Incidents:
The company released its semi-annual report for 2023. In the first half of 2023, it achieved operating income of 2,263 million yuan, an increase of 25.63% over the previous year, and net profit attributable to shareholders of listed companies was -208 million yuan.
Operating costs and management expenses increased sharply year on year, and the company's performance was under pressure.
In the first half of 2023, the company achieved net profit of -208 million yuan, a year-on-year decrease of -287.55% compared with the net profit of 111 million yuan in the same period last year.
Gross profit margin: Affected by the increase in the scale of the company's Internet advertising agency business, traffic procurement costs increased by 57.82% year on year, and gross margin declined significantly; Expenses: The increase in three fees was mainly due to an increase in management expenses compared to the same period last year, as the company continued to increase investment in social e-commerce business, and a corresponding increase in labor, travel and equity incentive expenses; financial expenses and R&D investment also increased by 67.63%, mainly due to a decrease in interest income raised and an increase in financing amounts; R&D investment increased by 18.39% year on year. The company's construction of supply chain platforms, AI efficiency application research and development, etc.
The company will continue to be deeply involved in the live e-commerce business to achieve stable business resilience.
In the first half of 2023, the GMV scale of the company's live e-commerce business was about 6 billion dollars, an increase of 9% over the previous year. Among them, the GMV scale in the second quarter was about 3.4 billion, an increase of 11% over the previous year.
Build an anchor traffic matrix: The company continues to expand its dominant position in the live artist industry. As of 20230630, it has signed more than 50 entertainers; at the same time, it is actively expanding the vertical talent category to extend the traffic matrix from the head to the middle waist;
Actively expand local life and non-standard categories: complete a number of special live broadcasts on local life with a GMV scale exceeding 100 million during the reporting period; in non-standard categories such as apparel and jewelry, there are also many shows that have broken 10 million; laying out the AI field and developing “Yuanwang Cloud AIOS”: The company is actively promoting the “Yuanwang Cloud AIOS” system, which is expected to achieve intelligent operation of the live broadcast room to further improve the company's operating efficiency;
Profit Forecasts, Valuations, and Ratings
We expect the company's operating revenue for 2023-2025 to be 45.52/50.24/5.541 billion yuan respectively (the original forecast value was 50.5/60.4/7.13 billion yuan respectively), the year-on-year growth rate was 17%/10%/10%, the net profit to be -2.52/0.47/146 million yuan (the original forecast value was 2.8/5.06.0 billion yuan, respectively), and EPS was -0.27/0.05/0.16 yuan/share, respectively. It is recommended to stay tuned.
Risk warning: macroeconomic risks, anchor public opinion safety risks, supply chain quality control risks, and increased competition risks.