Core Viewpoint - ShiningSoul, a cultural technology brand under Shanghai Zhenyouqu, has successfully completed a financing round of several hundred million RMB, led by Hillhouse Capital, indicating strong investor confidence in the collectible card game (CCG) market driven by popular game IPs [1][6]. Company Overview - ShiningSoul was co-founded by Yao Shuo Bin, chairman of Yaoji Technology, and veteran card industry player Sheng Chuan, with the brand being registered in March 2023 and first revealed in November 2023 [1][3]. - The company focuses on game IPs, aiming to capitalize on the growing popularity of collectible card games among younger audiences [1][2]. Market Potential - The broader market for pan-entertainment toys is projected to reach 101.8 billion RMB in 2024, with a compound annual growth rate (CAGR) of 15.8% from 2024 to 2029. The collectible card segment is expected to grow at a remarkable CAGR of 56.6% from 2019 to 2024 [1]. - The demand for collectible cards is particularly strong among elementary school students, who have increased purchasing power [5]. Product Strategy - ShiningSoul has launched card series based on high-profile IPs such as the British Library and popular games like "Identity V" and "Girls' Frontline: Cloud Plan," showcasing a strategic approach to product development [2][4]. - The initial success of the "Identity V" card series, which sold out within 26 days, highlights the effective alignment of product offerings with consumer interests [4]. Competitive Landscape - The card game market is characterized by significant competition, with companies like KAYOU also experiencing rapid growth, evidenced by a 277.8% year-on-year revenue increase in 2024 [7]. - The emphasis on competitive play in card games is becoming more pronounced, as companies shift focus from mere collection to gameplay, enhancing player engagement and community interaction [7][8]. Future Plans - Following the recent financing, ShiningSoul plans to accelerate its strategic initiatives, including deeper collaborations with top global IPs and expanding its presence in key markets such as North America, Europe, and Southeast Asia [6].

Summary of Conference Call Records Company Overview - **Company**: 卡游 (KAYOU) - **Industry**: Card Game and Collectible Toys Key Points and Arguments Performance Metrics - In April 2025, the performance in East China declined by 40% year-on-year and 30% month-on-month to 110 million yuan, primarily due to the drop in popularity of major IPs like Nezha, leading to product sales fluctuations. National sales were approximately 500 million yuan (excluding GMV) [1][3][7]. - In May 2025, sales data showed increased volatility, with a year-on-year decline of about 80% compared to October last year and a month-on-month decline of about 60%. The share of Nezha IP in Q2 dropped from 53% in Q1 to 32%, while My Little Pony fell from 23% to 12%, indicating a significant shrinkage in major IP operations [1][4][5]. - The company plans to launch 600 new products in 2025 while maintaining a rapid turnover cycle to alleviate inventory pressure on distributors [1][12]. IP Management and Lifecycle - The company aims to extend the lifecycle of IPs by controlling product supply and demand balance. For instance, My Little Pony's lifecycle was extended from 8 months to 1.5-2 years through effective sales control [1][11]. - The Nezha IP is currently in a rapid decline, with expectations for overall revenue this year projected between 2 billion to 2.1 billion yuan [1][8]. Market Trends and Sales Channels - The collectible toy and blind box economy is performing well, with KAYOU being a representative company in this sector. However, the decline in major IPs like Nezha has led to performance fluctuations [2]. - Online sales accounted for nearly 30% in 2024, up from 15% in 2023, with a significant portion coming from Douyin's card-breaking system, which reached nearly 60% [4][18]. - The company plans to establish 1,000 experience stores in 2025 and explore exclusive agency models for stationery products [4]. Inventory and Distribution Challenges - The current card game market is in a cold season, limiting distributor profitability. KAYOU has reduced inventory turnover indicators to two weeks to alleviate pressure [1][12]. - The company has implemented strict requirements for distributors, including monthly order ratios for new products, to manage cash flow and inventory effectively [12]. Competitive Landscape - KAYOU's main competitors include Pikachu Society and Flash Soul, with the former having a richer IP reserve but weaker offline sales systems. Flash Soul ranks second in the domestic offline sales system [40]. - The company maintains a strong market position due to its robust offline sales system and brand influence, allowing it to effectively capture market demand during IP peaks [28]. Future Outlook - KAYOU's gross margin is currently at 70% and net margin at 40%, expected to remain stable as long as raw material prices do not rise [41]. - The company is exploring new growth avenues, including partnerships with non-traditional retail sectors like tea shops [30]. Consumer Behavior Insights - The demand for card products is influenced by the popularity of IPs, with male consumers showing a tendency to return to card purchases when popular IPs are released [21][35]. - The company adjusts its strategies based on consumer preferences, particularly focusing on popular IPs to attract adult players [36]. IP Exclusivity and Licensing - KAYOU has exclusive licensing for certain IPs like Conan, while others like Ultraman and My Little Pony are not fully exclusive, leading to a competitive landscape in other product categories [46]. Conclusion - KAYOU is navigating a challenging market environment with fluctuating IP popularity and inventory management issues. The company is focusing on extending IP lifecycles, enhancing online sales channels, and exploring new retail partnerships to sustain growth and profitability in the collectible toy industry.

Group 1 - The core viewpoint of the article emphasizes the transformation of card games into a cultural and economic phenomenon, driven by IP globalization strategies and innovative marketing approaches [1][2][18] - The article discusses the significance of IP as a cultural amplifier and its role in attracting users, highlighting successful collaborations with major franchises like Disney and My Little Pony [1][2] - The concept of cultural reconstruction is illustrated through the example of the "Card Game Three Kingdoms," which combines historical elements with modern aesthetics to appeal to adult collectors [3] Group 2 - The article outlines the synergy between film and card games, showcasing how limited edition cards linked to popular movies can enhance collectible value and drive fan engagement [4] - It highlights the cultural export of Chinese sports through card games, exemplified by the collaboration with the National Sports Administration during the Paris Olympics [5] - The article identifies two main categories of card games: collectible cards and trading card games (TCG), each catering to different consumer needs and experiences [6][11] Group 3 - The operational logic of card games is explored, detailing how scarcity and limited editions create a "luck economy" that drives demand and market success [10] - The article discusses the emotional and social aspects of card collecting, emphasizing its role as a social currency among different age groups [10][12] - It notes the growing trend of TCGs in competitive environments, with significant participation in tournaments and the increasing appeal of female players [11][12] Group 4 - The article discusses the expansion of product categories and the creation of an ecosystem around IP derivatives, including toys and stationery [14][15] - It highlights the global ambitions of card companies, with plans to develop IP in international markets and leverage cultural soft power [17] - The article emphasizes the importance of social responsibility in the industry, detailing initiatives aimed at preventing irrational consumption among minors [19][20] Group 5 - The article concludes by addressing the challenges of balancing IP licensing with original content creation, as well as the need for sustainable industry practices [21] - It presents a user ecosystem model that captures the dual attributes of card consumption as social currency and collectible investment [22] - The article outlines strategies for IP ecosystem management, focusing on transforming traffic into cultural assets [24]