Core Insights - The most prosperous industry in the U.S. economy is the cultural and entertainment sector, contributing over $8 trillion, which accounts for more than 40% of the total GDP of $20 trillion [1][4] - The second largest contributor to the U.S. GDP is the construction and real estate sector, which accounts for over 17% of GDP, while in China, it is only 13% [4][5] - The financial industry, which includes credit card loans, stock markets, and mortgage markets, is the third largest pillar of the U.S. economy, closely tied to the cultural and real estate sectors [5][6] Industry Analysis - The cultural and entertainment industry encompasses various products such as films, events, publications, and cultural tourism [2] - The impact of the pandemic on the U.S. economy is expected to be more severe than in China due to the structural differences in their economies, particularly the high reliance on the cultural and entertainment sector in the U.S. [4][7] - The U.S. real estate market is a significant global investment destination, attracting over $200 billion annually, representing one-third of the global overseas property investment market [4][5] Economic Impact - The pandemic has led to a halt in both the cultural entertainment and real estate markets in the U.S., causing significant declines in bank stocks, with major banks experiencing drops of over 10% in a single day [5][6] - The overall impact of the pandemic on the U.S. economy is systemic, affecting service-oriented sectors more severely compared to China's manufacturing-dominated economy [7]

Core Insights - The book "Creating New Demand" by economists Teng Tai and Zhang Haibing emphasizes the importance of creating demand through understanding consumer behavior and societal trends, shifting from basic material needs to high-quality spiritual needs [2][3] Group 1: Consumer Behavior and Trends - Consumers are increasingly focused on the experiential and spiritual aspects of consumption, valuing meaning, aesthetics, fashion, and cultural significance alongside traditional factors like quality and price [2][3] - The transition from traditional retail to new retail emphasizes not only product availability and pricing but also factors like fast delivery, convenience, interactivity, and social features [2][3] Group 2: Soft Value Creation - The book introduces the concept of "soft value," which encompasses non-material aspects such as research and development, design, creativity, branding, and user experience, which are crucial for meeting spiritual needs [3][4] - Soft value is distinct from soft power; it is an economic concept focused on the intrinsic value of products and services, while soft power is a political concept [3] Group 3: Enhancing Consumer Experience - Improving customer experience is identified as a key factor in creating new demand, with each purchase representing a lifestyle choice [4][5] - The "soft value creation equation" suggests that soft value can lead to exponential economic value, highlighting the importance of effective innovation, traffic management, experience enhancement, business model innovation, and organizational change [4] Group 4: Practical Applications - The book discusses how sectors like agriculture, manufacturing, and services can benefit from soft value creation, which often involves indirect paths to profitability, such as prioritizing public value before monetization [4] - Successful tourism and cultural experiences are linked to a focus on enhancing visitor experiences, indicating that traditional revenue models need to evolve to meet consumer expectations [5]

Group 1 - The company reported a revenue of RMB 355 million for the six months ending June 30, 2025, representing an increase of approximately 33.0% compared to the first half of 2024 [1] - The adjusted net profit for the first half of 2025 was RMB 27.6 million, up 7.0% from RMB 25.8 million in the same period of 2024, with an adjusted net profit margin of 7.8% [1] - Earnings per share attributable to the company's owners was RMB 0.01 [1] Group 2 - The IP creation and operation segment generated revenue of RMB 140 million, primarily due to the popularity of the TV program "Travel Diary" Season 3, which starred Jay Chou [2] - "Travel Diary" Season 3 achieved high viewership ratings, ranking first among similar variety shows on provincial satellite TV channels, with over 375 trending topics and an exposure of over 4.1 billion [2] - Other IP programs, such as Liu Genghong's micro-variety show and "Fifty and Only," also aired in the first half of 2025 and received positive audience reception [2] Group 3 - The company continued to promote its brand and star IP through Jay Chou's world tour concerts, hosting "Find Jay Classmate" events in various cities [3] - The events included setting up "Jay Classmate" themed facilities at iconic locations in Nanning, Sanya, and Hong Kong to enhance fan engagement [3] - The company launched pop-up stores featuring "Jay Classmate" related products during the concert events [3]

Core Viewpoint - Hengxin Oriental Culture Co., Ltd. is under investigation by the China Securities Regulatory Commission (CSRC) for suspected violations of information disclosure laws, following the discovery of accounting errors in its 2022 annual report, which have been adjusted using a retrospective restatement method [2][4]. Financial Adjustments - The company adjusted its revenue recognition method for its newly added computing power system integration and technical services business from gross method to net method, resulting in a revenue reduction of approximately 181.61 million yuan [5][6]. - The adjustments led to a revised operating revenue of 307.67 million yuan and an operating cost of 220.81 million yuan for the affected period [6]. Recent Financial Performance - In Q1 2025, the company reported revenue of 74.93 million yuan, a year-on-year decrease of 15.12%, and a net loss attributable to shareholders of 34.23 million yuan, down 11.32% from the previous year [9][10]. - The company has experienced continuous net losses since 2020, accumulating over 2 billion yuan in losses over the past five years [7]. Operational Status - Despite the ongoing investigation, the company stated that its business operations are normal and that the investigation will not have a significant impact on its operations [4].