Executive Summary / Key Takeaways

• Dreamland Limited (TDIC) is undergoing a significant strategic transformation, shifting from a pure event planner to an event organizer and investor, with a core focus on directly acquiring intellectual property (IP) licenses for themed experiential events.
• The company demonstrated robust financial recovery post-COVID-19, with net revenue surging by 124.10% to HK45.8 million in the fiscal year ended March 31, 2025, driven by its new investment-led event model.
• A key strategic initiative involves developing an in-house ticketing platform to capture comprehensive attendee engagement data, enabling data-driven IP acquisition, event planning, and risk mitigation, alongside an upgrade to its ERP system.
• Despite strong revenue growth, TDIC faces intense competition from larger, diversified entertainment entities and must effectively address identified material weaknesses in its internal controls to ensure sustainable and compliant expansion.
• The recent initial public offering (IPO) on Nasdaq provides essential capital to fund this strategic pivot, supporting direct IP acquisition and technological infrastructure development for increased market share in Hong Kong and overseas.

Dreamland's Evolution in Experiential Events

Dreamland Limited, operating primarily through its Hong Kong-based subsidiary Trendic International Limited, has established itself as an event management service provider with over eight years of experience. The company specializes in organizing, planning, promoting, and managing themed touring walk-through experience events, often centered around well-known intellectual properties (IPs) from animated cartoons and live-action motion pictures. This niche focus positions Dreamland within a highly fragmented and intensely competitive events industry, where consumer demand for deeper, more meaningful experiences drives constant innovation.

The company's journey reflects a strategic evolution, particularly in response to market dynamics. Initially, Dreamland acted as an event planner, assisting event organizers. However, a significant pivot began in April 2024, transitioning the company into an event organizer and investor role. This shift involves engaging in direct investment deals for experience events, where Dreamland becomes an effective investor or co-investor, and even pure investment deals without direct operational involvement. This move up the value chain is critical to its long-term strategy, aiming to directly obtain multi-territorial IP licenses and eliminate intermediary mark-ups, thereby enhancing profitability and market share in Hong Kong and expanding into overseas markets. The Hong Kong government's policy to boost a "mega events economy" further provides a supportive backdrop for this strategic direction.

Dreamland's foundational strengths underpin this ambitious strategy. The company boasts an established reputation and a proven track record, having completed over 30 large-scale and 60 small to medium-sized projects across Hong Kong, Macau, Taiwan, the PRC, and Southeast Asia. This extensive experience, coupled with the ability to manage the entire event lifecycle—from conceptualization and budgeting to promotion and post-event follow-up—allows Dreamland to offer one-stop solutions to its customers. The management team, led by founder and CEO Ms. Seto Wai Yue, possesses deep industry expertise and a wide network of connections with IP owners, venue operators, and other service providers, which is instrumental in cost-effective and efficient event execution. Furthermore, Dreamland's creative offerings, such as designing collectible custom-made merchandise and themed food and beverage items, are designed to maximize event income and enhance ticket sales. The company has also strategically secured its own event venue in a high-footfall Hong Kong shopping mall under a turnover rent model, which reduces fixed costs and increases operational efficiency.

Technological Edge and Strategic Innovation

Dreamland's strategic pivot is significantly supported by its technological roadmap, which aims to enhance operational efficiency, data-driven decision-making, and direct customer engagement. The company currently leverages existing information technology systems to manage various operational aspects, including market research, contract tracing, work scheduling, performance review, proposal preparation, and communication with third parties. These systems are fundamental to orchestrating complex event lifecycles in a cost-effective and efficient manner.

A key technological differentiator and future growth driver is Dreamland's plan to build its own ticketing platform. This initiative is designed to move beyond the limitations of third-party platforms, which currently provide only limited data on leads. The in-house platform's stated goals include facilitating direct marketing, lead capture, pushing pre-event content such as broadcast-quality video, conducting pre-event surveys, and providing access to on-demand video content post-event. The strategic intent behind this platform is to secure full engagement data on event attendees. For investors, the "so what" of this development is profound: by owning and analyzing this big data, Dreamland can acquire more appropriate IP licenses, plan future experience events with greater precision, and significantly reduce investment risks. This data-driven approach is expected to enhance the company's competitive moat, foster stronger relationships with potential attendees, and tailor services to market needs, potentially leading to higher ticket and merchandise sales and improved margins by bypassing third-party platform fees. Complementing this, the company plans to upgrade its Enterprise Resource Planning (ERP) system, further supporting overall operational scalability and financial management as it expands its role as an event organizer and investor.

