Phoenix New Media Ltd (FENG) 2024 Q4 法說會逐字稿

Good day and thank you for standing by. Welcome to Phoenix New Media fourth-quarter 2024 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded.

您好，感謝您的支持。歡迎參加鳳凰新媒體2024年第四季財報電話會議。（操作員指示）請注意，今天的會議正在錄音。

I would now like to turn the conference over to your speaker today, Muzi Guo from Investor Relations. Please go ahead.

現在我想將會議交給今天的演講者，來自投資者關係部門的 Muzi Guo。請繼續。

Thank you, operator. Welcome to Phoenix New Media's earnings conference call for the fourth-quarter of 2024. On today's call, we will begin with an overview of our quarter result followed by a Q&A session. You can find our quarterly financial results and the webcast of this conference call on our website at ir.ifeng.com.

謝謝您，接線生。歡迎參加鳳凰新媒體2024年第四季業績電話會議。在今天的電話會議上，我們將首先概述我們的季度業績，然後進行問答環節。您可以在我們的網站ir.ifeng.com上找到我們的季度財務表現和本次電話會議的網路直播。

Before we continue, please note our Safe Harbor statement included in the earnings press release, which also applies to any forward-looking statements made on this call. Additionally, unless otherwise specified, all figures mentioned are in RMB.

在我們繼續之前，請注意收益新聞稿中包含的安全港聲明，該聲明也適用於本次電話會議中所做的任何前瞻性陳述。此外，除非另有說明，所有數字均以人民幣為單位。

Joining me here today are our CEO, Mr. Yusheng Sun; and our CFO, Mr. Edward Lu. Now I will pass the call to Mr. Sun for his opening remarks. I will provide the translation.

今天與我一起出席的還有我們的執行長孫玉勝先生和財務長 Edward Lu 先生。現在我請孫先生致開幕詞。我將提供翻譯。

(spoken in foreign language)

（用外語說）

Hello, everyone, and welcome. Over the past year, we remain committed to the professionalism and quality of our content. Thanks to the hard work and close collaboration of our team, we achieved year-on-year revenue growth. In the fourth quarter, we demonstrated both professionalism and speed in our news coverage, earning widespread recognition.

大家好，歡迎光臨。在過去的一年裡，我們始終致力於內容的專業和品質。感謝團隊的辛勤工作和密切合作，我們實現了收入同比增長。第四季度，我們的新聞報導既專業，又快捷，獲得了廣泛認可。

Our original content IP continued to innovate. Our events showcase our social responsibility, and our efforts in commercialization also made progress. These achievements have strengthened our influence and laid a solid foundation for our future development.

我們的原創內容IP不斷創新。我們的活動體現了我們的社會責任，我們的商業化努力也取得了進展。這些成績的取得，增強了我們的影響力，為我們未來的發展奠定了堅實的基礎。

Now I will invite Edward to provide a more detailed summary of our fourth quarter performance on my behalf.

現在我請愛德華代表我對我們第四季的業績作更詳細的總結。

Thank you, Mizu. In the first quarter of 2024, we showcased our professional expertise and innovative spirit across multiple business areas, delivering high quality content and services to users while staying competitive in the market.

謝謝你，Mizu。2024年第一季度，我們展現了在多個業務領域的專業知識和創新精神，為使用者提供了高品質的內容和服務，同時保持了市場競爭力。

Our coverage of major news events showcased our rapid response and professional depth particularly during the US election and South Korea's martial law crisis. In November, we launched a real-time vote count product becoming the first domestic online to announce the US election results. Our swing states only feature and the on-the-ground video series take you inside the US election, garnered millions of views and trended across the Internet.

我們對重大新聞事件的報導展現了我們的快速反應和專業深度，尤其是在美國大選和韓國戒嚴危機期間。11月，我們推出即時計票產品，成為國內首個線上公佈美國大選結果的產品。我們的搖擺州專題和實地視頻系列將帶您了解美國大選，已獲得數百萬次觀看，並在互聯網上流行起來。

In December, when South Korea declared martial law, we sprung into action immediately. We quickly supplemented event details and continuously compiled, edited, and interpreted content to provide a fuller picture while integrating live streaming, which attracted over 27 million views across platforms. Our in-depth analysis about South Korea's First Lady in Kim Keon-hee earned praise from peers and gained strong traction online.

