Financial Association News November 30th (Editor Ping Fang) The second-dimensional Guazi economy heat wave blows into the A-share market, developing a series of unique cultural and creative stationery and second-dimensional peripherals. Guangbo Group closed at 11.9 boards on Friday; Shanghai New World, actively cultivating trendy cultural IPs, closed with 5 consecutive boards; partnering with IPs like Wuhuang Cat and Shanhai Jing to create the "National Trend Cultural and Creative" Shenzhen Comix Group closed with 4 consecutive boards; Hongxing Stock, owning the IP FENNY family, closed with 3 consecutive boards; New classics, building the "bibi Zoo" and "Simple History" as two key IPs, closed with 2 consecutive boards; Yuanlong Yato, widely deploying various IPs including sports, animation, and games, closed with an increase limit. In addition, the leading entertainment trend, Pop Mart (09992.HK), has achieved a cumulative maximum increase of 456% from the low point in February to date.

According to incomplete statistics from Financial Association News, as of the time of this publication, including Bee Helper, Shanghai New World, Hebai Group, Zhejiang Jinke Tom Culture Industry, Jishi Media, Guangbo Group, Guangdong CHJ Industry, COL Group Co.,Ltd., Chang Chun Eurasia Group, Mango Excellent Media, Senying Window Industry, Zhejiang Huace Film & TV, Zhejiang China Commodities City Group, Alpha Group, and Huali Technology, a total of 15 listed companies have announced or responded on interactive platforms this week regarding the "Guazi Economy" related business situation. See details in the following table:

According to data from the Forward Industry Research Institute, from 2016 to 2023, the scale of China's second-dimensional industry has grown from 18.9 billion yuan to 221.9 billion yuan, with a compound annual growth rate of 42%. Looking ahead, it is estimated that from 2023 to 2029, the scale of the second-dimensional industry will grow from 221.9 billion yuan to 590 billion yuan, with a compound annual growth rate of 18%. By 2023, the number of pan-second-dimensional users in China has exceeded 0.5 billion, with the Z Generation being the main user group.

Zheshang Securities analysts Ma Yuanfang and Ma Li pointed out in a research report on November 22 that the Chinese second-dimensional industry chain includes three parts: content production, content dissemination, and peripheral derivatives. Among them, content production includes animation production, manga production, game production, with representative companies like MiHoYo, NetEase, etc.; content dissemination includes overseas content agency, integrated platforms, animation platforms, news platforms, game distribution, etc., with representative companies like Bilibili, ACFUN, Ali Fish, etc.; peripheral derivatives include second-dimensional products, virtual idols, offline entertainment, outfits, etc., among which second-dimensional products (Guazi) reach end-second-dimensional consumers through a wide range of manufacturers and retailers.

Introduced as a new consumption phenomenon in recent years, the Guazi economy mainly refers to the consumption culture and economic form around second-dimensional IP peripheral products. Simply put, it can be related to peripherals of games, animations, novels, and TV dramas. According to the source of the IP, it is commonly divided into Guazi originating from China and Japan; based on prices, it is usually classified as common Guazi, lakeside view Guazi, and lakeside ocean view Guazi (prices increase accordingly); based on category and material, it can be divided into items like snacks, figurines, acrylic, paper products, and Guamei.

The Guazi economy injects new vitality into old shopping malls. In January 2023, Shanghai Bailian ZX Fun Pavilion, known as the "country's first commercial venue focusing on second-dimensional culture," was completed, opening the curtain on the radical transformation of domestic shopping malls into second dimensions. According to statistics, aside from Shanghai taking the lead, there are at least 220 Guazi stores in Beijing, and a total of nearly 300 Guazi stores in Guangzhou and Shenzhen combined.

On November 23, Debon Securities analyst Yi Dingyi's research report pointed out that with the rapid development of the "second dimension" and its derivative economy, "Guazi" has also entered the young consumer group as an emerging concept. The "Guazi Economy" is fundamentally based on the IP authorization and operation capabilities behind it, guarantees with supply chain capabilities, and reaches consumers through channels, suggesting a focus on leading targets with full industry chain capabilities and rapid dissemination of IPs.