Core Insights - The company is focusing on expanding its product categories, particularly in card games, plush toys, and food-related products, with a goal to achieve significant progress by 2025 [1][4] Group 1: Brand Experience Store and Flash Events - The company opened its first brand experience store in Shanghai, featuring interactive areas to enhance consumer engagement and showcasing a variety of products [2][3] - A Christmas-themed flash event is scheduled to start on December 12, featuring new products from popular IPs, further enhancing brand visibility and consumer interaction [2][3] - The strategy of combining brand experience stores with flash events aims to transition from traditional stationery to cultural and trendy toys, targeting a younger demographic and collecting consumer feedback [3] Group 2: IP-Driven Food Products - The company has launched a food product series in collaboration with the popular IP "Detective Conan," achieving positive market responses through innovative product forms [4] - Future plans include focusing on Gen Z consumer demands, exploring high-quality global IP resources, and enhancing the food supply chain for product development [4] - The company aims to create immersive consumption experiences by integrating fun and collectible aspects into its food products, thereby enriching its product matrix [4]

Macroeconomic Analysis - The narrow revenue growth has slowed down, with national public budget revenue increasing by only 0.8% year-on-year from January to November 2025, and the growth rate in November being flat compared to the same period in 2024 [1] - Narrow budget expenditure grew by 1.4% year-on-year from January to November 2025, with a decline of 3.7% in November, indicating a marginal narrowing of the decline compared to October [1] - The overall fiscal expenditure growth remains low, influenced by prior fiscal efforts and year-end budget adjustments, with key areas like health, technology, and environmental protection seeing leading expenditure growth [1] Government Fund Analysis - Government fund budget revenue decreased by 4.9% year-on-year from January to November 2025, with a significant decline of 15.8% in November [2] - Government fund budget expenditure increased by 13.7% year-on-year from January to November 2025, with a notable recovery in November, growing by 2.8% compared to a decline of 38.2% in October [2] - The increase in expenditure is attributed to the allocation of 500 billion yuan from the central government to support local investment projects [2] Fiscal Policy Outlook - The fiscal balance remains tight, with moderate revenue growth constraining expenditure amid economic growth and real estate market transitions [3] - Expenditure is becoming more targeted and effective, with a clear focus on key areas such as social welfare and technological innovation [3] - The decision-makers plan to implement a more proactive fiscal policy in 2026, with an expected narrow fiscal deficit rate of around 4%, emphasizing structural optimization and enhancing local fiscal sustainability [3] IP Fun Food Industry Analysis - The IP fun food sector, which combines IP with food and collectible gifts, is rapidly growing, driven by consumer demand for emotional consumption [6][7] - The market size of China's IP food industry is projected to grow from 18.1 billion yuan in 2020 to 35.4 billion yuan by 2024, with a CAGR of 18.2%, while the IP fun food segment is expected to grow from 5.6 billion yuan to 11.5 billion yuan, with a CAGR of 19.6% [7] - The growth is fueled by the younger generation's increasing emotional consumption needs and the mature supply chain of the snack industry in China [7] Competitive Landscape - The core competitiveness in the IP fun food market lies in supply chain management and IP operation, with low differentiation in snack products making cost control crucial [8] - The market remains fragmented, with leading companies holding only 7.6% market share, indicating a competitive environment with many small players [9] - The differentiation provided by IP toys as gifts is key to achieving premium pricing in a market where snack products lack inherent differentiation [8][9]

Core Insights - The report by Guotai Junan highlights the advantages of IP fun food over IP toys, including lower price points and higher consumption frequency [1][2] Industry Growth - The Chinese IP food market is projected to grow from 18.1 billion yuan in 2020 to 35.4 billion yuan in 2024, with a CAGR of 18.2% [3] - The market for IP fun food is expected to increase from 5.6 billion yuan in 2020 to 11.5 billion yuan in 2024, achieving a CAGR of 19.6% [3] Consumer Demand - The growth in the IP fun food sector is driven by the emotional consumption trends among the younger generation, who seek identity recognition and emotional connection through IP stories and characters [3] - The supply side benefits from China's mature snack production and supply chain, which has been bolstered by the rise of bulk purchasing channels [3] Competitive Landscape - The core competitive advantage in the IP fun food industry lies in supply chain management and IP operation [4] - The differentiation of IP fun food products is primarily achieved through the inclusion of IP toy giveaways, which allow for higher pricing despite the low differentiation of the snacks themselves [4] - The market remains fragmented, with the leading company, Jintian Animation, holding a market share of 7.6% as of 2024 [5]

