Zepp International Challenges Taiwan's First Two-Dimensional Concept Stock: From IP Control to Global Expansion

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Taiwan's capital market is about to welcome its first "two-dimensional concept stock." Zepp International, which focuses on the anime, gaming, and VTuber industries, is about to go public and be sent to the emerging stock market. Unlike most two-dimensional related companies in Taiwan in the past, which mainly focused on agency, OEM, or content distribution, Zepp International has focused on IP (Intellectual Property) development and control from its inception, actively participating in Japanese animation production committees, obtaining IP leadership from the source, and further expanding to the global market, breaking the limitations of Taiwanese operators in the downstream of the industry chain.

Breaking Through Adversity: A Complete Ecosystem from Content Production to IP Monetization

Founded in 2015, Zepp International's business spans two-dimensional related fields such as animation, games, and VTubers (virtual YouTubers), and it has built a one-stop IP management model. The company starts by discovering light novels and manga originals, develops them through animation and game adaptations, then distributes them to the global market, while simultaneously acting as an agent to introduce them to Taiwan, and finally extends to diverse applications such as merchandise licensing and event organization. This model not only reduces risk but also allows Zepp to maximize IP value and secure stable licensing revenue.

The biggest difference from other Taiwanese ACG companies is that Zepp not only participates in IP development but also actively enters animation production committees to ensure that it has control. General Manager Hsu Li-Wei pointed out that having control of IP is like owning real estate that can continuously generate rental income, without having to rely on the decisions of licensors, but rather being able to respond flexibly to market changes, quickly adjust strategies, and generate revenue from multiple levels such as film and television rights, peripheral merchandise development, and cross-industry collaborations.

Entering the Japanese Market: From Partner to Organizing Production Committees

However, gaining the trust of the Japanese market is not easy. The Japanese animation industry generally adopts a "production committee" system, which distributes IP development risks to multiple companies, and these companies usually have the capital and industry resources to extend the commercial life cycle of the IP. Hsu Li-Wei revealed that Zepp's ability to participate in production committees initially came through a cooperation opportunity with TV Tokyo in Japan. In 2015, it co-organized the "Xuanyuan Sword: The Azure Bonds" animation production committee with Softstar Entertainment, which successfully established a foundation of trust. It then spent several years accumulating experience and eventually became the only company in Taiwan capable of organizing production committees.

Zepp International Marketing Director Hung Chia-Yin further explained that production committee management usually evaluates the contribution value of members, which requires not only capital but also the ability to provide resources, such as animation distribution, game development, or cross-industry applications. Today, Zepp has partnered with leading companies in the Japanese market, gradually acquiring higher-quality IP and driving revenue growth.

New Force in the Capital Market: Securing Corporate Investment, Expanding IP Portfolio

Zepp's success has also attracted investment from large enterprises. For example, Taiwan Mobile invested in 2021 to become the largest shareholder, valuing Zepp's experience in the Japanese market and hoping to develop more IP-related businesses. In addition, Zepp has successively received capital injections from companies such as Roaders Hotel, Ability Enterprise, Genius, and ADATA, accelerating IP development and commercial monetization plans.

With the funding in place, Zepp has strengthened its business through vertical integration, including the establishment of the IP rights agency and distribution business company "Regression Entertainment," and "Soaring Ying Fusion," a joint venture with the Taiwan Creative Content Agency, specializing in the development of Taiwan's local IP. On the other hand, the company also uses a horizontal expansion strategy to extend animation IP to game development, VTuber management, and other fields, maximizing the revenue potential of IP.

Moving Towards the Capital Market, Creating a New Paradigm for Taiwan's ACG Industry

Now, Zepp is reaching the milestone of its tenth year of establishment and has chosen to enter the capital market, not only to raise more funds but also to expand the scale of IP investment through the power of capital, promote more animation and game projects, and deepen its industry layout.

General Manager Hsu Li-Wei emphasized that high-quality IP requires long-term cultivation and substantial financial support. Through listing, Zepp will be able to expand its business territory more flexibly, attract more partners, and further strengthen its competitiveness in the two-dimensional industry.

Looking ahead, Zepp International not only hopes to become Taiwan's first "two-dimensional concept stock" but also aims to lead Taiwan's two-dimensional industry to have a place in the global market through independent control of IP. With the continuous expansion of the market, Zepp's growth potential is highly anticipated, bringing new possibilities to Taiwan's ACG industry.

Image Source: CommonWealth Magazine