ZDDC(SH:600633)2025-05-27 15:28Summary of the Conference Call Company and Industry Overview - The conference call discusses Zhejiang Shuculture and its various business segments, including gaming, AI applications, digital governance, and cultural IP development [2][3][4][5]. Key Points and Arguments Gaming Business - In 2024, the gaming business net profit was approximately 600 million yuan, benefiting from reduced customer acquisition costs and lower sales expenses, resulting in a year-on-year profit increase of about 20 million yuan [2][3]. - The company expects the gaming business to maintain steady growth in 2025, remaining the primary source of revenue [2][4]. - The Doudizhu project has solidified its industry-leading position, leading to decreased customer acquisition costs as the project enters a harvest phase [3][4]. IDC Business - The IDC business faced challenges due to low rack utilization at the Beijing base, with profits dropping to less than 50 million yuan in 2024, including a goodwill impairment of nearly 30 million yuan [2][6]. - The company anticipates improved performance in 2025 as the Beijing base's client acquisition progresses, although revenue will depend on actual client power demands [2][6]. AI Applications - The Chuanbo Brain project generated over 150 million yuan in revenue in 2024, with losses narrowing to 5 million yuan. It is projected to exceed 200 million yuan in revenue and turn profitable in 2025 [2][6]. - The company collaborates with Visual China and has successfully facilitated sales of 300 million yuan for the Jiaxing Media Center [2][6][22]. Digital Governance and Healthcare - In digital governance, the company is developing intelligent agents using large models and platforms tailored to client needs [7][26]. - The healthcare sector has seen the establishment of comprehensive solutions, expanding beyond Zhejiang to regions like Chongqing and Hunan [7][27]. Cultural IP Development - The company is actively involved in the cultural IP sector, collaborating with the Sports Administration and the Olympic Committee to develop mainstream cultural IPs [5][14]. - The 潮牌引力 project plans to launch multiple game co-branded SKUs in 2025, focusing on consumer entertainment IP card development [14][15]. Data Operations and Marketing - The data operations business is currently small but has potential for growth through policy support and collaboration with DingTalk [10][11]. - The digital marketing subsidiaries, Taotian Group and Jiutian Interactive, have shown improvements in gross margins and net profit rates, expanding their client base [11][12]. Future Business Developments - The company is exploring new investment opportunities and has initiated several merger and acquisition projects, focusing on regulatory changes in the industry [5][24]. - The City Brain business model includes various government procurement systems, aiming to enhance social governance capabilities [25][26]. AI in Various Fields - The company has developed AI applications across multiple sectors, including social governance and tourism, with a focus on creating customized intelligent agents [28][29]. - The 45-degree APP for tourism services has been launched, showcasing the company's commitment to digital transformation [8][9]. Additional Important Information - The company holds a 0.77% stake in Qingtao Energy, which is preparing for an IPO with a valuation of 23 billion yuan [5][24]. - The gaming sector is shifting focus towards the silver economy, targeting older consumers while also developing more youthful and mobile-friendly games [23][24]. - The company emphasizes a high degree of marketization, with competitive compensation structures and a strong incentive mechanism for employees [20][19].