Investment Rating - The report rates the industry as "Buy" [3] Core Insights - The IP food and play industry is rapidly growing under the trend of emotional consumption, with supply chain management and IP operation being the core [2][3] - The market for IP food products is expected to grow from 18.2% CAGR from 2020 to 2024, reaching a scale of 354 billion yuan, while the IP play food segment is projected to grow at a CAGR of 19.6%, reaching 115 billion yuan by 2024 [10][12] - The emotional consumption trend is driven by younger generations who prioritize identity recognition and emotional connection, leading to increased demand for IP products [15][12] Summary by Sections 1. IP Play as a Combination of IP, Food, and IP Gifts - IP play food products include collectible cards, stickers, badges, figurines, and edible toys, providing a unique experience that combines eating and playing [6][7] - Compared to regular IP food, IP play food can effectively enhance premium pricing through limited edition gifts that stimulate consumer collection desires [7][6] 2. Rapid Industry Growth and Fragmented Landscape - The Chinese IP food industry is expected to reach 431 billion yuan by 2025, with a projected CAGR of 18.5% from 2025 to 2029 [10][11] - The market is characterized by a fragmented competitive landscape, with the leading company, Jintian Animation, holding a market share of 7.6% in 2024 [3][60] 3. Supply Chain Management and IP Operation as Core Competencies - The core competitive advantage lies in supply chain control and effective IP operation, as the differentiation of snack products is low [33][34] - The cost of IP gifts is low, allowing for higher pricing of IP food products compared to non-IP snacks, with the impact of gift items potentially increasing prices by 2-3 times [52][33] 4. Domestic Brand Rise in a Fragmented Competitive Landscape - The IP food industry is experiencing a structural transformation, with domestic brands gaining prominence due to product innovation and cultural integration [60] - The top five revenue-generating companies in 2024 include Pepsi, Mars, Mondelez, Jintian Animation, and Nestle, with market shares of 5.6%, 2.9%, 2.7%, 2.5%, and 1.3% respectively [60]

Group 1: Company Overview and Activities - Guangbo Group Co., Ltd. held an investor activity on December 15, 2025, at their company location, attended by representatives from Huayuan Securities, Xibu Lide, and Ningyin Wealth Management [2]. - The company launched its brand experience store, "潮玩先锋," in Shanghai on November 28, 2025, featuring various interactive areas and products, marking a significant upgrade in brand experience and operational depth [3]. Group 2: Marketing Strategies - The company organized a "Christmas-themed pop-up event" starting December 12, 2025, at Shanghai Jing'an Joy City, showcasing new products from popular IPs such as "Persona," "Hunter x Hunter," and others [4]. - Guangbo's marketing strategy includes leveraging social media platforms like Xiaohongshu to continuously release product information and brand activities, creating an integrated online and offline marketing matrix [4]. Group 3: Product Development and Future Plans - The company is developing an "IP Fun Food" series in collaboration with the popular IP "Detective Conan," which has received positive market feedback due to its innovative combination of food and collectibles [5]. - Future plans involve focusing on Gen Z consumer demands, optimizing the food supply chain, and enhancing product design and interactive features to create immersive consumption experiences [6]. - In 2025, Guangbo is prioritizing the development of new categories, including cards, plush toys, and food products, with successful launches of collectible cards based on the "Zhu Xian" IP [6].

