Chinese Media(SH:600373) Guo Ji Jin Rong Bao·2025-11-19 13:42Core Viewpoint - The company plans to utilize idle funds of 9.5 billion yuan for wealth management products in 2026, indicating a strategy to enhance fund efficiency and returns amidst declining performance in its core business [1][4]. Financial Performance - In the first three quarters of 2025, the company reported revenue of 5.29 billion yuan, a year-on-year decline of 26.54%, and a net profit of 399 million yuan, down 49.06% [4]. - The revenue drop is attributed to changes in the subscription method for educational materials, while the net profit decline is due to reduced income from educational books and interest [4]. - The cash flow from operating activities turned negative, dropping from 362 million yuan in the previous year to -801 million yuan [4]. Wealth Management Strategy - The company has consistently utilized idle funds for wealth management from 2021 to 2025, with planned amounts increasing from 7 billion yuan in 2024 to 9 billion yuan in 2026 [1]. - The wealth management products include a diversified range such as bank wealth management, special account management, asset management plans, and treasury reverse repos [1][3]. Subsidiary Performance - The subsidiary, Beijing Zhixing Star Technology Co., Ltd., has shown disappointing performance, with revenues declining from 1.841 billion yuan in 2021 to 1.236 billion yuan in 2024 [6]. - The net profit for the subsidiary also halved during the same period, indicating a significant downturn in its financial health [6]. Management Changes - Recent management changes at Zhixing Star include the suspension of the president and the dismissal of key personnel, with a focus on reforming the company culture and improving competitiveness [7]. - The company aims to develop new competitive products as its flagship game, "Clash of Kings," approaches the end of its lifecycle [7].