Core Viewpoint - Tianji Holdings (01520) has signed a strategic cooperation memorandum with the Saudi Arabian Ministry of Industry and Mineral Resources, focusing on industrial digital transformation and smart manufacturing initiatives in Saudi Arabia [1][2] Group 1: Strategic Partnerships - The company has established a strategic partnership with the Saudi Ministry of Industry and Mineral Resources, marking a significant milestone in its strategic layout [2] - Collaboration with iFlytek (002230) is also part of the company's strategy to empower industrial upgrades [2] Group 2: Industrial Upgrades and Innovations - The partnership aims to address challenges in advanced technology and industrial innovation in Saudi Arabia, enhancing production efficiency, product quality, and competitiveness [1] - The company plans to assist Saudi Arabia in exploring Real World Asset (RWA) financing models for sustainable funding solutions for smart factories and intelligent manufacturing bases [2] Group 3: Future Development and Expansion - Future cooperation will deepen in the area of industrial city infrastructure, aiming to build a global "smart manufacturing super complex" [2] - The company is extending its digital technology capabilities from consumer scenarios to the manufacturing sector, steadily advancing its business layout in the smart manufacturing arena [2]

Core Insights - The Chinese IP "LABUBU" has gained significant popularity overseas, driving stock prices of related listed companies to new highs and attracting market attention towards IP economy concept stocks [1] - The global IP licensing market has reached a size of $356.5 billion in 2023, with a compound annual growth rate (CAGR) of 5.0%, while China's IP market is projected to exceed 168.9 billion yuan in 2024, marking a year-on-year growth of 40% [1] - The growth of the IP market is supported by favorable policies, a growing middle-income group, and the emotional engagement of Generation Z with IP, facilitating the transition of IP from cultural symbols to consumer assets [1] Industry Overview - The global IP licensing market is expanding rapidly, becoming a significant driver of economic development and injecting new vitality into the global consumer market [1] - Emerging technologies like blockchain are providing solutions to long-standing issues in the IP licensing field, such as rights confirmation and transparency in revenue sharing [1] Company Strategy - Tianji Holdings is implementing a "smart consumption + smart manufacturing" dual-driven strategy, focusing on AI, digitalization, and blockchain technology to enhance the IP value ecosystem and expand into industrial sectors [2] - The company is positioning itself as an "IP investment bank" by digitizing IP assets, ensuring clear ownership through unique digital identifiers, and enhancing user engagement through AI-driven interactive experiences [3] Smart Consumption Initiatives - In the smart consumption sector, Tianji Holdings is developing a global digital asset IP chain that provides verification, traceability, and value empowerment for cultural products, trendy toys, and digital art [3] - The introduction of smart contracts ensures transparent transactions and timely revenue sharing for creators, while cross-chain transaction technology enhances the global liquidity of IP assets [3] Community Engagement - The company is building high-interaction fan communities through loyalty programs and co-creation activities, enhancing user engagement and brand value [4] - Collaborations with partners like Xizu Chain Technology aim to launch co-branded merchandise and digital experiences, ensuring compliance and ongoing revenue sharing for copyright holders [4] Smart Manufacturing Developments - Tianji Holdings is extending its consumer IP business into industrial applications, aiding Chinese enterprises in connecting with global smart industries and promoting the intelligent transformation of traditional manufacturing [5] - A strategic partnership with iFlytek and the Saudi Ministry of Industry and Mineral Resources marks a significant milestone in this strategy, focusing on automation and AI applications in manufacturing [6] Future Outlook - The dual-driven strategy of smart consumption and smart manufacturing is expected to create a differentiated competitive advantage for Tianji Holdings, allowing it to capture structural growth opportunities in both IP digitization and global manufacturing transformation [8] - The company boasts a world-class team with expertise in blockchain, AI, and compliance, positioning it well for future growth [8]

Group 1: RWA Financing Model - The core of RWA financing is the tokenization of real assets through blockchain technology, enabling the creation of digital assets that can be traded on decentralized platforms [6][16] - The main processes include asset selection and evaluation, tokenization using blockchain, compliance handling, issuance and trading, and automatic profit distribution through smart contracts [6][16] - RWA financing focuses on assets with clear value or stable cash flows, such as real estate and accounts receivable [6] Group 2: Role of Digital Currencies - Digital currencies serve as payment and settlement tools, with stablecoins acting as a bridge between fiat currencies and RWA, reducing cross-border transaction costs [9] - RWA tokens can be used as collateral in DeFi protocols, enhancing their stability [9] - Governance tokens incentivize user participation through mechanisms like staking and fee discounts [9] Group 3: Development of Digital Currencies - The development of digital currencies has gone through five distinct phases, from inception in the late 1970s to the current era of strategic policies influencing their use [11] - Digital currencies are increasingly recognized for their decentralized, anonymous, and secure nature, becoming reserve assets for some central banks [13] Group 4: Stablecoins - Stablecoins emerged to address the volatility of mainstream digital currencies, providing a stable medium for transactions [14] - There are three types of stablecoins: fiat-collateralized, algorithmic, and crypto-collateralized, each serving different functions in the digital finance ecosystem [14] Group 5: Regulatory Landscape - Regulatory measures are crucial for the RWA and digital currency sectors, with increased regulation indicating higher safety but potentially fewer profit opportunities for ordinary investors [16][19] - The U.S. SEC employs a multi-faceted regulatory approach to oversee crypto assets, determining whether they fall under securities regulations [20][21] - Various global jurisdictions are developing regulatory frameworks for digital currencies, with a focus on compliance, user protection, and market integrity [24][25] Group 6: Hong Kong's Regulatory Approach - Hong Kong is at the forefront of digital currency regulation, with the Financial Management Bureau actively developing policies to manage crypto assets [25][30] - The region has implemented a sandbox approach to test the interoperability of tokenized assets and digital currencies, aiming to support market development [30][33] Group 7: Future of RWA Financing - RWA financing can utilize either tokenized financing or asset-backed lending, both relying on digital currencies for transactions [36] - The future of RWA is contingent on a healthy and regulated digital currency market, posing new challenges for traditional regulatory bodies [36]