Core Viewpoint - The company, Guangdong Jintian Animation, is preparing for an IPO on the Hong Kong Stock Exchange, aiming to leverage its position as a leader in the IP snack food industry in China, driven by its innovative approach to combining popular animated characters with traditional snacks [1][2]. Company Overview - Founded by Cai Jianchun, the company has become the largest IP fun food enterprise in China, inspired by the animated series "Blue Cat" in 2005 [1][4]. - The company has a portfolio of 26 licensed IPs and over 600 active SKUs, covering popular animation characters from both domestic and international sources [4][11]. Financial Performance - For the first half of 2024, the company reported revenues of 444 million yuan, with an annual forecast of 900 million yuan [1]. - The company is projected to achieve a revenue of 877 million yuan in 2024, representing a year-on-year growth of 32.08% [6]. - The net profit for 2024 is expected to be 130 million yuan, with a net profit margin of 14.8% and a gross profit margin of 33.7%, significantly higher than traditional snack companies [7]. Market Position and Strategy - The company holds a 7.6% market share in the domestic IP fun food market as of 2024 [11]. - Cai Jianchun emphasizes the importance of agility and local market understanding, allowing the company to avoid direct competition with major brands [10][9]. - The company continuously launches new products, such as Peppa Pig seaweed snacks and Crayon Shin-chan fish cans, to maintain consumer interest [10]. IP Strategy and Challenges - The company relies heavily on key IPs, with revenue from Ultraman-related products accounting for 43.9% of total income, and the licensing agreement for this IP is set to expire in 12 months [20]. - The company faces challenges in maintaining and protecting its key IPs, as agreements typically last 1 to 3 years and require renegotiation [19]. - The growth rate for the first half of 2025 is projected at 9.82%, a significant slowdown compared to previous years, with Ultraman-related revenue declining by 17% [22]. Future Outlook - The company plans to expand its IP portfolio and enhance product development capabilities through the funds raised from the IPO [24]. - Targeting younger consumers and fan communities will be a core strategy for the next 3-5 years [23].