Koi N Quirky, the IP business under Orca Entertainment, shuts down | Exclusive from 36Kr

Text | Lan Jie

Editor | Qiao Qian

36Kr has exclusively learned that recently, considering comprehensive factors such as the market and business operations, Damai Entertainment (formerly Alibaba Pictures) has decided to shut down its wholly-owned subsidiary, Jinli Naqu, and stated that it will properly handle the subsequent matters.

According to sources familiar with the matter, one of the reasons for the shutdown is poor business management. Jinli Naqu's revenue contribution is "too small" compared to the overall performance of Orca Entertainment (formerly Alibaba Big Entertainment).

As 36Kr has learned, the actions of this business shutdown and staff layoffs were carried out relatively quickly. Most of the team members received the layoff notice on the same day, and only a small number of people are handling the aftermath, with their future uncertain.

Jinli Naqu and Alibaba Fish are the two major IP derivative businesses under Damai Entertainment. The former is a trendy toy brand built on Damai Entertainment's IP matrix and self - operated and distribution channels, while the latter is a trading platform centered on IP operation, licensing, and commercial development.

In the years before the shutdown, Jinli Naqu made a lot of efforts in the development of original IPs and movie peripherals. It also participated in the well - known trendy toy exhibition TOY HEART during the Dragon Boat Festival holiday.

The blind box peripherals of the "Empresses in the Palace" series are the best - selling products under Jinli Naqu. When this series of products were launched in 2022, they made it onto the top ten of Tmall's hot - selling blind box list multiple times.

In addition to developing IP peripherals for popular TV dramas, according to public information, Jinli Naqu has accumulated more than 10 original trendy toy IPs. However, in terms of results, only the movie peripherals like those of "Empresses in the Palace" sold well, and no hit products were born among the original IPs.

As 36Kr has learned, Jinli Naqu's revenue in 2024 was less than 500 million yuan. According to Alibaba's financial report for the fiscal year 2025, the revenue of the Big Entertainment Group (now Orca Entertainment) in the fiscal year 2025 was 22.267 billion yuan. In other words, Jinli Naqu's revenue contribution accounted for only 2%.

This business cut - off also occurred during the overall adjustment process of Orca Entertainment.

On May 21st, Alibaba Big Entertainment Group officially announced that it would be renamed Orca Entertainment Group with immediate effect, and its subsidiary Alibaba Pictures would be renamed Damai Entertainment.

At that time, Orca Entertainment Group issued an internal letter stating that this brand renewal is in line with Alibaba's principle of "returning to the original intention and starting a new business" and is also a key decision made by the company based on its own strategy.

This adjustment is in line with Orca Entertainment's overall development trend in the past few years - its dependence on the movie business has been decreasing year by year, while its emphasis on offline performance activities and IP derivatives has been continuously increasing.

In the fiscal year 2025, Alibaba Pictures' operating revenue was 6.702 billion yuan, a year - on - year increase of 33.10%. Among them, Damai.com's revenue reached 2.057 billion yuan, a sharp increase of 236%; the IP derivative business achieved revenue of 1.433 billion yuan, a year - on - year increase of 73%. These two businesses have become the core driving forces for Alibaba Pictures' performance growth, and their combined revenue scale also accounts for more than half.

This growth can also be attributed to Orca Entertainment's ability to adapt to the trend - in the past few years, the growth of the movie industry's revenue scale has slowed down, while the trendy toy industry has come into the spotlight driven by Pop Mart.

Orca Entertainment's overall direction has focused on more profitable offline performance and IP development businesses, and the shutdown of Jinli Naqu does not affect the group's overall development direction. This is a practical choice.

No entertainment company doesn't want a share of the trendy toy market, but not all trendy toy companies can become the next Pop Mart.