Core Viewpoint - The article discusses the closure of Jinli Naju, a subsidiary of Damai Entertainment, due to poor performance and its minimal contribution to the overall revenue of the parent company, Hu whale Entertainment [4][5][6]. Group 1: Company Performance and Closure - Jinli Naju's revenue for 2024 is projected to be less than 500 million RMB, which accounts for only about 2% of Hu whale Entertainment's total revenue of 22.267 billion RMB for the 2025 fiscal year [6]. - The decision to shut down Jinli Naju was made swiftly, with most team members receiving termination notices on the same day [5]. - Jinli Naju had previously invested in developing original IPs and film-related products, but only the "Empresses in the Palace" blind box series achieved significant sales [5][6]. Group 2: Strategic Shift of Hu whale Entertainment - Hu whale Entertainment has been shifting its focus from film revenue to more profitable areas such as live performances and IP development, aligning with the overall trend in the entertainment industry [8]. - The rebranding of Alibaba's entertainment division to Hu whale Entertainment reflects a strategic decision to return to core business principles and adapt to market changes [8]. - The revenue from live performances and IP derivative businesses has significantly increased, with live performance revenue soaring by 236% to 2.057 billion RMB, and IP derivative revenue growing by 73% to 1.433 billion RMB [8].