Core Viewpoint - Giant Legend Group Limited is actively expanding its business by investing in diverse IP resources and technology partnerships, aiming to reduce reliance on a single star IP while enhancing revenue stability and growth potential [1][4][5] Group 1: Recent Developments - On November 3, Giant Legend acquired up to 7% of the issued share capital of Galaxy, a well-known South Korean artist's agency [1] - On November 4, the company announced a sales contract with ADATA Technology, purchasing 1,000 quadruped robots, with Yushu Technology responsible for technical and hardware development [1][4] - The company aims to leverage its partnership with Galaxy and the new technology collaboration to enhance its IP application scenarios and commercialize its IP value [4][9] Group 2: Business Strategy - Since its establishment in 2017, Giant Legend has heavily relied on the star IP of Jay Chou, achieving a revenue of 340 million yuan and a net profit of 64.9 million yuan in 2022 [5] - The company is now diversifying its IP strategy, expanding its star IP matrix to include other artists like Liu Genghong, which is expected to unlock more commercial value [5][4] - The introduction of the "Giant Dog" robot is part of the "IP + Technology" strategy, aimed at attracting consumers through innovative products [8] Group 3: Financial Performance - For the fiscal year 2023-2024, the company's gross margin decreased from 64.2% to 56%, and net margin fell from 9.6% to 8.6% [6] - Although the IP creation and operation business saw a revenue increase of 65.1% in 2024, the growth rate slowed compared to 82.9% in 2023 [7] - The new retail business generated 269.8 million yuan in 2024, a 12.5% increase year-on-year, but still below the revenue levels of 2020 and 2021 [7] Group 4: Market Challenges - The heavy reliance on Jay Chou's IP poses risks, as seen in the declining percentage of revenue from related promotional activities, which dropped from 83% in 2019 to 45.2% in 2022 [8] - The company faces challenges in maintaining fan engagement and revenue growth, especially if new content from Jay Chou is not produced [8] - The founder's close ties to Jay Chou and the potential for fan base erosion highlight the need for diversification in IP management [8]