Group 1 - The core viewpoint of the article highlights Bubble Mart's participation as the exclusive trendy cultural brand partner at the 2025 China International Service Trade Fair, showcasing its popular IP products and launching a new sub-brand, "Bubble Mart Bakery" [2][4] - Bubble Mart's exhibition features a dessert-themed area inspired by a dessert house, allowing visitors to taste various products like SKULLPANDA ice cream and MOLLY chocolate, which have gained significant popularity since the opening of "MOLLY's Dessert House" in August 2024 [4][6] - The company also presented a collection of plush toys covering various IPs and set up a large art installation themed around the star character, enhancing the interactive experience for attendees [6] Group 2 - In the cultural tourism service exhibition area, Bubble Mart displayed multiple IP products that integrate traditional craftsmanship, incorporating elements like porcelain and plush flowers into the visual design, promoting a narrative that blends trendy culture with traditional art [6] - The exhibition booth utilized red and yellow as the main color scheme to create a space reflecting national aesthetics, showcasing popular IP products such as MOLLY and DIMOO, thereby contributing to the contemporary narrative of trendy culture [6]

Core Viewpoint - The stock price of Pop Mart, a leading player in the collectible toy market, has been on a downward trend, dropping 15.74% since reaching a historical high of 339.8 HKD per share on August 26, closing at 275.2 HKD on September 10, with a single-day decline of 4.51% [1] Group 1: Stock Performance - The stock price has seen a significant decline, with a total drop of 15.74% over the past half month [1] - Despite the stock price pressure, the offline consumer scene remains active, with stores experiencing continuous foot traffic [1] Group 2: Product Demand and Market Dynamics - The core IP series, THE MONSTERS, generated revenue of 4.814 billion RMB in the first half of 2025, marking a substantial year-on-year increase of 668%, accounting for 35% of the company's total revenue [1] - Many popular LABUBU products are currently out of stock in stores, leading to a booming second-hand market, with prices for certain items significantly above retail [2] - Recent trends show a cooling in the second-hand market, with prices for similar products dropping to the range of 600-700 RMB [2] Group 3: Strategic Developments - The company has been included in the Hang Seng Index, which theoretically could attract passive fund allocations, although some investors opted to take profits, creating short-term selling pressure [3] - The company's globalization strategy is progressing steadily, with significant revenue growth in overseas markets, particularly in the Americas and Europe [3]

Group 1 - The LABUBU series, once highly sought after, is experiencing a significant decline in second-hand prices, with the hidden version "Ben Wo" dropping from approximately 4356 yuan to 834 yuan over the past 90 days [1] - Following the peak price of 339.8 HKD per share on August 26, the stock price of Pop Mart has been on a downward trend, falling 7.5% on September 8 and reaching 269 HKD per share by September 10, resulting in a total market capitalization of approximately 361.2 billion HKD [4] - The initial sale of the LABUBU series sparked a buying frenzy, with prices on second-hand platforms reaching as high as 3200 yuan for a complete set of 14 figures, and some sellers charging up to 2699 yuan for "proxy buying" services, which is more than double the official price [4] Group 2 - The average transaction price for the mini LABUBU has significantly decreased, with the A-M version averaging 147 yuan and the complete N-Z set averaging 1511 yuan as of September 10 [4] - In response to the drastic price fluctuations, scalpers are adopting a conservative approach, with some halting purchases and waiting for market conditions to improve, indicating a shift in market sentiment [10] - The latest financial report from Pop Mart shows a remarkable revenue increase of 204.4% year-on-year for the first half of 2025, reaching 13.876 billion yuan, with a net profit growth of 396.5% [10]

Core Insights - The 2025 Service Trade Fair will feature a cultural and tourism service exhibition at Shougang Park, showcasing various innovative products and experiences [1] Group 1: Event Highlights - The Chaoyang exhibition area will focus on the theme "Trendy Play, Trendy Enjoyment, Trendy Life," presenting multiple first-time exhibits [1] - Notable exhibits include the Bubble Mart's intangible cultural heritage series Molly, the Letsvan's Dream Island series, and the first ultra-realistic 3A XR interactive film work "Mulan 2125 XR" [1] - The exhibition will also introduce the first cultural creation collection store in the city, supported by the government and operated by market entities, as part of the National Cultural Industry Innovation Experimental Zone [1]

