1. Letu introduction: this website is not based on e-commerce as the main business model, the company helps its customers with the packaging and design of the brand home page on this platform. The content on the website is mainly tourism, and the company entered this business because it has been operating in CCTV for many years and has accumulated a large number of tourism advertisers, and 51% of the company's revenue comes from the advertising of tourism advertisers. So Letu can provide a new advertising channel for these customers. The company currently owns 71% of Letu, which has been consolidated since the fourth quarter of 2013.

2, broadcast network introduction: this is a short video website, different from Sohu.com Ltd Video and Youku Tudou. The company does not need to spend a lot of money to buy the rights to movies and TV dramas. The company has its own content integration channel and has reached a cooperation intention with more than 60 local television stations across the country, which provide programs for editing and broadcasting on the broadcast network. The purpose of entering this business is to expand the advertising channels of consumer advertisers. Consumer advertisers account for 20% of the company's revenue.

3. Wugu introduced: this is a website launched in 2012, and the company wants to turn this website into a Fannong and agriculture-related information exchange platform. The users are agricultural investors, agricultural researchers and high-end agricultural producers. ALEXA shows that at the end of last year, the average daily PV of Googu was about 300000, and it was ranked in the top five among all agricultural vertical websites.

4. The top five customers account for less than 15% of the company's revenue, and the renewal rate of customers is about 70%, which belongs to a relatively high level in the industry.

5. Changes in the company's customer structure: it is expected that there will not be much adjustment in the customer structure this year, and the proportion of tourism and consumer customers should be relatively small.

6. The price change of the company's purchase of core resources: the sales revenue of core resources accounts for more than 80% of the company's income in previous years, and the company is confident that it will be able to further increase the sales rate of one and four sets of core columns this year. At the same time, the price of the publication has also increased by more than 10% this year. In addition, the cost of operating core resources has grown by less than 5% from the past to the present, so it is expected that this cost will increase by less than 10% this year.

7. The company is involved in program production: in 2013, the company produced a program called "smell fragrance and know Men", and the production cost is relatively low. This is the company's first test of the water, and it remains to be seen whether it can make influence and fame in the future. The company plans to launch the second season this year, as well as two new shows, each costing less than 10 million yuan.

8. CCTV's advertising sales model: CCTV will bid for the gold resources of one, three and TV series in November every year, and the advertising revenue generated accounts for about 60% of CCTV's annual revenue. however, the total sales time accounts for a very small proportion of the total saleable advertising period, less than 3%. Then about 30% of CCTV's revenue is generated by selling it to advertising time contractors. The remaining 10% of the revenue is sold by CCTV's own advertising sales department.

9. The current sales situation of the TV advertising industry: according to third-party statistics, in the depressed market conditions in 2013, China's advertising sales revenue increased by about 10% compared with the same period last year. But the polarization is very obvious. CCTV plus five satellite TV has basically maintained rapid advertising revenue growth and profits, while other satellite TV stations are basically on the verge of losing money.

10, the contract renewal of the company's contracting agency business: the program period currently contracted by the company has the priority to renew. The company will negotiate with CCTV for the next year's contract period in the fourth quarter of each year, unless the company is unwilling to renew the contract and the two sides can't agree on the contract price. CCTV will find new contractors through open bidding in the market, and the highest bidder will be given the right to contract. The company now has most of the columns obtained through public bidding in 2009, when it won the right to operate for three years, and three years later, it is now renewing one-on-one with different TV stations, once a year. In addition, CCTV 7, 9 and news channels were obtained through negotiations.

11. the company's overseas customers: the company has subsidiaries in Hong Kong and Singapore and can obtain overseas tourism advertisers. These advertisers will place ads on CCTV 4 and news channels, because these two channels are the first to land abroad. The growth of overseas customers in the past two years is good, mainly due to the continuous increase in the number of Chinese tourists traveling abroad.

12. Whether some core programs such as CCTV will fight for them: the prices of these core programs are relatively high for the company and its customers, and the company cannot guarantee to be profitable. If you buy a period of time at an excessive price but can't sell it, you will lose money.

13. Summary and suggestions: in terms of profit model, the renewal priority of CCTV resources is closer to that of the company, and the company can also obtain other columns in the form of public bidding. The key is that the company can maximize the customer resources to cover the cost of obtaining CCTV resources. With the company's ability to operate CCTV over the years, we believe that its future growth can maintain steady growth, the company's current valuation is cheap, it is recommended to buy.