Core Viewpoint - The company, 巨星传奇, has issued a profit warning, expecting a significant decrease in profit for the first half of the year due to fair value losses in its investment business, which is not directly related to its core operations [1] Group 1: Financial Performance - For the first half of the year, the company anticipates a consolidated profit of no more than RMB 8.5 million, a decrease of approximately 67% compared to RMB 25.5 million in the same period last year [1] - The expected profit decline is primarily attributed to a fair value loss of approximately RMB 19.5 million from its Hong Kong-listed equity investments [1] - Excluding the impact of non-operating investment losses, the company's adjusted profit is expected to grow by no more than 9.8% year-on-year [1] Group 2: Business Strategy and IP Development - The company is actively upgrading its IP business strategy from single licensing to self-operated product development and operations, aiming for long-term high-quality growth despite short-term performance pressure [1][2] - The company has established significant partnerships, including a global strategic collaboration with a leading robotics company to develop consumer-grade robotic products with strong IP attributes [2] - The company has launched a plan to collaborate with top international artists to create new artistic works and derivative products around its core IP, "周同学" [2] Group 3: Capital Operations - Recently, the company completed a placement of shares, raising approximately HKD 324.1 million, with funds earmarked for expanding its IP business, including vending machines and physical stores [3] - The company plans to enhance its presence with "周同学" vending machines in over twenty cities and open offline self-operated stores in the second half of the year [3] - The company is focused on executing its strategic upgrades and managing market expectations regarding short-term performance fluctuations and long-term value creation [3][5] Group 4: IP Growth Potential - The CFO of the company noted that building a quality IP typically requires a long-term accumulation process, often taking over ten years [4] - The "周同学" IP has already collaborated with over 200 licensed partners, generating sales exceeding RMB 1 billion through co-branded products [4] - The company is also preparing to launch new IPs, both original and in collaboration with international stars, indicating a commitment to diversifying its IP portfolio [4]

Core Viewpoint - The announcement of Jay Chou's account "Zhou Tongxue" on Douyin has led to a significant surge in related concept stocks, particularly for companies associated with his IP and events, indicating strong market confidence in the commercial value of his entertainment career and the virtual IP [1][3]. Company Performance - Giant Legend's stock price increased by 94.38%, with a market value rise of approximately HKD 51.944 billion (around RMB 47.51 billion) in one day following the announcement [1]. - As of the evening of July 9, the Douyin account "Zhou Tongxue" had reached 7.5 million followers, expected to surpass 10 million soon [2]. - For the fiscal year 2024, Giant Legend's revenue is projected to be approximately RMB 584 million, a year-on-year increase of 35.75%, with a net profit of about RMB 50.24 million, up 21.32% [8]. Revenue Breakdown - Giant Legend's business is divided into two main segments: 1. New retail, which includes sales of health drinks and skincare products, generating around RMB 270 million in revenue [8]. 2. IP creation and operation, which includes event planning, program production, and IP licensing, contributing approximately RMB 314 million in revenue [8][9]. IP and Product Development - The "Zhou Tongxue" IP has shown strong commercial potential, with collaborations on toys and merchandise frequently ranking among bestsellers [13]. - The company plans to enhance its media content, expand product lines, and explore international markets, including the development of unique digital products and collaborations with international stars [20]. Market Trends - The star IP economy is gaining traction, with significant sales figures reported during major shopping events, indicating a robust market for celebrity-related merchandise [21]. - The growth of the star IP economy is reflected in the increasing popularity of related products, with notable sales achievements in the toy and merchandise sectors [21][26].

Group 1 - Jay Chou announced his entry into Douyin with an official account named "Zhou Tongxue," leading to a significant stock price surge for Giant Star Legend, which rose by 94.37% to close at HKD 12.44, with a total market value of HKD 10.695 billion and a trading volume of 934 million shares [1] - Giant Star Legend confirmed that its stock price volatility is a market behavior and that all business activities are operating normally, focusing on IP creation and new consumption as per its strategic plan [2] - The company has developed two major IPs, "Zhou Tongxue" and "Liu Jiaolian," with a combined fan base of 250 million, and has generated over HKD 1 billion in sales from licensed products since the launch of "Zhou Tongxue" in 2019 [2] Group 2 - Giant Star Legend collaborated with a top Hollywood special effects team to create a digital version of "Zhou Tongxue" and launched a pilot film for the metaverse, while also appointing China Mobile as its promotional ambassador [3] - The third season of the reality show "Zhou You Ji," tailored for Jay Chou, achieved high ratings, ranking first in its time slot for twelve consecutive episodes, with a total of 375 trending topics and over 4.1 billion exposure [3] - The company is integrating its IP with cultural tourism, planning events around Jay Chou's concert tour, including large installations and themed pop-up stores in key locations [3] Group 3 - Industry experts see clear growth potential in the IP commercialization sector, with Giant Star Legend's IP assets providing a competitive edge for revenue generation and driving new retail business [4] - Analysts from Zhongtai Securities highlight the investment value in cultural consumption industries, recommending companies like Giant Star Legend, as cultural consumption is expected to boost economic growth [4] - The rise of digital and physical cultural products in China, alongside the increasing cultural confidence among millennials and Gen Z, indicates a smooth supply-demand dynamic in the market [4]