Financial Data and Key Metrics Changes - In 2025, total revenue decreased to RMB3.2 billion from RMB4.2 billion in 2024 [21] - Online business revenues increased by 2.3% to RMB1.99 billion, driven by growth in self-owned platform products [21][22] - Net profit attributable to shareholders increased by 68.5% to RMB850 million, while non-IFRS net profit decreased to RMB508 million from RMB702 million in 2024 [28] Business Line Data and Key Metrics Changes - Revenue from self-owned platform products increased by 3.1% to RMB1.7 billion, while revenues from Tencent products decreased by 25.6% to RMB97 million [22] - Revenue from IT operations decreased by 46.4% to RMB1.2 billion, primarily due to a lack of new TV series or film releases [25][26] - The IT merchandise business achieved significant growth with GMV reaching RMB488 million in the first half, nearing last year's total of RMB500 million [13][26] Market Data and Key Metrics Changes - The number of newly signed works generating over RMB1 million in revenue increased by 63% year over year, and the number of newly signed writers with over 10,000 average subscribers per chapter rose by 45% [54] - The average monthly active users (MAUs) decreased to 141.3 million from 176 million in 2024, with a decline in several platform products [23] Company Strategy and Development Direction - The company aims to capitalize on the rapid growth of China's IP industry, focusing on premium IP, short dramas, and physical merchandise [5][6][19] - The strategy includes enhancing the online reading platform, expanding the IP library, and leveraging AI technologies across business lines [17][18][19] Management's Comments on Operating Environment and Future Outlook - Management highlighted the explosive growth of China's IP industry and the importance of premium IP and short dramas in driving future growth [5][6] - The company is committed to becoming a key architect of China's IP ecosystem evolution, focusing on creative transformation and premium IP development [19] Other Important Information - The company has integrated AI across its business lines, enhancing content creation and user engagement [17][18] - The merchandise business is expanding with a focus on product development, channel distribution, and user engagement [13][15][37] Q&A Session Summary Question: Current progress of IP merchandise business and future development priorities - Management discussed the successful IP merchandise initiatives, including events like the King's Avatar tournament in Zurich, and plans to expand product categories and distribution channels [31][33][35][38] Question: Top priorities and KPIs for classic IPs - Management emphasized the importance of releasing new content for classic IPs and enhancing their commercial value through diversified adaptations and merchandise [40][42][43] Question: Commercialization potential of top IPs and future plans - Management expressed confidence in the commercialization potential of IPs, highlighting the need to adapt to evolving user demands and trends in the merchandise market [46][51][52] Question: Content pipeline for Newcastle Media and AI deployment - Management outlined the upcoming content releases for the second half of the year and discussed the integration of AI technologies to enhance content production and user engagement [57][60][61]