A Year of Turnaround: Bruc Makes Over 600 Million Yuan Profit! Can Bruc's "Mixue-Style" Breakthrough Create a Chinese "LEGO Curve"?

Over the past decade, China’s consumer industry has been characterized by a two-tier divide: brand premium versus affordable pricing. Looking back from the perspective of 2026, a new logic is rapidly sweeping in: the deep coupling of emotional value and efficiency revolution.

In this new paradigm, trendy toys and building blocks are transitioning from niche culture to mass consumer products. However, while most players remain immersed in the high-margin dream of IP premiums, Bluetooz has taken a different approach, slashing the price of a building block toy to just 9.9 yuan.

In its recently announced 2025 financial report, Bluetooz achieved revenue of 2.913 billion yuan, a 30% increase year-over-year, with a profit of 634 million yuan, successfully turning losses into profits. The capital market responded directly: after nearly nine months of valuation adjustments, its stock price finally stabilized and began to rebound.

On one hand, Bluetooz is replicating the LEGO building ecosystem; on the other, it pays homage to the supply chain efficiency of Mixue Ice Cream & Tea. But the question remains: Is Bluetooz building a Chinese version of the LEGO empire, or is it digging itself into an irreversible low-price trap? When 9.9 yuan becomes the norm, can China truly produce a giant that carries cultural export as a “high-end LEGO”?

From losing 400 million to earning 600 million in one year—has the “Chinese LEGO” truly risen?

The capital market is never short of stories, but high-growth performance that can be realized is always attractive.

From a revenue perspective, Bluetooz’s financials are not particularly dazzling. A 30% growth rate is considered medium-high in the consumer industry, but compared to the double-digit growth of the past two years, it’s clearly slowing down.

The real highlight is profitability. Net profit shifted from a loss of 401 million yuan in 2024 to a significant profit of 634 million yuan; adjusted net profit reached 675 million yuan, with a net profit margin of 23.2%.

Behind this data is a successful restructuring of its business model.

In recent years, Bluetooz has undergone a difficult transformation from children’s educational hardware to building blocks, and then to construction toys. Early products like AR tangram puzzles and smartwatches, though technologically innovative, received lukewarm responses in a crowded market.

The turning point came in 2022. As Bluetooz clearly established “building role-playing toys” as its core and introduced super IPs like Ultraman and Transformers, its growth engine accelerated. By 2025, revenue from role-playing building toys accounted for 97.6%, becoming the main driver of performance.

This shift from “hardware sales” to “role sales” essentially validates the LEGO-like “building system + IP universe” logic.

For investors, the immediate value of this financial report lies in confirming the change in the company’s growth quality. Turning profitable indicates that the high R&D and IP licensing costs incurred earlier are now entering a phase of harvest.

In the current capital market environment, this change is significant. In recent years, valuation preferences favored “track beta.” But as institutional consensus dissolves, funds are returning to company fundamentals. Companies with “performance certainty + undervaluation” are regaining pricing power.

Bluetooz fits this logic perfectly, with clear signs of a stock bottoming and rebounding.

9.9 Yuan Strategy: Mixue Ice Cream & Tea-style Efficiency Revolution or Gross Margin Trap?

However, behind the revenue growth celebration lies a hidden concern: the decline in gross profit margin. Financial data shows that Bluetooz’s overall gross margin has decreased by about 5.8 percentage points to 46.8%, mainly due to the “Starry Version” product priced at just 9.9 yuan.

This highly priced product contributed 540 million yuan in revenue in 2025, accounting for 18.6% of total revenue, with sales volume reaching an astonishing 47.8%.

In the trendy toy industry, this is abnormal. The sector’s hallmark is high premium and high gross margins. Classic players like Pop Mart rely on original designer IPs with high premiums and scarcity, maintaining gross margins between 60% and 70%, with some IPs approaching 80%.

