Core Insights - The company, Guangzhou Jintian Animation Co., Ltd., is preparing for an IPO on the Hong Kong Stock Exchange, leveraging popular IPs like Ultraman and Peppa Pig to enhance its snack products [1][2] - The company has experienced significant growth, with direct sales revenue increasing from 21.1 million to 290 million RMB over three years, reflecting a compound annual growth rate (CAGR) of 271% [1] - The IP-based snack market in China is projected to grow from 5.6 billion RMB in 2020 to 11.5 billion RMB by 2024, with a CAGR of 19.6% [3] Company Overview - Founded in 2004, the company is one of the earliest to combine IP and the food industry in China, currently holding 26 licensed IPs and over 600 active SKUs across five major product categories [1][2] - The company’s revenue is expected to grow from 596 million RMB in 2022 to 877 million RMB in 2024, with net profit projected to increase from 36.7 million to 130 million RMB during the same period [2] Market Position - By 2024, the company is anticipated to be the largest IP snack company in China, holding a market share of 7.6% in the IP snack sector and 2.5% in the overall IP food market [3] - The company’s gross margin is expected to rise from 26.6% in 2022 to 33.7% in 2024, indicating improved profitability [2] Competitive Landscape - The company faces challenges due to the non-exclusive nature of its IP agreements, which may lead to competition from other brands using the same IPs [4][5] - The reliance on licensed IPs means that the company must maintain strong relationships with IP owners to avoid losing sales rights, which could lead to excess inventory [5] Consumer Trends - The rise of the "Guzi Economy" reflects changing consumer habits, with a growing fan base supporting the demand for IP-themed snacks [1][3] - The company’s strategy of integrating IPs into snack products aims to create a unique consumer experience, appealing to both children and adult fans [2]