Shares of TONGSHIFU (00664) have climbed more than 6%. As of the time of writing, the stock is up 6.22% to HK$25.26, with a turnover of HK$5.256 million.

The catalyst for the move appears to be the successful launch of the company's new merchandise series based on the "A Record of a Mortal's Journey to Immortality" animation. The products officially went on sale through TONGSHIFU's official flagship stores on platforms including Tmall, Douyin, and JD.com on the evening of May 27th.

Company founder Yu Guang announced on social media that the collaborative merchandise series generated sales of RMB 22 million within just three hours of its launch.

Analysts note that TONGSHIFU has built a competitive moat through its original designs and traditional craftsmanship. The company is strategically expanding its product range from high-end collectibles to more affordable consumer goods, accelerating the development of its offline retail channels, and cultivating a loyal user community, similar to the model employed by Xiaomi. This multifaceted approach is expected to help the brand reach a broader target audience.