The following is the In 2020, the revenue will be 8.53 billion, and the net profit of non IFRS will increase 40 times in the second half of the year From Reading recommended by recordtrend.com. And this article belongs to the classification: Enterprise financial report, Investment & Economy, Mobile reading, Network entertainment.
On March 23, 2021, Yuewen group (0772. HK) released its annual performance report for 2020. According to the performance report, Yuewen group will achieve a total revenue of 8.53 billion yuan in 2020, of which the revenue in the second half of the year will reach 5.27 billion yuan, an increase of 61.5% compared with the first half of the year; the net profit attributable to the parent company under non IFRS will reach 917 million yuan, of which 895 million yuan in the second half of the year, an increase of 40 times compared with the first half of the year. The new management promoted the reading of “content, platform and ecological upgrading and reconstruction” and achieved phased results. The performance in the second half of the year exceeded market expectations.
Mr. Cheng Wu, chief executive of the reading department, said: “the group faced many challenges in 2020, including the external factors of COVID-19 and the market competition, and more important internal reasons, such as the lack of integration of the system and business. In response to the above challenges, we formulated a development policy with the core of “content, platform, and ecosystem upgrading and reengineering”, which reversed the company’s performance in the second half of the year, continued to maintain its leading position in the reading market, and enhanced its IP operation capability. In the process of continuous development, Yuewen is no longer a pure online reading company. We will build a production mode with IP as the core on the basis of online reading, so that IP cultivation and development will become a new driving force for business development. We believe that this will lead Yuewen into a broader and exciting market. “
Content, platform and ecosystem upgrading and reengineering, performance reversal in the second half of the year
In terms of content upgrading, Yuewen group takes the reconstruction of the writer ecology as the main line, and makes the online business of Yuewen show the trend of double increase in quality through the precise service of writers and the fine operation of content. By the end of 2020, more than 9 million writers have accumulated on the reading platform, with a total number of 13.9 million works, and about 46 billion new words have been added to the platform throughout the year. High quality works are constantly emerging. According to the data of Baidu fiction billboard in February 2021, 26 of the top 30 online literary works come from the reading platform.
In 2020, the management of yuewenxin will strive to build “writer ecology 2.0”, comprehensively build a writer service-oriented and connected platform, and continuously upgrade the writer’s service experience. As for the choice of cooperation mode, Yuewen has put forward the grading system of writers’ contract, which fully respects the wishes of writers; reformed the editing system, so that writers can choose their favorite editors independently; formulated a new system to improve the welfare system of writers and protect the ecological environment of writers’ creation; established a comprehensive, multi-level and gradient training system, and established the starting point University of Yuewen for the purpose of promoting the cooperation The number of online course hits of former starting point university has exceeded 2 million in one month.
In addition, through community construction and intelligent recommendation, reading articles can improve the efficiency of content operation and speed up the cultivation of high-quality content. The community construction in online reading has effectively improved user participation and user stickiness, and the reading platform has commented more than 100 works with more than one million comments. Optimizing the recommendation system can not only make users more efficient in searching for content, but also an important basis to assist the editing team in content screening and cultivation.
Through the series of content upgrading measures, the online reading business will return to the growth channel in 2020. According to the performance report, the annual revenue of online reading was 4.93 billion yuan, up 32.9% year on year, and Mau increased by 4.2% year on year to 230 million yuan; the average number of monthly paying users was 10.2 million, and the average monthly revenue of each paying user increased by 37.2% year on year to 34.7 yuan. With the improvement of ecological optimization and IP incubation ability of readers, many great God writers also choose to return to the platform, and the position of readers as the “best partner” among writers has been further strengthened.
On the other hand, the management of yuewenxin has upgraded the platform, deepened the close cooperation with QQ browser and mobile QQ in terms of channels, and set up a content decision-making group to manage the free content as a whole, so as to continuously cultivate high-quality free content and writers. According to the performance report, the average dau of free content reached 10 million in December, showing a double growth trend with paid reading.
The layout of overseas reading market is also accelerating. By the end of 2020, webnovell has provided about 1000 Chinese translation works and more than 200000 local original works to overseas users, with 54 million users visited throughout the year.
In the aspect of ecological upgrading, reading articles and partners are linked more deeply and closely to make more partners become participants of reading articles ecosystem and establish long-term win-win relationship.
In 2020, Yuewen group insists on promoting the promotion of IP influence in the form of animation, film and television, and has gained a number of hot money. As another series of works adapted from Yuewen IP after Qing Nian Nian Nian, the TV play “Fu son-in-law”, which is jointly produced by Xinli media, Tencent film and Yuewen film, has been ranked first in the broadcast of Yunhe online drama during the broadcast period, and has gained a high market popularity and won the praise from many authoritative media including people’s daily. This fully proves that the cooperation mode of “Xinli media Tencent film Yuewen film” has improved the efficiency and success rate of IP development.
