Group 1: Game Business Performance - The company's game revenue increased year-on-year, driven by the launch of several titles such as "MapleStory R: Evolution" and "Ragnarok: Breaking Dawn" [2] - The upcoming flagship product "Three Kingdoms Heroes: Strategy of the Nine Provinces" is expected to support continued growth, with excellent testing data [2] - Multiple games are planned for release in various regions, including mainland China, Hong Kong, Macau, Japan, Southeast Asia, and Europe [2] Group 2: Development Strategy - The company aims to focus on high-quality game products and continue developing in genres like ancient strategy and idle games [2] - Emphasis on leveraging IP value in game development to enhance product stability and maximize value across the entire game development and operation process [2] - The company is expanding its mini-program game strategy across major platforms like WeChat, Huawei, and Douyin, while also targeting other super app channels [2] Group 3: Business Restructuring - The company plans to sell 99.66% of its stake in the Espanyol football club to concentrate on its core business and improve profitability [3] - Post divestment, resources will be redirected towards toys and games, including AI technology applications and overseas game operations [3] - The divestment is part of a strategy to enhance core business competitiveness and drive innovation in potential growth areas like cloud gaming and AI toys [3]

Summary of the Conference Call for Morning Glory Co., Ltd. Company Overview - **Company**: Morning Glory Co., Ltd. (晨光股份) - **Date of Call**: July 31, 2025 Key Points Industry and Business Expansion - Morning Glory is actively expanding its IP derivative business, collaborating with well-known IPs such as "Jujutsu Kaisen" and "Genshin Impact," which is expected to significantly enhance revenue and profit [2][4] - The product line is extending from traditional stationery to trendy toys, indicating a diversification strategy [2] - The company has adjusted its channel strategy, leveraging nearly 70,000 school-side stores and other retail channels to sell IP derivatives, greatly increasing market coverage [2][5][6] Financial Performance and Profitability - Traditional stationery business has achieved a net profit margin of over 10%, while the IP derivative business is anticipated to drive greater revenue and profit growth, contingent on the successful launch of popular products [2][9] - Despite previous low profit contributions from grain products, the company has increased investment in IP-related business, expecting significant performance growth in the future [2][7] Market and Sales Strategy - Morning Glory has launched nationwide pop-up events and introduced new products in 40 flagship stores, 2,700 themed stores, and 20,000 specialty stores, showcasing a proactive approach in the IP business [4] - The company plans to enhance its team by recruiting external professionals to accelerate the launch of high-quality IP-related derivatives [8] Retail and Channel Performance - The retail business has faced growth pressures but is expected to show improvement in Q3 2025 due to positive feedback from new products introduced at the university ordering conference [13] - The company’s core businesses, including traditional retail and the Nine Wood Miscellaneous Society, are showing signs of stabilization and recovery [17] International Expansion - Morning Glory is pursuing international expansion, having established a strategic partnership with Japan's Toraya Bookstore and opened a store in Jakarta, indicating a focus on overseas markets with high growth potential [2][18] Future Outlook - The company is optimistic about future profit growth, particularly in the IP derivative sector, which could contribute significantly to overall performance if successful products are launched [9][17] - The overseas market, while currently small, is viewed as a long-term growth opportunity, especially in Southeast Asia and Africa [18] Additional Insights - The company is not neglecting its traditional core business, continuously optimizing technology and processes to enhance product functionality and market competitiveness [12] - The retail large store business, such as Nine Wood Miscellaneous Society, is expected to return to profitability in 2025, with a target of opening over 100 new stores annually [15][16] Conclusion - Morning Glory Co., Ltd. is positioned for growth through strategic expansion into IP derivatives, international markets, and continuous improvement in its core business. The company’s proactive measures and market strategies suggest a positive outlook for future performance and profitability.