Core Insights - The "food-toy" segment, which combines snacks with toys, is gaining traction in the competitive IP consumer goods market, driven by the increasing attention on IP industries in China [1][2]. Market Overview - The Chinese IP food-toy market is projected to grow from 5.9 billion yuan in 2020 to 11.5 billion yuan by 2024, with a compound annual growth rate (CAGR) of 19.6% [3]. - Guangdong Jintian Animation Co., Ltd. (Jintian Animation) is a leading player in this sector, holding a 7.6% market share and achieving revenues of 877 million yuan in 2024, with a CAGR exceeding 20% over the past three years [3]. Business Model - The integration of IP, snacks, and toys leverages emotional value through low-cost, high-frequency consumption, enhancing product playability and collectability [3]. - Jintian Animation's reliance on IP licensing presents both opportunities for premium pricing and risks of homogenization and weak control [4]. Company Dynamics - Jintian Animation has a significant relationship with Shanghai Xinchanghua Cultural Development Co., Ltd. (Xinchanghua), a key player in domestic IP licensing, which has supported Jintian's growth through its association with popular IPs like Ultraman and Detective Conan [6][9]. - The company's revenue structure is evolving, with a notable increase in revenue from the My Little Pony IP, which surged nearly fourfold in 2024, becoming the second-largest contributor to the company's income [12][13]. Financial Performance - Despite the growth in IP revenue, Jintian Animation faces challenges, including a 17% decline in revenue from its largest IP, Ultraman, in the first half of 2025, and a slowdown in overall revenue growth to below 10% [14]. - The company's gross margin of 33.7% is lower compared to competitors in the snack industry, indicating limited pricing power [17]. Strategic Initiatives - Jintian Animation aims to diversify its IP portfolio to enhance operational stability, as consumer preferences for IPs can shift rapidly [15]. - The company has expanded its IP portfolio to 26 licensed IPs, significantly above the industry average of 4-6 [16]. Channel Strategy - The importance of distribution channels is shifting, with direct sales channels gaining prominence as traditional distribution channels decline in significance [22]. - Jintian Animation is focusing on expanding its direct sales and e-commerce channels, including collaborations with popular snack brands for promotional activities [25][29]. Future Outlook - The company plans to develop proprietary IP and explore new channels, including international markets, to support its growth strategy [29]. - The success of these initiatives remains uncertain, as they are still in the early stages of implementation [29].

Core Viewpoint - The article highlights the success of companies leveraging the Ultraman IP, particularly Guangdong Jintian Animation Co., Ltd. (金添动漫), which has developed a profitable business model around Ultraman-themed products, generating significant revenue and market interest [7][9][10]. Company Overview - Guangdong Jintian Animation Co., Ltd. was established in 2011 and is recognized as China's largest IP fun food enterprise, having developed over 150 Ultraman-themed products since acquiring the IP rights in 2009 [7][12]. - The company reported sales revenue exceeding 1.2 billion yuan from Ultraman products over the past three years, with the Ultraman egg being a top-selling item priced at 7.5 yuan [7][12]. Financial Performance - From 2022 to 2024, the company's revenue grew from 596 million yuan to 877 million yuan, with net profit increasing from 36.71 million yuan to 130 million yuan, representing over 3.5 times growth [16]. - In the first half of 2025, revenue reached 444 million yuan with a net profit of 70.04 million yuan, driven by affordable products like the Ultraman egg, which sold over 70 million units [16][17]. Market Position and Strategy - As of mid-2025, Jintian Animation's IP fun food sales accounted for 99.5% of total revenue, with candy being the largest revenue source at 40.1% [17]. - The company is shifting its sales strategy from traditional distributors to direct retail, increasing direct sales from 3.5% to 43.2% of total revenue between 2022 and mid-2025 [18]. IP Dependency and Risk Management - The company faces risks associated with reliance on external IP licenses, with the Ultraman IP license expiring in 12 months. To mitigate this, Jintian Animation is diversifying its IP portfolio, increasing revenue from other IPs like My Little Pony [13][14]. Industry Trends - The article notes a trend of IP toy companies, including Jintian Animation, seeking IPOs in Hong Kong, driven by the emotional value and strong market demand for IP products among younger consumers [22][23]. - Successful IPs can create strong fan communities, leading to high user retention and profitability, as evidenced by Jintian Animation's higher gross margins compared to traditional snack brands [23]. IPO Plans - Jintian Animation is preparing for an IPO in Hong Kong, having previously delisted from the New Third Board in 2021 to streamline operations. The upcoming IPO is seen as a critical step in showcasing its growth strategy [24].

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].