Core Insights - The core viewpoint of the articles is that the IP play food sector is emerging as a new growth engine in China's snack food market, which has surpassed a trillion yuan in scale, driven by evolving consumer demands for nutrition, health, novelty, and emotional value [1][3]. Market Overview - The overall market size of IP food in China reached 35.4 billion yuan last year and is expected to grow to 84.9 billion yuan by 2029, with the IP play food segment growing from 5.6 billion yuan in 2020 to 11.5 billion yuan last year, reflecting a compound annual growth rate (CAGR) of 19.6% [3]. - The IP play food market is projected to continue expanding at a CAGR of 20.9% from this year to 2029, potentially reaching 30.5 billion yuan [3]. Consumer Trends - The consumer demographic for IP play food is becoming increasingly "age-inclusive," attracting not only children but also young adults and older consumers [2][3]. - Many young consumers share and recommend various products on social media, creating a unique community culture around IP play food [3]. Product Innovation and Development - The industry is transitioning from a model focused on low-age audiences and single product categories to a more systematic development path that includes all-age coverage, diverse products, refined designs, and healthier formulations [6]. - Health trends are pushing the industry towards "sugar-free" options, with many products now prominently featuring "sugar-free/0 sugar" labels [6]. Emotional Consumption - The rise of emotional consumption has led to a significant market for products that provide emotional companionship, with 72% of consumers indicating that their purchasing behavior is driven by the desire for emotional connection [7]. - IP play food effectively captures this demand by integrating elements of surprise, interaction, and collectability into snack products, transforming consumption from merely satisfying hunger to providing emotional comfort [7]. Competitive Landscape - The increasing number of entrants in the IP play food market has led to a growing concern over product homogenization, prompting companies to innovate continuously in product forms and enhance toy quality [5][9]. - Companies are encouraged to focus on original IP incubation and cross-industry collaborations to build unique content advantages [8]. Investment and Market Dynamics - The IP play food sector is attracting more investor attention, with increased financing events and deeper integration across the industry chain, from IP licensing to product design and marketing [4]. - The market is characterized by a shift towards enhancing emotional value and consumer experience rather than competing solely on price [8].

Core Viewpoint - Guangdong Jintian Animation Co., Ltd. has submitted an IPO application to the Hong Kong Stock Exchange, aiming to leverage its unique "IP fun food" model, which combines snacks with collectible items, despite facing significant risks related to its heavy reliance on external IP licenses and declining core IP revenues [2][3][8]. Financial Performance - From 2022 to 2024, the company's revenue is projected to grow from 596 million to 877 million RMB, with net profit increasing from 36.7 million to 130 million RMB, and gross margin rising from 26.6% in 2022 to 34.7% in the first half of 2025 [5][6]. - By the first half of 2025, 99.5% of the company's revenue will come from its IP fun food products, indicating a critical dependency on external IPs [5][6]. IP Dependency - As of June 30, 2025, Jintian Animation holds 26 licensed IPs, with "Ultraman" being the most significant, contributing 62.6% of revenue in 2023 and 43.9% in the first half of 2025 [6][9]. - The top five IPs account for 85.7% of the company's revenue, highlighting a high concentration risk [6][9]. Business Model and Risks - Unlike companies like Pop Mart that operate their own IPs, Jintian Animation acts as an "IP carrier," relying on non-exclusive licenses, which exposes it to intense competition and uncertainty regarding IP renewal [8][9]. - The licensing agreement for the core IP, "Ultraman," is set to expire in 12 months, posing a risk to revenue stability if not renewed [8][9]. Cost Structure and Profitability - The company's IP licensing fees have increased from 21.1 million RMB in 2022 to 36.8 million RMB in 2024, with a significant rise in the proportion of licensing fees to sales costs from 4.8% to 6.9% by the first half of 2025 [10]. - Direct sales revenue has surged from 3.5% to 43.2% of total revenue, but this has led to increased customer concentration, with the top five clients accounting for 40.7% of revenue in the first half of 2025 [11]. R&D and Innovation Challenges - The company's R&D expenditure has increased from 67,000 RMB in 2022 to 212,400 RMB in the first half of 2025, but there is a lack of substantial progress in developing proprietary IPs [13][15]. - The focus on licensing rather than innovation has resulted in a lack of product differentiation, limiting growth potential in a competitive market [15]. Future Outlook - The IPO aims to raise funds for expanding the IP portfolio, developing new products, and establishing offline IP-themed stores, which are critical for building a sustainable competitive advantage beyond "Ultraman" [15].

Investment Rating - The report maintains an "Accumulate" rating for the industry [3] Core Views - The IP food industry is experiencing significant growth, with the market size expected to increase from RMB 181 billion in 2020 to RMB 354 billion in 2024, representing a CAGR of 18.2% [26] - The report highlights that JinTian Animation is the leader in the IP fun food sector, holding a market share of 7.6% in the IP fun food market and 2.5% in the broader IP food market [5][9] - The company has established a robust IP portfolio with 26 authorized IPs and over 600 active SKUs, focusing on innovative product designs that integrate IP characters into food packaging and accompanying gifts [44][50] Summary by Sections Company Overview - JinTian Animation is recognized as the pioneer and leader in China's IP fun food industry, with five production bases and a diverse product range including candies, biscuits, and snacks [5][9] - The company achieved revenues of RMB 8.77 billion and RMB 4.44 billion in 2024 and the first half of 2025, respectively, with year-on-year growth rates of 32% and 10% [5][15] Industry Analysis - The IP fun food market in China is projected to grow from RMB 56 billion in 2020 to RMB 115 billion in 2024, with a CAGR of 19.6% [26] - The competitive landscape is fragmented, with JinTian Animation ranking fourth in the IP food sector, capturing 2.5% of the market share [38] Business Model - The company operates on a dual-cycle model, leveraging authorized IPs to develop fun food products and associated gifts, enhancing consumer engagement [47] - JinTian Animation's product strategy focuses on integrating popular IPs into food items, creating a unique consumer experience that combines eating and playing [50][51]

