On April 29, Yuanwang Technology released its 2023 annual report and 2024 first quarter report. Its annual revenue in 2023 will reach 4.777 billion, an increase of more than 22% over 2023, ranking first among listed companies in live broadcasting, followed by Dongfang Selection and Make a Friend.
According to the financial report, the revenue growth of Yuanwang Technology mainly comes from the efficiency improvement of the live broadcast business model and the scene-driven role brought by the new business Yuanwang X27 theme park, which also means that its huge anchor matrix and the standardization of the whole process of the live broadcast business have achieved results.
The data shows that after establishing a mature live broadcast system through standardization and replication, compared with the data in 2020, after three years, the GMV of Yuanwang Technology has tripled and its revenue has doubled.
While the performance grew steadily, Yuanwang Technology still recorded a loss last year, and its loss was mainly due to the investment in personnel and business costs of new business development (Yuanwang X27 theme park), as well as the impairment of receivables left over from the original company's "Saturday" history.
It is worth mentioning that in the first quarter of 2024, the Yuanwang X27 theme park will bring 80% of the GMV growth rate and revenue of 1.581 billion yuan, a year-on-year increase of 43.44%, and the operating cash flow will turn positive to 174 million yuan. It has become another important link in the business system of Yuanwang Technology.
[Looking at X27 from afar, strengthening the long-term anti-risk ability of enterprises]
In the view of Yuanwang Technology, one of the main means for enterprises to break through the economic cycle is to continue to innovate and continue to seek new increments, which not only strengthens the company's long-term ability to resist risks, but also an important guarantee for it to pass through the economic cycle and maintain the long-term existence of the enterprise.
According to iResearch's "2023 China Live E-commerce Industry Research Report", the scale of China's live broadcast e-commerce market will reach 4.9 trillion yuan in 2023, with a year-on-year growth rate of 35.2%. Although the industry is still releasing growth signals, the growth rate has declined significantly compared with the early stage of industry development.
Everyone understands in their hearts that after a hurricane all the way, the live broadcast e-commerce industry has entered a cooling-off period. How to strengthen the ability of enterprises to resist risks and survive through the economic cycle, every enterprise has a different way to deal with it.
The answer given by Yuanwang Technology is: concentrate superior resources, explore new businesses, and tap new increments. Among them, the X27 theme park is a key project.
According to public information such as "Focus Interview", Yuanwang X27 Theme Park is "the first digital-real integration commercial complex in China", and the new business model of "online business + offline tourism" is pioneered, which is also regarded as an innovation in the traditional commercial real estate industry and the live broadcast e-commerce industry.
Specifically, Yuanwang X27 is a commercial complex with a construction area of about 260,000 square meters and non-stop business all day long, which can accommodate 350 brand live broadcasts at the same time. At the same time, its stores also cover a variety of IPs and scenes such as celebrity custom stores, national tide stores, and space art exhibitions, forming a shopping center for consumers to physically shop and check in.
This means that Yuanwang X27 is not only the "scene" of online live broadcast, but also the "scene" of offline experience. According to the first quarterly report, the number of broadcasts of Yuanwang Technology in the first quarter of 2024 increased by 157%, and the number of broadcast accounts increased by 108%. External analysis,Behind the growth of these two core data, it is inseparable from the scene support of Yuanwang X27,At the same time,This model aggregates advantageous resources such as Yuanwang Cloud、Supply chain、Star IP、Film and television comprehensive,Provide it with an efficiency"Aggregation pool",Synergistically improve the efficiency of the main business,GMV is expected to exceed 10 billion for the whole year。
According to the company's financial report, the GMV of Yuanwang Technology in the first quarter of 2024 reached 4.5 billion yuan, an increase of 80% over the same period last year, and it is predicted that the GMV of the whole year can exceed that of 2023, and the overall benefit is expected to achieve a relatively good return in 2024.
In other words, the effect of the expansion of X27 has been significantly improved in the live broadcast business.
