The value of the "main platform of digital culture and technology" highlights the net profit of Zhewen Internet in 2023 increased by 136.10%

On the evening of April 19, Zhewen Internet (600986. SH) disclosed in its 2023 annual report that the company achieved operating income of 10.818 billion yuan, a year-on-year decrease of 26.59%, a net profit attributable to the parent company of 192 million yuan, a significant increase of 136.10% year-on-year, and a net profit attributable to the parent company of 126 million yuan, a year-on-year increase of 79.99%. The company took the initiative to reduce the low gross profit business, and the overall gross profit margin, net profit margin and cash flow continued to improve, achieving the goal of improving the operating quality set at the beginning of the year, and taking a solid step towards high-quality development.

At the same time, the company has continuously strengthened the construction of the digital culture sector, firmly embraced technological changes, and actively implemented "AI+", with the digital marketing business firmly in the leading position in the industry, and the layout of the digital culture business, including the computing power base, has been accelerated.

Comprehensive "AI+" software and hardware integration to create ecological competitiveness

As the "main platform of digital culture and technology" under Zhejiang Cultural Investment, Zhewen Internet focuses on "AI + culture" and "AI + content creativity", deeply builds a smart content ecological platform, accelerates the R&D and iteration of "AI+" application products, and comprehensively cuts into the construction of digital cultural computing base, and the pattern of computing infrastructure + application landing has been initially completed.

On the application side, the company's virtual human IP "Jun Ruojin" and "Lan LAN" have made small achievements in the fields of e-commerce live broadcast, IP endorsement, e-sports commentary, etc., and empower the creation of virtual human IP for B-end customers; AIGC painting tool "Mi Hua", Wensheng literary tool "Mi Wen", metaverse scene generation tool "Digital Warrior", marketing vertical industry copywriting small model and other applications have been launched into commercial applications; Yangcheng Lake Greek Mythology AR Art Park has launched the "MR Star Plan" of Zhewen Internet, and with the support of excellent content creative innovation and mature MR/AR technology integration and operation, digital cultural IP and brand IP have broken through time and space, broken through boundaries and entered a new stage.

In terms of hardware as computing infrastructure, the company established a wholly-owned subsidiary, Zhewen Intelligent Computing (Zhejiang) Technology Co., Ltd., aiming to provide computing power base construction and solutions for AI-related businesses and the development of digital culture, and will leverage strategic partners such as Zhijiang Laboratory to strengthen external cooperation in cutting-edge technology and application research and development, continuously promote the digital cultural industry to be deeper and more practical, and accelerate the creation of an eco-driven digital cultural industry system.

In the era of rapid changes in AI-related technologies, data, algorithms and applications, Zhewen Internet has launched a two-fisted attack, quickly cut into the computing infrastructure business, seized the strategic resource advantage, and actively promoted the innovative applications of AIGC, smart marketing platform, virtual human, cultural tourism metaverse, automotive metaverse, MR and other fields, and achieved commercialization with a strong head customer resource matrix and leading marketing solutions, accelerating the construction of the competitiveness and influence of the main enterprises in the digital cultural industry chain.

Optimize and upgrade the quality and efficiency of digital marketing

In the field of digital marketing business, Zhewen Internet continued its industry-leading competitiveness and market position, and during the reporting period, the company optimized management from the aspects of business structure, geographical structure, and technology upgrading, and achieved good management benefits.

In the business structure, the company continuously strengthened the leading market share of brand marketing business in the automotive industry segment, and achieved operating income of 3.043 billion yuan, a year-on-year increase of 15.12%. It has obtained high-quality customer resources in the new energy industry such as BYD, BAIC New Energy, Celis, Xiaopeng Motors, Changan New Energy, Chery New Energy, Xiaomi Automobile, etc., and won the bid for FMCG and financial customers such as Wuliangye, Bank of China, China Merchants Bank, and Everbright Bank in the non-automotive field, and has achieved breakthroughs in the field of operators such as China Telecom and China Mobile. The performance marketing segment continued to optimize and upgrade, reduce inefficient businesses, and significantly increased the gross profit margin for the whole year on the basis of revenue reduction.

