Core Insights - The Chinese潮玩 market is rapidly expanding due to factors such as rising disposable income, the emergence of emotional consumption, the rise of domestic潮流 culture, and quality IPs [1][4] - The competitive landscape of the潮玩 market in China is relatively fragmented, with significant room for improvement compared to Japan [1][5] 潮玩 Industry Overview -潮玩 is defined as toys that integrate elements of潮流 culture, art, design, and various other concepts, characterized by high visual recognition, limited releases, and cross-industry collaborations [1] - The潮玩 industry includes various forms such as blind boxes, figurines, plush toys, gashapon, cards, dolls, art toys, assembly toys, and building sets [1] 潮玩 Industry Chain - The upstream segment consists of IP suppliers and operators, where high-quality IP suppliers hold strong bargaining power based on the scarcity and market popularity of their IPs [2] - The midstream includes潮玩 product manufacturers, who generally have weaker bargaining power; manufacturers with large-scale production capabilities are more likely to succeed [2] - The downstream segment involves retailers and consumers, where retailers' bargaining power depends on the quantity and quality of their IP reserves [2] Comparison with Japanese Toy Industry - The Japanese toy industry has matured and offers valuable lessons for China; despite challenges like declining birth rates, the industry has thrived due to the rise of gaming and anime [3] - In China, rising disposable income and a shift towards emotional consumption are driving demand for潮玩 and related products, despite demographic challenges [3] Market Growth and Projections - The Chinese潮玩 market is projected to grow from 22.9 billion yuan in 2020 to 76.3 billion yuan by 2024, with a CAGR of 35.11% [4] Market Concentration and Competition - The Chinese潮玩 market is currently fragmented, with the top five companies holding a combined market share of only 23.7% [5] - New domestic companies are rapidly expanding, with significant growth rates compared to international giants [5] - The quality and quantity of domestic IPs are increasing, with notable examples including《原神》,《黑神话：悟空》, and characters from泡泡玛特 [5]

Core Viewpoint - The stock price of Kai Zhi Le International surged over 160% following the announcement of its strategic entry into the trading card game (TCG) market, partnering with the globally recognized IP Pokémon for operational services [1][2][4]. Group 1: Company Strategy and Market Entry - Kai Zhi Le International announced its strategic layout in the TCG market, starting with a partnership with Pokémon, which aligns with its mission of creating high-quality playful living [4][5]. - The company aims to build a complete business chain covering offline sales, experiential activities, and event operations in the TCG sector [4][5]. - The first Pokémon official card dojo opened in Beijing, providing an immersive experience for Pokémon trainers, combining retail, card battles, and social interactions [4][5]. Group 2: Market Potential and Growth - The global TCG market is projected to exceed $12 billion (approximately 85.5 billion RMB) by 2024, with China's market growing at over 40% for three consecutive years [4][6]. - The trading card segment is expected to maintain a nearly double-digit annual growth rate over the next decade, driven by strong social attributes, collectible value, and the trend towards esports [1][8]. - The Chinese TCG market has seen significant growth, with its scale increasing from 2.8 billion RMB in 2019 to 13.3 billion RMB in 2023, reflecting a compound annual growth rate of 31.5% [7][8]. Group 3: Financial Performance and Future Outlook - Kai Zhi Le International reported a revenue of approximately 422.5 million RMB for the six months ending June 30, 2025, a decrease of 14.4% year-on-year, primarily due to reduced retail store income [6]. - The company experienced a narrowing of losses to 67.3 million RMB, a 16.04% improvement compared to the previous year [6]. - The wholesale channel, particularly through partnerships with major retailers, has become a significant growth driver, with sales increasing by 134.6% year-on-year [7].