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- Chief Business Intelligence
- Chief Business Intelligence
Introduction: Yuanwang Technology and Make a Friend, Worry-free Media, and Qianxun Culture can also be regarded as the "four major MCN kings in China", with the rise of new formats such as Three Sheep and Oriental Selection, celebrities are really tired of bringing goods.
Source: Yuanwang official website
According to the official website of Yuanwang, Yuanwang has signed more than 50 cooperative stars such as Jia Nailiang, Wang Zulan, Shu Chang, etc., among which Jia Nailiang has a strong ability to bring goods.
MCN giants can't sell anymore by relying on stars
According to the data of Cicada Mother, Jia Nailiang became the "No. 1 Big Brother" on the Douyin Goods List in May.
Even during the 618 period just past, the GMV of Jia Nailiang, the star of Yuanwangqi's cooperation, was as high as 425 million, and the GMV of Yang Zi and Huang Shengyi reached 10.96 million, but these two could not slow down Yuanwang Technology.
Everyone in the industry understands that GMV can only be used as a reference, and it does not mean that the money has arrived!
Not counting these variable factors, such as canceling the order before delivery, returning the goods in the middle of delivery, returning the goods after receiving the goods and other variable factors, a live broadcast needs to wait for the consumer to confirm the receipt of the goods, and then it is considered the real live broadcast performance.
On June 17, according to the analysis of the announcement issued by Foshan Yuanwang Technology Co., Ltd., the impact on gross profit margin is the fixed cost of the company's stars and anchors.
In 2023, Yuanwang Technology's social e-commerce business will plummet to a negative number of -0.38%, and the gross profit margin will still be 23% in 2022.
In layman's terms, it is the commission of the star, and the appearance fee, pit fee, etc.
In 2023, the revenue will be 4.777 billion, but the profit will plummet by 299.33%
Yuanwang Technology's 2023 financial report
According to the analysis of Yuanwang Technology's financial report data for the first quarter of 2024, the revenue in the first quarter was 1.581 billion yuan, a year-on-year increase of 43.44%; The net profit loss was 94.2386 million yuan, a year-on-year decrease of 147.77%.
According to the analysis of the 2023 financial report data, the revenue in 2023 will be 4.777 billion yuan, a year-on-year increase of 22.48%, and the net profit loss will be 1.05 billion yuan, a year-on-year decrease of 299.33%.
This is an increase in income but not in profits, a bit outrageous data, and the losses are getting worse and worse.
According to the financial report data of Yuanwang Technology over the years, the revenue in 2020 will be 2.151 billion yuan and the net profit will be 242.978 billion yuan, the revenue in 2021 will be 2.811 billion yuan and the net profit loss will be 700 million yuan, and the revenue in 2022 will be 3.901 billion yuan and the net profit loss will be 263 million yuan.
In other words, from 2021 to 2023, Yuanwang will lose money for three consecutive years, and the cumulative loss amount in the three years will be 2.013 billion yuan.
What about cash reserves? According to the 2023 financial report data, the cash flow of Yuanwang Technology will be negative in 2023, which is really worse for families who are not wealthy.
Compared with 2021, there are at least 223 million yuan in cash reserves! In just two years, cash flow plummeted by 200.45%.
Bad debts, major shareholders reduce their holdings and cash out
According to the 2023 financial report of Yuanwang Technology, as of the end of the reporting period, the book balance at the end of the accounts receivable period was 1.52 billion yuan, and the provision for bad debts was 505 million yuan.
During the reporting period, the newly increased provision for bad debts was 318 million yuan, a year-on-year increase of 221.21%.
The reason for the explanation of bad debts is that shoes are unsalable, and there are some cooperative companies that cannot recover their accounts, but I don't know what the concept of shoes with more than 200 million unsalable shoes is? In short, it is time to de-stock.
On June 6, 2023, according to the "Pre-disclosure Announcement on the Reduction of Shareholdings by Shareholders Holding More than 5% of the Shares" disclosed by Yuanwang Technology, the company's shareholder Yunnan Zhaolong Enterprise Management Co., Ltd. (hereinafter referred to as Yunnan Zhaolong) will reduce its holdings by about 1.5%, and cash out about 245 million yuan according to the market value on the date of the announcement.
Moreover, the company also shows that Yunnan Zhaolong's proposed shareholding reduction disclosed in November 2022 has been completed, and it has reduced its holdings by 1.93% and cashed out about 280 million yuan.
Xie Rudong
Not only Yunnan Zhaolong, but in December 2022, Xie Rudong, chairman of Yuanwang Technology, also reduced his stake by 2%, with a cash amount of about 267 million yuan.
Seeing that the actual controllers and executives have successively reduced their holdings, although they are all legally disclosed, shareholders have also begun to question Yuanwang Technology, but there is a reason to reduce their holdings and cash out, the reason is to resolve the pressure of shareholder debt and invest in other businesses.
In the first quarter of 2020, the share price of Yuanwang Technology soared to 36.56 yuan, and then it began to fall, as of June 27, 2024, the closing price was 4.44 yuan, and the latest market value was 4.132 billion yuan.
Compared with the peak stock price in 2020, compared with the present, it can be said that it is really embarrassing, after all, it was once brilliant, and it can be regarded as a precedent for celebrities to bring goods.
