Group 1 - The launch of the Olympic collectible card series took place at the Beijing National Aquatics Center, integrating top Winter Olympic IP with traditional zodiac culture [1] - The "Beijing 2022 Maduan Dun 300% Art Collectible Card" features the mascot Bing Dwen Dwen combined with the zodiac horse, offering seven themed images as a high-end limited art print [3] - The "Beijing 2022 Bing Dwen Dwen Zodiac Limited Collectible Card" is designed in a folding format, featuring the rabbit, dragon, snake, and horse zodiac mascots, utilizing a "paper + PET" composite material and incorporating elements of traditional Chinese culture [3] Group 2 - The "Milan-Cortina 2026 Winter Olympics Collectible Card" is created for the upcoming winter event, blending the mascots Tina & Flo with snowflake elements to highlight the winter atmosphere and playful characteristics [3] - Yang Yang, a Chinese Olympic champion, expressed pride and confidence as a Chinese athlete, emphasizing the role of athletes in cultural transmission and expressing anticipation for the new cultural presentation [3] - Li Jing, co-founder of Suplay, noted that the combination of collectible cards and sports has a 140-year history globally, gaining popularity among young people, which drives growth in the collectible card industry as it represents an emotional connection between consumers and their favorite IPs [3]

Investment Rating - The report maintains a rating of "Buy" for Suplay, with a focus on its strong market position and growth potential in the collectible card industry [4]. Core Insights - Suplay is positioned as the leading company in China's collectible non-combat card market, with a market share of 3.2% as of 2024, significantly surpassing its closest competitors [10][28]. - The global market for entertainment products is projected to grow from USD 44.8 billion in 2019 to USD 82.2 billion in 2024, with a compound annual growth rate (CAGR) of 12.9% [28]. - The non-combat collectible card market is expected to reach USD 12 billion by 2024, with a CAGR of 19.5% from 2019 to 2024, and is projected to grow to USD 25.7 billion by 2029 [28][33]. - In China, the non-combat collectible card market is anticipated to grow to RMB 6.2 billion in 2024, with a CAGR of 24.5% from 2019 to 2024, and is expected to reach RMB 16.5 billion by 2029 [28][33]. Summary by Sections Company Overview - Suplay, founded in 2019, is the leading player in China's collectible non-combat card market, focusing on global expansion and promoting Chinese cultural IP [6][10]. - The company achieved revenues of RMB 281 million and RMB 283 million in 2024 and the first three quarters of 2025, respectively, representing year-on-year growth of 92% and 40% [6][15]. - Adjusted net profits for the same periods were RMB 65 million and RMB 86 million, with increases of 306% and 82% year-on-year [6][15]. Industry Analysis - The global entertainment product market is expanding rapidly, with significant growth in the non-combat collectible card segment, which is driven by IP globalization and increasing consumer engagement [28][39]. - The competitive landscape in China's non-combat collectible card market is relatively fragmented, with the top five companies holding a combined market share of 6.8% [28][39]. - Suplay's unique position as the only Chinese brand among the top five global collectible non-combat card brands highlights its competitive advantage [10][39]. Business Model - Suplay operates a dual-engine product strategy, focusing on both collectible and consumer-grade products, leveraging its strong IP portfolio to enhance brand engagement [51][48]. - The company has established a structured IP development and commercialization framework, successfully integrating both proprietary and licensed IP into its product offerings [59][60]. - Revenue from collectible products is expected to grow significantly, with projections indicating a strong increase in sales volume and average revenue per unit [49][52].

Core Viewpoint - Suplay, a company specializing in IP collectibles and consumer products, has submitted its IPO prospectus to the Hong Kong Stock Exchange, with J.P. Morgan and CICC as joint sponsors [1]. Company Overview - Founded in 2019, Suplay focuses on high-end collectible non-battle cards and has expanded into trendy toys and IP derivatives, primarily targeting adult consumers [1]. - The flagship brand "Kakawoo" holds a pioneering and leading position in China's collectible card market, ranking first in the non-battle card segment with a GMV projection for 2024, surpassing the combined total of its second and third competitors [4]. Market Position - Suplay is the only Chinese brand among the top five global collectible non-battle card brands [4]. - The company emphasizes the high-end collectible card market, with products priced above 10 RMB per card, distinguishing itself from lower-priced cards that focus on entertainment consumption [4]. Financial Performance - Revenue is projected to grow from 146 million RMB in 2023 to 281 million RMB in 2024, representing a year-on-year increase of 92.5% [4]. - Net profit margins are expected to rise from 2.0% in 2023 to 17.5% in 2024, with a reported revenue of 283 million RMB and a profit of 37.07 million RMB for the first nine months of 2025, reflecting a 39.4% year-on-year growth [4]. Profitability Metrics - Gross margins for 2023, 2024, and the first three quarters of 2025 are reported at 41.7%, 45.8%, and 54.5%, respectively [5]. - Adjusted net profit margins for the same periods are 11.0%, 23.1%, and 30.5% [5]. Revenue Breakdown - In 2024, collectible revenue accounted for 117 million RMB, or 41.8% of total revenue, which increased to 70.0% by the first nine months of 2025 [5][6]. - Consumer product revenue share decreased from 58.3% to 30.0% during the same period [5]. IP Collaboration - Suplay has established partnerships with 22 IP licensors, including exclusive agreements with prominent entities such as the Chinese National Ice and Snow Sports Team [7]. - The top five licensed IPs contributed 77.7% of revenue in the first nine months of 2025, with the largest single IP accounting for approximately 32.3% [7]. Market Growth - The global non-battle collectible card market is projected to reach $12 billion in 2024, with a CAGR of 19.5% from 2019 to 2024, and expected to grow to $25.7 billion by 2029 [8]. - The Chinese non-battle collectible card market is anticipated to reach 6.2 billion RMB in 2024, with a CAGR of 24.5% from 2019 to 2024, potentially exceeding 16.5 billion RMB by 2029 [8]. Leadership Background - The founder and CEO, Huang Wanjun, has a background as an analyst at Huaxing Capital and as a partner at InnoVenture Capital [11]. - The CFO and company secretary, Li Jing, was the founder and CEO of Xiaofanzhuo [11]. - Prior to the IPO, MiHoYo held an 11.86% stake in Suplay, making it the largest external investor [11].