Summary of AI in Pharmaceutical Industry Conference Call Industry Overview - AI applications in early pharmaceutical stages such as target discovery and molecular design have matured significantly, enhancing efficiency. However, recognition of experimental data and regulatory challenges remain short-term bottlenecks limiting large-scale AI adoption [2][4][5] - The maturity of AI in drug development decreases through the process, with substantial support in early stages but limited assistance in clinical phases due to regulatory restrictions on modifying trial protocols or dosing methods [3][25] Key Insights - **Core Elements for AIGC Development**: Computing power, algorithms, and data are critical for AIGC. Large pharmaceutical companies have data advantages but face challenges in data processing, while smaller biotech firms can be more agile [6] - **Talent Requirements**: AIGC talent typically has backgrounds in biomedicine or algorithms, with most skills developed on-the-job rather than through formal education [7] - **Efficiency Gains**: AI tools can significantly reduce the time required for tasks such as identifying biomarkers, with traditional methods taking much longer compared to AI-assisted approaches [8][9] Company-Specific Insights - **Farm AI Platform**: This platform boasts strong computational and data processing capabilities, integrating various omics data to enhance screening efficiency and optimize clinical trial design, providing a competitive edge [10] - **Unique Business Model of Yingxi Company**: Yingxi combines an AI platform with proprietary pipelines, allowing for iterative development and revenue generation through licensing, which enhances efficiency and feedback on results [12][13] - **Strategic Focus**: Yingxi's primary revenue source is from pipeline development, emphasizing the advancement of its proprietary pipelines rather than merely acting as a data or platform provider [14] Pipeline and Clinical Development - **Key Projects**: The most advanced pipeline is project 055, preparing for Phase III trials, showing better therapeutic effects than existing drugs. Another promising project, 5,411, has completed Phase I and is entering Phase II [16][17] - **Clinical Team Composition**: Yingxi's clinical team consists of about 20 members, with some based in the U.S. for FDA communications, while many roles are outsourced to CROs [19] - **Future Collaborations**: Yingxi plans to seek partnerships for advancing clinical pipelines, especially for promising projects nearing Phase III or market entry [20] Challenges and Considerations - **Regulatory Hurdles**: AI's role in clinical phases is limited due to regulations, which do not currently allow AI to directly influence trial designs or dosing adjustments [25][26] - **Biomarker Selection**: The selection of biomarkers during early trials may not always align with final protocols, impacting patient recruitment and trial outcomes [24] Market Trends - **Collaboration Trends**: The partnership between Nvidia and Eli Lilly exemplifies a trend of combining technological capabilities with rich data resources to enhance drug discovery platforms [29] - **Application Differences**: There is a notable difference in AI application maturity between small and large molecules, with most current applications focused on small molecules due to historical data availability and tool development [30] This summary encapsulates the key points discussed in the conference call, highlighting the current state and future directions of AI in the pharmaceutical industry.

