Core Viewpoint - The South Korean film industry is experiencing a significant downturn, with only 17 films produced this year, raising concerns about the future of local cinema [1][4]. Group 1: South Korean Film Market - The South Korean film market is described as being in a "collapse" state, with a drastic reduction in film production and a lack of major box office hits [1]. - The director Kim Seong-soo expressed that there is virtually no one making films in South Korea anymore [1]. - The situation mirrors previous concerns about the Korean drama market, which has also faced challenges but continues to produce content primarily through streaming platforms like Netflix [4]. Group 2: Domestic Film Industry Trends - The domestic film industry is also seeing a decline in project initiations, with major studios adopting a cautious investment approach [6]. - Notable projects this year include over 50 live-action films, but there is a clear trend towards cost-cutting and efficiency [6]. - Major studios like Wanda, LeTV, and Bona have significantly reduced their project outputs compared to previous years, indicating a shift in investment strategies [10][12]. Group 3: Investment and Production Shifts - Companies are increasingly focusing on smaller, more manageable projects, with a notable rise in female-led narratives and collaborations with streaming platforms [21][23]. - The trend of production companies diversifying into film projects is evident, with several companies that traditionally focused on series now investing in films [20][21]. - The involvement of distribution and marketing companies in film production is increasing, as they seek to adapt to the changing market dynamics [21][25]. Group 4: Emerging Opportunities - Despite the downturn, there are signs of resilience as production companies pivot towards new content types, including female-centric stories and collaborations with emerging directors [15][20]. - Companies like iQIYI are actively investing in film projects, indicating a willingness to explore new narratives and support new talent [15]. - The current market environment is seen as a transitional phase, where traditional business models are being reassessed, and new creative directions are being explored [25].

Core Viewpoint - The "First Media Industry Sustainable Development Index" has been officially released, with Damai Entertainment Holdings Limited ranking first among the "TOP 20 Listed Companies" [1][6]. Group 1: Index Overview - The index evaluates the sustainable development ESG performance of listed media companies in mainland China, covering six categories: advertising, digital media, gaming, film and television, publishing, and broadcasting [6]. - A total of 85 listed media companies that published their 2024 ESG reports were included in the index, with the evaluation process supervised by SGS [6]. Group 2: Company Rankings - Damai Entertainment Holdings Limited topped the list with the highest score and was rated as a "Practitioner" [6]. - Other notable companies in the top rankings include: - 2nd: Yidian Tianxia Network Technology Co., Ltd. (Advertising) - 3rd: Wuxi Baotong Technology Co., Ltd. (Gaming) - 4th: Xinhua Wengxuan Publishing Media Co., Ltd. (Publishing) [3][4]. Group 3: Company Profile - Damai Entertainment integrates sustainable development into its corporate strategy and management, focusing on creating meaningful content, developing film AI technology, and building a green industry chain [6]. - The company achieved an MSCI ESG rating of AA in 2025, the highest in the domestic media and entertainment industry [6].

Core Insights - The "First Media Industry Sustainable Development Index" has been officially released, with Damai Entertainment Holdings Limited ranking first in the "TOP 20 Listed Companies" overall list [1][6]. Company Rankings - Damai Entertainment Holdings Limited is ranked 1st in the film and theater industry with a rating of "Practitioner" [3]. - Other notable companies in the top rankings include: - Yidian Tianxia Network Technology Co., Ltd. (2nd, Advertising Marketing, "Practitioner") [3] - Wuxi Baotong Technology Co., Ltd. (3rd, Gaming, "Product") [3] - Xinhua Wengxuan Publishing Media Co., Ltd. (4th, Publishing, "Practitioner") [3] - Shanghai Ningmeng Film and Television Media Co., Ltd. (5th, Film and Theater, "High K") [3]. Index Methodology - The index covers 85 listed media companies from mainland China (excluding Hong Kong and Macau) that have published their 2024 ESG reports, social responsibility reports, and sustainable development reports by 2025 [4][6]. - The evaluation includes six categories: advertising marketing, digital media, gaming, film and theater, publishing, and television broadcasting [4][6]. - The rating process is supervised by SGS (Hong Kong General Testing and Certification Co., Ltd.) [6]. ESG Performance - Damai Entertainment integrates sustainable development concepts into its corporate strategy and management, focusing on creating meaningful content, developing film AI technology, and building a green industry chain [6]. - The company achieved an MSCI ESG rating of AA in 2025, the highest in the domestic media and entertainment industry [6].

