The animated film "Luoxiaohei Zhanji 2" continues to maintain strong popularity after transitioning to online platforms. Col Group Co.,Ltd. recently responded to investor inquiries, stating that the film has topped the popularity charts on multiple video platforms for consecutive days. Previously, the film was included in the eligibility list for the 98th Academy Awards' Best Animated Feature category. During its theatrical run, the Luoxiaohei IP ranked fourth on Tmall's top-selling anime merchandise brand list. However, financial reports show Col Group reported revenue of 1.159 billion yuan last year with a net loss of 243 million yuan attributable to shareholders. In Q3 this year, revenue reached 455 million yuan, but net losses widened to 294 million yuan. Industry experts note that while Luoxiaohei's derivative market shows promise, its financial impact will take time to materialize. Although Col Group boasts rich content reserves and a multi-platform distribution matrix, its flagship IPs still require further cultivation.

Expanding Revenue Beyond Box Office According to Lighthouse Pro, "Luoxiaohei Zhanji 2" grossed 533 million yuan at the box office, breaking two records: "Highest-grossing fantasy film in summer season over past three years" and "Highest cumulative summer fantasy film box office in past three years."

Professor Zhang Zhenpeng from Shenzhen University's Cultural Industry Research Institute explained: "Unlike many domestic animated films that develop derivatives post-release, Luoxiaohei's commercialization follows international mature IP models - building fan communities years before release with pre-established derivative systems."

On June 28, 2023, Col Group announced plans to acquire 51.04% stake in Hanmu Chunhua, Luoxiaohei's parent company, for 138 million yuan.

Col Group's 2024 annual report revealed Luoxiaohei merchandise including badges, acrylic stands, wobble figures, film cards and posters, with many products selling out immediately. Themed pop-up stores debuted in Shanghai's commercial districts, with nationwide expansions planned.

The film's release boosted derivative sales significantly. Public data shows Luoxiaohei blind boxes sold out within 2 seconds on premiere day, while Beijing's flagship pop-up store attracted over 150,000 visitors in 10 days. Post-release, 140,000 derivative products were sold across channels.

During its theatrical run, Luoxiaohei ranked fourth on Tmall's top anime merchandise brands, trailing only miHoYo, Pop Mart, and Light and Night.

Market analyst Li Ran noted Luoxiaohei's derivative success stems from multiple factors: "The film built solid audience foundations, while precise market positioning and diversified product strategies proved crucial. From trendy blind boxes and figurines to apparel, stationery and daily goods, the offerings catered to diverse consumer needs."

IP Monetization Requires Time Despite Luoxiaohei's hot derivative market, industry experts caution that financial performance will take time to reflect this success.

Col Group's reports show 2023 revenue dropped 17.73% to 1.159 billion yuan with net losses widening 371.58% to 243 million yuan. Q3 2024 revenue grew 31.43% to 455 million yuan, but losses surged 673.14% to 294 million yuan.

Zhang Yi, CEO of iiMedia Research, explained: "IP cultivation and monetization cycles involve time lags. Derivative sales heavily depend on fan sentiment and purchasing behaviors, making them vulnerable to fluctuations. For Luoxiaohei, core incremental revenue can't yet form stable business support. Sustained content innovation, market expansion and AI integration are needed to build a robust IP ecosystem for steady growth."

Col Group's 2024 report outlines four strategic pillars: strengthening content, prioritizing IP, global expansion, and AI empowerment, focusing on tech-driven content ecosystems and worldwide IP deployment.

Zhang Yi views Col Group's IP business as transitioning from rapid growth to maturity, where cross-media content matrices and diversified channel strategies become critical for maximizing IP value.

Professor Zhang Zhenpeng acknowledges Col Group's advantages in content reserves and distribution networks, but notes its lack of dominant IPs remains a weakness.

Col Group's 2024 report highlights extensive IP resources: original platforms like 17K小说网 and April Sky with 5.6 million digital works and 4.5 million authors, plus partnerships with 600 copyright agencies and 2,000 established writers.

Li Ran suggests Col Group must intensify flagship IP cultivation while maintaining current strengths to achieve breakthroughs. Zhang Zhenpeng recommends enriching IPs through cross-genre elements like history and sci-fi, customizing products for overseas markets, and developing fan-centric interactive platforms to enhance engagement.

Requests for comment sent to Col Group remained unanswered at time of publication.