The annual income of entertainment machines is 450 million yuan, and Shiyu technology is on the gem again

The company mainly produces and sells commercial game machines, and has cooperated with large amusement parks in nearly 100 countries around the world, such as super playground, Wanda Baby King, Dave & Buster, cineplex, etc. At present, the company has 97 patents and 122 software copyrights. During the reporting period, the company’s revenue from independent R & D products accounted for about 70%. However, due to the sudden outbreak of the epidemic, offline entertainment was suspended in the first half of the year, and Shiyu technology also suffered heavy losses. In 2017, 2018, 2019 and January to September 2020, the company achieved revenue of 412 million, 433 million, 453 million and 173 million respectively. The net profit was 43.2868 million yuan, 54.6129 million yuan, 53.8397 million yuan and 10.546 million yuan. Among them, from January to June 2020, the company’s revenue was 76.0678 million yuan, a year-on-year decrease of 62.55%. < p > < p > with the alleviation of the domestic epidemic situation, the performance of Shiyu technology has also begun to moderate. However, the global epidemic is still aggravating, and Shiyu technology, which accounts for half of the domestic and overseas business revenue, is still not out of risk. < p > < p > the main business of Shiyu technology is the operation of commercial games and amusement machines, accounting for more than 80-90% of its revenue. Secondly, the operation of new game and entertainment equipment and other businesses including digital sports and amusement facilities sales. During the reporting period, the company’s main business revenue was 410 million, 430 million, 451 million and 171 million, accounting for more than 98% of the total revenue. < / P > < p > the company’s products are mainly commercial game and entertainment machine series products, mainly including simulation class, children’s class, Carnival class and gift category. After 2018, the company has developed some new game and entertainment equipment suitable for multiple application scenarios. < p > < p > among them, simulation equipment refers to the device that simulates the real scene to make players feel real participation in the game; children’s equipment is developed for young children, with parent-child interaction, education and entertainment effects; carnival equipment can let players get lottery paper through the game, in exchange for corresponding gifts; gift equipment can directly obtain gifts. The new equipment can be used in bars, KTV, office space and other multi scene equipment. < / P > < p > during the reporting period, the most popular equipment of Worldstar technology was the dynamic flying car and super speed bowling. The sales revenue of the company’s top five products were 115.7309 million yuan, 165.6833 million yuan, 158.8642 million yuan and 6, 3.6762 million yuan, accounting for 28.08%, 38.23%, 35.04% and 36.83% of the operating revenue respectively. < / P > < p > according to the recent four years, the coincidence rate of the five most popular equipment of Shiyu technology is not high, which indicates that the company has been strengthening the R & D and operation of various products, and the revenue proportion of the top five equipment is also controlled within 40%. On the whole, the proportion of the top five products’ revenue of the company shows a concentrated trend, but the dependence on fixed top products is not strong. < / P > < p > this is mainly because the entertainment equipment produced by the company has certain effectiveness. Among them, the sales cycle of analog equipment is about 3-5 years, the sales cycle of children’s, Carnival and gift equipment is 5-7 years, and some popular products can be more than 10 years. In addition to extending the vitality of products through upgrading, the company also needs to continue to produce and operate other products. < / P > < p > the production mode of the company is mainly self-made, with a small amount of OEM OEM. In addition to independent design and final assembly, we will also import game kits from famous overseas game developers such as raw thrills, Jixiang electronics and Wandai Nanmeng palace. OEM production mainly takes into account the production cost and capacity constraints, so the company will provide creativity, planning, product drawings and other preliminary standards, and OEM manufacturers will carry out production according to the company’s requirements. < p > < p > during the reporting period, the revenue of game and entertainment equipment processed and produced by other manufacturers entrusted by the company were 11.5403 million yuan, 8.011 million yuan, 5.278 million yuan and 4.2978 million yuan respectively, with the purchase volume accounting for 7.43%, 4.71%, 5.13% and 5.93% respectively, and the OEM business accounted for a relatively low proportion. It shows that the company’s operation of self-made products is relatively stable. In addition, the OEM mode of the company no longer organizes production by itself, so the cost of consumption is relatively low. < p > < p > Shiyu science and technology was significantly affected by the epidemic situation. The sudden Black Swan incident has forced entertainment places all over the world to suspend business or restrict the flow of people, which naturally has a great negative impact on the normal operation of upstream and downstream industries. The main problems encountered by Shiyu technology are customers’ delay in order release and purchase plan, which seriously affected the company’s sales situation from February to May this year. < / P > < p > not only Shiyu technology, but also Zhongshan Jinma and Huali technologies, which are the same in R & D, manufacturing and sales of amusement facilities, have suffered the same trauma. In the first half of this year, the operating revenue of Shiyu technology was 76.0678 million yuan, down 62.5% compared with the same period of last year; the revenue of Zhongshan Jinma was 147795300 yuan, a year-on-year decrease of 56.92%; the revenue of Huali technology was 106.5484 million yuan, a year-on-year decrease of 40.35%. < p > < p > among them, the revenue decline of Shiyu technology is the highest. This is mainly due to the decline of sales amount of the top five customers of Worldstar technology, the high proportion of overseas