Integrate the leading marketing platform and establish the commercial service system of city-wide marketing and Quan Jian Road. In 2005, Gravitation Media was listed on the Shanghai Stock Exchange in 2015. its main business includes brand marketing, effect marketing, short video marketing and e-commerce operation. the company started with traditional advertising agency services. since 2011, it has laid out the research and development, production, post-production, distribution and marketing of film and TV series, television and online festival content. Maintain a long-term and stable cooperative relationship with video platforms such as iQIYI, Inc., Tencent, Youku and Mango TV. With the rise of effect marketing, e-commerce advertising and short video message stream advertising market, the company has actively laid out digital marketing business since 2017, and 1904 layout effect marketing, short video marketing and content e-commerce business. Establish a global marketing and full-link commercial service system from creativity, design, communication strategy, media distribution to product sales.

E-commerce advertising and credit stream advertising have become the core driving force for the growth of advertising market. In recent years, China's offline advertising market has entered a mature period, the scale of market revenue has continued to shrink, and industry competition has intensified. Under the influence of this year's epidemic, residents' catalyst habits and time have shifted to online media. This also promotes advertisers to tilt more advertising budget online. According to the company's financial report, citing iResearch Consulting data, the size of the e-commerce advertising and information flow advertising market in 2019 exceeds 400 billion yuan. It has become the two largest forms of online advertising. The size of the short video advertising market is 80 billion yuan, and it is expected to exceed 130 billion yuan in 2020; the live e-commerce market is over 430 billion yuan, an increase of 226% over the same period last year. The transaction volume of Taofu Juesou / A-tone live streaming e-commerce reached 2500 pound 1500 / 40 billion yuan respectively, an increase of 150%, 400%, 300% over the same period last year. The live streaming e-commerce industry ushered in explosive growth. BABA Research Institute predicts that the size of live e-commerce will reach 2 trillion yuan by 2021, with a penetration rate of 14.3%. Short video and live e-commerce have become one of the most dynamic components of the current digital new economy, focusing on traditional marketing, e-commerce and consumption patterns.

Weigong has set up an industry-wide health service system for new media and domestic e-commerce to promote the rapid development of short video marketing and live e-commerce business. from January to September 2020, the company's performance advertising business revenue reached 764 million yuan, serving customers including Kuaishou Technology, byte jump, NetEase, Inc, KuGou and so on. The business income of short video advertising and content e-commerce has reached 885 million yuan, providing live delivery services for nearly 100 customers. the company's short video marketing and content e-commerce team has reached nearly 200 days. it has completed the service capacity construction of the whole industry chain of new media and content e-commerce, such as celebrity incubation, content creativity, KOL marketing, live e-commerce, supply chain construction and so on. at present, the total number of fans of the company is about 150 million. Magneto, the MCN arm of Douyin, has more than 100m followers in its account matrix, with 19.71 billion video views and 820 million likes on Douyin. The company has the ability to produce and distribute nearly 5000 short videos per month, incubates and signs more than 100 online celebrities independently, and has the service ability of 100 live broadcasts per month. At the same time, the company and the domestic head fast consumption, health, 3c. A number of well-known brand enterprises, such as beauty makeup, cooperate exclusively in the supply chain on platforms such as Douyin, Kuaishou Technology and Xiaohongshu to strengthen their supply chain capacity and set up a full-platform sales network of their own network celebrities with goods and external cooperation network celebrity distribution. the company will deeply cultivate short video marketing and live e-commerce business, and quickly build a complete ecological closed loop of content e-commerce.

Profit forecast hypothesis. 1) the live broadcast e-commerce industry is growing rapidly, and the company has completed the service capacity building of the whole industry chain of new media and content e-commerce. With the rich resources of the company's exclusive supply chain and the establishment of a full-platform sales network of self-owned network celebrities with goods and external cooperative network celebrity distribution, we expect the company's digital marketing business to continue to grow at a high speed. 2) in terms of gross profit margin, we assume that the overall gross margin generated by new models such as short video and MCN is higher than that of the previous model, so the gross profit margin of digital marketing business after 21 years assumes a small increase, resulting in an increase in overall gross profit margin.

Risk hint. Competition aggravates risk, policy regulatory risk, KOL risk.