Summary of the Animation Industry Conference Call Industry Overview - The animation industry is experiencing significant changes due to the integration of AI technology, which has improved production efficiency dramatically. The production cycle for a 50-80 episode series has been reduced to three months, lowering both time and labor costs significantly [1][4]. Key Insights - **Production Costs**: The cost of producing a typical non-sand sculpture animation is between 80 to 300 RMB per minute, while high-quality productions range from 1,000 to 2,000 RMB per minute. In contrast, traditional animation costs around 15,000 to 20,000 RMB per minute, with total investments reaching 20 to 30 million RMB for a full series [5]. - **Copyright Fees**: The fees for high-value copyrights have decreased from 5 to 10 million RMB to 800,000 to 5 million RMB, while ordinary copyright fees have dropped from 500,000 RMB to 200,000 RMB. This reduction lowers the barriers to entry for the industry [6]. - **Market Potential**: The current user base for long video platforms is estimated at 20 to 30 million, but the potential male user base could reach 170 million, and including female users, it could expand to 300 million, indicating substantial growth opportunities [7][2]. AI Impact - **Efficiency Gains**: AI is utilized extensively in the production of animation, particularly in script generation and image creation, achieving a usage rate of 70-80% in certain genres. This has led to a return on investment (ROI) of approximately 1.1 for animation projects [3][17]. - **Production Process**: The production of an AI animation involves selecting marketable books, scriptwriting (often with AI assistance), generating key frames, and final editing, typically completed by a team of 20-30 people within a month [11]. Revenue and Performance - **Revenue Generation**: Top-performing works on platforms like Douyin have generated over 3 million RMB each, with the platform's average daily revenue from animations expected to exceed 20 million RMB by October 2025 [12][14]. - **Monthly Income**: A typical animation can earn around 60,000 RMB per month, with a lifecycle of one to two months, allowing for ROI calculations within one to two quarters [26]. User Demographics and Trends - **Core User Base**: The primary audience for animations is predominantly male (approximately 60%), who have high content demands but lower expectations for visual quality. Their willingness to pay is currently unclear but may increase with improved content quality [24]. - **Future Trends**: The industry is moving towards a model that emphasizes high-quality long-form animations, with a focus on creating flagship brands. As user engagement increases, particularly among male users, there is potential for expanding into female demographics [25]. Competitive Landscape - **Market Dynamics**: The animation market has not yet established a clear competitive structure, with platforms currently focused on rapid user growth. The competition is expected to intensify as AI technology evolves and consumer expectations for quality increase [23]. Conclusion - The animation industry is poised for significant growth driven by AI advancements, reduced production costs, and an expanding user base. The shift towards high-quality content and effective monetization strategies will be crucial for future success.

Macroeconomic Analysis - The narrow revenue growth has slowed down, with national public budget revenue increasing by only 0.8% year-on-year from January to November 2025, and the growth rate in November being flat compared to the same period in 2024 [1] - Narrow budget expenditure grew by 1.4% year-on-year from January to November 2025, with a decline of 3.7% in November, indicating a marginal narrowing of the decline compared to October [1] - The overall fiscal expenditure growth remains low, influenced by prior fiscal efforts and year-end budget adjustments, with key areas like health, technology, and environmental protection seeing leading expenditure growth [1] Government Fund Analysis - Government fund budget revenue decreased by 4.9% year-on-year from January to November 2025, with a significant decline of 15.8% in November [2] - Government fund budget expenditure increased by 13.7% year-on-year from January to November 2025, with a notable recovery in November, growing by 2.8% compared to a decline of 38.2% in October [2] - The increase in expenditure is attributed to the allocation of 500 billion yuan from the central government to support local investment projects [2] Fiscal Policy Outlook - The fiscal balance remains tight, with moderate revenue growth constraining expenditure amid economic growth and real estate market transitions [3] - Expenditure is becoming more targeted and effective, with a clear focus on key areas such as social welfare and technological innovation [3] - The decision-makers plan to implement a more proactive fiscal policy in 2026, with an expected narrow fiscal deficit rate of around 4%, emphasizing structural optimization and enhancing local fiscal sustainability [3] IP Fun Food Industry Analysis - The IP fun food sector, which combines IP with food and collectible gifts, is rapidly growing, driven by consumer demand for emotional consumption [6][7] - The market size of China's IP food industry is projected to grow from 18.1 billion yuan in 2020 to 35.4 billion yuan by 2024, with a CAGR of 18.2%, while the IP fun food segment is expected to grow from 5.6 billion yuan to 11.5 billion yuan, with a CAGR of 19.6% [7] - The growth is fueled by the younger generation's increasing emotional consumption needs and the mature supply chain of the snack industry in China [7] Competitive Landscape - The core competitiveness in the IP fun food market lies in supply chain management and IP operation, with low differentiation in snack products making cost control crucial [8] - The market remains fragmented, with leading companies holding only 7.6% market share, indicating a competitive environment with many small players [9] - The differentiation provided by IP toys as gifts is key to achieving premium pricing in a market where snack products lack inherent differentiation [8][9]

