Following the trading session on March 31, STARPLUS LEGEND (06683) released its full-year 2025 results announcement. Despite reporting a loss for the year, the company characterizes this as a 'proactive strategic reset'—a deliberate move to clear historical burdens and optimize its asset structure, thereby building a more sustainable foundation for growth in the era of IP Ecosystem 2.0. The company asserts that its core operational capabilities and IP competitive advantages remain intact.
In terms of specific financials, the announcement shows the company's total revenue for 2025 reached RMB 472 million. Revenue from the new consumer business segment was RMB 316 million, representing an increase of approximately 17.2% compared to the 2024 fiscal year, indicating a stable core business. Conversely, revenue from the IP business segment was RMB 156 million, a decrease of roughly 50.4% year-on-year. This decline was primarily attributed to the company's conscious decision to slow the pace of new IP content releases and impose stricter controls on licensing quality. Gross profit was RMB 184 million, down approximately 43.9% year-on-year. Coupled with asset impairment provisions made on a prudent basis, the company recorded a full-year loss of RMB 51.05 million.
This earnings volatility does not stem from a fundamental deterioration in the company's core operational fundamentals. As the IP economy enters a golden period of development, the true core value of STARPLUS LEGEND as a 'global IP ecosystem builder' can only be accurately assessed by looking beyond short-term financial figures and focusing on its operational fundamentals and long-term growth trajectory.
The recent performance fluctuation primarily results from proactive strategic choices made in two key areas. On one hand, it involves a deliberate shift in the IP business strategy. The decrease in IP business revenue from RMB 314 million in 2024 to RMB 156 million in 2025 reflects not a loss of capability but a strategic consolidation across three fronts. First, the company is exercising greater control over the release rhythm to prevent over-exploitation of core IPs and ensure their long-term health. Second, it is tightening licensing controls, reducing low-quality partnerships to maintain IP scarcity and brand integrity. Third, it is raising standards across content creation and commercial monetization to establish a stronger foundation for long-term brand building. This marks a transition from pursuing 'quantity' to prioritizing 'quality,' actively optimizing the IP asset structure to unlock greater future value.
On the other hand, the company is undertaking a prudent financial cleanup. Based on the principle of prudence and considering market conditions, the company has made impairment provisions against certain accounts receivable. This is a non-cash accounting adjustment, effectively allowing the company to 'shed' historical burdens, streamline operations, and achieve a clearer asset structure, thereby enabling a more focused advancement of its core strategy.
Focusing on STARPLUS LEGEND's IP ecosystem development, the company continued to deepen its efforts in 2025 around three strategic dimensions—'Diversifying, Deepening, and Broadening IP'—to build competitive barriers.
Diversifying IP involves expanding the IP portfolio and securing premium global resources. STARPLUS LEGEND is broadening its IP reserves and partnership network, transitioning towards a synergistic matrix structure featuring key anchors. Beyond core IPs, in November 2025, the company, through an industry fund, subscribed for up to 7% of the shares in Galaxy, a leading South Korean artist agency, becoming a strategic shareholder. This move indirectly connects the company to IP resources of international stars, expanding its IP footprint from Greater China to global markets. Simultaneously, the company is actively building an original IP system, launching properties like WAKAEMO and venturing into new categories such as robot IPs. Combined with offline scene IP resources accessed through a strategic investment in the National Stadium (Bird's Nest) operator, these efforts provide multi-layered support for the sustained growth of the IP operations business.
Deepening IP entails building a diversified product matrix and penetrating the trendy toys consumer market. Centered around core IPs, the company has developed a rich array of derivative products, including vinyl and plush toys, plush dolls, blind box figures, themed building blocks, and collectible cards. This transforms fans' emotional connection with the IP into tangible, collectible products. Furthermore, STARPLUS LEGEND is venturing into robot IP products. In September 2025, a quadruped robotic dog co-developed with Unitree Tech made its public debut. This product, blending celebrity IP, trendy toy appeal, and technological functionality, attracted significant market attention. In November 2025, the two parties announced plans to establish a joint venture responsible for developing and operating consumer-grade IP robots, performer humanoid robots, and IP derivative products. Through these initiatives, the company is evolving tech products towards 'playfulness' and 'emotional connection,' tapping into the multi-trillion-yuan 'emotional economy' sector and amplifying the value of IP-driven emotional bonds.
Broadening IP focuses on creating omnichannel touchpoints to maximize commercial value. If the first two steps address IP 'resources' and 'products,' this step tackles 'reach' and 'experience.' STARPLUS LEGEND is widening its user reach by building an integrated online-offline omnichannel network. Offline, through various formats like IP-themed exhibitions, pop-up stores, robotic stores, and planned physical shops, the company integrates IP experiences into daily life. Pop-up stores set up in cities hosting concerts, for instance, convert fans' enthusiasm into immediate consumption, effectively channeling traffic from content scenes to commercial scenes. Regarding physical venues, the strategic investment in the Bird's Nest operator allows for deep integration of IP creation and operational capabilities with this premier national landmark, enabling IPs to transition from online content and offline retail into cultural event spaces. This achieves a comprehensive, all-scenario channel layout, providing a broader platform for realizing IP value.
From a strategic positioning perspective, the 1.0 era of STARPLUS LEGEND focused on IP creation and content operations, achieving initial brand asset accumulation. The company has now entered the '2.0 era,' shifting its focus towards consumption conversion and commercial monetization. Through a growth model of 'IP + Product + Channel + AI,' it aims to transform IP value into sustainable earnings growth.
Movements in the capital market reflect observation of the company's strategic adjustments. Trading data indicates that southbound capital has been consistently increasing its holdings in STARPLUS LEGEND over the recent quarter. As of March 28, 2026, the total holdings by southbound capital reached 197.7105 million shares, with an increase of 27.9395 million shares during the quarter. This capital flow aligns with market interest in the trendy toys and IP consumption sector. Since 2025, the performance of relevant indices has reflected the vitality of this sector, showing an overall upward trend despite some corrections. Market confidence appears robust, seemingly rooted not in short-term speculation but in the long-term logic of a continuously expanding IP economy and growing demand for emotional consumption.
Having consolidated the foundations of its 1.0 era, STARPLUS LEGEND is now stepping into the IP Ecosystem 2.0 era with a clearer strategy, a cleaner asset base, and a more robust IP ecosystem.
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