Core Viewpoint - The "First Media Industry Sustainable Development Index" has been officially released, with Damai Entertainment Holdings Limited ranking first among the "TOP 20 Listed Companies" [1]. Group 1: Index Overview - The index is based on the "Media Industry Sustainable Development VPI Rating Model," providing a data-driven and scientific analysis of the ESG performance of publicly listed media companies in mainland China [2]. - A total of 85 listed media companies that published their 2024 ESG reports, social responsibility reports, and sustainable development reports for 2025 were included in the index, covering six categories: advertising and marketing, digital media, gaming, film and television, publishing, and television broadcasting [2]. Group 2: Company Performance - Damai Entertainment achieved the highest score and was rated as a "Practitioner," indicating its leading position in sustainable development within the media industry [2]. - The company integrates sustainable development principles deeply into its corporate strategy and management, focusing on creating meaningful content, developing film and television AI technology, and building a green industry chain [3]. Group 3: ESG Rating - Damai Entertainment's MSCI ESG rating rose to AA in 2025, marking it as the highest in the domestic media and entertainment industry [4].

Summary of Damai Entertainment Holdings (1060.HK) Conference Call Company Overview - **Company**: Damai Entertainment Holdings (1060.HK) - **Market Cap**: HK$27.6 billion / $3.6 billion - **Enterprise Value**: HK$23.8 billion / $3.1 billion - **Current Price**: HK$0.93 - **12-Month Price Target**: HK$1.30 - **Upside Potential**: 39.8% [1][21] Key Industry Insights IP Business Growth Potential - **IP Segment Growth**: Expected to sustain high growth with a projected GMV doubling for 1HFY26, translating to a 44% CAGR from FY2025-28E [2][24] - **Drivers of Growth**: - Strong momentum from the Sanrio family [24] - Incremental contributions from Chiikawa, with enhanced IP rights [24][26] - Potential collaborations with new IPs [24] - Strengthened monetization of existing IPs [24] - **Market Position**: AliFish is the largest IP sub-licensing agent in China with a market share of over 30% expected in 2025E [2][27] Damai Ticketing Segment - **Revenue Growth**: Expected to slow to +7% YoY in FY26E due to moderated live music ticketing business and increasing competition [3][38] - **Future Outlook**: Anticipated return to double-digit growth from FY27E, supported by strong connections with venues and artists [19][38] - **Market Dynamics**: Competition has intensified, with peers offering lower take rates to gain market share [39][40] Financial Performance Revenue and Profitability Forecasts - **Total Revenue**: Projected to reach RMB 7,620.5 million in FY26E, up from RMB 6,702.3 million in FY25 [6][22] - **Adjusted EBITDA**: Expected to be RMB 981.8 million in FY26E, reflecting a growth of 29.8% [6][22] - **Net Profit**: Forecasted at RMB 468 million for 1HFY26, representing a 39% YoY increase [20] Margin Outlook - **EBITDA Margin**: Expected to improve from 11.3% in FY25 to 17.9% in FY28E [18] - **Net Income Margin**: Projected to increase from 5.4% in FY25 to 14.2% in FY28E [18] Investment Considerations - **Valuation**: The stock is currently trading at 21X CY26 PE, with a target price of HK$1.30, indicating a buy recommendation [1][21] - **Risks**: Concerns over profitability and competition in the ticketing segment may impact stock performance [1][21] Additional Insights - **Competitive Moat**: Damai's competitive advantages include strong venue connections, extensive operational experience, and significant user mindshare with a monthly active user base of 45 million [41][49] - **Future Growth Areas**: Non-concert events such as stand-up comedy and sports are expected to contribute to revenue growth [39][51] This summary encapsulates the key points from the conference call regarding Damai Entertainment Holdings, focusing on its growth potential, financial forecasts, and competitive landscape.

Core Viewpoint - Alibaba's subsidiary, Aliyu, is expected to benefit from the collaboration between Labubu and the renowned American card brand Topps, with the launch of Labubu collectible cards on its Tmall flagship store [1][5]. Group 1: Collaboration and Product Launch - The pre-sale for the Topps X The Monsters/Labubu collectible card series will begin on October 20 at 20:00, as announced by Aliyu [2]. - This collaboration marks a special 10th anniversary edition for Labubu fans, featuring cards designed by the original artist, Long Jiasheng [2]. - The collectible cards will include rare types such as refractor versions and artist-signed replicas, with only 22 signed cards available [2]. Group 2: Market Potential and Growth - Topps, a well-known card publisher, has established partnerships with major sports leagues like MLB, NFL, and UFC, and has a history of successful collaborations with entertainment IPs like Star Wars and Marvel [3]. - The collaboration is expected to enhance Topps' market presence in China, benefiting both Topps and Aliyu as they tap into the growing card industry [3][5]. - Recent successful launches, such as the Chiikawa flagship store and the second Sanrio Super Brand Day, indicate strong performance in Aliyu's IP licensing business [1][4]. Group 3: Financial Projections - The company forecasts net profits for the fiscal years 2026-2028 to be 854 million, 957 million, and 1.07 billion yuan, representing year-on-year growth rates of 134.85%, 12.08%, and 11.84% respectively [1][5]. - The price-to-earnings ratio (PE) for October 14, 2025, is projected to be 32.27, 28.79, and 25.74 for the respective years [1][5].

