Core Insights - The Chinese IP "LABUBU" has gained significant popularity overseas, driving stock prices of related listed companies to new highs and attracting market attention towards IP economy concept stocks [1] - The global IP licensing market has reached a size of $356.5 billion in 2023, with a compound annual growth rate (CAGR) of 5.0%, while China's IP market is projected to exceed 168.9 billion yuan in 2024, marking a year-on-year growth of 40% [1] - The growth of the IP market is supported by favorable policies, a growing middle-income group, and the emotional engagement of Generation Z with IP, facilitating the transition of IP from cultural symbols to consumer assets [1] Industry Overview - The global IP licensing market is expanding rapidly, becoming a significant driver of economic development and injecting new vitality into the global consumer market [1] - Emerging technologies like blockchain are providing solutions to long-standing issues in the IP licensing field, such as rights confirmation and transparency in revenue sharing [1] Company Strategy - Tianji Holdings is implementing a "smart consumption + smart manufacturing" dual-driven strategy, focusing on AI, digitalization, and blockchain technology to enhance the IP value ecosystem and expand into industrial sectors [2] - The company is positioning itself as an "IP investment bank" by digitizing IP assets, ensuring clear ownership through unique digital identifiers, and enhancing user engagement through AI-driven interactive narratives [3] Smart Consumption Initiatives - In the smart consumption sector, Tianji Holdings is developing a global digital asset IP chain that provides verification, traceability, and value empowerment for cultural creations, trendy toys, and digital art [3] - The introduction of smart contracts ensures transparent transactions and timely revenue sharing for creators, while cross-chain transaction technology enhances the global liquidity of IP assets [3] Community Engagement - The company is building high-interaction fan communities through loyalty programs and co-creation activities, enhancing user engagement and brand value [4] - Collaborations with partners, such as the sports IP project with Xizu Chain Technology, aim to launch co-branded merchandise and digital experiences, supporting global compliant resale of digital collectibles [4] Smart Manufacturing Developments - Tianji Holdings is extending its consumer IP business into industrial applications, aiding Chinese enterprises in connecting with global smart industries and promoting the intelligent transformation of traditional manufacturing [5] - A strategic partnership with iFlytek and the Saudi Ministry of Industry and Mineral Resources marks a significant milestone in the company's smart manufacturing strategy, focusing on automation and AI applications [6] Future Outlook - The dual-driven strategy of smart consumption and smart manufacturing is expected to create a differentiated competitive advantage for Tianji Holdings, allowing it to capture structural growth opportunities in both IP digitization and global manufacturing transformation [8] - The company boasts a world-class team with expertise in blockchain, AI, and compliance, positioning it well for future growth in the evolving market landscape [8]

Core Viewpoint - Tianji Holdings (01520) demonstrates confidence in its long-term value and growth prospects through a share buyback and strategic investment, while also addressing structural challenges in its business model [1][4]. Group 1: Share Buyback and Strategic Investment - Tianji Holdings announced a share buyback of 2.898 million shares for HKD 4.4867 million, reflecting management's confidence in the company's future [1]. - The company signed a subscription agreement with GEM for a strategic investment of up to HKD 225 million, indicating recognition from professional investors regarding its strategic layout and growth potential [1]. Group 2: Structural Challenges - The company faces structural challenges, including high concentration of IP revenue in competitive sectors like trendy toys and games, and a lack of liquidity and value extension in traditional digital rights models [1]. - The scale of the derivative IP business is relatively small, leading to weaker risk resistance and a need for a breakthrough in the business model [1]. Group 3: Strategic Response - To address these challenges, Tianji Holdings plans to integrate AI and Web3 technologies, focusing on three main sectors: gaming, cultural tourism, and sports [1]. - The company aims to build a multi-layered and diversified IP matrix by actively introducing IP resources across different life cycles to enhance overall business resilience [1]. Group 4: New Business Initiatives - Tianji Holdings will expand from trendy toys and gaming IP to sports IP, starting with internationally recognized sports IP like La Liga, and gradually diversifying its IP types [2]. - The company plans to leverage its existing apparel business to develop a comprehensive fan economy, launching various IP co-branded apparel and collectible products to enhance IP monetization [2]. Group 5: Digital and Offline Engagement - In digital business, Tianji Holdings will utilize Web3 technology to create virtual rights and digital experiences, enhancing user engagement through exclusive digital content and interactive systems [2]. - The company will also develop offline experiences through IP-themed pop-up stores and community events to deepen emotional connections with users and enhance brand influence [2]. Group 6: Supply Chain and Financial Management - Tianji Holdings is constructing a new consumption system for IP, establishing a credible digital ecosystem with traceability and supplier management [3]. - The company plans to implement a digital wallet and unified account system to tokenize user rights and enhance brand loyalty [3]. Group 7: Business Optimization and Future Outlook - The company is actively addressing historical issues by transferring historical debt for HKD 11.3997 million to improve asset quality [3]. - With the optimization of existing businesses and the successful implementation of new strategies, Tianji Holdings aims to enhance its risk resistance and open new growth opportunities [4].

Core Viewpoint - Tianji Holdings (01520) demonstrates confidence in its long-term value and growth prospects through a share buyback and strategic investment, while also addressing structural challenges in its business model [1][5]. Group 1: Share Buyback and Strategic Investment - Tianji Holdings announced a share buyback of 2.898 million shares for HKD 4.4867 million, reflecting management's confidence in the company's future [1]. - The company signed a subscription agreement with GEM for a strategic investment of up to HKD 225 million, indicating recognition from professional investors regarding its strategic layout and growth potential [1]. Group 2: Structural Challenges - The company faces structural challenges, including high concentration of IP revenue in competitive sectors like trendy toys and games, and a lack of liquidity and value extension in traditional digital rights models [1]. - The scale of the derivative IP business is relatively small, leading to weaker risk resistance and a need for a breakthrough in the business model [1]. Group 3: Strategic Response - To address these challenges, Tianji Holdings plans to integrate AI and Web3 technologies, focusing on three main sectors: gaming, cultural tourism, and sports [1]. - The company aims to build a multi-layered and diversified IP matrix by actively introducing IP resources across different life cycles to enhance overall business resilience [1]. Group 4: New Business Initiatives - Tianji Holdings will expand from trendy toys and gaming IP to sports IP, starting with internationally recognized sports IP like La Liga, and gradually diversifying its IP types [2]. - The company plans to leverage its existing apparel business to develop a comprehensive fan economy, launching various IP co-branded apparel and collectible products to enhance IP monetization [2]. Group 5: Digital and Offline Engagement - In digital business, Tianji Holdings will utilize Web3 technology to create virtual rights and digital experiences, enhancing user engagement through exclusive digital content and interactive systems [2]. - The company will also develop offline experiences through IP-themed pop-up stores and community events to deepen emotional connections with users and enhance brand influence [2]. Group 6: Supply Chain and Operational Efficiency - AI and Web3 technologies will improve supply chain traceability and transparency, optimize operational efficiency, and enhance brand cohesion [3]. - The company plans to establish a credible digital ecosystem for its IP new consumption system, integrating supply chain management with ERP and WMS systems [3]. Group 7: Financial Management - Tianji Holdings intends to transfer part of its historical debt for HKD 11.3997 million to clean up legacy assets and improve asset quality [4]. - The company is focused on optimizing its business structure and accelerating the development of new businesses, aiming for a comprehensive optimization by Q4 of this year [5].