BLOKS (00325) fell more than 3%, touching a record low of HK$70.05. The stock has seen a significant decline recently, with its current price down over 60% from its peak of HK$198 per share on June 9. At the time of writing, it was down 3.56% at HK$70.5, with a turnover of HK$92.16 million.

Earlier research from BOCI International noted that BLOKS needs time to demonstrate its ability to deliver stable profits, but its strong IP portfolio is expected to make it highly competitive in both domestic and overseas markets. The company reported a 28% year-on-year revenue growth in the first half of the year, though adjusted net profit rose only 10%, falling short of higher market expectations. The bank suggested that delayed product launches and upfront expenditures may impact short-term profitability.

According to Cinda Securities, BLOKS commercialized 19 IPs in the first half of the year, bringing its total SKUs to 925, with 273 new additions, including popular franchises such as Hatsune Miku, Minions, Sanrio, Detective Conan, Sesame Street, Marvel, Pokémon, and Naruto. Additionally, the company signed 13 new IP agreements.

In the first half of the year, the top four IPs contributed 83.1% of total revenue, compared to the top three IPs—Ultraman, Transformers, and Hero Infinite—which accounted for 92.3% in the same period last year.