Editor's note: On December 9, 2021, the "6th Grandway Global Investment Carnival" created by Grandway was held in Shenzhen. Many high-quality executives of listed companies have come to communicate with investors face-to-face at zero distance. In order to let more investors understand the listed companies and accurately capture the future investment opportunities, Gelonghui has compiled the speeches of this listed company roadshow for you to entertain the kings.
Companies that are truly growing are usually not stuck in their comfort zone, often for a few years, and when the market looks back, it will be found that they have quietly grown into new "species". From the e-commerce platform to the amazon of technology true self, from the social media to the meta-universe of meta-technology should be so, in China, Yingke Interactive Entertainment (hereinafter referred to as "Yingke") is also vividly interpreting this transformation.
(Ms. Hu Shuyang, Director of Yingke Securities Department)
On December 9th, Hu Shuyang, Director of Yingke Securities Department, attended the "6th Gelonghui Global Investment Carnival" roadshow site, and exchanged and shared the company's business transformation achievements in recent years, long-term development strategies and competitive advantages, as well as future expected performance, which was widely concerned by investors.
The following are the main contents of the roadshow compiled by GrandWay:
First, moving towards the full-scene social platform, the new brand is full of tension
Yingke's starting product is Yingke live broadcast, in 2015-2017 live broadcast outlet, Yingke took the lead in paying attention to the live broadcast potential of the mobile terminal, the first in China to put forward the concept of live broadcasting for the whole people, eating a wave of complete dividends.
After the live broadcasting business entered a stable period of development, Yingke has carried out positive transformation thinking, continued to carry out transformation exploration in 2019-2021, and has successfully changed from a single product to a matrix product-driven growth company, and Yingke's own positioning has also changed from a live show platform to an influential all-scene social platform.
(Source: Company Profile)
The strength of the new drive engine is evident through performance. In the first half of 2021, Yingke achieved revenue of 4.03 billion yuan, an increase of 83.1% year-on-year, and the proportion of new products in total revenue reached 66.7%, which has become the core of the new business. With revenue of 2.5 billion yuan in the third quarter of the company and the company's expected performance in the fourth quarter not to be lower than that in the third quarter, the full-year revenue of the film in 2021 is expected to hit a new high since the establishment of the company.
So how to understand the full-scenario social platform? It can be simply summarized as a full closed loop of online and offline, full coverage of multiple ages and full reach of interactive scenes. The traffic brought by social networking has the characteristics of high frequency of use and user stickiness, rich monetization touchpoints, which is more likely to generate natural growth effects and amplify the commercial value of products, which has also been verified in the company's performance in the past two years.
Nowadays, the concept of all-scene social networking has been deeply integrated into the products of Yingke. For example, live broadcasting by a single anchor facing a large audience is a typical one-to-many social scene. Follow-up around the audio and video interaction core technology, we have developed a one-to-many, many-to-many, one-to-one and other richer forms of social networking, layout of interest social products, dating social products, voice social products, game social products, and more diversified vertical product matrix, the corresponding user group portrait is very fine, can be different regions, different ages of users, online social blank field coverage.
At the same time, Yingke is concerned about the gradual recovery of people's offline social needs in the post-epidemic era, and everyone has been "trapped" for too long during the epidemic, and the offline social enthusiasm of the younger generation is particularly strong. The hot taverns, script killings, and escape rooms all confirm young people's desire for a deeper and more realistic social experience offline. Therefore, in 2021, Yingke is actively looking for offline extension targets, and many products such as the interactive bar ROOMUU, which are currently exhibited from Jimu, and the offline "Blind Date" Super Like, have been launched offline attempts.
It is clear that Yingke's core strategy now is social networking, and the company is building a huge product matrix around this core and rapidly iterating. The second growth curve provided by new social products and the third growth curve that offline social exploration have already presented are expected to provide sufficient impetus for the sustained high-speed growth of Yingke. It can be said that with the strong explosive power of new products, Yingke has entered the golden period of comprehensive expansion from the stage of transformation and precipitation.
Second, master the technical password, "OPENSEA open sea" middle platform system for the multi-product matrix escort
Supporting the above product layout is the "OPENSEA Open Sea" middle office system independently developed and precipitated by Yingke, which is one of the reasons why the company can continuously innovate products and expand the product matrix.
