Core Viewpoint - Quantum Song's acquisition of Letsvan for 235 million yuan marks a strategic shift towards the trendy toy market, but the company faces challenges as the market shows signs of a bubble burst [1][2][3] Group 1: Acquisition and Market Position - Quantum Song completed the acquisition of 61% of Letsvan for 235 million yuan, focusing on IP incubation and trendy toy promotion [1][2] - Following the announcement of the acquisition, Quantum Song's stock price surged to a peak of 15.64 USD per share, surpassing its initial offering price of 12.5 USD [2][8] - The trendy toy market in China is projected to grow from 22.9 billion yuan in 2020 to 76.3 billion yuan by 2024, with a compound annual growth rate of 35.1% [2] Group 2: Market Challenges and Stock Performance - The trendy toy market is experiencing excessive financial speculation, leading to concerns about sustainability [3][5] - Following a peak, Quantum Song's stock price fell to around 10 USD per share within a week due to market fluctuations [8] - The recent sell-off by major stakeholders in the trendy toy sector raises questions about the long-term viability of these investments [10][11] Group 3: Financial Performance and Strategic Shift - Quantum Song reported a net profit of 386 million yuan for the fiscal year 2024, marking a turnaround from previous losses [16] - The company's revenue for Q1 2025 was 571 million yuan, a 39.6% decline from the previous year, indicating challenges in its core online learning services [18] - The company is exploring new growth avenues beyond financial education, including health products and trendy toys, to diversify its revenue streams [17][31] Group 4: Future Outlook and Strategic Considerations - Quantum Song aims to build a comprehensive service ecosystem that spans different age demographics, potentially enhancing its market position [32] - The company needs to increase investment in R&D and marketing to effectively develop and promote trendy toy IPs, as current expenditures have significantly decreased [29][30] - The integration of various product lines targeting different age groups could create a unique brand identity and customer loyalty [31][32]

Core Viewpoint - The rapid decline in the price of Labubu collectibles following a significant restock by Pop Mart highlights the volatility and speculative nature of the trendy toy market, drawing parallels to historical financial bubbles like the tulip mania [2][3]. Group 1: Market Dynamics - On June 18, Pop Mart released 5 million Labubu collectibles, causing prices to plummet; for instance, the price of a complete box dropped from 2800 yuan to 650 yuan, and a limited edition item fell from over 4000 yuan to 2000 yuan [2]. - The initial hype around Labubu was fueled by celebrity endorsements and social media, leading to inflated prices where a blind box originally priced at 594 yuan was resold for 2800 yuan, and a collaboration item sold for 24 times its original price [2]. Group 2: Speculative Behavior - The pricing strategy for Labubu mirrors that of sneaker speculation, where limited supply creates a sense of scarcity, driving prices up and creating a false perception of investment value among consumers [3]. - The market's reliance on speculation rather than intrinsic product value has led to a fragile pricing structure, similar to the tulip bubble, where the eventual oversupply or lack of buyers can lead to a market collapse [3]. Group 3: Consumer Impact - The influx of Labubu collectibles has resulted in a significant number of unsold items on resale platforms, with nearly 60% of consumers expecting further price declines [3]. - Consumers are cautioned against viewing Labubu as an investment, as the reality is that they may end up "paying for lessons" rather than profiting from their purchases [3].