Thinkingdom Media (SH:603096)2024-05-23 15:25Summary of Conference Call Company and Industry Overview - The conference call focused on the publishing industry, specifically the performance of a company in the book retail sector during 2023 and the first quarter of 2024. The company is navigating a challenging market environment characterized by a decline in traditional book sales and the rise of short video live-streaming e-commerce [2][6]. Key Points and Arguments Performance Review - In 2023, the company achieved a revenue of 900 million yuan, a decrease of 3.94% year-on-year. The net profit attributable to shareholders was 160 million yuan, an increase of 16.48% [2]. - The paper book segment generated revenue of 824 million yuan, down 5.07% year-on-year, with a gross margin of 47.33%, a decline of 0.81 percentage points [2]. - Digital content business revenue was 46.7 million yuan, up 19.28% year-on-year, with a gross margin of 67.56%, down 0.8 percentage points [2]. - Copyright operation revenue was 20.9 million yuan, with a gross margin of 58.5% [2]. Domestic Book Planning and Publishing - The domestic book planning and publishing segment reported revenue of 734 million yuan, a decrease of 8.84% year-on-year, with a gross margin of 48.45%, down 0.6 percentage points [3]. - The company is adapting to rapid changes in marketing channels by adjusting the release schedule of new products and enhancing the connection between product and sales [3]. Digital Content Business - The digital content segment, which includes audiobooks and e-books, generated revenue of 21.78 million yuan, a decrease of 20.82% year-on-year [4]. - The company is focusing on IP development and has established partnerships with platforms like WeChat Reading and Himalaya [4]. International Business - The overseas business segment achieved revenue of 135 million yuan, a year-on-year increase of 53.82%, with a net loss of 14.26 million yuan, narrowing by 64.25% [5]. - The company has over 2,000 works under long-term global copyright and is enhancing international cultural exchange activities [5]. Q1 2024 Performance and Outlook - In Q1 2024, the company reported revenue of 225 million yuan, a growth of 9.97% year-on-year, with a net profit of 48.54 million yuan, up 7.81% [6]. - Despite a 5.85% decline in the overall book retail market, the company achieved positive growth due to its commitment to high-quality content [6]. Additional Important Insights - The company has established a strong market position in the literary and children's book sectors, with several titles exceeding 10 million copies sold [7]. - Future performance is expected to be influenced by both internal decisions and external market conditions, with a focus on quality content and innovative marketing strategies [8][9]. - The company plans to release over 200 new titles in 2024, including significant works from well-known authors [11]. - The company emphasizes shareholder returns and plans to maintain a positive dividend policy based on operational performance and cash flow [10]. Conclusion - The company is navigating a challenging publishing landscape with strategic adjustments in marketing and product development. It aims to leverage its strengths in content creation and international expansion to drive future growth while maintaining a focus on shareholder value and operational efficiency.