Core Insights - The report by Guoyuan Securities highlights Hanyi Co., Ltd. (301270) as a leading enterprise in the font library industry, emphasizing its strong foundation in font software and copyright business, along with ongoing technological innovation and exploration of diversified cultural technology development paths [1] Group 1: Business Performance - Hanyi Co., Ltd. has established a robust and high-quality font product system, launching over 1,700 copyright-protected B-end fonts and developing more than 3,600 font products by December 31, 2024 [2] - The company has maintained stable revenue from 2022 to 2024, with a sales gross margin around 80%, indicating strong profitability and market competitiveness [2] Group 2: IP Development - Hanyi Co., Ltd. has intensified its IP layout in recent years, collaborating with well-known IPs in film, gaming, and literature, successfully launching popular digital content products [3] - The company has partnered with various established IPs, including "You Shou Yan," "Ali," and "Peace Elite," to develop a range of digital products, and has plans to release themed products based on the popular domestic film "Nezha: Birth of the Demon Child" in 2025 [3] Group 3: Innovative Business Models - The "Ziyou" platform under Hanyi Co., Ltd. has adopted a new subscription-based authorization model, achieving over 13.2 million registered users and significant daily and monthly active user counts by the end of 2024 [4] - The platform has expanded its font content supply by introducing third-party font brands and launched an overseas version, FontApp, to provide Western font management services [4] Group 4: Strategic Investments and AI Integration - Hanyi Co., Ltd. has formed a strategic partnership with Zheng Holdings to leverage synergies in font design, software development, and AI technology, aiming for better resource integration and collaboration [5] - The company has embraced AI trends, launching a text assistant powered by the DeepSeek model to address issues in AI-generated content, and is actively seeking investment opportunities in AI applications and new consumer IP [5]

Financial Performance - The total dividend and repurchase amount for 2024 is 64.6553 million CNY, with cumulative dividends and repurchases exceeding 100 million CNY from 2022 to 2024 [3] - In 2024, the company achieved operating revenue of 190.7174 million CNY, a year-on-year decrease of 12.17% [18] - The net profit attributable to the parent company for 2024 was 8.8084 million CNY, a decline of 78.74% compared to the previous year [18] - The comprehensive gross profit margin was 80.86% [18] Industry Outlook - The font industry is expanding with new applications due to emerging smart devices like AR/VR, enhancing human-computer interaction [4] - Increasing copyright awareness among enterprises and individuals is beneficial for product sales [4] - There is a growing demand for global language font development as more Chinese companies expand overseas [4] - The industry is moving towards resource and business integration to enhance overall strength [4] Growth Opportunities - The domestic font authorization business is expected to maintain steady growth [5] - The company aims to optimize resources through industry integration and provide more font products and services for overseas enterprises [5] - AI technology will be leveraged to offer efficient solutions for large models and design applications [5] - The company plans to create more commercial products and applications around IP [5] IP Collaboration - The company is developing traditional cultural IPs, such as products based on oracle bone script, and is also focusing on popular game and film IPs [7] - The strategic cooperation with Founder Group, where the company holds an 11.2% stake, is expected to enhance overall competitiveness and address foreign competition [7] Goodwill and Financial Risks - As of December 31, 2024, the company's goodwill was valued at 157.8314 million CNY, accounting for 13.00% of total assets [8] - The company has recognized goodwill impairment provisions of 2.8205 million CNY and 2.0492 million CNY for specific asset groups [9] - Future performance risks may arise if the operational conditions of certain subsidiaries do not meet expectations [9] AI Integration - The company has launched an AI-driven font assistant to help designers quickly find suitable fonts based on descriptions or images [10] - The "AI Recognition" service in the Ziyou business helps users identify font names and origins, reducing potential infringement risks [11] - The overseas version of the Ziyou FontApp has been launched, providing font management services for Western markets [11] C-end Business Development - The C-end business is experiencing good growth and is expected to become a second growth engine by linking online and offline channels [14] - The personalized decoration business, especially in APP customization, is projected to continue growing [15]