Core Insights - The collectible card market is entering a "monetization era" with companies like Hitcard and the industry leader, Kayo, pursuing IPOs [1][4] - Hitcard, founded in 2021, focuses on adult collectible cards and has secured significant funding from various investors, including major players like Reading Group and CyberAgent [1][3] - The company has achieved approximately 400 million RMB in revenue last year, with a projected 100% year-on-year growth this year, and has already reached profitability [3][4] Company Overview - Hitcard is a brand under Shanghai Qixing Network Technology Co., Ltd., specializing in collectible cards for adults [1] - The company has developed partnerships with popular IPs, including anime and film franchises, enhancing its product offerings [3] - Hitcard's collaboration with Reading Group allows access to over 1,000 IPs and offline channel resources [1] Market Dynamics - The collectible card market in China is still developing, with significant growth potential compared to developed countries [4] - In 2024, the top five companies in the collectible card industry will hold 82.4% of the market share, with Kayo leading at 71.1% [4] - The market is expected to grow at a compound annual growth rate of 11.1%, reaching 44.6 billion RMB by 2029 [4]

Group 1 - Hitcard, a card company established only four years ago, is advancing its IPO process, indicating the collectible card market is entering a "monetization era" [1] - According to Huaxi Securities Research Institute, the top five companies in China's collectible card industry will account for 82.4% of the total market share by 2024 [1] - Card Game holds the largest market share at 71.1%, with projected revenue of 10.057 billion yuan and an adjusted net profit of 4.466 billion yuan in 2024, surpassing Pop Mart's 3.403 billion yuan during the same period [1]

Core Viewpoint - The collectible card market in China is entering a monetization phase, with companies like Hitcard and established players like 卡游 (Kaworld) pushing for IPOs and significant growth in revenue and market presence [1][3]. Company Overview - Hitcard, founded in 2021, focuses on adult collectible cards and has received multiple rounds of funding from notable investors including 泡泡玛特 (Pop Mart), 红杉中国 (Sequoia China), and 阅文集团 (Yuewen Group) [1]. - After a significant investment from Yuewen Group, Hitcard has access to over 1,000 IPs and offline channel resources, enhancing its market position [1]. - In 2024, Hitcard's collaboration on the 《庆余年》 card series generated a GMV of 20 million RMB [2]. Financial Performance - Hitcard achieved approximately 400 million RMB in revenue last year, marking a year-on-year growth of over 600%, with expectations for another 100% growth this year [2]. - The company has already reached profitability, indicating a strong business model and market demand [2]. Market Comparison - Despite Hitcard's growth, it still lags behind the market leader, 卡游, which holds a 71.1% market share and reported revenues of 10.057 billion RMB in 2024 [3]. - The top five companies in the collectible card market account for 82.4% of the total market share, highlighting the competitive landscape [3]. Market Potential - Current spending on collectible cards in China is significantly lower than in developed countries, with per capita spending at 18.7 RMB compared to 119.3 RMB in Japan and 64.0 RMB in the U.S., suggesting substantial growth potential [3]. - The Chinese collectible card market is projected to reach 44.6 billion RMB by 2029, with a compound annual growth rate of 11.1% from 2024 to 2029, indicating a sustained high demand [3].