From a shoe selling company to a "live broadcast share"
Enterprises such as Wuhan No. 2 Factory and Hongjiu Fruit can be listed as long as they stand on the tuyere, becoming the "first share of soda" and "the first share of fruit", and the same is true of Yuanwang Technology, which has transformed from selling shoes to live broadcasting, and it can be called "the first stock of live broadcasting" in the industry.
Yuanwang Technology, formerly known as "Saturday Co., Ltd." (hereinafter referred to as Saturday), was founded in 2002 and is a company that sells women's shoes.
Its brands include Saturday (ST&SAT), Fbelier (FBL), Sophia (SAFIYA), etc., which are also popular in the domestic women's footwear industry, and were listed on the Shenzhen Stock Exchange in 2009.
In 2018, it spent 1.77 billion yuan to acquire 89% of the equity of Hangzhou Yuanwang Network, a MCN company, and then reorganized and renamed "Planet Six" in 2019 as "Yuanwang Technology", and Yuanwang Technology became a listed company.
The current Oriental Selection is also a bit similar to taking this path, Yu Minhong would definitely not have thought when he founded New Oriental, he would also sell vegetables one day, and after New Oriental "closed", Lao Yu began to "covet" live broadcast goods.
So on the basis of the original team that stayed, he expanded the Internet live broadcast business, but he didn't expect that with the big IP of Dong Yuhui, Dongfang Selection became popular overnight, and Dong Yuhui has not been out of gas until now!
"New Oriental Online" itself is a listed company, and on March 9 last year, "New Oriental Online" issued an announcement and changed its name to "Oriental Selection", so Oriental Selection has naturally become a listed company.
Even if Dong Yuhui now has his own team and the live broadcast room "Yuhui Peers", the goods he sells are also counted in the financial report of Dongfang Selection, Yu Minhong publicly said that Dong Yuhui can take the account away when he leaves.
Yuanwang Technology is also one of the earliest MCN institutions in the industry to launch the "star with goods" model.
Now that the live broadcast of celebrities has begun to cool down, Yuanwang Technology is trying to cross the river by feeling the stones, such as the metaverse, AIGC, short dramas, AI intelligence and other new outlets, and also come up with the fancy delivery of virtual digital people, but at present, it is really not suitable for digital people to bring goods, and Yuanwangyun is better.
In short, there is a new investment trend in the capital market, and Yuanwang Technology can make a kick, so that "Messi" live broadcast can also be used, but in February this year, because of the default event, domestic golfers' favorability towards Messi plummeted.
In short, it is what the tuyere is hot, where there is the figure of Yuanwang Technology. It's just that while chasing the wind, the shareholders and founders of Yuanwang Technology are quietly reducing their shareholdings.
Celebrities have lost their teeth with goods, and no matter how much traffic they place orders, there will be less orders
Xie Rudong
The commission price of the average talent anchor with live broadcast is not low, not to mention that it is still a star, and it costs them a lot of additional costs.
I signed so many stars, but the stars still can't take them, don't think about why?
Douyin itself is a platform for making content, and with the fresh IP of stars, it is not a long-term road at all. The products brought by celebrities are really not distinctive, but they are just changing their faces and shouting at the same product.
Yuanwang didn't think about the essential issues behind it, and really had to listen to the opinions of consumers.
According to iiMedia Consulting data, the number of MCN institutions in China will exceed 40,000 in 2022 and is expected to exceed 60,000 in 2025.
In 2023, the scale of the live broadcast e-commerce market will be 4.9 trillion yuan, a year-on-year increase of 35.2%, but this growth rate is actually much slower than before.
These head MCNs of Yuanwang Technology rely too much on a single shouting sales model, and they may need to change, but their true foundation is not bad, and they hope to get lost.
On Yu Minhong's side, there was a contradiction, on the one hand, the style of bringing goods in the live broadcast room of Dongfang Selection changed, causing Lao Yu himself to complain, and made Dongfang Selection evaporate many small targets overnight, followed by another round of apologies.
And Dong Yuhui's live broadcast room "Yuhui Walking" is actually a new action.
Yuhui Hong Kong tour
According to the public information of Tianyancha, Hui (Beijing) Technology Co., Ltd. applied for the registration of text and graphic trademarks such as "Walking with Hui to break 10,000 volumes", "Walking with Hui to read mountains and rivers", "Walking with Hui to see mountains and rivers", "Walking with Hui to see mountains and rivers", "Walking with Hui to Yue Shanhe", etc., the number of applications for registration is very large.
The biggest profit for Dongfang Selection is its self-operated products, and it is time to compete with its own brands and supply chains in live broadcasting.
In January this year, the three sheep also went abroad and went to "Po County" Singapore to bring goods live with local talents, and they also achieved good results, setting a new record for TikTok e-commerce sales in Singapore.
Bringing goods has long been unable to satisfy the three sheep, and Crazy Brother Yang also works in skits, holds concerts, and holds electronic music festivals, in short, it is dazzling, making people forget that they are MCN companies.
Even if the former "live broadcast brother" Li Jiaqi is in a sentence, is it not after working hard, the halo is no longer there, and he has to open up a new way out, opening the "Mei ONE Preferred" flagship store on Tmall, and then draining to Li Jiaqi's live broadcast, but the sales are also average, no longer as they were back then.
It's hard to make money! Everyone is changing their ways to change.
Do you think that Yuanwang Technology will be able to go through the road of relying on celebrities to bring goods in the future? Please leave your comments and leave a comment.
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