Financial Performance: A Growth Story with Emerging Pains

Dreamland Limited's financial performance reflects a dynamic period of recovery and strategic transition. The fiscal year ended March 31, 2023, saw the company record a net loss of approximately HK0.48 million, a direct consequence of the COVID-19 pandemic's severe impact on in-person events. However, with the easing of restrictions and a renewed focus on event management, the company experienced a remarkable turnaround. Net revenue surged by approximately 465% to HK20.44 million in the fiscal year ended March 31, 2024, yielding a net profit of approximately HK7.09 million.

The strategic shift to acting as an event organizer and investor further propelled revenue growth in the fiscal year ended March 31, 2025. Total net revenue increased by approximately 124.10% to HK45.80 million. This growth was primarily attributable to new revenue streams from ticket sales (HK9.73 million), sales of goods and café operations from events (HK7.59 million), sponsorship income (HK5.37 million), and video production (HK8.95 million), reflecting the company's expanded role.

Despite this substantial revenue increase, net profit for FY2025 slightly decreased to approximately HK6.43 million. This dip in profitability was partially due to significant listing fees incurred during the year, alongside increased staff costs and business expansion expenses. The company's profit from operations for FY2025 was HK773,472, a decrease from HK8.12 million in FY2024, indicating the impact of these increased operational and administrative costs.

The overall financial performance, marked by significant revenue growth and fluctuating profitability, underscores the dynamic nature of Dreamland's strategic transition.

Liquidity and capital resources are critical for funding Dreamland's growth ambitions. For the fiscal year ended March 31, 2025, the company reported net cash used in operating activities of approximately HK16.0 million and net cash used in investing activities of approximately HK14.77 million. These outflows were largely driven by increases in accounts and other receivables, deposits and prepayments, and significant investments in intangible assets (HK9.27 million) and event projects (HK8.49 million). To offset these, net cash provided by financing activities amounted to approximately HK44.8 million, primarily from proceeds from a shareholder, investment partners, bank overdrafts, and bank borrowings.

The company's initial public offering in July 2025, which raised approximately US$5.40 million in gross proceeds, provides crucial capital to finance its strategic initiatives, including direct IP acquisition and technological infrastructure development. As of March 31, 2025, Dreamland had outstanding commitments for investments in event projects totaling HK12.80 million, signaling continued capital deployment in its new business model.

Competitive Positioning: Niche Strength Amidst Giants

Dreamland Limited occupies a specialized niche within the broader entertainment and event management industry, focusing on IP-driven experiential events. This positioning provides distinct advantages but also exposes the company to formidable competition from larger, more diversified players. Dreamland's primary competitive factors include the breadth and depth of its services, pricing, user experience, industry expertise, and relationships with IP owners and other industry players.

Compared to global entertainment giants like Live Nation Entertainment (LYV), The Walt Disney Company (DIS), and Comcast Corporation (CMCSA), Dreamland operates on a significantly smaller scale. Live Nation, a global leader in live events, benefits from extensive global reach, integrated ticketing, and strong artist relationships. While Dreamland's thematic depth and customized experiences for specific IPs offer a unique appeal, it currently lags LYV in terms of overall scale, global distribution, and operational efficiency, which contributes to LYV's stronger cash flow generation and revenue stability (LYV's TTM P/E ratio is 69.82, indicating strong investor confidence in its earnings power).

The Walt Disney Company, with its unparalleled IP ownership and integrated ecosystem of theme parks and merchandise, presents a formidable competitor in the IP-driven experiences market. Disney's proprietary technology in immersive experiences and its ability to leverage in-house IPs provide a significant competitive edge, leading to superior net margins and strong return on equity (DIS's TTM P/E ratio is 17.82, with a P/B ratio of 1.89). Dreamland, as an external promoter, offers more flexible, partner-focused solutions and agility for pop-up events, but cannot match Disney's integrated scale or R&D investment. Similarly, Comcast's NBCUniversal division, with its vast media resources and theme park operations, benefits from scale and advanced digital integrations. Dreamland's targeted, cost-effective pop-up activations differentiate it, but CMCSA's integrated content distribution supports stronger financial metrics (CMCSA's TTM P/E ratio is 5.12, with a P/B ratio of 1.21). Madison Square Garden Entertainment Corp. (MSGS), focused on venue-based live events, offers operational stability through established infrastructure. Dreamland's mobility and IP focus allow for thematic customization, but MSGS's fixed-location strengths provide a different kind of market dominance.