Under the ecological mechanism of reading articles, Xinli’s excellent content production ability has been recognized by the market. “Douluo mainland”, produced by Xinli, has a broadcast volume of more than 4 billion. During the Spring Festival, it ranks first in Tencent’s video hot search list and TV series list, and forms a good linkage with the animation and games of the same name. In addition to the IP serialization adaptation of the reading head, Xinli also continues to launch high-quality products in the field of modern and urban themes. For example, “golden age” is another successful TV drama after “my first half of life”, ranking first in the broadcast list of Yunhe TV drama during the broadcast period. The box office of the 2021 spring festival film “Hello, Li Huanying” that Xinli participated in the production and production It has exceeded 5 billion, ranking second in the box office of Chinese film history. According to the revised equity acquisition agreement between Yuewen group and Xinli media in 2020, Xinli media will complete the gambling in 2020.
Anchor long-term value and establish IP based content and operation strategy
According to the performance report, the efficiency of IP development and the realization level of IP copyright have been improved in an all-round way. During the year, about 200 IP adaptation rights have been authorized. The revenue from copyright operation in the second half of the year was 2.73 billion yuan, an increase of 280% compared with the first half of the year. This reflects the increasing demand of external environment for high-quality content, and also reflects the resilience and high growth value of high-quality content.
The performance report clearly points out that the purpose of strengthening the management team and upgrading the organizational structure is to establish IP centered content and operation strategy, and maximize the life cycle value of IP with long-term vision and thinking.
In 2020, Yuewen started to implement talent upgrading, introducing new business leaders in copyright operation, online business, investment, legal and financial fields, further enriching and enhancing the core management team; at the same time, Yuewen upgraded the company’s employment standards, aiming to build a team that loves content, is passionate, has a high sense of responsibility and mission, and improve organizational efficiency Rate.
Facing the huge and diverse content library and the long-term operation demand of IP, the paper reading constructs a more flexible and inclusive organizational structure. The new management has successively promoted the establishment of “Yuewen animation Tencent animation Joint Committee” and “Yuewen film and television Xinli media Tencent film and television Joint Committee”, realized the unity of belief and deep cooperation in mechanism among Tencent film, Tencent animation and Xinli media, improved the success rate of IP adaptation through the form of “troika”, and made great strides in the animation and film and television of IP One step.
Yuewen has also established a business platform with IP as the core, which includes three functional sections: author service, IP screening planning and ecological linkage, covering all links of IP promotion, screening, planning, value-added services and development linkage, and implementing “planning before development” for IP. The establishment of IP middle station not only makes the management of reading authorization more standardized, but also lays a foundation for the future industrial IP development system.
In the upper level decision-making mechanism, reading has become more focused on long-term strategic orientation rather than short-term business. Yuewen said that it has never attached as much importance to the overall life cycle value of IP as it does today. In the past, each IP licensing agreement ended with a series of sales figures. Now, each IP licensing agreement is the beginning of IP long-term value generation. The reading club will fully cooperate with the partners in the industry to make joint efforts to realize the long-term value growth of IP, build the IP industry ecology, and benefit from the long-term value creation of IP. Looking forward to the future, Yuewen group said that Yuewen has the courage to accept the challenges brought by difficult and correct things, promote business upgrading and reengineering with patience and perseverance, deepen industrial ecological cooperation, and form an IP ecological cycle.
Via Tencent technology read more: Yuewen: in the first half of 2020, the revenue was 3.26 billion yuan, and the net loss was 3.3 billion yuan due to the impairment of Xinli’s goodwill and performance not reaching the expected value. Yuewen group’s financial report: in 2016, Yuewen group had 53 million writers Southern Weekend: hope and struggle of digital reading future of digital reading: Subversion of traditional “flipping” experience iResearch: 2018 China Digital Reading industry case study report (with download) iResearch: 2020 China digital reading product marketing insight report (with download) iResearch: 2016 China Digital Reading Industry Research Report Report (download attached): digital reading report of 2019 Dongfang Securities: review of digital reading industry from deep comparison of leading companies (download attached) iResearch: Quarterly Report of China’s digital reading industry in Q3 of 2017 (download attached) the scale of China’s digital reading market reached 15.2 billion yuan in 2017 A year-on-year growth of 26.7% iResearch: Quarterly Report of China’s digital reading industry in Q1, 2017 (with download) China Press and Publication Research Institute: young readers are the main force of digital reading iResearch: Quarterly Report of China’s digital reading industry in Q3, 2016 (with download)
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