Reading the semi annual report, why do you hammer yourself so miserable?

As of June 30, 2020, the total revenue of reading articles was 3.2 billion yuan, an increase of 9.7% over the same period of last year, and the operating loss was 3.556 billion yuan, which was nearly 600% lower than the profit of 530 million yuan in the same period of last year. < / P > < p > this is the first time in many years for reading articles to usher in a loss, or a huge loss. After the financial report was issued, the stock price fell sharply. As of August 12, it closed at HK $45.8 per share, down 9.49% from the previous day. The market value evaporated nearly HK $5 billion, equivalent to more than RMB 4.3 billion. < p > < p > in the financial report, Cheng Wu, the newly appointed CEO, made a blunt “self” criticism on the company’s performance in the first half of the year: “the disappointing performance realization makes us aware of the lack of anti risk ability of the company’s underlying business model and the structural problems that have been deposited for several years.” < p > < p > no matter what happened when the founder Wu Wenhui’s team broke up with Yuewen in May this year, it is obvious from Cheng Wu’s expression that the “new reading” after Tencent’s full takeover completely overturned and denied the “old Yuewen” represented by Wu Wenhui. < p > < p > in this way, the past of reading articles has fallen into the dust in a few words, while Tencent is trying to make this old-fashioned online literature world bloom again from the dust. < / P > < p > “the company makes a mess of all its business sectors. It feels like it is going to go bankrupt. If it doesn’t, it will be in chaos. If it doesn’t, there will be no future. I’ll see you for the first time < / P > < p > although the company has issued a warning of loss in advance last month, the day when the boots landed still surprised most investors. It is expected that after the exchange of senior executives, it is necessary to “take the post of a new official three fires”, but it is unexpected that the first fire was burned to the secondary market. < p > < p > on July 20, before the release of the semi annual financial report, Yuewen took the lead in publicizing the pre loss warning, saying that the goodwill and trademark rights impairment caused by the acquisition of Xinli media were RMB 3.7 billion to 4.7 billion, and the net loss in the first half of the year was expected to be at least 1.3 billion to 1.7 billion yuan. According to the semi annual report, the main reasons for the loss in the first half of 2020 are: on the one hand, the provision for impairment of goodwill and trademark rights related to the acquisition of Xinli media is RMB 4.4 billion; on the other hand, it is estimated that the decrease of the profit and remuneration cost under the profit and remuneration mechanism set at the time of acquisition of Xinli media leads to the fair value change income of IDE cost liabilities of RMB 1.24 billion. In addition, there is a small amount of provision for impairment of long-term investment. < p > < p > on October 31, 2018, after seeing the great imagination of copyright operation, Yuewen, who wanted to become “China Marvel”, acquired Xinli media, which was considered to have strong film and television copyright operation ability at that time, with a transaction consideration of 15.5 billion yuan, and signed a performance gambling commitment with a net profit of no less than 500 million yuan, 700 million yuan and 900 million yuan in three years. < / P > < p > in 2018, 65% of the commitment was completed, and in 2019, 78% was completed. In the first half of 2020, which is expected to be high, not only did not catch up with the performance, but also suffered a net loss of 97.1 million yuan. Even if the whole film and television industry affected by the epidemic situation is precooling, Xinli’s report card is surprisingly unexpected. < / P > < p > in the past three years after the high price acquisition, Xinli media has not made any decent achievements in addition to successfully operating the IP project of drama version. Not only did it not prove to the group that it had the ability to “reproduce in batches for more than one year”, but also wasted 15.5 billion yuan of transaction consideration and 10 billion yuan of revenue and cost in three years, and finally lost cash. < / P > < p > the management said bluntly in the financial report: “we lack a team that is familiar with both online literature and film and television production to promote the whole process.” This sentence is no different from the public punishment of Xinli, and even can be regarded as the group’s “crackdown on counterfeit goods”. < p > < p > in theory, the reason why Yuewen acquired Xinli media at that time was that he took a fancy to the excellent ability of its whole team in film and television production. After all, the old media company, which was founded in 2006, has marked many films and TV works adapted from Internet Literature IP on its official profile. < / P > < p > frankly speaking, such a team “is not familiar with online literature and film and television production”, and reading the article is just like writing five big characters in the financial report – we were cheated. However, Tencent, which has the strength of “honoring” Tencent, is not willing to admit that it has been cheated directly. After all, Tencent still leaves the pot of this major strategic error on the “old reading” led by Wu Wenhui. The original financial report is not obscure: “we recognize some structural problems accumulated in the past few years. These problems make the company’s market share gradually decline, and weaken the company’s competitive advantage, which is the fundamental reason for the unsatisfactory performance of this time < / P > < p > in brief, the new management team believes that in the three years since the listing, the most direct and key copyright operation work of reading articles has not received any effect, but even the core operation mechanism has not been established. < / P > < p > “we still lack a mechanism and top-down planning to promote the construction of IP centric content and operation strategy, so as to promote the development and production across various content forms, so as to maximize the lifecycle value of IP. Although we have made some achievements in the past, the real problem is how to achieve scale. ” < / P > < p > in other words, after three years of tens of billions of yuan, Wu Wenhui’s team was so incompetent that even a mechanism could not run through. After three years of copyright operation, a hammer was finally put into operation. The hammer was handed over to the new power holders after a great change of management, and became a fatal weapon for the incompetence of management in the “old era”. < / P > < p > as we all know, as an old paid online document platform, both the number of paying users and the willingness of users to pay have continued to be cold in recent years. At the beginning of last year, Yuewen announced in the financial report of 2018 that the Mau of each platform of the group in the past year was 213 million, with a year-on-year increase of 11.5%. However, the payment ratio dropped from 5.8% in 2017 to 5.1% in 2018, and the willingness of users to pay is declining. In the middle of last year, the number of this indicator continued to decline. The average monthly paid users decreased from 10.7 million to 9.7 million, the payment ratio continued to drop to 4.5%, and the average monthly income per paid user decreased from 24.2 yuan to 22.5 yuan. And online revenue, which was originally at the core, has also suffered a sustained decline in performance. However, at the beginning of this year, readers no longer publicize the specific number of paying users and payment ratio, but instead focuses on the growth of free reading users. However, ironically, the biggest highlight of this year’s “disappointing” half year report is the almost “abandoned” growth in online business revenue, especially paid reading. As like as two peas, the average monthly paid user of the platform increased by 9.3% to 10 million 600 thousand from the 9 million 700 thousand in the middle of last year, the proportion of the number of paid users from the year before last to last year to the beginning of this year has returned to the initial starting point,

