SPM(SH:601900)2025-06-04 15:25Summary of Southern Media Conference Call Company and Industry Overview - Company: Southern Media - Industry: Digital Publishing and Education Key Points and Arguments 1. Collaboration with Tencent Cloud: Southern Media has partnered with Tencent Cloud to explore digital publishing commercialization, launching various intelligent agents, including a Cantonese cuisine master agent with over 8,000 recipes and 200 intangible cultural heritage recipes, offering paid services and planning further AI education applications [2][3] 2. AI Features on Yuejiao Cloud Platform: In April, CICC launched AI lesson preparation and AI tutoring features on the Yuejiao Cloud platform, achieving significant breakthroughs in lesson plan generation and personalized services, with positive feedback from 250 schools during internal testing [4] 3. After-School Services: Southern Media will start promoting after-school service enrollment in June, with classes officially beginning in July. Full-day care services are a significant revenue source during summer and winter breaks, with around 80 locations offering this service [6] 4. Performance Outlook: The company expects stable performance in Q2, benefiting from a low deferred tax base from the previous year. Key growth drivers include price increases for first and seventh-grade textbooks, the launch of the first AI textbook, and the advancement of Hong Kong and Macau textbook businesses [7] 5. Market Size in Hong Kong and Macau: The textbook market in Hong Kong and Macau is comparable to that of small provinces in mainland China, with a high average transaction value despite a smaller student population of around 1 million. The company plans to introduce new subjects in Macau and Hong Kong, aiming to increase market share [8] 6. Competitive Landscape: The main competitor in the Hong Kong and Macau textbook market is Renjiao Publishing, with both companies currently engaged in differentiated competition. Southern Media's geographical and cultural advantages are expected to enhance its content creation capabilities [9] 7. Future Plans with Tencent: The collaboration with Tencent will focus on AI in education, developing intelligent products related to Cantonese language, cuisine, and tourism, while exploring new business models and maintaining close cooperation with Tencent [10] 8. AI Textbook Development: The company will know by the end of the month whether its AI textbooks will enter the provincial catalog, which would significantly impact sales. If not, there are backup plans to enter local catalogs in 21 cities [11] 9. AI Curriculum Implementation: The specific coverage of AI courses is still uncertain, pending decisions from local education departments regarding grade levels and course structure. Prepared materials include full sets for sixth grade and junior high school [12] 10. Content Continuity Concerns: If AI courses start from the third grade, there may be continuity issues for students who have not learned relevant content in earlier grades, highlighting the need for careful curriculum planning by education authorities [13] Additional Important Information - The company is actively working to recover from last year's decline in in-school care services through new measures like mock exams and teacher training [6] - The introduction of AI textbooks is seen as a potential game-changer for sales, with the company aiming to adapt to local market conditions and student acceptance [8][11]