Company profile
9919.HK is the largest high-end experiential marketing service provider in Greater China, with compound revenue growth of 22% from 2016 to 2019. By June 2021, the company's accumulated customers of well-known brands have reached more than 500, covering more than 3.14 million high net worth customers, including CHANEL, GUCCI, TOM FORD, DIOR, LOEWE and other top fashion brands, BMW, NIO, AUDI and other automotive brands.
Key Development Project 1: reviving Fashion Project
In April 2012, it reached a strategic alliance with Fosun Fashion Group, owned by Fosun (0656.HK), and jointly invested in Fosun Fashion with Baozun Inc. At the same time, the company has also become the preferred one-stop solution provider for Fosun Fashion brands. Looking to the future, the company will expand brand customers, explore and cultivate new brands based on Fosun's extensive industry and channel resources.
Key development project 2:MCN/KOL-Avant Plus
The company will set up a MCN business unit, Avant Plus, which focuses on social media operations and business brokerage for star talent and KOL. In addition, the company will also cooperate with KOL in fashion, makeup, lifestyle and other fields to provide it with diversified business realization opportunities.
Key development project 3: e-commerce operation-vision JV
Vision Entertainment is the top MCN organization in China, with a professional operation team, mature online celebrity incubation programs and a large number of business transformation channels. The company and vision set up JV, which will focus on live e-commerce on Douyin platform and provide customers with comprehensive digital marketing services. The cooperation will help the company to build Douyin live star, talent matrix and e-commerce database, and finally form a closed loop of advertising and e-commerce traffic in the form of sales sharing.
Key Development Project 4: Hong Kong Land JV
Set up JV to enter real estate with Hong Kong Land Group, set up a joint venture for venue operation, and jointly operate Shanghai Xuhui Binjiang West Bank City. The cooperation aims to build it into a world-class waterfront landmark in Shanghai and the first place for new products around the world, and replicate the model to other regions. In addition, this partnership will also enhance the company's ability in real estate and experiential marketing in all vertical industries.
Results in the first half of 2021: income increased significantly, profitability improved steadily in the first half of 2021, income in the first half of 2021 was 385 million yuan, an increase of 436.5% over the same period last year; gross profit was 106 million yuan, an increase of 310.8% over the same period last year, with a gross profit margin of 27.5%; net profit was 38.5 million yuan, with a net interest rate of 10%. The company made every effort to transform to digital marketing. The revenue of digital marketing and brand promotion business was 78.3 million yuan, an increase of 66.5% over the same period last year. Revenue from public relations services totaled 19.5 million yuan, up 425.6 percent from the same period last year. By the end of the second quarter, the company had 300 million yuan in cash and cash equivalents, with a financial leverage ratio of about 0, laying a solid foundation for future expansion and mergers and acquisitions.
Risk.
1. The risk of macroeconomic fluctuation
two。 Business expansion is lower than expected