COL(SZ:300364) Hua Xia Shi Bao·2025-10-24 15:08Core Insights - Chinese Online continues to experience expanding losses despite revenue growth, with a net loss of 294 million yuan in Q3 2025, a significant increase of 673.14% year-on-year [2][3] - The company reported a total revenue of 1.011 billion yuan for the first three quarters of 2025, marking a year-on-year increase of 25.12% [3] - The film "The King's Avatar: For the Glory" has generated a box office of 533 million yuan, contributing to the popularity of the IP "Ro Xiao Hei" [4][5] Revenue and Losses - In Q3 2025, Chinese Online achieved a revenue of 455 million yuan, up 31.43% year-on-year, while the net loss reached 294 million yuan [2][3] - For the first three quarters, the total revenue was 1.011 billion yuan, with a net loss of 520 million yuan, which is an increase of 176.64% compared to the previous year [3] IP Development and Merchandise - The company has successfully leveraged the "Ro Xiao Hei" IP, resulting in a surge in merchandise sales and collaborations with various industries [4][5] - The initial batch of "Ro Xiao Hei" merchandise has been accounted for in the financial reports, while revenues from the film and pre-sale merchandise are yet to be recognized [5] Overseas Short Drama Business - Chinese Online has launched the overseas short drama app FlareFlow, which has seen significant success, ranking first in both Google Play and App Store in the U.S. [3][6] - The app has accumulated over 19 million downloads and features more than 3,000 works, indicating strong market penetration [3] Competitive Landscape - The overseas short drama market is becoming increasingly competitive, with local platforms emerging and capturing market share [9][10] - Chinese Online's initial advantages in the overseas market are diminishing, necessitating innovation to maintain its leading position [8][9] Future Strategies - The company aims to enhance its content supply chain by investing in short drama studios and establishing production bases [11] - Chinese Online is focusing on a dual approach of domestic content transformation and localized production for international markets [11]