Gelonghui, January 29丨Rongxin Culture (301231.SZ) announced the 2023 annual results forecast. Net profit attributable to shareholders of listed companies during the reporting period was 800,000 yuan to 11.2 million yuan, down 52.16% — 65.83% from the same period last year; net profit profit after deducting non-recurring profit and loss was 60 million yuan to 380 million yuan, down 69.04% — 95.11% from the same period last year.
Reasons for changes in performance: 1. In 2023, channel differentiation in the book industry further intensified. Along with changes in readers' consumption habits and the rise of new media platforms, traditional physical stores and traditional online channels all experienced varying degrees of decline. Short-video e-commerce channels represented by Douyin grew rapidly in the overall book retail market, and their market share continued to rise. Sales revenue from the company's traditional physical stores and traditional online channels has declined a lot. Currently, the revenue scale of the Douyin platform contributes little to the company's overall revenue, leading to a year-on-year decline in revenue and gross profit. 2. In 2023, the company's investment in promotion expenses on the Douyin platform increased, and offline exhibition expenses increased. 3. In 2023, the company strengthened customer credit management and reduced credit impairment losses; at the same time, the company increased procurement of high-quality copyrights, and calculated asset impairment preparations increased. 4. In 2023, the company's non-recurring profit and loss is expected to be about 8 million yuan, mainly government subsidies and financial management income.