COL(SZ:300364) Zheng Quan Shi Bao Wang·2025-09-02 08:13Core Viewpoint - The overseas short drama market is estimated to be at least 4 to 5 times larger than the domestic market, with potential reaching up to $100 billion, and is expected to enter a rapid growth phase in the next three years [1][3]. Company Overview - Chinese Online is one of the first A-share companies to enter the short drama sector, establishing a premium short drama department in July 2024 and a self-produced drama team in January 2024 [1]. - In the first half of this year, the hit rate of works launched on the Hongguo short drama platform reached 80% [1]. International Expansion - Since 2023, Chinese Online has been deepening its international layout, launching the overseas short drama app FlareFlow in April 2025, which has shown strong growth [1][2]. - FlareFlow has reached an audience in 177 countries and regions, supporting 11 languages including English, Japanese, Portuguese, Spanish, and German [1]. - The app has seen a monthly revenue growth rate exceeding 500% within three months of launch, with a cumulative download of approximately 10 million [1][2]. User Engagement - FlareFlow has an average daily active user count of about 600,000, with a weekly growth of around 100,000 users [2]. - Nearly 60% of the platform's revenue comes from English-speaking regions, primarily the United States [2]. Team Structure - The overall team for FlareFlow consists of approximately 350 people, with nearly 100 in the content team located in North America and various cities in China [2]. Collaboration and Strategy - FlareFlow has partnered with over ten overseas production companies and is collaborating with multiple MCN agencies in North America for actor management, user growth, and content distribution [2]. - The company has established wholly-owned subsidiaries in key countries like the United States, Japan, and Singapore, employing a "local creation + global distribution" model to build a content industrialization system [2]. Market Insights - The micro short drama market in China is projected to reach 50.5 billion yuan in 2024 and 63.43 billion yuan in 2025, with the domestic market stabilizing and competition intensifying [3]. - In contrast, the overseas short drama market is in its early industrial cycle, with 200 to 300 short drama apps, predominantly from China, capturing 95% of the overseas market share [3].