Core Insights - The importance of the "14th Five-Year Plan": The upcoming "14th Five-Year Plan" is expected to significantly impact China's economic and social development over the next five years, shifting focus from production to a balance between production and consumption due to the current issue of insufficient effective demand [1] - Strengthening consumption policies: Starting in 2024, consumption policies will be significantly enhanced, including the allocation of special government bond funds to support consumption upgrades. Continued funding is expected in 2025 and 2026 [1] - Potential of service consumption: China's service consumption still lags behind developed economies, indicating a substantial opportunity for growth in this sector to stimulate consumer interest and optimize the consumption environment [1] - Rise of technology consumption: With a rapid technological development and an engineering talent surplus, products like robotic vacuum cleaners and drones are gaining market attention, likely creating new consumer demand [1] - Optimization of the overall consumption mechanism: Measures such as consumption tax reform will encourage local governments to transition from production-oriented to service-oriented, promoting the internationalization of quality consumption companies and enhancing residents' consumption capacity [1] Investment Recommendations - Food and Beverage: Recommended companies include Dongpeng Beverage and Lihigh Food, with a focus on Youran Dairy and Bairun Co [2] - Service Sector: Recommended companies include Guming, Mixue Group, and Bubugao, with a focus on Zhongsheng Holdings [2] - Light Industry: Companies to watch include Hengfeng Paper and Xilinmen [3] - Trendy Toys: Recommended companies include Pop Mart and Blokus [4] - Home Appliances: Recommended companies include Midea Group, Haier Smart Home, TCL Electronics H, Roborock, and Ecovacs, with a focus on Yingshi Innovation [5] - Agriculture: Recommended companies include Zhongchong Co, Petty Co, Muyuan Foods, and Haida Group [11] - Textile and Apparel: Recommended companies include Anta Sports, Xtep International, 361 Degrees, and Hailan Home, with a focus on Li Ning and Sanfu Outdoor [11] Report Content Analysis - Expanding consumption share: The report emphasizes that expanding consumption share is essential for achieving Chinese-style modernization, as China's consumption rate is significantly lower than that of developed countries [9] - Shift in fiscal spending: During the "14th Five-Year Plan" period, fiscal spending will shift from material investments to human capital investments, increasing support for education, healthcare, and housing [9] - Promotion of common prosperity: The report highlights the need for income distribution reform and the promotion of the Zhejiang common prosperity model to achieve balanced development [9] - Consumption tax reform: The report suggests that consumption tax reform will help local governments transition from production-oriented to service-oriented, enhancing the consumption environment [9] - Transition from traditional to new consumption: The report analyzes the maturation of traditional consumption markets and the rise of new consumption, which is characterized by a focus on quality and personal satisfaction [9] - Stimulating interest in service consumption: The report indicates that the shift from physical to service consumption is crucial for expanding domestic demand, with growing demand for events and performances benefiting local consumption [9]

Core Insights - On September 10, 2025, Alibaba-W (09988), Pop Mart (09992), and SMIC (00981) were the top three companies by trading volume in the Hong Kong Stock Connect (southbound), with trading amounts of 10.902 billion, 3.420 billion, and 3.019 billion respectively [1] - In the Shenzhen-Hong Kong Stock Connect (southbound), Alibaba-W (09988), Tencent Holdings (00700), and Xiaomi Group-W (01810) led the trading volume, with amounts of 5.893 billion, 2.042 billion, and 1.720 billion respectively [1] Southbound Trading Activity - The top active companies in the Hong Kong Stock Connect (southbound) included: - Alibaba-W (09988) with a trading amount of 10.902 billion and a net buying amount of +2.426 billion - Pop Mart (09992) with a trading amount of 3.420 billion and a net selling amount of -1.298 billion - SMIC (00981) with a trading amount of 3.019 billion and a net buying amount of +0.119 billion [2] - The top active companies in the Shenzhen-Hong Kong Stock Connect (southbound) included: - Alibaba-W (09988) with a trading amount of 5.893 billion and a net buying amount of +2.086 billion - Tencent Holdings (00700) with a trading amount of 2.042 billion and a net selling amount of -0.094 billion - Xiaomi Group-W (01810) with a trading amount of 1.720 billion and a net selling amount of -0.0115 billion [2]

Market Performance - On September 10, all three major stock indices in Hong Kong rose, with the Hang Seng Index increasing by 1.01% to 26,200.26 points, the Hang Seng Tech Index rising by 1.27% to 5,902.69 points, and the Hang Seng China Enterprises Index up by 0.93% to 9,328.16 points [1] - The total market turnover was HKD 288.21 billion, with net inflows from southbound funds amounting to HKD 7.566 billion [1] Stock Movements - Among the constituents of the Hang Seng Index, 65 stocks rose while 21 fell, with Lenovo Group leading the blue chips with a gain of 4.63%, followed by JD Logistics at 4.45% and Sun Hung Kai Properties at 4.28% [2] - In the Hang Seng Tech Index, 20 stocks increased and 9 decreased, with Bilibili leading the gains at 7.57%, followed by Lenovo Group at 4.63% and SMIC at 3.61% [4] Notable Stocks - Alibaba had a trading volume of HKD 26.367 billion, rising by 0.63%, while Tencent Holdings traded HKD 12.190 billion, increasing by 1.04%, and Meituan saw a trading volume of HKD 9.569 billion, up by 2.06% [5] - Pop Mart experienced a significant decline of 4.51% due to reports of falling prices for its LABUBU series, closing at HKD 275.20 per share, despite a year-to-date increase of 208.24% [10] Industry Performance - The financial sector index rose by 1.85%, the real estate and construction index increased by 1.51%, and the composite enterprises index was up by 0.86%. Conversely, the healthcare index fell by 0.94%, and the materials index decreased by 0.41% [6] Concept Sector Performance - Most Wind concept sectors saw gains, with the Foxconn index up by 10.03%, the air pollution control index rising by 5.42%, and the integrated circuit industry fund index increasing by 3.37%. The infant and child index led the declines at 3.01%, followed by the gold and jewelry index down by 2.93% and the photovoltaic solar index down by 2.53% [8] Company Developments - NIO announced plans for an issuance of up to 182 million shares of Class A common stock, including American Depositary Shares (ADS), with the net proceeds intended for investment in core technologies for smart electric vehicles, development of future technology platforms and models, and expansion of battery swapping and charging networks [14][16]

