Audit Opinion - The audit report states that the simulated financial statements of Shanghai Pidong Cultural Media Co., Ltd. fairly reflect the company's financial position as of March 31, 2025, December 31, 2024, and December 31, 2023, as well as the operational results and cash flows for the periods ending March 31, 2025, and for the years 2024 and 2023 [1]. Financial Statements Overview - The simulated consolidated balance sheet shows total assets of approximately RMB 91.83 billion as of March 31, 2025, compared to RMB 91.89 billion on December 31, 2024, and RMB 35.03 billion on December 31, 2023 [3][4]. - The total liabilities amount to approximately RMB 68.37 billion as of March 31, 2025, compared to RMB 67.05 billion on December 31, 2024, and RMB 41.58 billion on December 31, 2023 [5]. - The total equity attributable to the parent company is approximately RMB 35.67 billion as of March 31, 2025, an increase from RMB 33.58 billion on December 31, 2024, and RMB 20.58 billion on December 31, 2023 [4]. Profit and Loss Summary - The simulated consolidated income statement indicates that the company generated revenue of approximately RMB 28.14 million for the first quarter of 2025, compared to RMB 127.55 million for the entire year of 2024 and RMB 38.15 million for 2023 [5]. - The net profit for the first quarter of 2025 is approximately RMB 2.02 million, while the net profit for the year 2024 was RMB 13.25 million, and a net loss of approximately RMB 14.69 million was recorded for 2023 [6]. Cash Flow Analysis - The simulated consolidated cash flow statement shows a net cash outflow from operating activities of approximately RMB 3.78 million for the first quarter of 2025, while the net cash inflow for the entire year of 2024 was RMB 36.15 million [7]. - The cash and cash equivalents at the end of the first quarter of 2025 stood at approximately RMB 413,054.69, down from RMB 3.17 million at the end of 2024 [7].

Core Viewpoint - The company KAYOU is attempting to relaunch its IPO process on the Hong Kong Stock Exchange after facing regulatory challenges and significant financial losses, while also grappling with compliance issues related to the sale of products to minors [1][3][13]. Financial Performance - KAYOU's revenue in 2024 saw a substantial increase of 277.78% year-on-year, surpassing 10 billion yuan, but the company reported a net loss of 1.242 billion yuan, a shift from a profit of 450 million yuan in the previous year [1][8]. - The fair value loss of KAYOU's Series A preferred shares increased dramatically to 3.867 billion yuan, up from a loss of 201 million yuan the previous year, marking a 1823.88% increase [9][10]. Market Position - KAYOU is recognized as a leading company in the pan-entertainment product sector, holding the top market shares of 13.3% in the pan-entertainment products industry and 21.5% in the pan-entertainment toys industry as of 2024 [3]. - In the collectible card segment, KAYOU commands a dominant market share of 71.1%, earning the nickname "King of Elementary School Cards" [3]. Regulatory Challenges - KAYOU's IPO application was initially submitted in January 2024 but was stalled due to requests from the China Securities Regulatory Commission for additional information regarding its equity structure and data security [1][3]. - The company has faced scrutiny for its marketing practices targeting minors, which have been criticized as exploitative, leading to compliance issues that could hinder its IPO prospects [13][16]. Corporate Governance - KAYOU's founder and CEO, Li Qibin, received a total compensation of 1.8 billion yuan in 2024, raising concerns about potential conflicts of interest and excessive remuneration in a highly concentrated ownership structure [11][12]. - The company has been criticized for its stock incentive plan, which was perceived as disproportionately benefiting the founder and related parties at the expense of minority shareholders [10][12]. Social Responsibility - KAYOU's business model has been labeled as "quasi-gambling," particularly in its marketing strategies aimed at children, which could lead to social issues such as compulsive spending and addiction [14][17]. - The company has been under pressure to implement effective measures to protect minors, especially following regulatory guidelines that prohibit the sale of blind box products to children under eight years old [16][17].