股票研究 /[Table_Date] 2025.12.18 情绪消费风起，IP 趣玩行业快速增长 [Table_Industry] 传播文化业 IP 系列报告一 | [姓名table_Authors] | 电话 | 邮箱 | 登记编号 | | --- | --- | --- | --- | | 陈筱(分析师) | 021-38675863 | chenxiao@gtht.com | S0880515040003 | | 李瑶(分析师) | 021-23185669 | liyao6@gtht.com | S0880525120001 | 本报告导读： 情绪消费趋势下，IP 食玩行业快速发展，供应链管理及 IP 运营是核心。 投资要点： [Table_Report] 相关报告 传播文化业《消费周期与 AI 叙事下的中国互联 网投资新范式》2025.06.03 票 研 究 业 专 题 研 究 证 券 研 究 报 告 请务必阅读正文之后的免责条款部分 股 行 行业专题研究 [Table_Invest] 评级： 增持 [Table_Summary] IP 趣玩食品是"IP+食品+IP 赠品"结合。IP 趣玩食品包括收 ...

Core Insights - Recently, the company announced the opening of 100,000 premium IPs and the establishment of a special fund of 100 million yuan to develop the comic-drama sector, despite facing revenue decline and challenges in its core online business [2] - The company's revenue for the first half of 2025 decreased by 23.9% year-on-year to 3.191 billion yuan, with net profit down 27.7% to 508 million yuan [2] - The core IP operation business suffered a 48.4% revenue drop to 1.138 billion yuan due to the lack of new film and television releases [2] - The online reading business has stagnated, with revenues of 4.364 billion yuan in 2022, 3.948 billion yuan in 2023, and 4.031 billion yuan in 2024, indicating a growth bottleneck [2] - The average monthly active users on the company's platform fell from 244 million in 2022 to 167 million in 2024, a loss of 77 million users [2] Industry Challenges - The long video platform industry is experiencing systemic crises, with Tencent Video's paid membership dropping by 3 million to 114 million [3] - The film market is also struggling, with a 13% year-on-year decline in box office revenue during the 2025 National Day holiday period [3] - The dual pressure on online and film businesses has hindered the company's path to film adaptation [3] Strategic Initiatives - The company is focusing on comic-dramas and trendy toys as key strategies for breakthrough, leveraging AI technology to create new content forms [3] - The company has achieved over 30 comic-dramas with viewership exceeding 10 million, but faces increasing competition from major players like ByteDance and Bilibili [3] - The trendy toy business is seen as a second growth curve, with a GMV of 480 million yuan in the first half of 2025, nearing last year's total [4] - The company is working on a "Global Trendy Toy Co-Creation Plan" to differentiate itself in the blue ocean market [4] Competitive Landscape - The company is in a catch-up phase in the trendy toy sector compared to established brands like Pop Mart, needing to accelerate resource integration and market promotion [4] - The company aims to leverage its vast IP through AI-enabled lightweight adaptations to activate content value and expand monetization boundaries [4] - Challenges include homogenized competition in the comic-drama sector, brand-building cycles in trendy toys, and the need to address user attrition in the core online business [5]

