Summary of Citic Publishing Conference Call Company Overview - **Company**: Citic Publishing - **Industry**: Publishing and Digital Media Key Points and Arguments 1. **Digital Transformation**: Citic Publishing has implemented the "Kuafu" digital production platform, achieving cost reduction and efficiency improvement in its digital transformation 2.0, enhancing content production efficiency and multi-modal conversion capabilities, and optimizing precision marketing strategies, including AI-driven user profiling and intelligent supply chain management [2][3][4] 2. **Financial Performance**: In the first half of the year, the company's book distribution revenue grew by 4.5%, with a gross margin increase to 41.7% and a market share of 3.05%. This growth was primarily driven by the successful capture of social hotspots in management and social science books, as well as the successful operation of the anime product line, including derivatives from "Nezha" and collaborations with the Black Myth team [2][5] 3. **Expansion of Anime Product Line**: Citic Publishing is actively expanding its literary and anime product lines through collaborations with the Black Myth team and other projects, linking tourism books, film and television dramas, and domestic animation IP resources to develop cultural and trendy products, while also engaging in community operations for multi-dimensional development [2][6] 4. **B2B Business Development**: The company has been expanding its B2B business through "centralized book selection" and knowledge services, including customized training courses and corporate services. Future plans include offering comprehensive knowledge service packages, including reports, courses, and internal corporate events [2][7] 5. **Omni-channel Strategy**: Citic Publishing has established an omni-channel layout, including traditional e-commerce, live e-commerce, self-owned small communities, and private traffic platforms. The strategy focuses on clear user profiling and real-time hotspots to push relevant categories, with live streaming primarily selling self-owned products [2][8] 6. **IP Derivative Products**: The company has over 380 self-developed SKUs for IP derivative products, with the launch schedule synchronized with the release of related films, dramas, or comics. The sales strategy includes both online and offline channels, with a focus on community engagement and market demand [2][9] 7. **Cultural Space Operations**: The operation of Citic Publishing's urban cultural spaces showed growth in the first half of 2025, attributed to precise market demand understanding and effective diversified management strategies [2][10] 8. **Future Plans for Physical Stores**: The company has redefined physical stores as urban cultural spaces, closing some locations post-pandemic and adopting a strategy of cautious expansion. Current stores are profitable, and new store openings are based on verified local demand [2][11] 9. **Dividend Announcement**: Citic Publishing announced its first interim dividend, driven by national value management assessment requirements for state-owned enterprises and the company's ongoing efforts in product and industry chain management. The company aims to maintain growth in both IP and content sectors [2][11] Additional Important Content - **AI Tools Utilization**: The company is exploring the use of AI tools to create other content formats, such as short videos or short dramas, to meet market demand and reader preferences [2][5] - **Cost Management**: The company has implemented measures to reduce costs through digital development and strict management of sales expenses, contributing to revenue and profit growth [2][5]