Company Overview - JinTian Animation is a leader in China's IP fun food industry, focusing on providing enjoyable and healthy IP fun food products. As of June 30, 2025, the company has established five production bases nationwide, holds 26 licensed IPs, and offers over 600 active SKUs across five product categories: candies, biscuits, puffed snacks, chocolates, and seaweed snacks. According to a Frost & Sullivan report, JinTian Animation is the largest IP fun food company in China by revenue in 2024, with a market share of 7.6% [2][6][25]. Industry Overview - The market size of China's IP food industry has grown from 18.1 billion RMB in 2020 to 35.4 billion RMB in 2024, with a CAGR of 18.2%. It is expected to reach 84.9 billion RMB by 2029, with a CAGR of 18.5% from 2025 to 2029. The IP fun food segment specifically has increased from 5.6 billion RMB in 2020 to 11.5 billion RMB in 2024, with a CAGR of 19.6%, projected to grow to 30.5 billion RMB by 2029 [3][18][25]. Business Model - JinTian Animation operates primarily through licensed IPs, innovating with an IP gift model. The company is the largest holder of licensed IPs in the IP fun food sector in China, with 26 licensed IPs. The licensing agreements typically last one to three years and can be renewed or extended by mutual consent [4][29][33]. Financial Performance - The company has shown stable revenue growth, achieving revenues of 596 million RMB in 2022, 664 million RMB in 2023, 877 million RMB in 2024, and 444 million RMB in the first half of 2025, with year-on-year growth rates of 12%, 32%, and 10% respectively. Adjusted net profits were 37 million RMB in 2022, 76 million RMB in 2023, 131 million RMB in 2024, and 70 million RMB in the first half of 2025, with growth rates of 72% and 13% [13][14][39]. Product Structure - The company focuses on IP fun food, offering a variety of products under two main brands: "TianLe Cartoon King" and "TALA'S". The product range includes candies, biscuits, puffed snacks, chocolates, and seaweed snacks, all designed to enhance consumer engagement and extend product life cycles through unique packaging that integrates IP elements [39][40]. Distribution Channels - JinTian Animation's distribution structure includes a strong dealer network and rapidly growing direct sales channels. As of mid-2025, the company has over 2,675 dealers covering 31 provinces, municipalities, and autonomous regions in China. The direct sales channel has seen significant growth, with a year-on-year increase of 182% in 2024 [5][44].

Core Viewpoint - Guangdong Jintian Animation Co., Ltd. is pursuing an IPO on the Hong Kong Stock Exchange, leveraging its popular IPs like Ultraman and My Little Pony, but faces challenges due to reliance on external IP licenses and a slowdown in growth in the first half of the year [1][3][4]. Group 1: Business Overview - Jintian Animation's main business involves producing and selling IP-themed food products, with brands like "TALA'S" and "Tianle Cartoon King" covering a range of snacks [3]. - The company previously listed on the New Third Board in 2016 but delisted in 2021 to improve operational efficiency [3]. - The company has shown strong growth in recent years, with projected revenues of 596 million, 664 million, and 877 million yuan from 2022 to 2024, and net profits of 36.7 million, 75.2 million, and 130 million yuan for the same period [4]. Group 2: Financial Performance - In the first half of the year, Jintian Animation reported revenues of 444 million yuan, a year-on-year increase of 9.82%, and net profits of 70.04 million yuan, up 13.45% [4]. - The revenue growth for candy and biscuits was strong at 37.75% and 25.63%, while other categories like puffed snacks and chocolate saw declines of 16.9%, 19.8%, and 30.81% [4]. Group 3: IP Dependency - Jintian Animation relies entirely on external IP licenses, with 99.5% of its revenue coming from these sources, raising concerns about the sustainability of its business model [8]. - The company has spent over 100 million yuan on IP licensing fees from 2022 to 2024, with a significant portion of these agreements requiring regular renewal [7]. - The company acknowledges that maintaining existing licensing agreements is crucial and depends on relationships with IP owners [7]. Group 4: Marketing and Sales Strategy - Jintian Animation employs a multi-channel marketing strategy, with a focus on retail and direct sales, reducing reliance on distributors [9]. - The proportion of revenue from direct sales has increased significantly, from 3.5% in 2022 to 43.2% in the first half of 2023 [9]. - The company is exploring e-commerce channels, which have seen growth from 0.2% to 1.1% of total revenue [9]. Group 5: Future Plans - The company plans to expand its IP portfolio through self-designed IPs and aims to enhance product development and brand recognition with the funds raised from the IPO [8]. - Jintian Animation is also considering entering Southeast Asian markets, although it has yet to establish a presence there [11].

Core Viewpoint - Guangdong Jintian Animation Co., Ltd. is seeking an IPO on the Hong Kong Stock Exchange, leveraging its popular IPs like Ultraman and My Little Pony, but faces challenges due to reliance on external IP licenses and a slowdown in growth in the first half of the year [1][4]. Company Overview - Founded in 2011, Jintian Animation is one of the first companies in China to integrate anime IP with food products, primarily producing and selling IP-themed snacks under brands like "Tianle Cartoon King" and "TALA'S" [3]. - The company previously listed on the New Third Board in 2016 but delisted in 2021 to improve operational efficiency and decision-making [3]. Financial Performance - Revenue projections for 2022-2024 are 596 million, 664 million, and 877 million yuan, with net profits of 36.7 million, 75.2 million, and 130 million yuan respectively. The growth rates for 2023 and 2024 are 11.41% and 32.08% for revenue, and 104.92% and 72.82% for net profit [4]. - In the first half of 2025, revenue was 444 million yuan, a 9.82% increase year-on-year, while net profit was 70.04 million yuan, up 13.45% [4]. IP Dependency - Jintian Animation relies entirely on external IP licenses, with 99.5% of its revenue coming from these sources. The company has 26 IPs, including popular ones from Japan and the U.S. [6][8]. - The company has spent over 100 million yuan on IP licensing fees from 2022 to 2025, with a significant portion of its IP agreements requiring regular renewal [7]. Marketing and Sales Strategy - The company employs a multi-channel marketing strategy, with a focus on offline sales through over 2,600 distributors, covering more than 1,700 counties in China [9]. - The share of revenue from direct sales to retailers has increased significantly, from 3.5% in 2022 to 43.2% in the first half of 2025, while the share from distributors has decreased [9]. E-commerce Development - Jintian Animation's e-commerce channel is still in the exploratory phase, with online sales accounting for only 0.2% of revenue in 2024, increasing to 1.1% in the first half of 2025 [10]. - The company aims to establish a sales and marketing team in Southeast Asia to better understand local market demands and consumer preferences [11].