Despite the net profit loss in the financial report, Yuanwang Technology tries to find a new increment of the live broadcast business through the business innovation of Yuanwang X27, and leapfrog from "short-term loss" to "long-term value-added", so as to enhance the long-term anti-risk ability of the enterprise, so as to pass through the economic cycle and maintain the long-term existence of the enterprise.
Cao Lei, director of the E-commerce Research Center of the Network Economic Society, also said that Yuanwang X27 is the "aggregation field" of many businesses of Yuanwang Technology, where various businesses influence each other and support each other, from the anchor IP matrix, to the improvement of the supply chain, and then to the improvement of the efficiency of business standardization by the Yuanwang cloud digital platform, the shadow of these businesses can also be seen in today's growth.
[Long-term risk management, seeking stable growth]
In addition to the risk of slowing industry growth, the excessive concentration of resources brought about by "overtaking" implies special risks.
Looking back at the live broadcast e-commerce industry, it can be roughly divided into three models.
First, the absolute overhead type, represented by the beauty wrist and Dongfang Selection, is extremely dependent on the overhead to drive everything, and Li Jiaqi and Dong Yuhui sit on most of the traffic. Second, the matrix type, represented by making a friend, humility, etc., is essentially based on the expansion of the head. The third is the model of simultaneous operation of multiple IPs represented by Yuanwang Technology to deeply explore the potential value of IP.
Nowadays, the general trend of the live broadcast e-commerce industry is to avoid excessive concentration of resources and avoid enterprise development risks. Zhuang Shuai, a special researcher at the E-commerce Research Center of the Network Economic Society and the founder of Bailian Consulting, once pointed out that live broadcast e-commerce has ushered in a stage of development of multi-platform operation and multi-anchor parallelism, and no longer takes large traffic as the only criterion.
In this regard, Make a Friend is the first to break the demarcation line of the platform, complete the flowering of multiple platforms, weaken the dependence on channels, and is realizing "de-Luo Yonghao" step by step. Since Wei Ya hid behind the scenes, Qianxun has greatly rolled out the matrix number, and through the mode of "copying the live broadcast room of explosive products", it has also achieved "de-heading".
Yuanwang technology is different. Since its establishment, Yuanwang Technology has tried its best to avoid the "overhead" model and smoothly pass this stage through multi-platform and multi-IP matrix. At present, Yuanwang Technology's stable and huge live broadcast IP matrix leads the industry, and the advantage of this model is that a single anchor has less impact on the performance of the market and less risk. In addition, in order to improve the efficiency of resource reuse, Yuanwang Technology optimizes labor costs through the intelligent management of "Yuanwang Cloud AIOS", expands IP horizontally and commercializes deeply, and uses amateur anchors and celebrity derivative accounts to drive effective live broadcast time. Among them, in order to play a greater role in the value of star IP, the star boutique trumpet business was launched. On the other hand, Yuanwang has rich resources in artists, publicity, traffic delivery, and professional content creators, and is also actively expanding its business margin during the reporting period, with variety shows, short dramas, and concerts all achieving preliminary layouts to activate the maximum efficiency of IP.
At the same time, through system innovations such as Yuanwang Cloud, Yuanwang Technology has opened up the environment of live broadcast and supply chain, improved operational efficiency, and has completely run through the business model, and in the future, "there is an opportunity to further replicate and amplify" this model - which is the main reason why it has maintained steady revenue growth in recent years.
At present, the scale of the industry is still growing rapidly, and as an important growth pole of content e-commerce, live broadcast e-commerce still has a lot of room for development, full of opportunities for growth, and at the same time, this track is also facing pressure and change. As a leading enterprise of live broadcast e-commerce, Yuanwang Technology's exploration of new increments is not only a necessity of the times, but also an inevitability of the industry.
From upgrading the brand positioning to a "technology-driven new consumer service platform", and then spending huge sums of money to build the Yuanwang X27 theme park, it has gathered a number of advantageous resources to explore and tap new increments, and is realizing its ambition to cross the economic cycle.
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