Core Insights - The strategic partnership between Galaxy Macau, Damai Entertainment, and Macau Tong has been renewed for three years, aiming to enhance the cultural and entertainment industry in Macau and the Greater Bay Area [1][3] Group 1: Strategic Collaboration - The three parties will continue to host diverse cultural events in Macau, including concerts, stage plays, award ceremonies, immersive performances, and sports events over the next three years [3][6] - The collaboration will extend beyond Macau, exploring partnerships for projects in non-Macau venues to establish a performing arts hub in the Greater Bay Area [3][6] Group 2: Ticketing System Enhancement - Damai Entertainment will work with Galaxy Macau to upgrade the ticketing system, ensuring a smoother purchasing experience for audiences [5] - The ticketing system will be integrated with advanced security features to handle high traffic during popular events, enhancing user experience [5] Group 3: Event Hosting and Talent Acquisition - The partnership has successfully attracted top-tier performances and large-scale events from mainland China to Macau, including concerts by popular artists and various entertainment shows [6]

Core Insights - The collaboration between Galaxy Macau, Damai Entertainment, and Macau Pass is a three-year strategic partnership aimed at enhancing the cultural and entertainment industry in Macau and the Greater Bay Area [1] Group 1: Strategic Collaboration - The partnership will focus on resource integration and leveraging each party's strengths to promote a diverse and high-quality live and online performance experience [1] - The three parties will continue to host various cultural events in Macau, including movies, concerts, stage plays, award ceremonies, immersive performances, interactive dramas, Livehouse events, sports events, and exhibitions [1] Group 2: Marketing and Membership - A comprehensive collaboration on promotion, marketing, and ticketing systems will be established, along with the introduction of talent in the cultural and entertainment sector to Macau [1] - The collaboration will extend beyond Macau, exploring non-Macau venue projects to create a performance hub in the Greater Bay Area [1] - The parties will deepen their membership system cooperation, promoting cross-platform membership activities and exclusive benefits to enhance member experience [1]

Core Points - The strategic partnership between Galaxy Macau, Damai Entertainment, and Macau Tong has been renewed for three years, aiming to enhance the cultural and entertainment industry in Macau and the Greater Bay Area [1][3] Group 1: Strategic Collaboration - The three parties will continue to host diverse cultural events in Macau, including concerts, stage plays, award ceremonies, immersive performances, and sports events over the next three years [3][4] - There will be a comprehensive collaboration on marketing, ticketing systems, and talent acquisition in the cultural entertainment sector [3][4] - The partnership will extend beyond Macau, exploring cooperation on projects in non-Macau venues to establish a performing arts hub in the Greater Bay Area [3][4] Group 2: Ticketing and Technology - Damai Entertainment will enhance the ticketing system in collaboration with Galaxy Macau and assist Macau Tong in upgrading its ticketing technology and hardware [3][4] - The new ticketing system, set to launch in 2024, will support high-demand ticket sales and include multiple security features to ensure a smooth purchasing experience [4] - Previous collaborations have successfully brought major performances and events from mainland China to Macau, enhancing the region's entertainment offerings [4]

Core Points - "Galaxy Macau" has renewed a three-year strategic cooperation agreement with Damai Entertainment and Macau Pass, aiming to enhance the cultural and entertainment industry in Macau and the Greater Bay Area [1][2] - The collaboration will focus on hosting diverse cultural events, including concerts, stage plays, award ceremonies, and sports events, while also improving ticketing systems and member experiences [1][2] Group 1 - The partnership will continue to integrate resources and leverage each party's strengths to promote high-quality live and online performances in Macau [1] - Over the next three years, the parties will organize various cultural activities and establish comprehensive cooperation in marketing, ticketing systems, and talent acquisition [1] - The collaboration will extend beyond Macau, exploring opportunities for non-Macau venue projects to create a performing arts hub in the Greater Bay Area [1] Group 2 - Damai Entertainment's ticketing system will undergo upgrades to enhance user experience, ensuring a smoother ticket purchasing process for audiences [1][2] - The strategic partnership has already facilitated the introduction of top-tier performances and large-scale events from mainland China to Macau, including concerts and comedy shows [2] - Damai Entertainment's international ticketing system is set to launch in 2024, featuring advanced security measures to handle high traffic during popular events [2]