Core Viewpoint - The company, 卡游, is preparing for an IPO despite reporting a net loss of 1.242 billion yuan in 2024, driven by rapid revenue growth and a strong market position in the collectible card industry [1][2]. Company Overview - 卡游's core business is collectible card games, with total revenue of approximately 10.057 billion yuan in 2024, where card business contributed 8.2 billion yuan, accounting for over 80% of total revenue [5]. - The company holds leading positions in various segments, including a 13.3% market share in the general entertainment products industry, 21.5% in the general entertainment toys sector, and a dominant 71.1% in the collectible card market [5]. Reasons for IPO - The company aims to expand its capital strength to support rapid growth, with a revenue increase of 277.8% year-on-year in 2024, necessitating significant funding despite the current losses [6]. - The IPO is intended to seize market opportunities and enhance competitiveness against international rivals, as China has become the largest card market globally, valued at 26.3 billion yuan [6]. - The company seeks to solidify its leading position in the industry and unlock valuation potential, given the low per capita spending on cards in China compared to Japan and the U.S. [6]. Competitive Advantages - 卡游 boasts a rich IP matrix with 70 IPs, including one proprietary IP, which enhances its product offerings and market appeal [8]. - The company has a robust sales network, covering all 31 provinces in China through 217 distributors, 32 flagship stores, and various online platforms [8]. - 卡游 capitalizes on the "Guzi Economy" trend, aligning collectible cards with national cultural IPs to meet the consumption preferences of Generation Z [8]. Industry Outlook - The collectible card industry in China has experienced a compound annual growth rate of 57% from 2019 to 2024, with a market size of 26.3 billion yuan in 2024, surpassing the U.S. and Japan [9]. - There is significant growth potential in the market, as per capita spending on collectible cards in China is only 18.7 yuan, compared to 119.3 yuan in Japan and 64.0 yuan in the U.S., indicating a possible 3-6 times increase in market size [9]. Impact of Losses on IPO - Market sentiment remains optimistic regarding the company's IPO despite the reported losses, as the losses are attributed to high initial investments during the expansion phase rather than poor business performance [10][11]. - The company maintains a high gross margin of around 70%, indicating strong core business profitability [11]. - The backing of prestigious underwriters such as Morgan Stanley, CICC, and JPMorgan reflects confidence in the company's future prospects [11].

Core Viewpoint - The rapid growth of the "Guziko Economy" in the two-dimensional cultural peripheral economy is highlighted, with the Chinese pan-entertainment product industry expected to reach a market size of 1,741 billion yuan in 2024, growing at a compound annual growth rate (CAGR) of 13.6% from 2019 to 2024, and projected to reach 3,358 billion yuan by 2029 [2] Company Overview - Card Game Co., Ltd. (KAYOU) is a leading player in the collectible card game sector, initiating its IPO process again after an unsuccessful attempt in January 2024, with a new prospectus submitted to the Hong Kong Stock Exchange on April 14, 2025 [2][4] - The company has received investments from Sequoia Capital and Tencent, with revenue surpassing 10 billion yuan in 2024 [4][10] Financial Performance - KAYOU's revenue for the years 2022, 2023, and 2024 was approximately 41.31 billion yuan, 26.62 billion yuan, and 100.57 billion yuan respectively, with a significant year-on-year growth of 277.8% in 2024 after a decline of 35.6% in 2023 [11][12] - The company reported net profits of -296 million yuan in 2022, 449.5 million yuan in 2023, and -1.2415 billion yuan in 2024, with adjusted net profits of 1.62 billion yuan, 934 million yuan, and 4.466 billion yuan respectively [12] Market Position - KAYOU holds the top market share in the pan-entertainment product and toy sectors, with respective shares of 13.3% and 21.5%, and dominates the collectible card game market with a share of 71.1% [10] - The company has expanded its product offerings beyond collectible cards to include badges, stickers, dolls, and stationery, although the majority of revenue still comes from collectible cards [10][13] IP Dependency - KAYOU's business model heavily relies on IP licensing, with 70 IPs as of 2024, of which 69 are licensed and 1 is proprietary [11] - The company faces potential risks as over half of its IP licenses are set to expire in the coming years, with 38 licenses expiring by 2025 and 39 by 2026 [15][17] Social Responsibility and Regulatory Challenges - KAYOU has faced scrutiny regarding its sales practices to minors, particularly concerning blind box products, which have led to significant financial expenditures by children [19][21] - The company has been reported to have violated regulations regarding the sale of blind boxes to minors, raising concerns about its commitment to consumer protection [21]

