occurrences: The company issued the semi-annual report for 2023. 1H23 revenue rose 102.7% yoy. Profit attributable to shareholders was RMB 3,88 million, turning loss to profit.
Company Background: Edway is the largest marketing group serving luxury and fashion brands in Greater China, with experience marketing market share of 10%. We operate three major sectors: 1) Experiential marketing services include providing customers with comprehensive marketing solutions such as fashion shows, large-scale exhibitions, new product launches, dinners, etc., 2) Digital marketing services include Douyin e-Commerce live, provide online digital marketing and brand promotion services such as micro The company is granted exclusive right to use the La Liga club brand and the Tour de France brand and the Tour de France brand to organise authorised activities in China, etc., and 3) Intellectual Property (IP) for customers to expand their business. Clients include multiple international pan-fashion brands.
Experiential Marketing Business YY Fix: In 1H2023, the company's revenue increased by 102.7% year-on-year to RMB350 million. Benefit from core business experience marketing business revenue recovery significantly. During the period, the Company successfully completed multiple campaigns and added new brand customers, experience marketing revenue increased 160.4% yoy. By region, overseas revenue rose to 10.6% (3.9% at 1H22), with the major major projects of the Cartier Cartier Special Exhibition in Hong Kong contributed. Gross profit margin slightly down 0.5 percentage points to 30% yoy due to changes in business structure. Revenue increased and operating leverage, profit attributable to shareholders was RMB3,88 million, compared with a loss of RMB849.6 million for the same period last year. An interim dividend of HK2.00 cents per share was declared.
IP business ushered in release: IP business revenue for the first half of the year mainly came from the completion of several Shanghai Design Week projects. There is still a Shanghai Design Week project in the second half of the year. In addition, the company is discussing a Tour de France with many cities, which is expected to land in the second half or next year. Phase 1 of the Hongkong Land Co-operation Pavilion project will be put into operation in October this year. IP business results are expected to enter the release period. The company expects to increase in digital marketing and IP revenue in the future. Revenue accounted for 20% in the first half.
valuations: According to Bloomberg's comprehensive forecast, the forecast P/E in 2023 was 8 times. At the end of June 2023, cash holding RMB 313 million in cash, without bank liabilities, the cash value was 34% of the market value. The dividend distribution ratio for the first half was 35%. Cash on hand will be considered for mergers and acquisitions. The Company has declared a special dividend in the past 2 years. The company will consider to declare a special dividend.
Key Risks: Less than expected economic growth and the epidemic repeatedly resulted in reduced demand for marketing and promotion, new customers and new business development.