Core Viewpoint - Guangdong Jintian Animation Co., Ltd. (referred to as "Jintian Animation") has submitted its IPO application to the Hong Kong Stock Exchange, capitalizing on the booming emotional consumption and trendy toy economy, following the success of brands like Pop Mart [2][12]. Company Overview - Jintian Animation, founded by Cai Jianchun, integrates popular IPs with snacks, creating a unique product line that allows children to "eat and play" [2][3]. - The company has achieved over 800 million RMB in annual sales, primarily through its IP-themed snacks [2]. Business Model - The company focuses on "IP fun food," incorporating anime elements into traditional snacks, enhancing their emotional value and pricing power [3][4]. - Jintian Animation has over 600 active SKUs, with products including candies, biscuits, and puffed snacks, all featuring popular characters [6][8]. Financial Performance - Revenue projections for 2022 to 2024 are 596 million RMB, 664 million RMB, and 877 million RMB, respectively, with gross margins increasing from 26.6% to 33.7% [8][10]. - The majority of revenue (over 96%) comes from IP-themed snacks, with candies and biscuits contributing approximately 66.2% of total revenue [9]. Market Position - Jintian Animation holds a 7.6% market share in the domestic IP fun food sector, ranking second in the IP food market behind major multinational companies [10]. - The company has established a diverse distribution network, increasing direct sales from 3.5% to 33.1% over three years [9]. IP Strategy - The company currently holds 26 licensed IPs, including popular characters like Ultraman and Peppa Pig, which significantly drive its revenue [8][11]. - In the first half of 2025, revenue from the top five IPs accounted for 85.7% of total income, highlighting the company's reliance on key licenses [11]. Industry Trends - The emotional economy is driving snack manufacturers to collaborate with IPs, as seen with various brands seeking to leverage this trend for higher value [12][13]. - The success of Pop Mart and other trendy toy brands has led to a surge in IPO applications from similar companies, indicating a robust market for emotional and collectible products [12][14].

Core Viewpoint - The article discusses the upcoming IPO of Guangdong Jintian Animation Co., Ltd., which has successfully combined popular IPs with snack foods, creating a lucrative market segment known as "IP fun food" [5][10]. Company Overview - Jintian Animation, founded by Cai Jianchun, has integrated anime elements into traditional snacks, significantly enhancing their appeal and pricing power [7][8]. - The company has over 600 active SKUs and holds licenses for 26 popular IPs, including Ultraman, Peppa Pig, and Disney characters [10][12]. Financial Performance - The company reported revenues of RMB 5.96 billion, RMB 6.64 billion, and RMB 8.77 billion for 2022, 2023, and 2024 respectively, with gross margins increasing from 26.6% to 33.7% during the same period [12]. - The majority of revenue (over 96%) comes from the sales of IP fun foods, with candy and biscuits contributing approximately 66.2% of total revenue [12][14]. Market Position - Jintian Animation is the largest IP fun food company in China, holding a market share of 7.6%, trailing only behind multinational companies like PepsiCo and Mars [14]. - The company's gross and net profit margins are projected to reach 33.7% and 14.8% respectively by 2024, outperforming competitors like Three Squirrels and Bestore [14]. Distribution Channels - The company has diversified its distribution network, increasing direct sales from 3.5% to 33.1% over three years, primarily through partnerships with retail stores and e-commerce platforms [12][14]. Industry Trends - The article highlights a growing trend in the snack industry where companies are increasingly collaborating with IPs to enhance product value, driven by the emotional connection consumers have with these brands [17][18]. - The success of companies like Pop Mart, which has seen its market value soar, indicates a robust demand for IP-related products in the current market [17][18].