On January 10, 2024, Bloks successfully rang the bell on the Hong Kong Stock Exchange, with an IPO price set at HKD 60.35, raising HKD 1.674 billion. On its first trading day, Bloks's stock surged 75.64% to HKD 106, pushing its market capitalization beyond HKD 25.5 billion. This performance not only energized the market but also instilled new expectations and hopes among investors.

In the last round of share transfers prior to the listing, Bloks's share price was HKD 32.27, reflecting a 73% increase compared to the IPO price. This substantial rise indicates investor confidence in Bloks's future development, especially in the context of the relatively low liquidity in the Hong Kong stock market. Bloks's successful listing undoubtedly injected new vitality into the market.

Despite ongoing criticisms regarding the liquidity of the Hong Kong stock market, the consumer goods sector has seen a resurgence in 2024, attracting significant investor interest. Companies such as Pop Mart and Lao Pu Gold have experienced severalfold increases in stock prices, raising investor expectations and reigniting the enthusiasm for new listings. Bloks's successful entry into the market under these conditions clearly demonstrates that it seized a favorable opportunity.

Bloks's subscription demand exceeded expectations, with over-subscription reaching 10,000 times. The total margin subscription amount across the market hit HKD 877.496 billion, with a margin subscription ratio of 6027.58 times, making it one of the hottest new stocks in the Hong Kong market, second only to Ant Group and Kuaishou. This achievement reflects strong market recognition for Bloks. Additionally, well-known investment institutions such as Jinglin, UBS, and Franklin Templeton became cornerstone investors, collectively subscribing for USD 20 million and USD 10 million, further bolstering confidence in Bloks.

From a performance perspective, Bloks reported revenues of HKD 330 million, HKD 326 million, and HKD 877 million for 2021, 2022, and 2023, respectively. Although the company remains in a loss position, the amount of losses has been narrowing year by year, indicating gradual improvement in its business operations. In 2023, Bloks achieved a gross profit of HKD 415 million, with a gross profit margin rising to 47.3%. Notably, Bloks's performance truly took off in 2023, with revenue growth of 169.3% compared to the previous year. This surge was primarily driven by Bloks's successful collaboration with the Ultraman IP.

(Source: Bloks Prospectus)

Bloks secured the rights to the Ultraman franchise in 2021, launching sales in the first quarter of 2022 with 140,000 units sold, generating HKD 110 million in revenue, which accounted for one-third of total revenue. In 2023, Bloks's Ultraman IP sales surpassed one million units for the first time, contributing HKD 557 million in revenue, making up 63.5% of total revenue. Additionally, Bloks began selling Transformers IP toys, which contributed HKD 125 million to the company’s revenue.

Looking ahead, Bloks's growth potential remains promising. Preliminary estimates suggest that its full-year revenue for 2024 could reach HKD 2.09 billion, doubling the 2023 figure. Although the company is still operating at a loss, the loss margin has been kept at around 24% of revenue, with an anticipated total loss of about HKD 500 million for the year. As the company continues to expand its Ultraman and Transformers IP offerings, along with the gradual development of its proprietary IP "Hero Infinite," the revenue structure is expected to improve further.

Bloks's product portfolio is also continuously expanding. According to its prospectus, the company has laid out over 500 patents to meet market demands across all age groups. As of the first half of 2024, Bloks had 431 SKUs available, including 116 SKUs aimed at children under six and 295 SKUs for the 6 to 16 age group. This comprehensive product layout not only enhances Bloks's market competitiveness but also lays a solid foundation for the company's future growth.

The founder, Zhu Weisong, is the driving force behind Bloks. His entrepreneurial experience and strong capital appeal provide robust support for the company’s development. Zhu’s successful background in the gaming industry has enabled him to effectively attract investment; during the angel round of financing, Bloks secured HKD 887 million, followed by several rounds of financing that gradually strengthened the company's market position.

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（Source: uSMART HK）