Huazhi Digital Media(SZ:300426)2022-12-06 08:54Group 1: Investor Relations Activities - The investor relations activity involved multiple financial institutions and analysts, including Han Sha Capital and Tianhong Fund Management [2][3] - The meeting took place on March 3, 2016, from 10:00 to 11:30 at the company's conference room in Beijing [3] Group 2: Television Series Production - The series "Zhuque" is in the early preparation stage, with filming expected to start in April 2016 and a projected shooting period of 3-4 months, aiming for a broadcast in Q4 2016 [4] - The series "Donggong" will also begin filming this year, but simultaneous broadcasting is challenging; it may be developed as an online series [4] Group 3: Pricing and Profit Margins - The selling price for a high-quality drama on both TV and online platforms can exceed 10 million, with a gross margin typically between 40-50% [4] - The cost structure is heavily influenced by actor negotiations, with rising actor fees being managed through profit-sharing with key creative personnel [4] Group 4: Intellectual Property (IP) Strategy - The company focuses on acquiring high-quality scripts but avoids projects priced between 40-50 million, emphasizing the importance of full rights for valuable IP [5] - The strategy includes nurturing IP for various adaptations, including TV dramas, web series, and potentially games [5] Group 5: Film Projects - The company plans to release films "Jue Di Tiao Wang" and "Fei Chang Tong Huo" in 2016, with a total investment of 50 million USD for "Jue Di Tiao Wang," where the company holds a 60% stake [5][6] Group 6: Variety Shows - The company aims to expand into the variety show sector with three planned programs, including "C Plan for Dreaming China," currently in preparation [6] - Collaboration with professional production teams is emphasized, with a focus on developing original content rather than merely licensing [6] Group 7: Revenue Projections - Revenue projections indicate that TV dramas will account for 50% of profits, films for 30%, and variety shows and other content for 20% [6] Group 8: Distribution and Advertising - The company does not share advertising revenue with TV stations and prefers a buyout model for online content sales, although it is exploring click-based revenue models for overseas markets [7] - A joint venture has been established in Hong Kong to create a paid platform for overseas Chinese audiences, with over 1,000 hours of content available [7] Group 9: Market Strategy - The company aims to expand its channels to maximize content profitability, seeking to establish its own distribution channels rather than relying solely on partnerships [6][7]