Core Viewpoint - The card market has cooled significantly compared to 2024, with a decline in both transaction volume and consumer interest, largely due to the lack of leading IPs to drive the market [1] Group 1: Market Dynamics - The interest in card games has waned as consumer attention shifts towards other trends, such as the vinyl and plush toy craze led by Pop Mart [1] - The competitive narrative in the domestic card game market is diversifying, moving away from the dominance of a single leading player [1] - Despite the cooling market, various capital sources are accelerating their entry into the card game sector [1] Group 2: Company Developments - Flash Soul, a new entrant in the card game market, completed a significant financing round of several hundred million RMB, marking the largest disclosed financing in the card sector in the past year [2] - Founded in 2023, Flash Soul has a strong founding team, including the chairman of Yaoji Technology and a former market director from Card Game [2][3] - Flash Soul's rapid rise has led it to be referred to as a "dark horse" in the card industry [5] Group 3: Product Strategy - Flash Soul's collaboration with NetEase on the game "Identity V" quickly gained market traction, with its second product selling out within a month of launch [6][7] - Unlike competitors focusing on younger audiences, Flash Soul targets game IPs, establishing a clear competitive strategy [10] - The company is investing heavily in trading card games (TCG), which emphasize community interaction among players, as opposed to collectible card games (CCG) that rely on rarity [12] Group 4: Strategic Partnerships - Flash Soul has partnered with major gaming franchises, including a TCG series based on "Genshin Impact" and a collaboration with Riot Games for a TCG set in the League of Legends universe [11] - The company is committed to significant annual investments in marketing and support for core stores [11] Group 5: Industry Context - The TCG market is more mainstream in mature overseas markets, offering better customer retention and predictable demand [13] - However, the TCG sector in China faces challenges, including high operational costs and a lack of professional talent [14] - The Yaoji system, which includes Flash Soul and Yaoji Toys, has a broad influence across the card industry, leveraging extensive resources and established operational frameworks [15][16] Group 6: Corporate Structure - The Yaoji system has deep and extensive industry layouts, impacting various segments of the card market [15] - Although Yaoji Toys and Flash Soul are no longer directly linked to Yaoji Technology, they share a common control structure and historical ties [17][18] - Concerns have been raised about the potential risks of operational overlap and governance transparency between the entities within the Yaoji system [19]

Core Viewpoint - The company ShiningSoul aims not only for "product globalization" but also for "cultural globalization," using collectible card games (TCG) as a medium to tell compelling Chinese stories to the world [4][12]. Company Overview - ShiningSoul, a new cultural brand under Shanghai Zhenyouqu Cultural Technology Co., has completed a multi-hundred million RMB Series A financing round led by Hillhouse Ventures, with participation from other notable investors [4]. - Founded by Yao Shuo Bin and Sheng Chuan, the company has rapidly developed a series of successful IP card games within just over a year [6]. Market Potential - The Chinese card game market has significant growth potential, with per capita consumption expected to increase by over ten times, supported by a user base of over 500 million in the broader subculture demographic [8]. - The collectible card game segment is highlighted as a key focus due to its higher design barriers and user engagement [4]. Strategic Advantages - ShiningSoul has established a unique content moat by acquiring top-tier IPs and mastering user engagement, enabling the company to create compelling narratives around its products [8]. - The company has built a comprehensive industry chain that enhances its product creativity and quality, leading to strong scale effects [8]. Product Success - The company has successfully launched several hit IP card games, including "Identity V," "Genshin Impact: Seven Saints Summon," and "Return to Future: 1999," which have become cultural phenomena [6]. - The recent release of "Runeterra: League of Legends Battle Card" has quickly positioned itself as a competitive TCG product within just over a week of launch [10]. Future Plans - Following the recent financing, ShiningSoul plans to accelerate its strategic goals by deepening partnerships with top global IPs and expanding its international presence in key markets such as North America, Europe, and Southeast Asia [12]. - The company aims to leverage its products and IP creativity to establish itself as a world-class cultural brand originating from China [12]. Investor Insights - Investors express confidence in ShiningSoul's potential, highlighting the company's strong product capabilities, execution, and long-term vision in the TCG sector [12][13]. - The rapid growth of the cultural consumption industry in China, with an annual growth rate exceeding 50%, positions ShiningSoul favorably for future success [13].