Core Viewpoint - Suplay Inc. has submitted its IPO application to the Hong Kong Stock Exchange, focusing on high-end collectible non-battle cards, but faces risks related to its reliance on licensed IPs and increasing competition in the card industry [1][5]. Company Overview - Suplay was founded in 2019 and initially sold trendy toys through a WeChat mini-program. It acquired a toy design and manufacturing company in 2021 and launched its own brands, becoming a significant player in the collectible card market [2]. - The company ranks first in China's collectible non-battle card market by GMV and is the only Chinese brand among the top five global collectible non-battle card brands [2]. Market Strategy - Suplay targets adult consumers with a strong emotional connection to classic Western IPs, offering collectible items that are more accessible than their Western counterparts. The company emphasizes high-end products with a single card price exceeding RMB 10 [3]. - Approximately 99.5% of Suplay's collectible card consumers are adults, with women making up 52.7% of the customer base [3]. Financial Performance - Suplay's revenue from collectible and consumer products is growing, with revenues of RMB 146 million, RMB 281 million, and RMB 283 million projected for 2023, 2024, and the first three quarters of 2025, respectively [3]. - The revenue share from collectible products has increased significantly, rising to 70% in the first three quarters of 2025, while consumer products dropped to 30% [4]. IP Dependency Risks - Suplay heavily relies on licensed IPs, with revenue from licensed IPs increasing to 95% by the first three quarters of 2025, while revenue from self-owned IPs has decreased to 4.1% [5]. - The company faces uncertainty regarding its largest revenue-generating IP, as its licensing agreement has expired, and there is no guarantee of renewal [6]. Competitive Landscape - The card industry is experiencing rapid growth and increased competition, with several companies pursuing IPOs and significant investments in the sector [7]. - Despite the industry's attractiveness, the path to capitalization remains challenging, with no pure card companies having successfully gone public yet [7].

Core Viewpoint - Suplay Inc. has submitted its IPO application to the Hong Kong Stock Exchange, focusing on high-end collectible non-battle cards, but faces risks related to its reliance on licensed IPs and competition in the card industry [1][6]. Company Overview - Founded in 2019 by Huang Wanjun, Suplay initially sold trendy toys through a WeChat mini-program and later acquired a toy design and manufacturing company [3]. - Suplay's main business involves developing and selling collectible cards and trendy toys based on licensed and proprietary IPs, ranking first in China's collectible non-battle card market by GMV in 2024 [3][4]. Financial Performance - Suplay's revenue from collectible and consumer products is shifting, with collectible products' revenue share increasing from 32.9% in 2023 to 70% in the first three quarters of 2025 [5]. - Revenue figures for Suplay are projected at 146 million RMB in 2023, 281 million RMB in 2024, and 283 million RMB in the first three quarters of 2025, with corresponding net profits of 2.949 million RMB, 49.115 million RMB, and 37.074 million RMB [4]. Market Dynamics - The collectible card market in China is rapidly expanding, with projections indicating it will exceed 300 billion RMB by 2025 and approach 500 billion RMB by 2027 [9]. - The competition in the card industry is intensifying, with multiple companies pursuing IPOs, including Suplay, which aims to become the first publicly listed card company [9][10]. IP Dependency Risks - Suplay's revenue is increasingly reliant on licensed IPs, with the share of revenue from licensed IPs rising from 54.2% in 2023 to 95% in the first three quarters of 2025 [6]. - The company faces risks associated with the expiration of key IP licenses, which could impact its product offerings and revenue stability [6][8]. Strategic Initiatives - To mitigate IP dependency, Suplay plans to diversify its IP portfolio, expand its sales network, and support global expansion through its IPO proceeds [8]. - The company aims to enhance its proprietary IP development and secure exclusive agreements with major IP holders to strengthen its market position [7][8].