Group 1 - The release of "Zootopia 2" has revitalized the film market, with a cumulative box office exceeding 503 million yuan and over 12.53 million viewers as of November 28 [2] - The success of blockbuster films is crucial for the current film market, which has been struggling, as evidenced by a 13% to 18% year-on-year decline in box office during the 2025 National Day period [3] - The film's popularity indicates that there is still demand for movies, primarily hindered by a lack of quality commercial films [6] Group 2 - "Zootopia 2" has demonstrated significant commercial potential, with various brand collaborations and the establishment of a themed park in Shanghai, attracting millions of visitors [7] - The success of animated films like "Zootopia" has boosted confidence among domestic animation professionals, highlighting the high IP monetization value and the potential for international expansion [8] Group 3 - The film market faced a 34.73% year-on-year decline in box office during the second quarter, with notable drops during the Qingming and May Day holidays [4] - The National Film Administration reported a 2.7 billion yuan decrease in box office revenue during this year's National Day period compared to the previous year [3]

Group 1 - The A-share market opened positively on November 10, with the Shanghai Composite Index rising by 0.11%, the Shenzhen Component Index by 0.37%, and the ChiNext Index by 0.43% [1] - Strong performance was observed in sectors such as lithium batteries, fluorine chemicals, memory storage, satellite navigation, phosphorus chemicals, and photovoltaic concepts, while sectors like ice and snow tourism, nuclear fusion, reducers, and innovative pharmaceuticals showed weakness [1] - The gaming sector experienced fluctuations, with the gaming ETF (159869) slightly declining, reaching a product scale of 11.301 billion yuan as of November 7, facilitating investors' access to leading A-share gaming companies [1] Group 2 - The game "Escape from Duckkov," developed by Team Soda and published by Bilibili, achieved over 3 million sales, challenging the notion that successful games rely on large company resources [2] - This success is expected to attract more capital to focus on small development teams in niche segments, particularly in survival shooting and low-cost, high-playability game development models, potentially becoming a new investment hotspot [2] - Guosheng Securities remains optimistic about the media sector, particularly the gaming segment driven by fundamentals, and highlights the potential for a turnaround in the film and television drama sector under new policy support [2]

Group 1 - The gaming sector is experiencing fluctuations, with the gaming ETF (159869) nearing a positive return after a period of decline, indicating a mixed performance among its constituent stocks [1] - As of November 7, the gaming ETF (159869) has a product scale of 11.301 billion, providing investors with a streamlined way to invest in leading A-share gaming companies [1] - The recent launch of Kimi K2 Thinking, described as the strongest open-source thinking model to date, highlights advancements in AI capabilities within the gaming industry [1] Group 2 - The gaming sector is seen as having multiple catalysts for transformation, including AI, content, and commercialization model changes, with the gaming ETF (159869) tracking the performance of A-share listed companies in the anime and gaming industry [2] - There is a focus on investment opportunities within the gaming ETF (159869) as it reflects the overall performance of the anime and gaming industry [2]

Core Viewpoint - Guangdong Jintian Animation Co., Ltd. (referred to as "Jintian Animation") has submitted its IPO application to the Hong Kong Stock Exchange, capitalizing on the booming emotional consumption and trendy toy economy, following the success of brands like Pop Mart [2][12]. Company Overview - Jintian Animation, founded by Cai Jianchun, integrates popular IPs with snacks, creating a unique product line that allows children to "eat and play" [2][3]. - The company has achieved over 800 million RMB in annual sales, primarily through its IP-themed snacks [2]. Business Model - The company focuses on "IP fun food," incorporating anime elements into traditional snacks, enhancing their emotional value and pricing power [3][4]. - Jintian Animation has over 600 active SKUs, with products including candies, biscuits, and puffed snacks, all featuring popular characters [6][8]. Financial Performance - Revenue projections for 2022 to 2024 are 596 million RMB, 664 million RMB, and 877 million RMB, respectively, with gross margins increasing from 26.6% to 33.7% [8][10]. - The majority of revenue (over 96%) comes from IP-themed snacks, with candies and biscuits contributing approximately 66.2% of total revenue [9]. Market Position - Jintian Animation holds a 7.6% market share in the domestic IP fun food sector, ranking second in the IP food market behind major multinational companies [10]. - The company has established a diverse distribution network, increasing direct sales from 3.5% to 33.1% over three years [9]. IP Strategy - The company currently holds 26 licensed IPs, including popular characters like Ultraman and Peppa Pig, which significantly drive its revenue [8][11]. - In the first half of 2025, revenue from the top five IPs accounted for 85.7% of total income, highlighting the company's reliance on key licenses [11]. Industry Trends - The emotional economy is driving snack manufacturers to collaborate with IPs, as seen with various brands seeking to leverage this trend for higher value [12][13]. - The success of Pop Mart and other trendy toy brands has led to a surge in IPO applications from similar companies, indicating a robust market for emotional and collectible products [12][14].

