Summary of the IP Industry Research Conference Call Industry Overview - The IP licensing industry is experiencing rapid growth in GMV (Gross Merchandise Value) and licensing revenue, indicating significant market opportunities [1][2] - Companies should differentiate between IP as an asset and the commercialization of IP, taking cues from the Pop Mart model by signing multiple IPs to diversify risk and leverage the advantages of virtual characters [1] Key Insights - The evaluation of IP value should focus on content, image, and topicality. IP can be categorized into text, comics, animation, and character image types, similar to how artists are classified into "visual" and "performance" categories [1][5] - Alibaba's IP platform, Aliyu, saw its GMV grow from $430 million in 2022 to $4.1 billion in 2024, a ninefold increase, significantly improving its global ranking among licensing agents [1][6] - Companies like Pop Mart, Miniso, and Aofei Entertainment are benefiting from the IP derivative licensing market [1] Core Competencies for IP Management - Companies need two core capabilities in IP management: discovering emerging IPs and transforming them into hits [7] - The average age of the top 50 global IPs varies by category: book IPs average 62 years, animation IPs average 37 years, and comic IPs average 47 years. Character image IPs tend to have shorter lifecycles due to a lack of supporting story content [8] Revenue Structure and Monetization - Among the top 50 global IPs, game IPs generated over $240 billion in total revenue, with over $150 billion from in-game revenue, while only $3.3 billion came from film adaptations [9] - Character image IPs, despite being fewer in number, have the highest commercialization revenue, with over $60.5 billion from merchandise sales [9] - Books have low initial revenue but can significantly increase through adaptations, as seen with over 100 animated series launched in 2023 based on web literature [10] Factors for Success in IP - Successful character image IPs must meet three criteria: alignment with public aesthetics, differentiation to avoid market saturation, and extensibility for multiple designs [11] - Game IPs face challenges in external monetization due to their interactive nature, making it difficult to adapt them into other media forms [12][13] Competitive Analysis of IP Companies - Analyzing an IP company's core competitiveness involves assessing resources, strategy, and channels. Companies must have the ability to acquire quality IPs and effectively market them [16] - Pop Mart's success in promoting IPs from inception to market includes hosting exhibitions and establishing direct sales channels, enhancing its influence [17][19] Importance of Offline Channels - Offline channels, such as direct stores and theme parks, provide immersive experiences that serve marketing functions beyond mere revenue generation [18] Conclusion - The IP industry presents substantial growth opportunities, with companies needing to adapt their strategies to leverage emerging trends and consumer preferences effectively.

Core Viewpoint - The company, 小黄鸭德盈, reported a significant revenue increase of 37% in the first half of 2025, amounting to 82.31 million HKD, while narrowing its losses by 38% to 11.65 million HKD. The company also announced plans to acquire the toy company HIDDEN WOOO, which will enhance its control over the IP matrix and toy product line [1]. Financial Performance - In the first half of 2025, the company achieved a revenue of 82.31 million HKD, reflecting a 37% year-on-year growth [1]. - The company reported a loss of 11.65 million HKD, which is a 38% reduction compared to the previous year [1]. - The IP licensing business generated 38.44 million HKD in revenue, marking a 46% increase year-on-year [4]. - E-commerce and other business segments contributed 43.87 million HKD, with a year-on-year growth of 31% [5]. - The overseas revenue saw a remarkable increase of 160% year-on-year [9]. IP Development and Strategy - The company has established a diverse IP matrix, including partnerships with various cultural entities and brands, enhancing the cultural relevance of its core IP, B.Duck [2][3]. - The company has expanded its IP licensing partners from over 280 at the time of its IPO in 2022 to 577 partners, with over 50,000 SKUs [4]. - The acquisition of HIDDEN WOOO will allow the company to hold a 51% stake, further enriching its IP portfolio and expanding its toy product line [6][7]. Product and Market Expansion - The company is focusing on the toy retail sector, particularly in the潮玩 (trendy toy) segment, and has adjusted its product offerings to cater to younger consumers [5]. - The company is actively developing its presence in the cultural tourism sector, with plans to create a sustainable IP tourism ecosystem [8]. - The company has made significant strides in international markets, particularly in Thailand, where its products have entered major retail channels [9]. Future Outlook - The company aims to enhance its brand strategy from "Be Playful" to "Make A Playful World," indicating a commitment to global expansion while maintaining its roots in China [9].

