen our lineup of China-exclusive IPs and original products by expanding the use of locally developed IPs. At the same time, we will continue to pursue efforts to create new IPs originating from the Toys and Hobby Business in China. With the rapidly changing lifestyles of consumers in the Chinese market, it is extremely important to swiftly roll out initiatives . We must also promote product planning based on a deep understanding of local market characteristics and on a thorough grasp of user needs. Going forward, we will continue to bolster our product planning capabilities while building a structure for rolling out products from China to surrounding Asian regions and across the globe. By doing so, we will aim for further growth.