Summary of Visual China Conference Call Company Overview - **Company**: Visual China - **Industry**: Visual content services, AI technology Key Points and Arguments Financial Performance - Visual China reported a stable revenue performance, with a year-on-year decline in net profit attributable to shareholders (non-GAAP) of 9.03%, although this was an improvement compared to the first half of the year [2][3] - The decline in profit was primarily due to macroeconomic conditions and adjustments within the advertising and marketing sector [3] Strategic Focus - The company adheres to a strategy of "AI intelligence + content data + application scenarios," which has led to the emergence of AI-driven creative customization as a new growth point [2][3] - Visual China has built a high-quality dataset of over 700 million compliant content items, including images, audio, video, and 3D data, enhancing its competitive edge in the industry [2][5] AI Technology Implementation - AI technologies have been integrated into the copyright trading platform, improving material matching and review efficiency, with image review efficiency increasing nearly 15 times [2][6][7] - The company has developed AI features such as search recommendations, content creation assistance, and content review, which streamline the creative process and enhance operational efficiency [6][7] Growth in AI-Driven Services - The AI-driven creative customization business has seen a year-on-year growth of 25%, with partnerships established with major brands like Huawei and Mercedes-Benz [2][8] - Visual China is actively exploring collaborations with leading AI platforms to provide visual content licensing services, similar to the partnership model between Getty Images and Perceptual [4][13] Strategic Investments - The company has made strategic investments in companies like Lingchuan Technology and Shenshu Technology to enhance its capabilities in AI visual chips and multimodal model training [9][10] - A significant investment of 100 million yuan was secured for Daxiang Visual to advance its AI strategic goals [9][10] Market Opportunities and Challenges - The company recognizes the opportunities presented by the AI era, particularly in the video processing chip sector, with a focus on the development of new chips for large model adaptation expected to be mass-produced by 2026 [11][12] - Challenges in AI content generation include ensuring compliance and accuracy of content sources, which the company addresses through partnerships and high-quality data provision [14][19] Future Business Plans - Visual China plans to expand its core business areas while exploring new business opportunities, including: 1. Increasing market share of high-quality copyright content among SMEs and C-end markets [22] 2. Transforming traditional image libraries into dynamic, multi-purpose data assets using generative AI technology [22] 3. Providing more licensed character models for large model training [22] 4. Ensuring all new business complies with copyright and ethical standards [22] Conclusion - Visual China aims to enhance its market competitiveness and deliver greater returns to investors through strategic initiatives and the integration of AI technologies into its business model [23]

视觉（中国）文化发展股份有限公司 投资者关系活动登记表 编号：2025-005 | | □特定对象调研 分析师会议 | | --- | --- | | 投资者关系 | □媒体采访 □业绩说明会 | | 活动类别 | □新闻发布会 □路演活动 | | | □现场参观 | | | □其他 | | 参与单位名称 | 详见附件。 | | 时 间 | 年 月 日 2025 11 3 15:00-16:00 | | 地 点 | 公司会议室，线上会议 | | 上市公司接待 | 公司董事、总裁：柴继军先生 | | 人员姓名 | 公司副总裁、财务负责人：陈春柳女士 | | | 公司董事会秘书：李淼先生 | | | 一、公司总裁柴继军先生解读公司 2025 年前三季度业务进展情况 | | | 各位投资者、分析师朋友们，下午好！非常感谢大家在百忙之 | | | 中拨冗参与本次交流会，与我们共同探讨公司发展动态。 | | | 年前三季度，公司围绕"主营业务深化拓展"与"AI 创新 2025 | | | 战略落地"两大核心方向，取得了阶段性显著进展。一方面，我们 | | | 牢牢巩固了多年积累的市场领先地位与核心竞争优势；另一方面， ...

