Core Insights - Suplay, the company behind the collectible card brand "Kakawo," has submitted a listing application to the Hong Kong Stock Exchange, having achieved over 400 million RMB in revenue from collectible cards and IP toys between 2023 and 2024 [1][12]. Market Overview - The global market for collectible non-combat cards is projected to grow from 12 billion USD in 2024 to 25.7 billion USD by 2029, with China’s market expected to increase from 6.2 billion RMB in 2024 to 16.5 billion RMB by 2029, reflecting a compound annual growth rate of 21.4% [2][13]. - Suplay ranks first in the Chinese collectible non-combat card market and is the only Chinese brand among the top five globally [2][13]. Company Development - Founded in 2019, Suplay experienced significant milestones in 2021, including an 8 million USD investment from miHoYo and the acquisition of the toy brand "Heyfen" [2][12]. - The company launched its collectible card product line in 2022, focusing on non-sport IPs to attract a broader audience, particularly women [3][14]. Product Lines - Suplay operates two main product lines: collectibles and consumer products, with collectibles centered around IP and limited editions [5][16]. - The pricing for collectible cards ranges from 59.9 RMB to 89.9 RMB per pack, while consumer products are priced between 19.9 RMB and 89 RMB [6][17]. Financial Performance - Suplay's revenue grew from 146 million RMB in 2023 to 281 million RMB in 2024, marking a 92.5% increase, with net profits rising from 2.95 million RMB to 49.11 million RMB in the same period [7][18]. - The share of revenue from collectibles increased significantly, accounting for 32.9% in 2023, 41.8% in 2024, and 70% in the first three quarters of 2025 [7][18]. Profit Margins - The gross margin for collectibles was higher than that of consumer products, with margins of 57.9%, 65.4%, and 69.5% for collectibles compared to 33.7%, 31.8%, and 19.3% for consumer products over the same periods [8][19]. IP Dependency - Suplay heavily relies on third-party licensed IPs, with licensed products contributing 54.2%, 85.1%, and 95% of total revenue from 2023 to the first three quarters of 2025 [9][20]. - The company has agreements with 22 IP licensors, but the non-exclusive nature of most agreements increases competition and market saturation [10][21]. Future Plans - Suplay plans to invest in extending existing IP licenses and acquiring new IPs to support global expansion, including entering markets in Asia, North America, and Europe [10][21].

Core Viewpoint - Suplay, a trendy IP consumer goods company, has submitted its IPO application to the Hong Kong Stock Exchange, aiming to expand its presence in the collectible card market, particularly through its brand "Kakawow" [2][3]. Company Overview - Suplay has established three main brands: "Kakawow" for collectible cards, "Heyfen'er" for trendy toys, and "Letao Valley" for derivatives [2]. - Kakawow is positioned as the core brand, focusing on classic collectible card operations rather than mass distribution [3]. Market Position and Performance - Suplay is the only Chinese brand to enter the global top five in the non-battle collectible card market by GMV [3]. - In 2024, Suplay's revenue is projected to grow by 92.5% to 280 million yuan, which is still less than one-thirtieth of its competitor, Card Game [5]. - Revenue growth slowed to 40% in the first three quarters of 2025, with total revenue reaching 280 million yuan [6]. Product and Brand Strategy - The secondary market's trading heat and transaction prices are key indicators of brand recognition in the collectible card sector [6]. - Kakawow's first successful series, the PHANTOM Disney 100th Anniversary collection, demonstrated significant demand, with cards purchased at lower domestic prices selling at multiples on platforms like eBay [7]. - Kakawow has established strategic partnerships with global rating agencies, enhancing its brand's credibility and market activity [7]. Financial Metrics - Suplay's collectible products have a gross margin exceeding 60%, significantly higher than consumer-grade products [7]. - By the first three quarters of 2025, the gross margin for Suplay's collectible products reached 54.5%, with an adjusted net profit margin of 30.5% [8]. Marketing and Distribution - Suplay effectively controls marketing costs through collaborations with KOLs/KOCs, using product exchanges instead of cash payments, resulting in marketing expenses accounting for only about 1% of revenue [10]. - The company has established partnerships with 22 IP licensors, although most are non-exclusive [17]. Future Growth Plans - Suplay plans to expand its revenue sources by focusing on internationally recognized IPs and enhancing its global presence [19]. - The company aims to extend its product line and explore new consumer segments, including TCG cards and consumer-grade cards [23]. - Suplay is also working on localizing product designs to cater to different market preferences and regulatory environments [20]. Challenges and Considerations - The company faces challenges in scaling up and competing with established brands in the collectible card market [24]. - Suplay's self-owned IP business has been declining, with revenue dropping from nearly 60 million yuan in 2023 to 11.72 million yuan in the first three quarters of 2025 [23].