Core Viewpoint - The global economic recovery by 2025 is revitalizing the Hong Kong stock market, with the IP toy industry being a focal point for capital market attention, highlighted by 52TOYS' IPO plans and valuation of 4.273 billion RMB [1][6]. Company Overview - 52TOYS, the third-largest IP toy company in China, has adopted an "IP hub" strategy since its brand launch in 2015, focusing on diverse consumer needs and extensive product development [1][3]. - The company has launched various product lines, including blind boxes and transformable mechas, and has developed its first original IP, "Beast Box" [3][12]. - As of 2024, 52TOYS has 35 proprietary IPs and 80 licensed IPs, with a total of 2,800 SKUs and over 500 new products introduced annually [3][12]. Financial Performance - Revenue from 2022 to 2024 shows growth from 462.9 million RMB to 630.1 million RMB, with a notable increase in sales cost and a fluctuating gross margin [10][11]. - The company reported a net loss of 1.22 billion RMB in 2024, with adjusted net profits showing a gradual improvement [12]. - The revenue structure is increasingly reliant on licensed IPs, which accounted for 64.5% of total revenue in 2024, while proprietary IPs contributed only 24.5% [12]. Market Position and Challenges - Despite its growth, 52TOYS faces challenges in creating blockbuster proprietary IPs comparable to competitors like Pop Mart's MOLLY [8][12]. - The company has seen a significant shift in its distribution strategy, reducing direct stores from 19 in 2022 to 5 by early 2025, while increasing reliance on distributors [12][14]. - The competitive landscape is intensifying, particularly in overseas markets, where 52TOYS has seen over 100% CAGR in revenue since 2022 [13][14]. Strategic Partnerships - Recent strategic investments from Wanda Film and Ru Yi Holdings have increased 52TOYS' valuation and provided a 7% stake to these investors, indicating confidence in the company's growth potential [5][6]. - A strategic partnership with Wanda Film aims to leverage both companies' strengths in IP toy product development and marketing [6]. Future Outlook - The company's future success hinges on its ability to innovate and develop impactful proprietary IPs while navigating the competitive landscape of the global toy market [16][18]. - The ongoing global economic recovery is expected to enhance consumer demand for IP toys, presenting opportunities for growth [1][16].

Core Viewpoint - Beijing Lezi Tiancheng Cultural Development Co., Ltd. (referred to as "Lezi Tiancheng") has officially submitted its IPO application to the Hong Kong Stock Exchange, aiming to capitalize on the growing IP toy market in China, where it ranks as the third-largest player in the sector [1][3]. Group 1: Company Overview - Lezi Tiancheng, founded in 2015, operates under the brand 52TOYS and has over 100 proprietary and licensed IPs as of December 31, 2024 [3]. - The company has achieved revenues of 4.63 billion, 4.82 billion, and 6.3 billion RMB for the years 2022, 2023, and 2024 respectively, with a compound annual growth rate (CAGR) of 16.7% [6]. - The latest funding round before the IPO valued the company at 4.273 billion RMB, with a total of 3.85 billion RMB raised across five funding rounds since 2018 [15]. Group 2: Revenue Breakdown - In 2024, 64.5% of Lezi Tiancheng's revenue came from licensed IP products, with significant contributions from popular IPs like Crayon Shin-chan, which generated over 600 million RMB in GMV [6][10]. - The revenue from proprietary IP products accounted for 24.5% in 2024, while external procurement products contributed 10.8% [6]. - The company has seen overseas revenue grow from 35.4 million RMB in 2022 to 147 million RMB in 2024, reflecting a CAGR of over 100% [6]. Group 3: Market Potential - The Chinese IP toy market is projected to reach a GMV of 756 billion RMB in 2024, with a rapid growth rate of 17.2% CAGR expected until 2029 [10]. - Lezi Tiancheng is positioned to capture a significant share of this market, similar to the market structures seen in developed regions like Japan and the USA, where a few operators dominate [10][11]. Group 4: Competitive Landscape - The company faces competition from both international and domestic brands, with major competitors including Pop Mart and Blokus, which have significantly larger revenue scales [12][13]. - Lezi Tiancheng's competitive edge lies in its diverse IP management capabilities and product development strategies [17]. Group 5: Future Plans - Approximately 20% of the IPO proceeds will be allocated to diversifying and strengthening the IP matrix, while another 20% will focus on product design and development [18]. - The company aims to enhance brand awareness and consumer reach through increased marketing efforts and expansion of self-operated channels [18].

Core Viewpoint - Wanda Film is strategically investing in the潮玩 (trendy toy) market to enhance its IP derivative business, aiming to increase non-box office revenue and reduce reliance on traditional film income [4][9][16]. Investment Details - Wanda Film's subsidiary,影时光, will acquire a 4% stake in乐自天成, while儒意星辰 will hold a 3% stake, collectively owning 7% of乐自天成 [4][2]. - The investment is part of Wanda's broader strategy to strengthen its IP derivative business and expand its IP copyright pool [4][10]. Market Context - The潮玩 market is projected to grow significantly, with the global market expected to reach $48 billion (approximately 350.4 billion yuan) by 2025, reflecting an annual growth rate of 12% [14]. - In China, the潮玩 industry is anticipated to reach 110.1 billion yuan by 2026, with a growing user base expected to exceed 49 million by 2030 [14]. Financial Performance - Wanda Film's revenue from box office sales has been declining, with a reported revenue of 12.36 billion yuan in 2024, down 15.44% from 2023 [13]. - The company's net profit turned into a loss of 949 million yuan in 2024, a significant drop of 203.05% compared to the previous year [13]. - In contrast, sales from derivative products contributed over 40% to non-box office revenue, indicating a shift towards IP-derived income sources [16]. Competitive Landscape - 52TOYS, a key player in the潮玩 market, has experience in IP collaborations and has launched successful products linked to popular franchises [7][9]. - The partnership between Wanda,儒意, and乐自天成 is seen as a strategic move to leverage their combined IP resources to enhance market presence [9][10].