Summary of Liou Co., Ltd. Conference Call Company Overview - **Company**: Liou Co., Ltd. (利欧股份) - **Industry**: Digital Marketing and AI Solutions Key Points and Arguments Transition to Generative Optimization - Liou Digital is transitioning from traditional SEO to Generative Optimization (GO) solutions, utilizing intelligent agent technology and deep direct response content production factories to provide automated high-quality content for advertisers [2][4] - The company aims to eliminate hallucinations in large language models, ensuring content accuracy rates exceed 90% by controlling technical knowledge bases [2][6] Content Production and Structure - Liou Digital prepares two types of content for advertisers: one that aligns with natural human language habits and another that meets the preferences of large language models [2][7] - The company emphasizes the importance of structured expression and prioritizes professional EAT (Expertise, Authoritativeness, Trustworthiness) content in a multimodal environment [2][7] Cross-Channel Consistency - Starting from the end of 2025, Liou Digital plans to implement cross-channel cognitive consistency through a context protocol (MCP) to facilitate better understanding and collection of CEO content by large language models [2][8] Human-Machine Review Process - A dual review process involving both human and machine oversight is employed to ensure the reliability of GO solutions, leveraging 25 years of experience in advertising material review [2][9] Market Demand and Future Outlook - The business volume in the Generative Optimization era is expected to far exceed that of the SEO era, with a broader range of question types being addressed [2][12] - Future commercialization of large model companies may occur through API interfaces, necessitating readiness for this new era [2][12] Core Value of Advertising Agencies - Advertising agencies hold a core value barrier by possessing extensive data and knowledge bases accumulated over time, which are essential for addressing consumer inquiries effectively [2][13] Attribution and Monitoring - The effectiveness of GO services can be monitored through clear metrics, such as increased foot traffic in the medical beauty industry, allowing clients to see tangible results [2][14] Data Verification and Reliability - Liou Digital collaborates with industry bodies to establish standards ensuring that all generated AI content is backed by data verification, facilitating efficient retrieval of validated data by clients [2][15] Cross-Channel Distribution - Cross-channel distribution encompasses large media platforms and specialized media platforms, with plans to support high-quality response content through APIs or MCP servers [2][16] Consistency of Information - To address inconsistencies in information provided by large language models, Liou Digital is working with model companies to ensure accurate and consistent information is delivered to consumers [2][17] Brand Mention and Citation Rate Optimization - The demand for optimizing brand mention and citation rates is expected to grow as market awareness increases, with active participation in developing content management guidelines to ensure fair algorithmic information delivery [2][18] Profitability of Generative Optimization Business - The gross margin for the GU business has decreased compared to previous operations due to reliance on AI for content generation, which significantly lowers costs [2][19] Additional Important Insights - Liou Digital's AIAD intelligent agent service allows clients to upload content such as PPTs and PDFs, generating multiple response contents that are then optimized and distributed [2][10] - GO services are typically integrated into comprehensive marketing solutions, as clients often have simultaneous SEM and SEO needs [2][11]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 6.60, indicating a potential upside of 24.6% from the current price of HKD 5.30 [1][7][13]. Core Insights - The company has successfully transformed from a leading global digital content copyright protection SaaS provider to an AI-driven value hub for global content creators. This transition is expected to accelerate revenue growth, particularly in 2025, driven by the explosion of AIGC (AI-Generated Content) and advancements in AI multimodal models [5][9][10]. - The launch of two strategic platforms, DreamMaker and VobileMAX, aims to create a complete commercial loop from AI creation to monetization. DreamMaker is an integrated audio-video creation platform, while VobileMAX serves as a trading and operation platform for digital content assets [6][12][13]. - The company is positioned to build a global economic value hub for content creators, focusing on multimodal AI research and applications. This unique business model is expected to showcase strong scalability and profitability by 2025, with a projected PE ratio of 58 times and a PS ratio of 4.6 times [7][13]. Financial Summary - The company anticipates significant revenue growth, with projected revenues of HKD 2,001 million in FY2023, increasing to HKD 4,463 million by FY2027, reflecting a compound annual growth rate (CAGR) of approximately 21.8% [8][19]. - The gross margin is expected to improve from 42.5% in FY2023 to around 44.6% by FY2027, indicating enhanced profitability [8][19]. - The net profit is projected to turn positive in FY2024, reaching HKD 143 million, and further increasing to HKD 359 million by FY2027, showcasing a strong recovery and growth trajectory [8][19].

Core Viewpoint - The emergence of AIGC (Artificial Intelligence Generated Content) in the animation industry is highlighted through two films, "Reunion Order" and "Red Boy," showcasing the potential and challenges of AI in creative processes [1][3][12]. Group 1: Film Production Insights - "Reunion Order" is China's first theatrical AIGC animated film, utilizing the CMG Media GPT model to streamline production, reducing the typical 2-3 year timeline to just 5-6 months [4][11]. - The CMG Media GPT model, developed by the Central Radio and Television Station and Shanghai AI Lab, focuses on audiovisual content production and has already been applied in other projects [4][5]. - "Red Boy" employs a more advanced AI-driven production model, achieving a 20-fold increase in efficiency by integrating AI from the script stage, allowing for significant cost reductions and maintaining a 98% consistency in style [12]. Group 2: Challenges and Reception - Despite the technological advancements, audience reception has been mixed, with critiques focusing on the perceived lack of detail and emotional depth in AI-generated content [7][18]. - There is a prevailing skepticism among creators and audiences regarding AI's ability to produce meaningful and emotionally resonant content, as many believe AI lacks the "soul" necessary for genuine artistic expression [13][18]. - The industry faces challenges in balancing AI's role as a tool for efficiency versus a replacement for human creativity, with concerns about the quality and authenticity of AI-generated works [15][19].

Market Overview - The A-share market showed mixed performance today, with the Shanghai Composite Index down by 0.31% closing at 4126.09 points, while the Shenzhen Component Index rose by 0.56% to 14248.60 points. The ChiNext Index increased by 0.82% to 3349.14 points. Overall, 2742 stocks rose and 2591 fell, with a total trading volume of 39,414 billion yuan, an increase of 2,904 billion yuan compared to the previous trading day [1][13]. Industry Performance - Among the Shenwan first-level industries, the leading sectors included Computer, Comprehensive, Communication, Media, and Electronics, with gains of 3.42%, 2.90%, 1.91%, 1.55%, and 1.36% respectively. Conversely, the Banking, Real Estate, Non-bank Financials, Transportation, and Food & Beverage sectors experienced declines of 1.88%, 1.18%, 0.84%, 0.76%, and 0.73% respectively [1][13]. Concept Sectors - The top-performing concept sectors today included Pinduoduo partners, Xiaohongshu platform, ChatGPT, AIGC, stablecoins, Kimi, intelligent agents, data elements, e-commerce, WEB3.0, big data, cloud computing, digital government, Douyin Doubao, and live streaming sales [2][11].