From this perspective, Bluetooz’s approach resembles the Mixue Ice Cream & Tea model in the trendy toy industry—using ultra-low prices to expand market size, then leveraging supply chain efficiency to generate profits.

But in reality, these are two fundamentally different business logics. Traditional trendy toys depend on hit IPs and IP premiums, while Bluetooz is attempting a scale-based consumer goods logic.

This explains why the market often misjudges Bluetooz. Ultimately, Bluetooz is a high-growth leader in the toy industry, not a traditional trendy toy brand. It breaks through with trendy blind box gameplay and IP buzz, but its core products and target audience still belong to the building block toy category.

In other words, Pop Mart sells cultural symbols, while Bluetooz, before fully establishing its building system + IP universe + creative culture, is still selling the toy experience. Its benchmark should be LEGO.

This positioning allows it to pursue low-price penetration. The 9.9 yuan product is essentially a market education strategy—aiming to make building blocks as common as beverages or snacks.

But this path is also fraught with risks. If low price becomes a core competitive advantage, the company may fall into price wars or develop a stereotype of being low-end.

Deeper challenges lie in the fact that Mixue Ice Cream & Tea’s success is built on an extremely standardized supply chain, whereas the toy industry is far more complex. To succeed, Bluetooz must demonstrate superior supply chain control, efficient IP operations, and a highly sticky building system culture. Otherwise, under pressure from new entrants like 52TOYS and TOP TOY, the so-called “efficiency revolution” could turn into a “gross margin trap.”

Long-term, the real key to victory is not who offers lower prices, but who can deliver better value at lower costs.

What does it take for China to produce its own “LEGO”?

The biggest variable for Bluetooz’s future is not price but culture.

Its ambitions clearly extend beyond domestic market competition. An impressive figure in the financial report is: overseas revenue of 319 million yuan, modest in scale but with remarkable growth—up 396.6% year-over-year, with North America growing by 804.1%.

This indicates that its “all demographics, all price points, globalization” strategy is beginning to bear fruit. However, international expansion is a long-term battle.

The global toy industry has long been dominated by three forces: LEGO’s building system, Japan’s model culture represented by Bandai Namco, and Western collectible toys led by Hasbro.

Bluetooz’s internationalization means facing these giants simultaneously. LEGO’s moat is not just the building blocks themselves but its decades-long system compatibility and vast UGC (user-generated content) culture.

In other words, LEGO’s bricks remain compatible for decades, allowing players to freely assemble, creating a vast open ecosystem that fosters a creative culture.

In contrast, Bluetooz still heavily relies on SKU-driven growth. Financials show that launching new SKUs significantly increases mold depreciation—over 120%. The frequent introduction of new products leads to high mold costs, indicating its growth still depends on new product launches rather than a systemic ecosystem. It has yet to form a closed-loop ecosystem like LEGO’s “a brick for a lifetime.”

But Bluetooz still has opportunities. LEGO’s longevity is rooted in its successful transformation into a STEM education tool, building a complete chain from mechanical structures to coding education. Bluetooz also has inherent educational attributes.

In the context of China’s consumption upgrade and self-pleasure economy, the new generation’s consumption mindset is shifting from ostentation to emotional value and self-companionship—similar to the “spiritual consumption brands” like Sanrio and Nintendo born after Japan’s bubble economy.

If Bluetooz can seize this macro trend and elevate building toys from mere entertainment to educational platforms that carry Chinese culture and creativity, its potential will be fully unleashed.

With a new wave of Disney movie universe releases in 2026 and Ultraman’s 60th anniversary celebrations, Bluetooz’s IP portfolio remains flexible. But ultimately, whether China can produce a truly “high-end LEGO” depends not on short-term revenue growth but on whether it can build its own cultural symbols and creative ecosystem.

Bluetooz is trying to answer this question. After scaling with 9.9 yuan building blocks, it now needs to leverage stronger capabilities to develop its systemic compatible ecosystem and global presence.

For investors, this is also a tangible observation of China’s cultural industry’s rise over the next decade.