According to a notice issued by God Entertainment (002354) on September 24, 2021: Citic Investment Ji Guanrong, Ma Xin, Dongrui Investment Tao Wenbo, Gulfstream Investment he Xiaoji, Wang Zixin, Haisong Capital Wu Zhaosong, Qiandao Fund Bao Xipeng, Baichuan Ruiji Li Ning Co. Ltd., Oriental Daze Investment Tan Jian, Shi Yunjing, CITIC Prudential plc Pan Xu, China CITIC Bank Corporation Zheng Li, Zeng Lei, Yuan Yuan investigated our company on September 23, 2021. The survey was hosted by General Manager Xu Dewei, Director, Deputy General Manager and Board Secretary Liu Yuping, Deputy General Manager Li Yanfei, Executive Director Shang Zhu, Game Business Director Zhen Qi, and Shanxi data flow Ecological Park Strategy Director Zhang Haihua.
The main contents of this survey are as follows:At this meeting, the company has sorted out the issues of concern to investors, and now the main issues of general concern to investors and company exchanges are as follows:
1: according to the company's semi-annual report for 2021, the revenue from data traffic business is about 450 million yuan, an increase of 90.6% over the same period last year. What are the reasons for the significant growth of data traffic business? Reply: the company's data traffic business growth is mainly due to the aggregation effect of Shanxi data flow Ecological Park on data traffic demand groups. The company takes Shanxi data flow Ecological Park as the innovation carrier, gathers multi-dimensional data and massive content, aggregates brand merchants, small and medium-sized businesses, content entrepreneurs, MCN institutions, new individual economy and other core elements, excavates customer pain points, and innovates the service system. Since it was officially put into operation in the first half of the year, the Ecological Park has attracted more than 100 companies from various subdivided tracks covering digital logistics, game applications, digital marketing, online celebrity studios, MCN supply chain and other Internet digital fields. The holding subsidiaries set up by the company in the park are gathered into science and technology, and have successively obtained a huge number of engines, Kuaishou Technology's core agent qualification and a huge amount of Qianchuan Douyin e-commerce marketing service provider qualification. Juwei Technology has completed the construction of a domestic accurate digital marketing business team headquartered in Beijing with Chongqing, Zhengzhou and Taiyuan as branches, and set up technical research and development, operation optimization and creative material production teams in Chongqing, Zhengzhou and Taiyuan. Reserve more than 1000 full-time and part-time actors, build a creative video shooting base covering an area of more than 10000 square meters, with first-class choreographer, production, clothing, makeup and props team in the industry. Meet the needs of all kinds of creative video shooting in real time. Relying on the ecology of head flow platforms such as Douyin and Kuaishou Technology, Juwei Technology provides customers with all-round and accurate digital marketing services, including creative material production, delivery strategy customization, real-time data analysis, operation optimization, and so on. at present, it has served a total of 322 customers, including NetEase, Inc Yan Xuan, Yingke Network, etc., and has completed a total of 34400 creative material production, 12.29856 billion clicks on creative material and 306.36 million results transformation. The daily consumption is up to 4.57 million yuan. problem
2: according to the company's semi-annual report for 2021, the gross profit margin of data traffic business is 21.92%, which is significantly higher than that of its peers. What are the specific reasons? Reply: there are two main reasons why the gross profit margin of the company's data traffic business is significantly higher than that of its peers. First, relying on the platform advantages of Shanxi data flow Ecological Park, it integrates new marketing methods such as short video, live broadcast and content delivery, and revolves around customer pain points. provide full scene, one-stop marketing services covering traffic distribution, delivery optimization, creative efficiency, content marketing, with good bargaining power. The second is to rely on its traffic distribution platform Ice Assistant, which has about 20 million monthly active users, to implement delivery for customers, including Douyin, Kuaishou Technology, Baidu, Inc., iQIYI, Inc. and other top apps. As a self-owned traffic platform, Aisi Assistant has a high gross profit margin, which helps to further improve the gross margin level of the company's data traffic business. problem
3: what are the considerations for the cooperation between the company and the Japanese medical brand Faith? What are your plans for the future? Reply: with years of operation, the company has accumulated huge users and customer resources in the field of data flow, relying on global data insight experience to help many brands grow rapidly. Behind the traffic is data, and the area with the largest amount of traffic is also the fastest growing area. Relying on the multi-dimensional data aggregation advantages of Shanxi data flow Ecological Park, we build a flow ecology from data precipitation to strategy back-feeding to product brand value-added, and tap potential brands through data analysis. The cooperation between the company and the FAITH brand is to give full play to the data flow advantages in the fields of short video, live broadcast and content marketing, deeply bind with potential brand merchants, share the brand growth dividend, realize the business layout from "traffic" to "traffic +", and open up new growth space. problem
4: how is the business development of the company's leisure e-sports platform? Reply: the company's leisure game e-sports platform "PK.NOW!" is still in the testing stage, and it is also actively collecting players' suggestions on our optimization to help the company continuously improve and optimize product quality. At present, the company has launched a "post-wave" developer support program, and the company will strive to foster a group of capable game developers to bring more in-depth and better experience game products for players. problem
5: does the company have any plans to lay out meta-universe in the future? Reply: at present, the concept of meta-universe in the market has become one of the hotspots in the game industry, and the company has been paying close attention to the development of the concept of meta-universe in the industry. At present, the company's casual game e-sports platform "PK.NOW!" has launched the "Houlang" developer support program, which provides support to developers, helps developers to exert their creativity, and helps developers to gradually achieve breakthroughs in meta-universe and other fields. In the future, the company will continue to actively explore various possibilities of meta-universe in terms of the competitive advantages and technologies of e-sports games and data traffic, and strive to achieve breakthroughs in new technologies and new fields. problem
6: what is the impact of the sale of Fantasy Tour on the company? Since 2018, the domestic game version number has been suspended, the supervision has been tightened, and the domestic game giants have laid out the overseas game business one after another, making the competition in the overseas game distribution market more and more fierce. Fantasy Yueyou, as a simple overseas game publisher, with the continuous rise of game acquisition costs and promotion costs in recent years, profit margins have been seriously squeezed, business performance has continued to decline, and has formed continuous losses in 2019 and 2020. There is expected to be greater uncertainty about future performance. The purpose of the sale of Fantasy Yueyou is to dispose of non-performing assets, optimize the company's asset structure and business layout, reduce the company's operational risk, and improve the company's future profitability. The income from this transaction is expected to be about 130 million yuan, and the final income should be subject to the periodic report.
Main business: licensed projects: Internet information services (projects subject to approval by relevant departments before business activities can be carried out) general projects: entertainment exhibitions, software development, information technology consulting services, technology services, technology development, technology consulting, technology exchange, technology transfer, technology promotion, information system integration services Network technical service (except for projects that must be approved according to law, independently carry out business activities according to law on the strength of business license)
According to the 2021 report of Tianshen Entertainment, the company's main income was 625 million yuan, up 30.47% from the same period last year; the net profit was 42.5924 million yuan, up 123.7% from the same period last year; the non-net profit was 33.806 million yuan, up 116.77% from the same period last year; the debt ratio was 23.11%, and the investment income was-30.2256 million yuan. Financial expenses-41.5482 million yuan, gross profit margin 29.76%.