Dreamland's competitive advantages, or "moats," lie in its deep expertise in IP partnerships and specialized event design. This allows for the creation of unique, immersive experiences that can foster strong customer loyalty and potentially command pricing power in niche segments. This focus on customized offerings helps Dreamland differentiate itself from competitors with broader but less targeted strategies, potentially leading to improved market share in IP-specific events. However, its vulnerabilities include a niche focus that may limit scalability and a dependence on external IP owners for revenue, which could lead to volatility. The company's reliance on a concentrated group of suppliers, with the five largest accounting for approximately 75% of its total cost of goods sold in FY2025, also presents a supply chain risk. Dreamland strategically positions itself by leveraging its network of service providers to expand into overseas markets without the overhead of local offices, maintaining agility in a dynamic industry.

Outlook and Strategic Trajectory

Dreamland Limited's forward trajectory is firmly anchored in its strategic ambition to become a leading event organizer and investor in the experiential events sector. The company plans to expand the breadth and depth of its event management, design, and merchandising services, with a clear focus on increasing its market share in Hong Kong and developing new overseas markets. A cornerstone of this strategy is the direct acquisition of multi-territorial IP licenses from IP owners, a move designed to eliminate intermediary mark-ups and enhance long-term profitability. Preliminary discussions with IP owners are already underway, signaling active pursuit of this goal.

The development of an in-house ticketing platform is another critical strategic initiative. This platform is envisioned as a powerful tool for direct marketing, lead capture, and comprehensive data collection on event attendees. By analyzing this "big data," Dreamland aims to make more informed decisions regarding IP acquisition, future event planning, and investment risk reduction. This technological enhancement is expected to bolster the company's brand credibility and build trust with its target audience. Furthermore, Dreamland plans to expand its project, finance, and administration departments, establish new sales and marketing and information technology departments, and upgrade its ERP system, all to support its growth and operational scaling. These initiatives, coupled with the capital infusion from its recent IPO, are designed to solidify Dreamland's position and drive sustained growth in the evolving experiential events market.

Key Risks and Challenges

Despite its strategic growth initiatives, Dreamland Limited faces several pertinent risks that could impact its investment thesis. The company's transition into a new business model makes it challenging to accurately evaluate future financial prospects, and past performance may not be indicative of future results. There is inherent uncertainty regarding future profitability, as increased operating expenses associated with direct investment deals and IP acquisition may not be immediately offset by revenue growth.

Revenue concentration remains a significant concern, with the largest customer accounting for 20.40% of net revenue in FY2025. The project-by-project nature of its contracts also introduces revenue volatility, as there are no long-term guarantees of future engagements. Dependence on key management, particularly CEO Ms. Seto, and a high concentration of third-party suppliers (75% of COGS from five largest in FY2025) pose operational risks. Furthermore, the company is exposed to potential IP infringement claims and the challenge of effectively protecting IP owners' rights.

A critical area of concern highlighted by the company's auditor as of March 31, 2025, involves material weaknesses in internal controls over financial reporting. These include vulnerabilities to management override, reliance on manual Excel-based accounting, inadequate control over related party transactions, insufficient documentation, and errors in revenue recognition and asset classification. Addressing these weaknesses is paramount for maintaining investor confidence and ensuring accurate financial reporting. Additionally, regulatory uncertainties related to PRC government oversight, evolving data protection laws, and the potential impact of the HFCAA on PCAOB inspections, although the auditor is US-based, introduce external risks that could affect the company's operations and stock listing.

Conclusion

Dreamland Limited stands at a pivotal juncture, strategically transforming from a service-oriented event planner to an integrated event organizer and investor. This evolution, fueled by the recent Nasdaq IPO, is designed to capitalize on the growing demand for IP-driven experiential events, particularly in Hong Kong and Southeast Asia. The core investment thesis hinges on the company's ability to successfully execute its strategy of direct IP acquisition and leverage technological advancements, such as its planned in-house ticketing platform, to enhance profitability and market share.

While the company's impressive revenue growth in recent fiscal years underscores its market responsiveness and operational capabilities, investors must weigh this against the inherent risks of a business model transition, revenue concentration, and the critical need to strengthen internal financial controls. Dreamland's competitive positioning, characterized by niche expertise and strong industry relationships, offers a distinct advantage against larger, more diversified entertainment conglomerates. However, sustained success will depend on its ability to mitigate operational dependencies, navigate regulatory complexities, and effectively utilize its capital to build a robust, data-driven experiential events ecosystem, thereby solidifying its long-term value proposition.