QuantaSing to acquire remaining stake in pop toy firm Letsvan

BEIJING - QuantaSing Group Limited (NASDAQ:QSG), a prominent player in diversified consumer services with impressive gross profit margins of 84%, announced Thursday it will acquire all remaining equity interests in Shenzhen Yiqi Culture Co., Ltd. (Letsvan), a Chinese company specializing in IP incubation, copyright commercialization, and pop toy sales. According to InvestingPro data, QuantaSing maintains strong financial health with a current ratio of 1.72.

The transaction will involve issuing 18,219,330 Class A ordinary shares to Letsvan’s founder and CEO, Huiyu Zhan, in three installments with vesting schedules and lock-up requirements. Upon completion, Letsvan will become a wholly-owned subsidiary of QuantaSing.

The company had previously gained control of Letsvan through a series of transactions between December 2024 and March 31, 2025, allowing it to consolidate Letsvan’s financial results.

QuantaSing also plans to appoint Zhan to its board of directors effective August 1, 2025. Zhan founded Letsvan in 2020 and has extensive experience in the cultural gifts and pop toy sectors, having previously worked at Walmart (Shenzhen), Hong Kong Weiya Group, and CITIC Health.

QuantaSing, which describes itself as a lifestyle solution provider empowering adults to live better and longer, stated the acquisition would integrate resources between the companies and strengthen its competitive position in the pop toy segment and consumer sectors.

The announcement was made in a press release statement that included forward-looking statements about the company’s expectations regarding the transaction’s benefits.

In other recent news, QuantaSing Group Ltd has disclosed its unaudited financial results for the third quarter of fiscal year 2025. The results were filed with the U.S. Securities and Exchange Commission, providing investors with key performance metrics for the period ending June 30, 2025. Additionally, Citi analysts have upgraded QuantaSing’s stock rating from Neutral to Buy, setting a new price target of $9.52, up from $6.10. This upgrade follows an investor meeting where the company’s management shared updates that increased confidence in its growth prospects. QuantaSing’s WAKUKU brand has seen demand surpass its production capacity, even after expanding its molding capabilities significantly. Meanwhile, Citi has also initiated a 90-day positive catalyst watch on Quality Systems Generics (QSG), highlighting upcoming events that could drive stock performance. The anticipated restocking of WAKUKU Generation-2 and the launch of new intellectual properties are expected to boost QSG’s revenue. The opening of new flagship stores and clarity on exiting legacy operations are seen as potential factors supporting a re-rating of QSG’s stock.

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