Core Viewpoint - Visual China (SZ000681) experienced a trading halt with a price of 22.17 yuan, marking a 10.02% increase and a total market capitalization of 15.532 billion yuan, driven by advancements in AI business and governance optimization [1][2]. Group 1: Company Developments - The company reported that its AI-driven creative customization business grew over 20% year-on-year, supported by 700 million compliant content data for AI training, indicating progress in the AI sector [2]. - Visual China has established an industrial investment fund to expand into the AI, content, and digital technology sectors, enhancing its competitive edge [2]. - The company has revised several management systems, including market value management and insider information management, to optimize its governance structure [2]. Group 2: Industry Context - The application of AI technology in media and content creation is increasingly widespread, aligning with Visual China's strategic focus on AI business development [2]. - The current market shows heightened interest in AI-related concepts, with positive performance from similar stocks, creating a sector-wide momentum [2]. Group 3: Financial Indicators - Although specific data on capital flow was not provided, the company's stable net cash flow from operating activities suggests a solid business foundation [2]. - The actual controller's release of 12 million shares from pledge reduces equity pledge risks, potentially attracting investor interest [2]. - Technical analysis indicates that the stock price may break through key resistance levels, contributing to the trading halt [2].

Core Insights - The company reported a revenue of 399 million yuan in the first half of 2025, a year-on-year increase of 0.05%, while the net profit attributable to shareholders was 44 million yuan, a decrease of 13.91% due to the impact of the macro environment on the advertising and marketing industry [1] - The company is leveraging AI technology to enhance its core business, having launched a "Copyright Review and Plagiarism Detection System" that intercepted over 100,000 materials and terminated contracts with 616 contributors [1] - The company aims to create a global visual content ecosystem, having signed over 9,000 AI creators and generated sales exceeding 27 million yuan from AI-assisted creative works [2] Financial Performance - In the first half of 2025, the company achieved a revenue of 399 million yuan, with a net profit of 44 million yuan, reflecting a decline in profitability [1] - The company plans to distribute a cash dividend of 0.11 yuan per 10 shares (tax included), without any stock bonus [1] - The projected net profits for 2025-2027 are estimated to be 143 million, 155 million, and 169 million yuan respectively, with corresponding EPS of 0.20, 0.22, and 0.24 yuan per share [2] AI and Innovation - The company has developed an internal AI toolbox that is in the beta testing phase, which is expected to become a new growth point for revenue and profit [1] - The AI product AiPPT achieved over 20 million visits in May, ranking first in the domestic AI native PPT tool market and second globally [1] - The company has established partnerships with domestic and international copyright and media organizations, enhancing its creator community that serves over 37 million registered users globally [2] Market Position and Strategy - The company is focusing on the "AI Intelligence + Content Data + Application Scenarios" development strategy to capitalize on AI growth opportunities [2] - The audio and video business accounts for over 32% of total revenue, indicating a significant contribution to the company's financial performance [2] - The company has paid over 2.9 billion yuan in royalties to contributors, promoting a healthy creator ecosystem [2]

Core Insights - Visual China reported a total revenue of 811 million yuan for 2024, reflecting a year-on-year growth of 3.89%, a significant slowdown compared to the 11.94% growth in 2023 [4] - The net profit attributable to shareholders was 119 million yuan, down 18.17% year-on-year, primarily due to increased investment income from the acquisition of Guangchang Creative in the previous year [4][5] - The company achieved a non-recurring net profit of 113 million yuan, which represents a year-on-year increase of 3.80%, indicating an improvement in core business profitability [4] Revenue and Profitability - The gross profit for Visual China was 380 million yuan, showing a decline of 5% year-on-year, indicating pressure on cost control [4] - The main business remains focused on visual content copyright trading and creative customization services, with AI technology enhancing service capabilities and user experience [4][5] AI Technology and Business Expansion - Visual China actively advanced its AI strategy in 2024, establishing a development strategy of "AI intelligence + content data + application scenarios" [5] - The sales revenue from the audio-visual business increased from 26% of total revenue in 2023 to 34% in 2024, becoming a new growth engine for the company [5] - The company entered the 3D content service market through strategic investments, with over 2 million registered users on CG Model Network and more than 1 million tradable 3D model assets [5][6] Content Security and Copyright Protection - Visual China faces significant challenges in content security and copyright protection, establishing a content security committee and implementing a tiered review mechanism [7] - The company launched a copyright review system that intercepted nearly 200,000 risky works, but the number of complaints increased by 66.1% year-on-year, indicating ongoing pressure in copyright protection [7] - Increased investments in content security have raised operational costs, with 37,000 violations removed and 453 violators dealt with during the reporting period [7]