Core Viewpoint - The article discusses the upcoming IPO of Guangdong Jintian Animation Co., Ltd., which has successfully combined popular IPs with snack foods, creating a lucrative market segment known as "IP fun food" [5][10]. Company Overview - Jintian Animation, founded by Cai Jianchun, has integrated anime elements into traditional snacks, significantly enhancing their appeal and pricing power [7][8]. - The company has over 600 active SKUs and holds licenses for 26 popular IPs, including Ultraman, Peppa Pig, and Disney characters [10][12]. Financial Performance - The company reported revenues of RMB 5.96 billion, RMB 6.64 billion, and RMB 8.77 billion for 2022, 2023, and 2024 respectively, with gross margins increasing from 26.6% to 33.7% during the same period [12]. - The majority of revenue (over 96%) comes from the sales of IP fun foods, with candy and biscuits contributing approximately 66.2% of total revenue [12][14]. Market Position - Jintian Animation is the largest IP fun food company in China, holding a market share of 7.6%, trailing only behind multinational companies like PepsiCo and Mars [14]. - The company's gross and net profit margins are projected to reach 33.7% and 14.8% respectively by 2024, outperforming competitors like Three Squirrels and Bestore [14]. Distribution Channels - The company has diversified its distribution network, increasing direct sales from 3.5% to 33.1% over three years, primarily through partnerships with retail stores and e-commerce platforms [12][14]. Industry Trends - The article highlights a growing trend in the snack industry where companies are increasingly collaborating with IPs to enhance product value, driven by the emotional connection consumers have with these brands [17][18]. - The success of companies like Pop Mart, which has seen its market value soar, indicates a robust demand for IP-related products in the current market [17][18].

Core Insights - iQIYI's theme park marks its entry into the offline entertainment market, transitioning from an online content producer to a scene operator, driven by industry evolution and internal needs [1][3] - The theme park project is a strategic move to monetize its IPs and tap into the growing offline entertainment consumption market, which is projected to exceed 80 billion yuan by 2025 [6][9] Group 1: IP Value and Market Dynamics - The urgent need to exploit IP value is a primary driver for iQIYI's theme park initiative, as it seeks to transform its popular IPs into tangible consumer experiences, creating a value loop from content creation to offline experiences and merchandise sales [4][6] - The long video industry is now in a phase of stock competition, with stagnant member growth, prompting iQIYI to explore offline avenues for user engagement and revenue generation [6][9] Group 2: Development Strategy - iQIYI adopts a gradual approach to theme park development, starting with smaller immersive experiences before scaling up to larger parks, thereby minimizing risks associated with cross-industry ventures [6][9] - The first large-scale theme park is set to open in Yangzhou, featuring a blend of IP and digital technology across seven thematic areas, including immersive theaters and interactive experiences [9][12] Group 3: Competitive Landscape - iQIYI's development model differs from established players like Huasheng Fantawild and Chimelong, focusing on a city leisure model rather than destination-based parks, and leveraging digital technology for immersive experiences [12][14] - The reliance on film IPs presents both opportunities and challenges, as the lifecycle of a film's popularity is typically short, which may impact the park's long-term viability [12][13] Group 4: Operational Challenges - iQIYI faces significant challenges in offline operations, lacking the necessary expertise in venue management, equipment maintenance, and customer service, which are critical for theme park success [16][17] - The current theme park offerings are criticized for insufficient integration of IP elements into the visitor experience, highlighting the need for deeper engagement and innovation [16][18] Group 5: Strategic Recommendations - To enhance operational capabilities, iQIYI should consider partnerships with third-party experts and eventually build an in-house team to manage various aspects of theme park operations [17] - Focusing on long-lifecycle IPs and creating immersive experiences that resonate with visitors can help sustain interest and foot traffic [18] - Leveraging digital technologies to create unique experiences and integrating local cultural elements can differentiate iQIYI's offerings in a competitive market [19]