Core Viewpoint - Guangdong Jintian Animation Co., Ltd. (Jintian Animation) has submitted an application for a mainboard listing on the Hong Kong Stock Exchange, showcasing impressive financial performance with a projected net profit increase of 72.9% in 2024, alongside a continuous rise in gross margin [1][10]. Financial Performance - Jintian Animation's revenue for 2022, 2023, and 2024 is reported at 596 million, 664 million, and 877 million yuan respectively, with gross profits of 159 million, 217 million, and 296 million yuan, leading to gross margins of 26.6%, 32.6%, and 33.7% [2]. - The net profits for the same years are 36.71 million, 75.22 million, and 130 million yuan [2]. IP Portfolio and Revenue Sources - The company has established a strong IP portfolio with 26 authorized IPs, including popular characters like Ultraman and My Little Pony, contributing significantly to revenue [1][3]. - Ultraman is the most profitable IP, generating revenues of 373 million, 418 million, and 479 million yuan from 2022 to 2024, accounting for 62.6%, 63.0%, and 54.5% of total revenue respectively [2]. Product Categories and Sales Channels - Candy and biscuits are the main product categories, contributing 66.2% of total revenue in the first half of 2025, with candy sales reaching 178 million yuan [3]. - The company is shifting its sales strategy, with direct sales to retailers increasing from 3.5% to 43.2% from 2022 to the first half of 2025, while sales to distributors decreased from 95.2% to 55.1% [5]. Market Potential and Growth - The IP food market in China is projected to grow from 354 billion yuan in 2024 to 849 billion yuan by 2029, with a compound annual growth rate (CAGR) of 18.5% [7][8]. - The IP fun food segment is expected to grow from 56 billion yuan in 2020 to 115 billion yuan in 2024, with a CAGR of 19.6% [7]. Competitive Position - Jintian Animation holds a 7.6% market share in the IP fun food sector, making it the largest player in this niche, and a 2.5% share in the broader IP food market, ranking fourth [8]. - The company is also noted for having the most IP licenses in the IP fun food industry in China as of mid-2025 [9]. Strategic Outlook - Future growth will depend on the company's ability to transition from being an "IP carrier" to a "self-brand builder" and "industry leader," potentially through developing proprietary IPs and enhancing supply chain efficiency [9]. - The IPO process is seen as a significant indicator of the development trajectory of the IP fun food industry in China [11].