Core Viewpoint - Guangdong Jintian Animation Co., Ltd. (Jintian Animation) has submitted its prospectus to the Hong Kong Stock Exchange, aiming to capitalize on the growing "IP + snack" market, despite facing potential risks and a slowdown in growth [1][13]. Company Overview - Jintian Animation, established in 2004 and incorporated in 2011, focuses on the IP fun food sector, providing enjoyable and healthy snack products [1]. - The company is recognized as the largest IP fun food enterprise in China by revenue, holding a market share of 7.6% in the IP fun food sector and 2.5% in the broader IP food market as of 2024 [1]. Market Position and Growth - As of June 30, 2025, Jintian Animation has 26 authorized IPs and over 600 active SKUs, covering five major product categories: candy, biscuits, puffed snacks, chocolate, and seaweed snacks [1]. - The company has experienced significant revenue growth, with direct sales to retailers increasing from 21.11 million RMB in 2022 to 290 million RMB in 2024, reflecting a compound annual growth rate of 271% [5]. - Overall revenue rose from 596 million RMB in 2022 to 877 million RMB in 2024, with net profit increasing from 36.71 million RMB to 130.09 million RMB during the same period [5][6]. Sales Channels - Jintian Animation has established a comprehensive sales network that includes distributors, direct retail, and e-commerce platforms, although it remains heavily reliant on offline channels [4]. - As of June 30, 2025, the company covered over 1,700 counties in China, achieving a county-level coverage rate exceeding 60%, while e-commerce contributed only about 0.2% of total revenue in 2024 [4]. Product Dependency and Risks - The company heavily relies on external licensed IPs for revenue, with 99.5% of its income sourced from these IPs in the first half of 2025 [7]. - Key IPs such as Ultraman, My Little Pony, and Crayon Shin-chan account for nearly 80% of total revenue, raising concerns about sustainability and dependence on licensing agreements [7][9]. - The average duration of existing licensing agreements is generally short, often 24 months or less, which poses a risk to revenue stability if renewals are not secured [9][10]. Product Performance - The growth in recent years has been primarily driven by candy and biscuits, which together contributed 66.2% of revenue in the first half of 2025 [11]. - Conversely, sales and revenue from puffed snacks and chocolate have declined, attributed to early inventory preparations for the 2025 Spring Festival [11][12]. - Seaweed snacks have also shown a continuous decline in performance since 2023, as the company reallocates resources to focus on higher-margin product categories [12]. Future Outlook - The company faces challenges such as slowing growth, over-reliance on a few external IPs, and a relatively narrow product structure [13]. - Future key developments will depend on the company's ability to transition from being an "IP handler" to a "self-owned brand builder" or "industry chain leader," potentially through the incubation of proprietary IPs and enhanced supply chain efficiency [13].

Group 1 - The U.S. is demanding South Korea to invest $400 billion and open its agricultural market, which includes allowing imports of U.S. beef, rice, apples, and blueberries [2][3] - South Korean farmers are expressing concerns about the potential collapse of local agriculture due to competition with U.S. products, leading to protests [3] - The South Korean government is under pressure from the U.S. regarding key industries such as steel, semiconductors, and automobiles, with threats of a 25% tariff if demands are not met [5] Group 2 - The South Korean administration, led by President Lee Jae-myung, is in a difficult position, facing internal dissent and external pressure from the U.S. [5] - There is speculation about the implications for South Korea if it complies with U.S. demands, potentially deepening its integration into the U.S.-led industrial chain [7] - The situation reflects the challenges faced by medium-sized countries caught between larger powers, with limited options for negotiation [7][9]