Group 1: Core Insights - Sanrio has established a significant presence in the global cultural consumption sector since its founding in 1960, with a warm philosophy that emphasizes friendship through small gifts, creating an IP empire across 130 countries and regions [1] - The iconic character Hello Kitty, created in 1974, along with other distinct IPs like My Melody and Kuromi, forms a matrix of emotional symbols that resonate with consumers across generations [1] Group 2: Performance in China - In the Chinese market, Sanrio has achieved a sales revenue of 816 million yuan for the fiscal year 2025 (April 2024 - March 2025), representing a 44% year-on-year growth [3] - The core growth driver is the IP licensing business, with significant increases in local product sales and original brand manufacturing (OBM) aimed at global markets, particularly Japan [3] - Sanrio has opened 44 stores in China, including 5 direct-operated stores, and has enhanced emotional connections with consumers through diverse experiential scenarios such as art exhibitions and pop-up stores [3] Group 3: Digital Transformation - Sanrio China is strategically focusing on digital operations to address common retail challenges such as channel fragmentation and complex multi-platform integration [4] - The brand aims to build a comprehensive digital ecosystem to support its "IP platformization" strategy and rapid growth, enhancing consumer experience through integrated supply chain management and marketing [4] Group 4: Partnership with Haiding - In April 2025, Sanrio China partnered with Haiding to initiate a comprehensive digital upgrade project, leveraging Haiding's expertise in global support, intelligent supply chains, and smart marketing [6] - The collaboration aims to resolve issues related to fragmented systems, improving data interoperability across purchasing, inventory, and membership systems [6] - Post-implementation, Sanrio China has seen significant improvements in store checkout efficiency, inventory management accuracy, supply chain responsiveness, and enhanced capabilities for data-driven marketing [6] Group 5: Benchmark Significance - The partnership signifies a milestone in Haiding's efforts to assist top global IP retail brands in their digital transformation, creating an innovative model that combines cultural IP with digital technology [8] - With the project fully operational, Sanrio China is on track to achieve its strategic goal of exceeding 500 million yuan in profit within three years [8] - Haiding's solutions have already supported over 1,000 enterprises in achieving efficient digital transformation across various retail sectors globally [8]

Core Viewpoint - The collaboration between Alibaba's Aiyu and Sanrio is driving significant revenue growth for both companies, particularly in the Chinese market, with strong performance in licensing and IP authorization. Group 1: Company Performance - Damai Entertainment (01060) saw its stock price increase by 7.08%, reaching HKD 1.21, with a trading volume of HKD 2.32 billion [1] - Sanrio reported a revenue of RMB 376 million in Q1 of FY2026 for its China operations, marking a 120% year-on-year increase [1] - The licensing revenue for Sanrio in China was RMB 251 million, reflecting a 158% year-on-year growth [1] Group 2: Strategic Partnerships - CITIC Securities noted that the partnership between Aiyu and Sanrio has positively impacted both companies' performance [1] - The collaboration is expected to contribute over 50% of Aiyu's revenue in FY2025 [1] - Sanrio's strong performance in China and its emphasis on the significant contribution from this market indicate a solid and beneficial partnership with Aiyu, focusing on long-term operations and steady growth [1] Group 3: Marketing and Future Prospects - Aiyu's marketing initiatives for Sanrio are expected to enhance the development and operation of other collaborative IPs such as Chiikawa, Crayon Shin-chan, and Universal Studios in China [1] - The successful execution of events like "Hi Fan Festival" and "Super Product Day" demonstrates the effective online and offline activities being carried out [1] - The partnership is likely to lead to the signing of more new IPs, further strengthening the company's licensing business [1]