From the technical level to understand, the system can be each mature product function of the common part of the modular packaging, such as the traditional live broadcast, the first line as long as to meet the needs of "watching", and then recharge, gift, withdrawal, continuous wheat, PK and other new needs appear. In fact, each small function can be split out, modular packaging, in the follow-up launch of new products, the middle office system can quickly access data, communication reach, quality control supervision, etc., to achieve the corresponding functions, in the case of only equipped with the most front-line operators and a small number of client research and development, let the product run up quickly.
(Source: Company Profile)
The current fastest record of the Yingke middle office system, from demand discovery to product launch, took only six days, and has received a lot of praise in the product texture, which fully confirms the company's middle office capabilities. This means that after tapping into social needs, Yingke can quickly realize product landing and version iteration, better adapt to user habits for product adjustment, continuously strengthen user stickiness, and cooperate with rich diversified product operation experience to accelerate the formation of commercial closed loops, providing a solid foundation for the replicability of Yingke's business model.
From the perspective of the whole company, the meaning of the Yingke middle office system is more extensive. "OPENSEA Open Sea" can empower the company's financial settlement, product planning and research and development, content review, compliance supervision, etc., support the financial system, risk control system and customer acquisition services, etc., so that the front-end business has no worries.
In the future, the company will consolidate the ability to open up the sea and carry out continuous technical reserves. The company has always paid attention to the cutting-edge technology development trend in the fields of AI and 5G, and constantly optimizes the product experience of users. At the same time, Yingke will insist on expanding the social product matrix, keep up with the trend of Z era, and explore new social scenarios. In fact, the company is also continuing to pay attention to the opportunities related to the industrial chain at home and abroad, seeking products and investment and merger opportunities that have synergistic significance for the development of the Group and have the potential for scale users or revenue, in order to increase business performance.
It can be seen that under the support of strong performance, Yingke has been recognized by the capital market, the company's stock price has increased by 40% year-to-date, and as the company's high-growth logic continues to be verified at the performance level, more institutional reports analyzing the company's value will appear in the market in the future, and the company's value will be more fully recognized.
The company level also does not hide its confidence in the future business development, and has launched intensive repurchase actions this year, and the cumulative number of repurchased securities has reached 16.02 million shares.
Q&A session
Q: The entire Internet traffic peaked, how did the company cope with this challenge?
A: Traffic does have a trend of becoming more and more expensive, we are now the entire company to implement the financial BP system, so each product is equipped with very professional financial and operational personnel, through the operation team to accurately buy, docking to the really suitable for their own products of the user. At the same time, our products are more vertical, and the user portrait is clearer, which can form some advantages in the accuracy of the purchase.
On the other hand, in terms of price calculation, we have a payback period for each product, and with the help of financial models, we accurately control the return rate of each product and set the standard accordingly. If the standard tipping point is reached, the company will reconsider whether to continue investing. In addition, because yingke is doing a product matrix, there will be a large bargaining space compared with the purchase volume of a single product, and the cost will be grasped to a certain extent.
Q: The performance data of the first three quarters of this year is particularly beautiful, is there any performance guidance for next year?
A: According to the data estimate of Q4, this year's revenue will increase significantly compared with last year, and when the overall data for the whole year has not been released, it is temporarily impossible to give clear performance guidance for next year. However, the products in the company's product matrix have maintained steady development and are confident of continuing to maintain rapid growth.
Q: Will there be dividends at the end of this year?
A: In terms of performance, the company's profits this year are indeed good, dividends are certainly a way for the company to consider returning investors, and the management is also continuing to discuss, and the follow-up will be synchronized with everyone when there is a clear conclusion.
Q: How many offline stores do you plan to open?
A: Offline stores will not rush to expand across the country, and are still in the pilot stage. If Changsha's offline interactive stores run through, we may give priority to opening 3 or 4 stores in Changsha, and then promote them to the whole country.
Q: What are the advantages of the company's live broadcasting business?
A: Live broadcasting satisfies the needs of users' social companionship and emphasizes real-time feedback. Therefore, the core users of live broadcasting are relatively heavy, and the performance of the company's entire sector is relatively stable.
The advantages of our new product matrix are currently also fed back into the live broadcast business, for example, for some online social needs that do not like to show their faces, we have launched voice live broadcast products, covering one-on-one chat or private live broadcast products for users who prefer private space. We are constantly using diversified product forms to fill the new blank needs and more personalized needs of the market, and this piece of space is worth tapping. In addition, our middle office system also supports the team to be able to respond quickly to the product.