12月，韓國宣布戒嚴後，我們立即採取了行動。我們迅速補充了活動細節，並不斷撰寫、編輯和解讀內容，以提供更全面的畫面，同時結合直播，吸引了超過 2700 萬次跨平台觀看。我們對韓國第一夫人金根熙的深入分析贏得了同行的好評，並在網路上引起了強烈反響。

We also distributed our exclusive interviews with the women who confronted the army across our channels, highlighting FENG's distinct edge in global news reporting. During the quarter, our original columns and IPs delivered both excellent data and widespread praise.

我們也透過我們的管道發布了與軍​​隊對抗的女性的獨家採訪，凸顯了 FENG 在全球新聞報道中的獨特優勢。本季度，我們的原創專欄和IP不僅取得了優異的數據，還獲得了廣泛的讚譽。

Tang Bohu, our in-depth commentary series, broke down the Korean plane crash with technical precision, hitting 250 million views on Weibo topics, topping the trending list, a new high for the column.

我們的深度評論系列《唐伯虎》對韓國空難事件進行了專業細緻的分析，微博話題閱讀量突破2.5億，位居熱搜榜首，創下該專欄歷史新高。

In finance, cover story landed an exclusive chat with XPENG motor's CEO at the Paris Motor Show, racking up 19 million new trending on Douyin, Toutiao and beyond.

財經方面，封面故事在巴黎車展獨家採訪了小鵬汽車CEO，在抖音、今日頭條等平台收穫1900萬熱搜。

Our video IP journey shared the inspiring story of a girl who lost her hearing in infancy and made a remarkable journey to become a post-doctoral fellow totaling 67 million views. Meanwhile, the Phoenix leading WeChat account explored Nobel Laureate's Han Kang's achievements in-depth, with the article widely responded and praised by industry peers.

我們的影片 IP 之旅分享了一個女孩在嬰兒時期失去聽力並經歷了成為博士後的非凡旅程的勵志故事，總觀看次數達 6700 萬次。同時，鳳凰衛視主力微信公眾號對諾貝爾獎得主韓康的成就進行了深入探討，文章得到了業界的廣泛反響和好評。

This quarter, we also put off several impactful events that reflected our cultural values and the commitment to social good. The 2024 China power person of the year gala seen the technology for good honored those using tech to better society and boost human well-being.

本季度，我們也推遲了幾項體現我們的文化價值和對社會公益的承諾的有影響力的活動。2024中國年度人物盛典以「科技向善」為主題，表彰那些利用科技改善社會、增進人類福祉的人士。

The auction and charity gala seemed the cross-border trust sustainability focused on the needs of underserved communities and the social inclusion with philanthropists from various platforms, sharing ideas and solutions, amplifying our influence in public welfare.

拍賣會及慈善晚會體現了跨國信託的可持續性，關注弱勢群體的需求以及社會包容性，與來自不同平台的慈善家們分享想法和解決方案，擴大我們在公益事業中的影響力。

Our strength in content, distribution and brand value supported our advertising base, driving our revenue uptick for the year despite tough market conditions. We also pushed in paid services launching a mini program driven mobile business in Q4 that tapped into Douyin, Kuaishou and WeChat traffic ecosystems, fueling rapid growth.

我們在內容、分銷和品牌價值方面的優勢支撐了我們的廣告基礎，儘管市場環境嚴峻，但仍推動我們全年收入成長。我們也在第四季度推動付費服務，推出了由小程式驅動的行動業務，利用抖音、快手和微信的流量生態系統，推動快速成長。

Overall, in Q4 2024, we earned recognition from users and industry through the professionalism, speed and the depth of our content while laying the groundwork for future operations through commercial exploration.