Core Insights - The stock of Damai Entertainment (01060) has increased by over 6%, currently up 7.08% at HKD 1.21, with a trading volume of HKD 232 million [1] Group 1: Financial Performance - Sanrio reported a revenue of RMB 376 million for Q1 of FY2026 in China, representing a year-on-year growth of 120% [1] - The licensing business revenue for Sanrio in China reached RMB 251 million, showing a year-on-year increase of 158% [1] Group 2: Strategic Partnerships - CITIC Securities noted that the collaboration between Alibaba's YU and Sanrio has positively impacted the performance of both parties [1] - The partnership is expected to lead to explosive growth in licensing revenue for both Sanrio and Damai Entertainment in FY2025, with projections indicating that over 50% of YU's revenue will come from Sanrio [1] Group 3: Marketing and Events - The collaboration has seen steady progress in online and offline activities, with successful events like "Hi Fan Festival" and "Super Product Day" being held for the second time [1] - Sanrio's strong performance in China, highlighted in their financial report, indicates a solid and positive partnership, with future collaborations focusing on long-term operations and steady development [1] Group 4: Future Prospects - Marketing activities planned by YU for Sanrio are expected to provide valuable experience for the development and operation of other collaborative IPs such as Chiikawa, Crayon Shin-chan, and Universal Studios in China [1] - This experience is anticipated to serve as a strong foundation for the growth of the company's licensing business and may lead to signing more new IPs in the future [1]

Core Viewpoint - Goldman Sachs initiates a "Buy" rating for Damai Entertainment (01060) with a target price of HKD 1.38, highlighting the company's strong market position and strategic focus on live events and IP business as key drivers for sustainable growth [1] Company Performance - Damai Entertainment is recognized as China's largest live event ticketing platform and the largest IP licensing agent, positioning itself favorably across various verticals [1] - The company's stock has shown a strong performance year-to-date, with a 140% increase, indicating a market reassessment of its strategy towards live events and IP business over the more volatile film sector [1] Market Outlook - Despite the optimistic market sentiment towards the company, Goldman Sachs believes there is still room for stock price appreciation due to strong earnings growth and a focus on a more sustainable business model [1]

Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside of 15% to 35% [9][15]. Core Insights - The company is recognized as the leading IP enterprise in China, leveraging its IP resources and R&D capabilities to provide comprehensive chip customization services from design to mass production. The growth in its volume business and new orders reflects the increasing demand driven by AI and IoT [9]. - The company is expected to benefit from the ongoing transformation in the industry, particularly as internet firms continue to invest in AI computing capabilities, enhancing their specialized processing chip (ASIC) strategies [9]. - The stock is currently trading at a price-to-sales (P/S) ratio of 11 times for 2027, maintaining the "Buy" recommendation based on significant performance potential [9]. Financial Performance Summary - For Q2 2025, the company anticipates a revenue of 584 million RMB, representing a 49.9% quarter-over-quarter increase but a 4.7% year-over-year decline. The IP licensing revenue is expected to be 187 million RMB, up 99.6% quarter-over-quarter and 17% year-over-year [12]. - The company has a robust order backlog of 3.025 billion RMB, which has remained high for seven consecutive quarters, providing a solid foundation for future revenue growth [12]. - Revenue projections for 2025-2027 are 3.067 billion RMB, 3.384 billion RMB, and 4.740 billion RMB, with year-over-year growth rates of 32%, 25%, and 23% respectively. Net profits are forecasted to be -26 million RMB, 53 million RMB, and 201 million RMB for the same period [12][11]. Shareholder Information - The major shareholder is Xinyuan Co., Ltd., holding 14.40% of the shares. The company has a total market capitalization of 47.326 billion RMB, with 525.71 million shares issued [2]. - The stock price as of August 1, 2025, was 94.49 RMB, with a 12-month high of 111 RMB and a low of 24.45 RMB [2]. Product Mix - The company's revenue composition includes 43.4% from chip volume business, 33.5% from IP licensing fees, 17.8% from chip design services, and 5.3% from royalties [4]. Market Position - The company has a significant presence among institutional investors, with 29.7% of the circulating A-shares held by funds [6]. The stock has shown a strong performance relative to the market, with a 181.7% increase over the past year [2].

