Core Viewpoint - The company "卡游" is attempting to go public in Hong Kong, leveraging its strong performance and IP resources, while facing regulatory scrutiny and competition in the trading card game market [3][5][8]. Group 1: Company Performance - In 2024, 卡游 reported a revenue of 100.57 billion RMB, a 278% increase year-on-year, and an adjusted net profit of 44.66 billion RMB, up 378% from 2023 [8][18]. - The company has a cash flow of 51.13 billion RMB as of February 28, 2025, with current liabilities of 41.22 billion RMB, primarily due to investments from Sequoia Capital and Tencent [10]. - The trading card segment contributed significantly to revenue, with 39.3 billion RMB in 2022, accounting for 95.1% of total revenue [17]. Group 2: Market Position and Strategy - 卡游 holds 70 IPs, including popular franchises like 奥特曼 and 火影忍者, which have driven its growth in the trading card market [16][19]. - The trading card game market is experiencing rapid growth, with a compound annual growth rate of 56.6% from 2019 to 2024, and 卡游's trading cards accounted for 25.8% of the overall market in 2024 [14]. - The company has diversified its product offerings, introducing toys and stationery, with stationery revenue growing from 20.9 million RMB in 2022 to 512.5 million RMB in 2024 [30]. Group 3: Regulatory and Competitive Challenges - 卡游's IPO process has faced delays due to regulatory inquiries regarding user data protection and corporate structure [5][12]. - The company is under scrutiny for potentially targeting underage consumers, which has raised concerns about its marketing practices [23][25]. - To mitigate risks associated with reliance on external IPs, 卡游 launched its own original IP, 卡游三国, which has shown promising growth [33]. Group 4: Future Outlook - The company aims to complete its IPO by the end of 2025 to avoid a potential buyback obligation to investors, which could strain its finances [12][13]. - 卡游 is focusing on international expansion and cultural integration, collaborating with the National Sports Administration to promote Chinese cultural cards abroad [39][41]. - The evolving public perception of card games as a legitimate form of entertainment may provide a favorable environment for 卡游's growth and market acceptance [35][36].