整體而言，2024年第四季度，我們透過專業、速度以及內容的深度贏得了用戶和產業的認可，同時也透過商業化的探索為未來的營運奠定了基礎。

We understand that a media's online value lies not only in sharing news but also in its commitment to social responsibility. We will continue striving to deliver higher quality content to users, creating sustainable social and commercial value.

我們深知，媒體的網路價值不僅在於分享新聞，更在於承擔社會責任。我們將繼續努力為用戶提供更優質的內容，創造可持續的社會價值和商業價值。

This concludes our CEO, Mr. Sun's prepared remarks. I will now walk you through our financial performance for the fourth quarter of 2024. All figures mentioned will be in RMB.

我們的執行長孫先生的準備發言到此結束。現在我將向大家介紹我們 2024 年第四季的財務表現。所有提及的數字均以人民幣計算。

Our total revenues were RMB218.1 million, representing a 3% increase year-on-year from RMB211.8 million. Specifically, net advertising revenues were RMB189 million compared to RMB197 million in the same period of last.

我們的總收入為人民幣2.181億元，較去年同期的人民幣2.118億元成長3%。具體而言，淨廣告收入為人民幣1.89億元，去年同期為1.97億元。

Paid services in revenues were RMB29.1 million representing 96.6% increase year-on-year from RMB14.8 million, primarily driven by revenue generated from our new digital reading services offered through mini programs on third-party applications.

付費服務收入為 2,910 萬元，較去年同期的 1,480 萬元成長 96.6%，主要得益於我們透過第三方應用程式上的小程式提供的新數位閱讀服務所產生的收入。

Cost of revenues was RMB121.1 million, slightly up from RMB120.5 million year-on-year. Gross margin for the fourth quarter improved to 44.5%, up from 43.1% in the same period of last year.

營業成本為人民幣1.211億元，較去年同期的人民幣1.205億元略有上升。第四季毛利率由去年同期的43.1%上升至44.5%。

Total operating expenses were RMB90.3 million, reflecting a 32% increase year-on-year from RMB68.4 million. This increase was primarily due to higher sales and marketing expenses incurred for the new digital reading services mentioned earlier.

總營業費用為人民幣9,030萬元，較去年同期的人民幣6,840萬元成長32%。這一增長主要是由於前面提到的新數位閱讀服務所產生的銷售和行銷費用增加。

Income from operations was RMB6.7 million compared to RMB22.9 million in the same period of last year. Net loss attributable to ifeng was RMB3.6 million. compared to net income attributable to ifeng of RMB8.1 million in the same period of last year.

營業收入為人民幣670萬元，去年同期為人民幣2,290萬元。鳳凰網淨虧損為360萬元人民幣，去年同期鳳凰網淨利為810萬元。

Moving on to balance sheet. As of December 31, 2024, the company's cash and cash equivalents, term deposits, short term investments and the restricted cash totaled RMB1.05 billion or approximately USD143.3 million.

繼續討論資產負債表。截至2024年12月31日，本公司現金及現金等價物、定期存款、短期投資及受限現金總額為人民幣10.5億元，約合1.433億美元。

Finally, I'd like to provide our business outlook. For the first quarter of 2025, we forecast total revenues to be between RMB147 million and RMB162 million. For net advertising revenues, we project between RMB112 million and RMB122 million.

最後，我想介紹一下我們的業務展望。對於2025年第一季，我們預測總收入將在人民幣1.47億元至人民幣1.62億元之間。我們預期淨廣告收入在1.12億元人民幣至1.22億元之間。

While for paid service revenues, we project between RMB35 million and RMB40 million, this focus reflects our current and preliminary view, which is subject to change and substantial uncertainties. This concludes the prepared portion of our call. We are now ready for questions. Operator, please go ahead.

對於付費服務收入，我們預計在人民幣 3500 萬元至人民幣 4000 萬元之間，但這一重點反映了我們當前的初步看法，可能會發生變化並存在很大的不確定性。我們的通話準備部分到此結束。現在我們可以回答問題了。接線員，請繼續。

(Operator Instructions) Xueru Zhang, 86Research.

