Investment Rating - The report indicates a mixed outlook for the publishing industry, with an overall rating of "under pressure but with local highlights" for the first three quarters of 2025 [4]. Core Insights - The publishing industry is experiencing structural differentiation, with essential categories leading the market, while traditional channels face challenges [2][4]. - The revenue of cultural enterprises has shown a growth of 7.9% year-on-year, with significant contributions from content creation and cultural services [10]. - The report highlights the importance of IP-driven products and classic literature, which have performed well due to their established fan bases [9]. Industry Performance - The paper book market's revenue reached 78.609 billion yuan, a decline of 10.40% year-on-year, with the number of active titles decreasing by 4.92% [4]. - The average price of books increased slightly by 1.86% to 47.56 yuan [4]. - The sales of new books saw a decline of approximately 5% year-on-year, with notable categories like literature and computer books showing initial growth but later experiencing a slowdown [4]. Channel Structure - Online channels dominate the market, with traditional e-commerce and short video e-commerce holding market shares of 46.48% and 43.12%, respectively [12]. - Short video e-commerce is the only channel showing positive growth at around 20%, driven by classic literature and educational products [12]. - Traditional e-commerce is under pressure, with sales declining significantly, while physical retail channels also face challenges, although the decline has narrowed [12]. Policy Environment - The government has introduced multiple policies to support the publishing industry, focusing on cultural industry support and copyright protection [15]. - Financial support and tax incentives are key components of the government's strategy to bolster the publishing sector [16]. - The establishment of a comprehensive copyright governance system is aimed at enhancing protection and facilitating innovation in the industry [17]. Future Development - The industry is expected to transition towards structural growth and deep transformation, with a focus on content quality, channel integration, and digital operations [24]. - The importance of high-value IP operations and cross-industry collaborations is anticipated to increase as the market evolves [24]. - The integration of artificial intelligence in content generation and personalized recommendations is seen as a significant trend that will reshape publishing processes [24].