Core Insights - The article discusses the expertise of Labutes IR as a Fund Manager/Analyst in the financial sector, highlighting over 18 years of experience in financial markets [1] Group 1 - Labutes IR specializes in the financial sector and has extensive experience in portfolio management [1] - The analyst has worked at various institutions within the industry, focusing on the buy side [1]

Core Viewpoint - More than three dozen BYD executives have increased their stakes in the company, which is expected to enhance investor confidence following a significant drop in share prices [1] Group 1: Executive Share Purchases - Thirty-seven executives, including five vice-presidents, invested a total of 52.3 million yuan (approximately US$7.3 million) to purchase 488,200 shares, representing 0.027% of the company [2] - The five vice-presidents acquired 221,800 shares for a total of 23.6 million yuan, with one of them also serving as the chief financial officer [3] - The remaining 32 executives purchased 266,400 shares for 28.7 million yuan during the same period [3] Group 2: Share Price Performance - BYD's A shares increased by 0.2% to 105.43 yuan, reducing losses to 23.4% from a peak of 137.67 yuan on May 23 [4] - The H shares fell by 0.3% to HK$105.30, marking a decline of 31.4% from the all-time high of HK$153.6 on May 23 [4] Group 3: Sales Target Adjustment - BYD has revised its sales target for the year to 4.6 million units, a decrease of 16% from the previous forecast of 5.5 million units, although this still represents a 7% year-on-year increase [5] - Concerns regarding the sales drop and profitability have contributed to the recent decline in BYD's share prices, but executives remain optimistic about the company's outlook [5] Group 4: Market Conditions - The electric vehicle market in mainland China is experiencing overcapacity and intense price competition, with only a few companies, including BYD, managing to remain profitable [6]

Financial Data and Key Metrics Changes - The company reported a revenue growth of 7% over the prior quarter and a significant reduction in costs by 37% year-over-year, leading to a reduction in losses by over 50% [19][20][21] - The trend of improving revenue and decreasing losses was consistent throughout 2024, with expectations for double-digit revenue growth in 2025 [20][22] Business Line Data and Key Metrics Changes - The Beacon Media division turned profitable in 2024, marking a significant turnaround from 2023, and the Mainframe Studios production unit is also expected to contribute significantly to profitability in 2025 [21][22] Market Data and Key Metrics Changes - The company is positioned in a durable kids animation market, with a diverse business model that includes creative, production, distribution, media buying, and consumer products [3][4] Company Strategy and Development Direction - The company is focusing on leveraging its diverse divisions and robust business model to capitalize on potential hits from new intellectual properties like Winnie the Pooh and Stan Lee's portfolio [5][16] - The management team is confident in their ability to execute the growth strategy, emphasizing the importance of discipline around financials and the quality of the management team [7][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming year, particularly regarding the potential success of the Winnie the Pooh property, which has historically generated significant sales [8][9] - The company aims to bridge to profitability in 2025, relying on recent capital raises to support this transition [25][26] Other Important Information - The company has no long-term debt, which is seen as a valuable asset for cash flow and financial results [25] - The upcoming launch of the new Winnie the Pooh series is set for Christmas Eve, coinciding with the 100-year anniversary of the first publication [15][12] Q&A Session Summary Question: Why does Cartoon Studios represent a great value proposition to investors? - The CEO highlighted the company's diverse business model and potential for significant upside from new projects, emphasizing the importance of execution [3][5] Question: What are the expectations for the Winnie the Pooh property? - The CEO expressed excitement about the property, noting its historical significance and the strength of the creative team behind it [8][9] Question: How is the company addressing dilution from recent capital raises? - Management acknowledged the dilutive effect but emphasized that the capital raised is intended to bridge the company to profitability, which will outweigh the dilution [25][27]