Company Overview - KAYOU Limited is a leading company in the pan-entertainment product sector, focusing on IP-based physical products such as toys and stationery [2] - The company has a diverse product range, with collectible card games being its core offering, and is expanding into other categories like figurines and stationery [2] Financial Performance - KAYOU's revenue is projected to grow significantly, with figures of 4.131 billion, 2.662 billion, and 10.057 billion RMB for the years 2022 to 2024, respectively, crossing the 10 billion RMB mark [2] - Operating profits for the same period are expected to be 1.803 billion, 0.831 billion, and 3.707 billion RMB, while net profits show a fluctuation with losses in 2022 and 2024 [2][3] - Adjusted net profits under non-IFRS measures are forecasted to be 1.620 billion, 0.934 billion, and 4.466 billion RMB for 2022 to 2024 [3] Market Position - KAYOU holds a leading market share in the pan-entertainment product industry, with 13.3% overall and 21.5% in the pan-entertainment toy sector, and dominates the collectible card game market with a 71.1% share [2] - The company is also the top player in the pan-entertainment stationery market with a 24.3% share [2] Industry Growth - The pan-entertainment product market in China is expected to grow from 91.9 billion RMB in 2019 to 174.1 billion RMB by 2024, with a compound annual growth rate (CAGR) of 13.6% [4] - The collectible card game segment is projected to grow at a remarkable CAGR of 56.6% from 2019 to 2024, representing 25.8% of the overall pan-entertainment toy market by 2024 [4] IP Dependency - KAYOU has a diverse IP matrix consisting of 70 IPs, but only one is proprietary, raising concerns about reliance on licensed IPs [5][6] - A significant portion of revenue comes from non-exclusive IP arrangements, with 96.0%, 82.3%, and 88.0% of total revenue derived from such products from 2022 to 2024 [6] - The company faces potential risks as 38 IP licensing agreements are set to expire by 2025, necessitating negotiations for renewals [6] Business Structure - The stationery segment has shown impressive growth, increasing from 20.9 million RMB to over 500 million RMB from 2022 to 2024, but remains a small part of overall revenue [7] - KAYOU's performance is heavily reliant on the collectible card game segment, indicating a risk associated with dependence on a single product line [7]

导 语 ：若重要IP授权到期，将会对公司业绩造成不小的冲击。 市场机遇方面，中国泛娱乐产品行业发展迅速，2019 - 2024 年市场规模复合年增长率达 13.6%，预 计 2024 - 2029 年将以 14.0% 的速度继续增长，卡游有望凭借行业地位和产品优势分得更大市场份 额。 卡游作为中国领先的泛娱乐产品公司，主营业务围绕基于 IP 开发的实体产品展开，玩具尤其是集 换式卡牌是核心产品 ，并逐步拓展至人偶、徽章、文具等多元品类。其商业模式依托于多元化的产 品体验、引人入胜的趣味互动运营和稳健的生产能力这三大核心竞争力。 通过构建多元产品组合，满足不同消费者需求；举办 TCG 活动等方式增强消费者互动；在生产上 紧跟前沿工艺，保障产品质量与供应效率。 凭借这些优势，卡游在市场中占据显著地位，按 2024 年商品交易总额计，在泛娱乐产品行业、泛 娱乐玩具行业、泛娱乐玩具行业集换式卡牌领域以及泛娱乐文具行业均排名第一。 从财务数据来看，卡游业绩波动明显。2022 年至 2024 年，公司收入分别为人民币 41.31 亿元、 26.62 亿元和 100.57 亿元，呈现先降后升态势；净利润方面，2022 年净 ...