Core Viewpoint - The rapid growth of the "Guziko Economy" in the two-dimensional cultural peripheral economy is highlighted, with the Chinese pan-entertainment product industry expected to reach a market size of 1,741 billion yuan in 2024, growing at a compound annual growth rate (CAGR) of 13.6% from 2019 to 2024, and projected to reach 3,358 billion yuan by 2029 [2] Company Overview - Card Game Co., Ltd. (KAYOU) is a leading player in the collectible card game sector, initiating its IPO process again after an unsuccessful attempt in January 2024, with a new prospectus submitted to the Hong Kong Stock Exchange on April 14, 2025 [2][4] - The company has received investments from Sequoia Capital and Tencent, with revenue surpassing 10 billion yuan in 2024 [4][10] Financial Performance - KAYOU's revenue for the years 2022, 2023, and 2024 was approximately 41.31 billion yuan, 26.62 billion yuan, and 100.57 billion yuan respectively, with a significant year-on-year growth of 277.8% in 2024 after a decline of 35.6% in 2023 [11][12] - The company reported net profits of -296 million yuan in 2022, 449.5 million yuan in 2023, and -1.2415 billion yuan in 2024, with adjusted net profits of 1.62 billion yuan, 934 million yuan, and 4.466 billion yuan respectively [12] Market Position - KAYOU holds the top market share in the pan-entertainment product and toy sectors, with respective shares of 13.3% and 21.5%, and dominates the collectible card game market with a share of 71.1% [10] - The company has expanded its product offerings beyond collectible cards to include badges, stickers, dolls, and stationery, although the majority of revenue still comes from collectible cards [10][13] IP Dependency - KAYOU's business model heavily relies on IP licensing, with 70 IPs as of 2024, of which 69 are licensed and 1 is proprietary [11] - The company faces potential risks as over half of its IP licenses are set to expire in the coming years, with 38 licenses expiring by 2025 and 39 by 2026 [15][17] Social Responsibility and Regulatory Challenges - KAYOU has faced scrutiny regarding its sales practices to minors, particularly concerning blind box products, which have led to significant financial expenditures by children [19][21] - The company has been reported to have violated regulations regarding the sale of blind boxes to minors, raising concerns about its commitment to consumer protection [21]