reported. < / P > < p > moreover, in the first half of this year, the average monthly income per paid user of the platform surged from 22.5 yuan to 34.1 yuan. The company said it was mainly due to strengthening the in-depth operation of the content, optimizing the recommendation system and expanding the content distribution channels. < / P > < p > looking back, we can see that the “55 broken changes” and “contract events” which were caused by copyright incubation and operation reform, have also gained a hammer in the tear between the author and the platform and the internal discussion within the industry. < / P > < p > after a big circle, the huge copyright operation and free reading imagination of reading articles nearly collapsed. After the founder Wu Wenhui left, the company returned to the basic disk of paid reading which he was best at. < / P > < p > the new management is indeed committed to: “looking forward to the future, we will adopt the same critical thinking and positive attitude to solve the company’s problems in other business sectors. We will upgrade and rebuild the content, platform and ecosystem of the articles < / P > < p > you can think of this semi annual report as a merciless “squeeze water” from the old world by the new management team. However, it is more like the management picking up the “chicken feathers” left by Wu Wenhui after he left, and binding them together with the bird feathers scattered in the penguin base camp to form a new “duster”, pointing to the new cultural and creative future of Tencent and Yuewen 。 Developed a “plug and play” solar power generation scheme, and “5B” won a $12 million round a financing

Author: zmhuaxia