Investment Rating - The report maintains an "Outperform" rating for the media and internet industry [1][4][5]. Core Insights - The media industry experienced a significant increase of 13.55% during the week of January 5-9, outperforming both the CSI 300 index (2.79%) and the ChiNext index (3.89%) [1][12]. - Key performers included companies like Inertia Media, Oriental Pearl, and Liansheng Technology, while companies such as ST Dazheng and ST Huawen faced declines [1][12]. - The report highlights the strong performance of AI marketing and the potential of AI short dramas as areas of continued interest [4][42]. Summary by Sections Industry Performance - The media sector ranked second in terms of weekly performance among all sectors, with a notable increase of 13.55% [1][12][14]. - The top gainers included Inertia Media (53%), Oriental Pearl (35%), and Liansheng Technology (35%) [13]. Key Company Developments - Minimax and Zhizhu both saw significant stock price increases upon their market debut, with Minimax closing up over 109% and Zhizhu rising 13.17% on its first day [2][19]. - OpenAI's acquisition of the core team from the AI platform Convogo and the launch of GPTHealth are notable developments in the AI sector [2][18]. Box Office and Content Performance - The box office for the week totaled 338 million yuan, with the top three films being "Killing the Hidden" (75 million yuan), "Avatar 3" (67 million yuan), and "The Legend of Qin" (61 million yuan) [3][21]. - Popular variety shows included "Voice of Life: Chinese Flow Season," "Goodbye Lover Season 5," and "Let's Go Now Season 3" [28]. Investment Recommendations - The report suggests capitalizing on the gaming sector's recovery and the ongoing opportunities in AI marketing and content creation [4][42]. - Specific companies recommended for investment include Giant Network, Kying Network, and Jibite, with a focus on the potential of AI applications in various sectors [4][42].

Investment Rating - The report maintains an "Outperform" rating for the media and internet industry [1][4][5]. Core Insights - The media industry experienced a significant increase of 13.55% during the week of January 5-9, outperforming both the CSI 300 index (2.79%) and the ChiNext index (3.89%) [1][12]. - Key performers included companies like Ingravity Media and Oriental Pearl, while companies like ST Dazheng and ST Huawen faced declines [1][12]. - The report highlights the strong performance of AI marketing and the potential of AI short dramas as areas of investment focus [4][42]. Summary by Sections Industry Performance - The media sector's performance ranked second among all sectors for the week, with notable gains from companies such as Ingravity Media (53%), Oriental Pearl (35%), and Liansheng Technology (35%) [1][12][14]. - The report notes that the overall market sentiment is improving, with a potential upward trend expected in the near future [4][42]. Key Company Developments - Minimax and Zhizhu both saw substantial stock price increases upon their market debut, with Minimax closing up over 109% and Zhizhu rising by 13.17% [2][19]. - OpenAI's acquisition of the core team from the AI platform Convogo and the launch of GPTHealth are significant developments in the AI sector, indicating a rapid commercialization process [2][18]. Box Office and Content Performance - The box office for the week totaled 338 million yuan, with the top three films being "The Hidden Kill" (75 million yuan), "Avatar 3" (67 million yuan), and "The Legend of Qin" (61 million yuan) [3][21]. - In the gaming sector, the top-grossing mobile games in December 2025 included "Whiteout Survival" and "Gossip Harbor: Merge & Story" [30][31]. Investment Recommendations - The report suggests capitalizing on the gaming sector's recovery and the ongoing AI application opportunities, particularly in AI short dramas and marketing [4][42]. - Recommended stocks include Giant Network, Kying Network, and Jibite, with a focus on companies that are well-positioned to benefit from the evolving content policies and AI applications [4][42].

