Summary of Conference Call Records Company and Industry Overview - **Company**: Sanrio - **Industry**: IP (Intellectual Property) Management and Licensing Key Points and Arguments 1. **Diversification of IP Portfolio**: Sanrio has effectively mitigated the risk of declining popularity of its flagship IP, Hello Kitty, by developing a multi-IP matrix including characters like Kuromi, Pompompurin, and My Melody. The revenue share from Hello Kitty decreased from 76% in FY2014 to 35.3% in FY2025, indicating a successful diversification strategy [1][3][5]. 2. **Impact of Management Changes**: The company underwent a management reform with a younger team that has positively influenced its operations. This new team has focused on localization and event marketing, enhancing overall competitiveness and driving revenue growth [1][3][4]. 3. **Significance of Licensing Revenue**: Licensing is a crucial revenue stream for Sanrio, accounting for 55% of total revenue in FY2025. The performance in overseas markets, particularly North America, has been strong due to effective social media strategies and partnerships with leading retailers [1][6]. 4. **Online Operations During Public Health Events**: During the public health crisis, Sanrio maintained IP popularity through online channels. Since FY2021, several core and subsidiary IPs have shown significant growth, highlighting the positive impact of online operations on revenue [1][7]. 5. **Future Growth Projections**: Sanrio anticipates double-digit revenue growth in FY2026, with Asian markets expected to outperform overall growth rates. The company also expects an increase in operating profit margins, reflecting optimism about future developments [1][8]. 6. **Long-term IP Management Strategies**: The company emphasizes the importance of establishing long-term mechanisms to avoid over-reliance on a single IP. A multi-IP strategy helps smooth risks and extends the lifecycle of IPs, ensuring stable long-term growth [1][10]. Additional Important Insights 1. **Lessons for Other IP Companies**: Sanrio's experience offers valuable lessons for other IP-focused companies, particularly in diversifying IP portfolios and implementing effective operational mechanisms. This approach is crucial for companies that rely heavily on a single core product [1][4]. 2. **Performance of Competitors**: Companies like Pop Mart have also excelled in multi-IP operations, with their character Crybaby generating 1.165 billion yuan in revenue within a year of launch. This indicates a growing trend in the industry towards diversified IP strategies [2][11]. 3. **Implications for Young Enterprises**: The findings suggest that young companies should focus on building a multi-IP matrix to mitigate risks and ensure sustainable growth. Continuous optimization of both new and existing IPs is essential for long-term success [12].

Summary of Conference Call Records Company Overview - **Company**: Alibaba Fish (阿里鱼) - **Industry**: IP Licensing and Entertainment Key Points and Arguments IP Resources and Licensing - Alibaba Fish operates under both exclusive and non-exclusive licensing models for well-known IPs such as Sanrio, Jikawa, Pokémon, and Crayon Shin-chan, with top IPs contributing the majority of revenue [2][3] - The company has approximately 200 IP resources categorized into tiers, with top IPs including Sanrio family, Pokémon, and Jikawa, while also signing lightweight IPs like the Japanese manga "Ranma 1/2" [3][4] - A proprietary evaluation system is used to classify IPs based on downstream sales performance (GMV), with top IPs contributing over 80% of revenue [4][5] Revenue and Business Strategy - In 2024, Alibaba Fish's total IP revenue was 1.43 billion, primarily from IP licensing (ToB business), Tmall flagship store operations, and collectible toy service fees [2][19] - The company plans to focus on C-end business in 2025, developing in-house IP merchandise brands and signing designers for new IP development [15][16] - Jikawa is expected to be a significant growth contributor in 2025, with successful offline pop-up stores and animation releases planned [12][14] Collaboration and Market Impact - The partnership with Sanrio, initiated in early 2023, has significantly boosted Sanrio's performance in the Chinese market through various marketing and promotional activities [10][11] - Alibaba Fish's marketing strategies have increased IP exposure and fan engagement, leading to a notable performance turnaround for Sanrio [11] Market Trends and Challenges - The live performance market is experiencing varied growth rates, with concert growth slowing due to venue resource limitations, while sports and theatrical events are exceeding expectations [22][28] - High-tier artists maintain high attendance rates in lower-tier cities, while mid-tier artists face challenges in these markets [25][26] International Expansion - Alibaba Fish has established an international strategy focusing on Hong Kong, Macau, and Southeast Asia, collaborating with venue ticketing systems and investing in joint ventures [29] Film Industry Strategy - The film market has been underperforming, leading the company to reduce investments in new film projects and focus on optimizing existing resources [30] Additional Important Insights - The company maintains a balanced approach to hiring, ensuring that business development and creative roles are filled without excessive expansion [19] - The competitive landscape in the ticketing industry is intense, with Alibaba Fish maintaining transparent pricing strategies amidst aggressive competition from other platforms [28]