Summary of Guomai Culture's Conference Call Industry and Company Overview - **Company**: Guomai Culture - **Industry**: Animation Film and Publishing Key Points and Arguments Performance of "The Stars of the Three Kingdoms" - The film "The Stars of the Three Kingdoms" performed below expectations during the National Day holiday, with a total box office of 1.8 billion yuan, while the anticipated total was around 2 billion yuan [2][3] - Despite the lower box office, the film received good reviews, with a Maoyan score of 9.4 and a Douban score of 7.2, indicating audience recognition of the film's quality [2][3] Lessons Learned from the Release - **Timing Issues**: The film's target audience primarily consists of middle and primary school students, suggesting that a summer release would have been more effective [4] - **Promotion Cycle**: The promotional period was too short, starting only in September, which was insufficient for a new animated film without a prior installment [8] - **Content Quality**: The film's story was considered conventional and lacked standout features, which may be attributed to the team's inexperience and the choice of subject matter [8] Future Plans for "The Stars of the Three Kingdoms" - Guomai Culture plans to re-release, supplement, or even remake "The Stars of the Three Kingdoms" in summer 2026 to enhance product quality and market interest [6] - The company aims to explore various formats, including online versions, streaming, and overseas revenue, to fully leverage the IP's value [6] Financial Performance and Growth - Guomai Culture's main business has shown high growth, with Q1 and H1 reports indicating growth rates of 33% and nearly 30%, respectively [5][7] - Despite high growth, profit growth did not meet some investors' expectations due to high personnel and administrative costs during the investment phase [7] - The company has entered a cost-reduction and efficiency-improvement phase, with expectations of significant cost and expense reductions starting in Q4 2025 [12] AI Initiatives and Technological Advancements - Guomai Culture has established an AI publishing platform, "Book World Intelligent Publishing Platform," achieving 80% of the creative process through AI, significantly reducing costs and improving efficiency [9][10] - The company has launched "AI Proofreading King," generating several million yuan in revenue through localized deployments in government and state-owned enterprises [9] - The ERP system integrated with AI has been sold externally, with some publishing groups making collective purchases [10] Highlights in the Publishing Sector - In 2025, Guomai Culture's publishing sector has performed well, with successful products like "Improvement Notes" and G.E.M.'s "Revelation" driving revenue growth [11] - The company expects to maintain high revenue growth in Q3, although human resources and business investments may impact net profit [11] Revenue and Cost Projections - Guomai Culture achieved a 25% revenue growth in 2024 and aims to sustain this high growth for at least the next two years [12] - With the introduction of "Proofreading King" and the "Number World" closed-loop system, labor costs have begun to decline, and the company anticipates significant reductions in overall costs and expenses starting in Q4 2025 [12]