（操作員指示）張雪茹，86 研究。

Thank you. Good morning, management. Thank you for taking my question. I have one question regarding the paid service revenue. We have observed substantial increase in this revenue stream during the fourth quarter. Could management please elaborate on the underlying factors contributing to this growth trajectory? Thank you.

謝謝。早安，管理層。感謝您回答我的問題。我有一個關於付費服務收入的問題。我們觀察到第四季該收入流大幅增加。管理階層能否詳細說明促成這一成長軌跡的根本因素？謝謝。

Okay. Actually, the growth in paid services revenue stems from our paid short story novel business launched on third party platform mini programs Xiaohongshu, tapping into traffic ecosystems like Douyin, Kuaishou and WeChat. This brought in notable revenue gains.

好的。事實上，付費服務收入的成長源自於我們在第三方平台小程式小紅書上推出的付費短篇小說業務，利用了抖音、快手、微信等流量生態。這帶來了顯著的收入成長。

Related promotion fees have been recorded under sales and marketing expenses, keeping the overall profit and margin actually very quite modest. As a newly launched venture, although we expect a strong year-over-year growth in the near term, but the business remains small in scale, we will focus its profit contribution and keep evaluating its performance. Thank you.

相關促銷費用已計入銷售和行銷費用，導致整體利潤和利潤率實際上非常低。作為一家新成立的公司，雖然我們預計短期內將實現強勁的同比增長，但業務規模仍然較小，我們將專注於其利潤貢獻並持續評估其業績。謝謝。

Thank you.

謝謝。

[Troy Hsu], First Shanghai.

[Troy Hsu]，第一上海。

Good morning to the management team. My name is Troy from First Shanghai Group, and I appreciate the opportunity to ask your questions. Over the past year, the company saw an increase in advertising revenue despite a broader slowdown in online advertising market. Could you please share the strategies used to attract advertisers? Thank you.

管理團隊早安。我是第一上海集團的特洛伊，很高興有機會向您提問。過去一年，儘管網路廣告市場普遍放緩，但該公司的廣告收入仍有所成長。能分享一下吸引廣告商的策略嗎？謝謝。

Actually, overall, it was down to two key approach. First, our sales team has shifted to industry-specific divisions. This allowed us on specific sectors to streamline resources allocation and sped up innovation.

實際上，總的來說，它歸結為兩種關鍵方法。首先，我們的銷售團隊已經轉向特定產業部門。這使得我們在特定領域能夠簡化資源配置並加速創新。

For example, we achieved growth in the public sector, securing promotional budgets from local tourism and cultural bureaus. In the FMCG sector, an experienced leader led a skilled team using useful trendy content to boost our revenue.

例如，我們在公共部門取得了成長，從當地旅遊和文化局獲得了促銷預算。在快速消費品領域，一位經驗豐富的領導者帶領一支技術嫻熟的團隊，利用有用的流行內容來提高我們的收入。

Second, we have accelerated the innovation in content sources and upgraded our marketing product to respond more quickly to market shifts. This includes tailoring international marketing strategies for companies expanding overseas, and boosting content distribution on short video platforms. Yes. I hope I have answered your question. Thank you.

第二，我們加快內容來源創新，升級行銷產品，更快回應市場變化。其中包括為拓展海外業務的公司量身打造國際行銷策略，以及促進短影片平台上的內容分發。是的。我希望我已經回答了你的問題。謝謝。

Thank you. This concludes the Q&A session. I will now hand back to Muzi.

謝謝。問答環節到此結束。現在我將把麥克風交還給木子。

Thank you. This concludes our Q&A session and conference call. If you have any additional questions, please don't hesitate to reach out to us. Thank you for joining us and have a great day.

謝謝。我們的問答環節和電話會議到此結束。如果您有任何其他問題，請隨時與我們聯繫。感謝您加入我們並祝您有愉快的一天。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。