Incident: The company released its 2023 annual report, achieving annual revenue of 460 million yuan, a year-on-year decrease of 1.12%; net profit to mother was 27.63 million yuan, a year-on-year decrease of 43.89%.
Comment:
The company achieved operating income of 450 million yuan for the full year of 2023, a year-on-year decrease of 1.12%; net profit to mother was 27.63 million yuan, a year-on-year decrease of 43.89%. In 23Q4, we achieved operating income of 18.37 million yuan, a year-on-year decrease of 73.61%, and net profit to mother of 3.59 million yuan, an increase of 158.11% over the previous year.
The company comprehensively sorts out the existing IP and original reserve projects. As of April 18, '24, 6 movies and TV dramas proposed by the company have obtained distribution licenses, 3 have been produced, and the other projects are in the middle of post-production or filming. The film and television business confirmed the distribution revenue for projects such as “Firefly”, “Zichuan: Three Masters of ****”, and “Zichuan: King of ****”, as well as multiple rounds of distribution revenue for existing series. “The Amazing Us” and “Partners” are scheduled to be broadcast online in '24.
The company proposed the “1133” Development Strategy Plan Outline. These include: focusing on 1 goal, establishing 1 link, building 3 major positions (building a strong content production position, building a strong channel development position, and building a strong team building position), and building 3 major industrial clusters. Among them, we will build three major industrial clusters: (1) build a film and television production industry cluster combining long, medium, and short dramas; (2) build a pan-entertainment industry cluster centered on games, animation, and derivatives; and (3) build digital cultural asset industry clusters such as digital copyright, metaverse, and AIGC spawned by new technology.
The company actively explores layouts in innovative businesses. Examples include exploring short dramas (strategic investment and development), interactive drama (cooperation with film technology), entertainment economy (cooperation with ticketing platforms and performance companies), games (strategic investment), cultural tourism (cooperation with professional cultural tourism operators and local cultural tourism departments), technology (AR cooperation: Lingban Technology, Peking University Cultural Industry Research Institute; AI cooperation: intelligent future).
The company proposed the outline of the “1133” development strategy plan, which lays out the detailed layout of short, medium and long-term strategic initiatives. In 2024, as the first year Ciwen Media is seeking strategic transformation, the company is expected to use the advantages of Ciwen Media as a leading enterprise in the film and television industry, improve the company's multi-level three-dimensional development and operation capabilities for film and television IP, efficiently implement the wide application of AIGC in the company's various product lines, consolidate and enhance the company's development and production capabilities, innovation leadership capabilities, brand influence and market competitiveness, and expand Ciwen Media's diversified business through diversified capital operations through investment and mergers and acquisitions, and embark on a new journey of high-quality development of Ciwen Media. It is recommended to focus on it.
Risk factors: Market competition increases risk; risk of changes in industry policies; risk of brain loss and insufficient reserves, macroeconomic fluctuations, etc.