Core Viewpoint - The secondary market prices for the mini LABUBU have declined, impacting market sentiment towards Pop Mart, despite the company's efforts to increase production and combat scalping [1][2]. Group 1: Market Performance - The mini LABUBU series sold out quickly upon release, leading to a significant spike in secondary market prices, which later fell sharply within a week [1][2]. - The prices of first, second, and third generation LABUBU products in the secondary market have also decreased, with the third generation even experiencing slight depreciation [2][3]. - Following the decline in secondary market prices, Pop Mart's stock price also saw a minor correction, although it remained above levels prior to the release of the half-year performance report [2]. Group 2: Production and Supply Chain - Pop Mart is actively increasing production capacity to meet genuine market demand, with plush toy production capacity reportedly increased to over ten times that of the same period last year, reaching approximately 30 million units in August [2]. - The expansion of production capacity is expected to positively impact the availability of LABUBU and other IP products for consumers, which could benefit the company's long-term performance [3]. Group 3: Long-term Value Considerations - The decline in secondary market prices is viewed as a sign of increased production capacity and a move towards making products more accessible to consumers, which is essential for the sustainable development of the company [3]. - Investors emphasize that the long-term value of the company should not be judged solely based on the fluctuations in secondary market prices of a single IP, as controlling secondary market premiums is crucial for maintaining consumer access and reducing speculation [3].

Core Viewpoint - The 2025 Service Trade Fair emphasizes dynamic engagement and diverse interactive experiences, with Bubble Mart participating as the exclusive trendy cultural brand partner, showcasing popular IP products and creative installations [1] Group 1: Event Overview - The 2025 Service Trade Fair commenced on September 10, featuring a variety of supporting activities and interactive scenarios aimed at fostering new development momentum [1] - Bubble Mart set up two major exhibition booths at the fair, highlighting its popular IP products such as labubu, Molly, and Star People [1] Group 2: Interactive Experience - The event included innovative formats like a creative dessert house and large outdoor art installations, enhancing visitor engagement and interaction [1]

Investment Rating - The report indicates a positive investment outlook for the gaming sector, highlighting its strong performance compared to other sub-industries within the media and internet sectors [3][5]. Core Insights - The gaming industry is experiencing significant growth, with mobile game market size increasing by 16% year-on-year in the first half of 2025, while PC games show a 5% increase [3][14]. - The report emphasizes the high demand for entertainment consumption, particularly in gaming, music, and trendy toys, while long-form video content has reached a low point [3][8]. - Cloud computing and AI applications are accelerating, with notable revenue growth in cloud services, particularly from Alibaba Cloud and Kingsoft Cloud, which reported year-on-year growth of 26% and 24% respectively [3][8]. - The advertising sector shows resilience, particularly in short video platforms and elevator advertising, with initial signs of AI integration [3][8]. - The internet healthcare sector is witnessing an uplift in market conditions, indicating a positive trend [3][8]. Summary by Sections 1. Overview - The report summarizes the performance of the media and internet sectors, noting the standout performance of the gaming industry [3][4]. 2. Entertainment Consumption - The gaming, music, and trendy toy IPs are thriving, while long-form video content is struggling [3][4]. - The gaming sector's revenue growth is driven by regulatory easing, increased demand from younger users, and innovative overseas strategies [3][14]. 3. Cloud Computing and AI Applications - Cloud services are experiencing accelerated growth, with significant investments from major players like Alibaba and Tencent [3][8]. - AI applications are beginning to monetize effectively, particularly in emotional consumption and productivity tools [3][8]. 4. Advertising - The advertising sector remains robust, with short video platforms and elevator ads showing resilience [3][8]. 5. Internet Healthcare - The report notes an improvement in the internet healthcare sector's market conditions [3][8]. 6. Publishing - The publishing sector is experiencing flat revenue growth, but tax exemptions are helping to restore profit margins [3][8].