Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the collectible toy (潮玩) industry, particularly the strategies for IP (intellectual property) incubation and market success [1][2]. Core Company Insights - The company has rapidly expanded during the economic recovery period at the end of 2022, achieving revenue in the billions [1]. - All IPs are created by the internal design team, with 100% ownership of intellectual property [1][4]. - The company utilizes crowdfunding to validate IP concepts, with S-level IPs raising over 1.5 million [1][4]. - Initial production strategy is based on a "produce to order" model, transitioning to a "sell to produce" model starting in 2025 to better match supply chain needs with market demand [1][5]. Revenue and Sales Channels - Revenue is approximately in the billions, with 50% coming from distribution channels and the remainder from online platforms like Tmall and Douyin [1][8]. - Douyin contributed nearly 100 million in revenue in 2024, with expectations for increased offline sales in 2025, particularly from Miniso [1][9]. Market Dynamics and Competitive Landscape - The collectible toy market is influenced by changing consumer trends, with middle-class and high-income consumers seeking affordable emotional value [2]. - The company has a competitive edge with a complete moat, as competitors have not yet built mature capabilities [2]. - The company is expanding internationally, with expectations for overseas markets to contribute at least 10% to revenue by 2025 [2][28]. Product and Marketing Strategies - Continuous growth in collectible IP requires a focus on product and marketing, including product line segmentation and limited edition collaborations to enhance artistic value [1][11]. - The company plans to increase the proportion of plush products in its offerings while maintaining a strong focus on blind box figures [24]. IP Lifecycle and Investment Concerns - Investors express concerns about the lifecycle of collectible IPs, but successful cases like Mega and Demo demonstrate the potential for long-term viability [10]. - The lifecycle of major IPs in the collectible toy industry is typically around four to five years, with potential for explosive growth after initial stagnation [16][17]. Future Trends and Strategies - The collectible toy market in China is evolving from a single dominant player to a more competitive landscape with several strong companies emerging [27]. - The company is considering opening brand concept stores to enhance brand and user asset accumulation, rather than focusing solely on sales [31]. - Future product development will focus on diversifying offerings to meet broader consumer demands while maintaining a core fan base [26]. Conclusion - The company is strategically positioned to leverage its unique IP incubation model, robust revenue channels, and evolving market dynamics to capitalize on growth opportunities in the collectible toy industry.