Our reporter Yuan Chuanxi
Recently, Quantum Song (NASDAQ: QSG) announced its unaudited financial performance for the third quarter of fiscal year 2024. According to financial report data, the company's operating revenue increased by 17.1% year-on-year in the quarter, with a total amount of 945.6 million yuan. The adjusted net profit is 31.93 million yuan, indicating that Quantum Song has achieved profitability for six consecutive quarters and its performance continues to improve.
The achievement is attributed to the initial results of Quantum Song's diversification strategy. In terms of main business, actively expanding the user base, increasing the number of paying users, continuously expanding new business areas, deepening the layout of the online learning market, and continuously optimizing products and services, further consolidating the market position; New business areas, such as Yinfa group health consumer goods, self owned Baijiu brand business, etc., have achieved rapid business growth and continued to improve profitability on the basis of a deep understanding of user needs.
Regarding the focus of the company's future efforts, Li Peng, founder and chairman of Quantum Song Group, said, "We will continue to adhere to the development and promotion of diversified consumer products for middle-aged and elderly users, and we also look forward to the unlimited possibilities of Quantum Song in improving users' quality of life and enhancing its influence in the silver hair market."
Significant achievements in diversified strategic layout
In addition to the deep cultivation of the Yinfa economic track, with the user demand as the starting point, and with the change of user demand, in June 2023, Quantum Song officially launched Baijiu e-commerce live broadcast business with technology as the core and high-quality content as the carrier, successfully promoted a number of products including Baijiu, and Baijiu e-commerce business started rapidly.
Through cross business line resource integration and user data analysis, Quantum Song found that the Baijiu market has huge growth potential and user demand. Especially among middle-aged and elderly people, they have a strong interest in and willingness to consume high-quality and cultural Baijiu brands.
According to the financial report, Quantum Song's big health consumer products targeting the middle-aged and elderly market have quickly won the favor of the target market, with a monthly GMV (total commodity transaction volume) exceeding 10 million, demonstrating strong growth momentum and enhancing the brand's user loyalty and market influence.
The success of exploring new business in Quantum Song is closely related to its precise grasp of user needs and strong user base. Although the diversified strategic layout of Quantum Song has not been launched for a long time, its development speed is very fast, which is precisely due to this.
Specifically, Quantum Song has a huge user base in the field of online learning. According to financial report data, as of March 31, 2024, the total number of registered users of Quantum Song has reached 121 million, a year-on-year increase of 40.3%. This provides a solid user base and user stickiness for the development of new business areas.
Meanwhile, Quantum Song adheres to the path of independent research and development, possessing self-developed live streaming technology and intelligent operation systems. These technology accumulations provide technical support for Baijiu e-commerce business, such as reducing operating costs, ensuring user information security, improving user experience, etc., which can realize the whole process digital management and operation of Baijiu brand, and improve brand operation efficiency and market competitiveness.
It is worth mentioning that Quantum Song has actively invested in research and development since this quarter, aiming to launch its own unique Baijiu brand to meet the diversified needs of users.
When Quantum Song promoted Baijiu products in the early stage, it has received extensive attention and recognition from users, providing strong data support and market confidence for Quantum Song to launch its own Baijiu brand.
At present, the Baijiu market is in a stage of rapid development, and the market scale is constantly expanding. According to the forecast, the total sales of Baijiu industry is expected to reach 800 billion yuan in 2024, with a year-on-year growth of 10%. This data shows that the Baijiu market is constantly expanding, and the market scale is showing a steady growth trend. At the same time, consumer behavior is also changing. According to the Alcoholic Beverage User Insight Report released on the official website of iResearch, Baijiu consumption in the past year has shown a trend of "high-end, diversified and healthy", and more consumers pay more attention to product details and obtain purchase suggestions from social media and other channels. Quantum Song accurately captures market changes and opportunities, and chooses to enter this market at the right time.
An analyst said that the launch of Quantum Song's own Baijiu brand is an important part of its diversified development strategy, and also reflects its deepening layout in the e-commerce field. By launching its own brand, Quantum Song will be able to better meet user needs, enhance brand influence, and achieve rapid business growth, laying a solid foundation for future development.
Significant advantages in cross industry resource integration
With the deepening of population aging, enormous market opportunities for the silver haired economy are also beginning to emerge.
According to the "China Silver Hair Economic Development Report" released by Frost Sullivan, through data analysis of the market size of the silver hair economy, from 2019 to 2023, the silver hair economic market grew rapidly at a compound annual growth rate of 13.2%, and by 2023, the scale had reached 7.1 trillion yuan. It is expected that this market will continue to grow at a compound annual growth rate of 11.8% in the next five years, demonstrating broad market prospects.
On the one hand, there is continuous policy support, and on the other hand, Quantum Song, which deeply cultivates the silver haired economy, takes user needs as the fulcrum to further expand business boundaries.
On the basis of closely monitoring the mobility needs of middle-aged and elderly users, Quantum Song continuously supplements and improves its teaching service system to better serve the rapidly growing silver hair learning market.
Specifically, Quantum Song has also innovatively launched an elderly study tour project, providing customized teaching modes and companionship services for the travel pain points of the target audience, and opening a new "study tour era" for the silver haired group with "cultural tourism+research".
It is understood that Quantum Song will continue to optimize its product portfolio in the future, providing more customized choices for the silver hair market, and injecting a continuous stream of vitality into the company's promotion of business diversification and long-term sustainable development.
It is not difficult to find that while focusing on the silver economy business, Quantum Song fully utilizes its vast user base and continuously expands business boundaries based on user needs.
At the same time, Quantum Song has a strong technical team and innovative capabilities, capable of independently developing various online learning systems and tools. These technological advantages not only improve the operational efficiency and service quality of Quantum Song itself, but also provide solid technical support for cross industry resource integration.
In the industry's view, the diversified industrial layout provides Quantum Song with more choices and flexibility in cross industry resource integration. Quantum Song accurately grasps market dynamics and user needs through cross business line resource integration, providing strong support for the company's business decision-making, successfully achieving business diversification and expansion, and keeping Quantum Song in a leading position in the fiercely competitive market.