Market Overview - A-shares experienced a collective rise, with the Shanghai Composite Index nearing 4200 points, closing at 4188.24, up 1.20% [1] - The Shenzhen Component, ChiNext, and STAR Market indices rose by 1.98%, 2.24%, and 3.55% respectively, with a total trading volume of 22,459 billion yuan [1] Sector Performance - The market showed a broad-based increase, with over 4700 stocks rising [2] - The GEO (Generative Engine Optimization) concept remained active, with notable stocks like ZhiDeMai hitting a 20% limit up and Liou Co. achieving four consecutive limit ups [2][5] - The semiconductor sector also saw gains, with stocks like Shenghui Integrated and Yaxiang Integrated hitting their daily limits [2] - The financial sector experienced fluctuations, with Huayin Securities hitting the limit up and Tonghuashun rising over 10%, reaching a historical high [2][10] AI Applications - AI application sectors continued to strengthen, with AI e-commerce and GEO concepts leading the market [5] - A new combination of stocks, referred to as the "New Yi Zhongtian," emerged, with stocks like Yidian Tianxia, Zhongwen Online, and Tianlong Group all rising over 10% [5] - The AIGC concept index rose by 6.31%, with significant gains from stocks like Keda Guochuang and Guangyun Technology, both hitting 20% limit up [6] Financial Sector Insights - The financial sector showed strong performance, with Huayin Securities closing at a 9.99% increase and Tonghuashun at 9.33% [12] - Research from Bank of America highlighted five core themes for Chinese brokerage stocks this year, including the expansion of return on equity (ROE) and growth in investment banking due to domestic recovery [10][13] - Open Source Securities noted a shift in regulatory policies towards a more positive cycle, suggesting that brokerage firms' investment banking and public fund businesses could support profitability through 2026 [13]

Group 1 - Media concept stocks have surged again, with Yanshan Technology and Leo Holdings hitting the daily limit, and Kunlun Wanwei rising over 5% [1] - The Media ETF has increased by over 5% due to market influences [1] Group 2 - According to a brokerage, the media industry is expected to recover in terms of prosperity in the medium to long term, driven by the gradual restoration of content supply, deepening AI technology empowerment, policy support, and expectations of consumer recovery [2] - Companies with strong performance in sectors such as film and television theaters, gaming, and advertising marketing are recommended for attention, along with those involved in digital assets and AIGC-related technologies [2]

Investment Rating - The report does not explicitly state an investment rating for the industry. Core Insights - The integration of AI in content marketing is transforming the industry, shifting from efficiency tools to becoming the "second brain" for creative production and brand expression [15][21][23]. - AI is evolving from a tool for generating content to a core driver of creative production, enabling brands to produce high-quality, multi-modal content [23][24]. - The focus of competition is shifting from superficial creative contests to building a robust "multi-modal brand corpus" that AI can understand and utilize [11][12]. Summary by Sections AI-Driven Content Marketing - The report highlights the transition of AI from a mere efficiency tool to a central figure in creative production, allowing brands to engage in deeper emotional connections with users [15][21]. - AI's role is evolving to encompass not just content generation but also understanding brand aesthetics and conveying brand values effectively [23][24]. New Creative Standards - The report emphasizes the need for AI systems to deeply understand brand tone, visual style, and core values to ensure consistent brand expression [27]. - AI's capabilities are expanding to include semantic understanding, aesthetic consistency, and alignment with brand values [29]. Content Production Efficiency - AI is significantly reducing the time and cost associated with content production, enabling rapid generation of diverse content tailored for various platforms [30][31]. - Traditional content production timelines are being compressed from weeks to days, allowing brands to respond quickly to market trends [30][31]. Contextual Marketing Shift - The report notes a shift from static user profiling to real-time contextual understanding, enabling brands to create personalized content that resonates with users' immediate needs [32][33]. - AI's ability to generate content based on real-time user context is becoming crucial for effective marketing strategies [35][36]. Human-AI Collaboration - The concept of "human-machine co-intelligence" is introduced, where humans set strategic directions while AI enhances creative boundaries and execution efficiency [37][38]. - This collaboration aims to produce innovative outcomes that neither humans nor AI could achieve alone [43][44]. AI Content Generation Innovations - The report discusses the emergence of multi-modal content forms, such as interactive narratives and AI-generated videos, which enhance user engagement [46][47]. - AI is enabling brands to create immersive experiences that transform traditional content consumption into participatory interactions [50][51]. Challenges in AI Content Marketing - The report identifies four core challenges: inconsistency in content quality, content homogenization, difficulties in maintaining brand alignment, and high costs of manual content review [55][56][61]. - Brands face a growing imbalance between the demand for rapid content production and the limitations of traditional content creation processes [61][62]. 千梦引擎 (Qianmeng Engine) - The Qianmeng Engine is introduced as a comprehensive AI creative engine designed to facilitate the entire content marketing process, from creative generation to large-scale distribution [74][75]. - It aims to provide brands with a platform that combines powerful AI capabilities with human creativity to produce emotionally resonant content [74][75].