Core Insights - The recent popularity of Labubu has drawn attention to the IP licensing industry, highlighted by the 2025 China International Licensing Industry Summit held in Shanghai, focusing on "Globalization and Digitalization" [1][3] Industry Growth - The licensing industry in China has rapidly developed in recent years, with the International Licensing Industry Association reporting a record global sales figure of $369.6 billion for licensed goods and services in 2024, representing a 3.7% increase from 2023 [3] - Specific sectors such as music (+11.6%), celebrity endorsements (+8.8%), fashion (+8.1%), and art (+7.4%) have shown strong growth, indicating significant potential and opportunities within the licensing industry [3] Summit Highlights - The summit gathered executives from various companies including Bandai Namco, Bilibili, and Tencent Video, featuring 8 keynote speeches and 3 roundtable discussions that addressed globalization opportunities, digital empowerment, and cultural innovation [3][4] - Over 530 representatives from brands and agencies across multiple sectors, including Adidas and NBA China, participated to discuss trends and future opportunities in the Chinese licensing industry [4] Data Analysis - The summit analyzed dynamic changes in licensing revenue across major countries and regions, as well as fluctuations in the proportions of licensed and licensed categories, providing industry benchmarks for understanding the global licensing market [6] - Discussions included topics such as licensing methods, domestic innovation and international expansion, and the rise of national cultural IPs, aiming to explore new paths for brand development and collaboration in the licensing field [6] Event Organization - The summit was co-hosted by the Global Licensing Expo Shanghai and the International Licensing Industry Association, aiming to facilitate efficient matching between IPs and brand merchants while promoting the development of the entire licensing industry chain in China [7] - Since its establishment in China in 2017, the Global Licensing Expo Shanghai has served over 1,800 IP brands and more than 200,000 professional attendees across various industries [7]

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]

Core Viewpoint - The company continues to recommend its stock, with a recent name change from Alibaba Pictures to Damai Entertainment, indicating a clearer focus on core business areas [1] Group 1: Damai Business Updates - Damai has become the official ticketing channel for the Jiangsu Super League, marking its entry into the regional sports event ticketing market, which is expected to enhance its visibility among male users and complement its existing music event market [1][2] - The company aims to expand its ticketing coverage beyond music events to include local performances, cultural tourism events, and sports events, thereby increasing its long-term growth potential [2] - The ticketing revenue from sports events is anticipated to provide a significant boost, as evidenced by the high attendance rates at recent matches, which can rival those of major concerts [3] Group 2: IP Business Developments - The closure of the潮玩 brand "Jinli Naju" is not expected to significantly impact the company's overall performance, as its revenue contribution was minimal [4] - The company will continue to pursue C-end IP derivative businesses, leveraging its core IP operations through Alibaba Fish, which is expected to drive future growth [4][5] - New IP signings, such as Chiikawa, are projected to contribute positively to revenue in the upcoming fiscal years, with ongoing marketing activities and collaborations enhancing brand visibility [5][6] Group 3: Competitive Advantages - Damai's technical capabilities in handling high-demand ticket sales are seen as a core advantage, providing a stable and fair purchasing experience for users compared to temporary ticketing platforms [3] - The comprehensive IP operation services offered by Alibaba Fish are expected to attract more top-tier global IP signings, enhancing the company's competitive position in the market [6]