Summary of Southern Media Conference Call Company Overview - Southern Media is experiencing stable operations with a projected double-digit profit growth after excluding tax impacts, indicating strong internal business performance and orderly progress in textbook and educational materials business [2][3]. Key Points Industry and Market Dynamics - The company acknowledges annual educational policy adjustments in June, but these minor changes are not expected to significantly impact the company's fundamentals. The autumn textbook and educational materials ordering process is proceeding normally [2][4]. - The Guangdong Xinhua Publishing Group successfully completed the issuance of 172 million yuan in primary and secondary school textbooks, an increase from 166 million yuan in 2024, excluding educational bookstore data [3]. Financial Performance - For the first half of 2025, Southern Media anticipates a profit growth between 45% and 55%, with a profit range of 434 million to 464 million yuan. This growth meets disclosure standards and reflects a stable operational situation [3]. - The company has committed to maintaining a steady increase in total dividends for 2025, emphasizing investor returns despite previous profit declines [5]. AI and Education Strategy - Southern Media is actively pursuing an "AI + Education" strategy in collaboration with Tencent, planning to launch the public beta version of the AI lesson preparation feature by the end of August, targeting 1 million compulsory education teachers in Guangdong province [2][6]. - As of June 2025, the company has sold nearly 3,000 units of AI smart mice, receiving positive market feedback and planning to enhance the integration of hardware and software [2][7]. New Initiatives - The company has launched the Xinhua AI Youth Growth Space project, which includes AI study rooms and care centers, with the first batch of stores already opened and summer enrollment underway [2][8]. - AI lesson preparation services will initially be promoted for free, with potential future charges, leveraging a large user base and high gross margins to significantly enhance company profits [9]. Upgrades and Improvements - Following the impact on the 2024 in-school care business, Southern Media has upgraded its store care services by adding AI value-added services such as AI study and tutoring, with ongoing store selection and renovation [10]. - The company plans to release a simulation bookstore management game in September as part of its ongoing collaboration with Tencent, with further educational cooperation expected [11].