Core Viewpoint - Suplay, a trendy IP collectibles and consumer goods company, has submitted its prospectus for an IPO on the Hong Kong main board, aiming to raise funds as it capitalizes on the growing demand for high-quality collectible cards among adult consumers [1][2]. Group 1: Company Overview - Suplay was established in September 2019 and has quickly become a leader in the collectible non-battle card market in China, with its flagship brand Kakawow achieving significant market share [5][14]. - The company has partnered with renowned IPs such as the Palace Museum, Sanrio, Genshin Impact, and Harry Potter, enhancing its product offerings [1][2]. Group 2: Financial Performance - In the first nine months of 2025, Suplay reported revenue of 2.83 billion RMB, reflecting a 92.5% increase from 1.46 billion RMB in 2023 [10][11]. - The company's net profit surged from 2.9 million RMB in 2023 to 49.1 million RMB in 2024, marking a staggering growth of 1,593.1% [10][11]. - The revenue breakdown shows that consumer products accounted for 67.1% of total revenue in 2023, while collectible products made up 32.9% [11]. Group 3: Product Pricing and Market Strategy - Kakawow's card pricing ranges from 59.9 RMB to 89.9 RMB per pack, with limited edition series like the 2025 KAKAWOWCOSMOS Marvel series priced at 69.9 RMB per pack [6][10]. - The company targets adult consumers, particularly women, by offering high-quality, culturally resonant collectibles, distinguishing itself from lower-priced entry-level cards [10]. Group 4: IP Dependency and Risks - Suplay's revenue is heavily reliant on licensed IPs, with only 4.1% of revenue coming from its own IPs, raising concerns about sustainability and potential risks associated with IP dependency [2][20]. - The company has established partnerships with 22 IP licensors, but the concentration of revenue from a few key IPs poses a risk to its financial stability [20][21]. Group 5: Competitive Landscape - Suplay's revenue is significantly lower than its competitor, Card Game, which reported revenues soaring from 4.131 billion RMB to 10.057 billion RMB from 2022 to 2024 [22]. - Despite its growth, Suplay's financial metrics, including gross margin, still lag behind those of established competitors in the collectible card market [22].

Core Viewpoint - Suplay, a trendy IP collectibles and consumer goods company, is preparing for an IPO in Hong Kong, aiming to leverage its unique positioning in the adult collectible card market, despite facing risks related to its reliance on licensed IPs [1][8]. Group 1: Company Overview - Suplay was established in September 2019 and focuses on trendy toys and collectible cards, with notable collaborations with renowned IPs such as the Palace Museum, Sanrio, Genshin Impact, and Harry Potter [1]. - The company has a significant partnership with miHoYo, which invested in Suplay's A+ round financing and holds an 11.86% stake, making it the largest external shareholder [1][9]. Group 2: Financial Performance - Suplay's revenue grew from 146 million RMB in 2023 to 281 million RMB in 2024, representing a 92.5% year-on-year increase. For the nine months ending September 30, 2025, the revenue reached 283 million RMB [5][11]. - The company's net profit surged from 2.9 million RMB in 2023 to 49.1 million RMB in 2024, marking a staggering growth of 1,593.1%. The net profit margin for 2024 was 17.5% [5][11]. Group 3: Product and Market Position - Suplay's flagship brand, Kakawow, launched in 2021, has become the top player in China's collectible non-battle card market, with a pricing strategy that targets adult consumers, particularly women [4][7]. - The pricing for Kakawow cards ranges from 59.9 RMB to 89.9 RMB per pack, significantly higher than entry-level cards, reflecting the company's focus on high-quality, culturally resonant collectibles [4][5]. Group 4: Revenue Sources and Risks - Suplay's revenue is primarily derived from licensed IPs, with self-owned IPs contributing only 4.1% of total revenue as of September 30, 2025. The company has established licensing agreements with 22 IP licensors [10][11]. - The top five licensed IPs accounted for approximately 77.7% of total revenue for the nine months ending September 30, 2025, indicating a concentration risk in revenue sources [11].