In terms of geographical structure, the company's regional operation and management strategy has achieved good results, with the South China regional subsidiary achieving breakthroughs and continuous cooperation with customers such as BYD, Dongfeng Nissan, and China Resources Sanjiu, and continuing to promote the development of customers in Zhejiang, while the overseas business department has reached a strategic cooperation agreement with CheilWorldwide Jier Group to help Chinese brands go overseas and cross-border e-commerce business, and successively serve the integrated marketing business of Hongqi Overseas, Jietu International, Nezha Overseas, etc., and the internationalization of the company's business has been carried out smoothly.

In the process of technology upgrading, it made full use of AI tools to empower AI smart marketing platform, copywriting, creativity, advertising, live broadcast and other businesses to improve quality and efficiency, and achieved more than 2,000 AI articles during the reporting period. The company's business territory has been continuously upgraded, and its professional capabilities and industry status have been further consolidated.

In the post-mixed reform era, we will help build a strong cultural province

During the reporting period, the company successfully completed the private placement, and the shareholding ratio of Zhejiang Cultural Investment, a state-owned shareholder, increased to 16.47%, further strengthening its control over the company. After the financing of 800 million yuan was put in place, the company's financial strength and resource integration ability have been fully strengthened, laying a solid foundation for the company's sustainable and healthy development. The top management team of the market-oriented operation of Zhewen Internet, coupled with the standardized governance of state-owned shareholders, the blessing of "two wings", relying on the institutional advantages of state-owned assets relative to holding, is moving forward rapidly on the road of building a digital cultural technology platform.

The cultural industry is an important part of the modern industrial system of Zhejiang Province, and the added value of the cultural industry in the province will account for 7.1% of GDP in 2023. As the main platform for investment and financing of cultural industries in Zhejiang Province and a functional cultural state-owned enterprise, Zhejiang Cultural Investment shoulders the mission and task of promoting the high-quality development of Zhejiang's cultural industry. As the "main platform of digital culture and technology" under Zhejiang Cultural Investment, Zhejiang Cultural Internet also shoulders the mission and task of helping Zhejiang build a strong cultural province.

The first is to strengthen regional operations and deepen Zhejiang. Focusing on the East China and Zhejiang markets, we will expand the scope of business cooperation around core customers such as Geely Automobile. Taking advantage of the maturity and growth of Zhejiang Cultural Investment's film and television content, cultural space operation, cultural finance and other sectors, it has deepened business cooperation in multiple fields such as multi-scenario marketing, live broadcast e-commerce, IP operation, cultural tourism research, digital copyright trading, and computing infrastructure construction. With the help of Zhijiang Laboratory and other strategic partners of Zhejiang Cultural Investment, we will strengthen external cooperation in cutting-edge technology and application research and development, expand investment, and enhance the voice of the industrial chain. Zhejiang Cultural Investment also empowers the development of listed companies in multiple dimensions such as strategic guidance, innovative business upgrading, financing and credit enhancement, and party building work, and collaboratively builds digital cultural competitiveness and helps Zhejiang build a strong cultural province.

Under the tide of the era of artificial intelligence, the content productivity and commercial operation experience of digital marketing have laid a solid foundation for the development of digital culture, and digital cultural innovation has also brought many scientific and technological empowerment and application tools to digital marketing.

In addition, the newly announced "National Nine Articles" encourage and support listed companies to continue to pay dividends and increase investor returns. Zhewen Internet said that under the leadership of Zhejiang Cultural Investment, a state-owned shareholder, the company will actively respond to the policy call, promote the company's share repurchase, dividends, etc., and actively accelerate the pace of building a digital cultural technology platform through resource integration and other means.