business in total revenue, and the single business. < / P > < p > during the reporting period, the top five customers of the company include Wanda Baby King, AEON fantasy, toonni and other children’s brands, as well as the comprehensive offline entertainment brands such as Wanda Baby King, AEON fantasy, toonni, etc., as well as the major players operating various kinds of amusement parks or operating their own amusement brands, and Dalian Oriental hero carnival. According to the situation of over reliance on customers in the past five years, it accounted for 17.4% of the total revenue. This year, the proportion of 1-9 shares is relatively high, mainly because Dalian Dongfang hero and Nanjing Nanyun investment are optimistic about the market opportunities after the epidemic, because of the large investment. < / P > < p > while the sales amount of Shiyu technology to overseas customers decreased significantly. In the past three years, at least 2-3 of Shiyu’s top five customers were overseas enterprises, and the proportion of sales amount of overseas enterprises in the top five customers was about 5.4% – 16%. This year, only one overseas enterprise, bandal Namco, accounted for 5.07%. < / P > < p > according to the prospectus, the overseas business revenue accounted for 45.40%, 54.83%, 50.43% and 50.43% respectively From January to September this year, the company achieved revenue of 172.9012 million yuan, with a year-on-year decrease of 40.60% from 62.55% in the first half of the year. The proportion of overseas revenue of Huali technology accounts for about 7% – 21%, and the year-on-year decrease of total revenue from January to September decreased from 40.35% to 24.84%, and the recovery speed was faster than that of Worldstar. In addition, the total operating cost of Shiyu technology is relatively high. During the reporting period, the total operating costs accounted for 88.1%, 86.5%, 86.63% and 91.9% of the total revenue, mainly due to the increase in the proportion of operating costs. This is because the main business form of Shiyu technology is relatively single, including only the sales of game and entertainment products, and 70% of this comes from self-developed products, and the R & D demand investment is relatively high. < p > < p > in August, September and the National Day holiday, the passenger flow and revenue of downstream entertainment venues have returned to about 80% – 90% of the normal situation, and some chain operation enterprises or stores with good operation conditions have reached or even exceeded the revenue level of the same period of last year. During the National Day holiday, a total of 637 million domestic tourists were received across the country, with a recovery of 79.0% on a year-on-year basis. < p > < p > Shiyu technology also adjusted its business direction this year, taking domestic business as the main revenue channel, and expanding some enterprises with strong brand influence and capital strength. In Q3 this year, the company achieved revenue of 96.8334 million yuan, an increase of 10.05% over the same period of last year. The threat of epidemic situation has been temporarily controlled. < / P > < p > the prospectus shows that the total amount of domestic and foreign orders and intention contracts that the company has obtained and is expected to deliver goods in the fourth quarter of 2020 is about 100 million yuan. According to the company’s profit forecast report in 2020 reviewed by accountants, the company expects to realize operating revenue of 304 million yuan in 2020, a decrease of 32.86% compared with the previous year, and the net profit after deducting non attributable parent is 3530.93 Million yuan, a decrease of 29.68% over the previous year. < / P > < p > this is because the peak period of domestic amusement facilities market is mainly concentrated in the winter vacation and Spring Festival in the fourth quarter. In addition, due to the epidemic situation in the first half of the year, customers’ orders and purchase plans were delayed. Some domestic customers’ new amusement park investment was also concentrated in the second half of the year. It is expected that Q4 will usher in the peak sales season. < / P > < p > in addition, due to the impact of the epidemic, some small and medium-sized enterprises of the same type have been eliminated in the market, and entertainment facilities enterprises including Worldstar will usher in more opportunities. According to the statistics of lianshang.com and soupu.com, since 2014, the number of newly opened large shopping centers in China has maintained an overall growth trend, reaching 533 in 2018, an increase of 5.75% over the previous year. And these traditional shopping centers tend to be more department stores. According to the data on the average proportion of shopping centers opened in China from 2015 to 2017 released by yingshang.com, the proportion of children’s parent-child, entertainment and other pan entertainment formats has increased. This is also one of the important driving forces for the incremental demand of game and entertainment equipment. < / P > < p > according to the China culture and entertainment industry association, the output value of China’s commercial game machines has increased from 7.6 billion yuan in 2014 to 16.4 billion yuan in 2018, with a compound annual growth rate of 21.20%. < / P > < p > this is mainly because with the increasing penetration rate of VR, AR, artificial intelligence and other technologies, the applicability of commercial game machines is becoming stronger and stronger, and its simulation and immersion experience are also loved by more and more users. According to the market analysis agency greenlight insights, it is estimated that the number of global offline VR experience halls will exceed 13000 in 2019, and 5400 in China; the global VR offline entertainment market will reach US $3.6 billion in 2019, and will increase to US $11.8 billion by 2023, showing a rapid growth trend. < / P > < p > although the market demand is strong, companies like Shiyu technology are still facing many force majeure. In addition to the epidemic situation mentioned above, political risk also occupies an important risk factor. < / P > < p > according to the prospectus, the game and entertainment equipment exported by Shiyu technology are mainly sold to North America, Asia, Europe and South America. Among them, the U.S. market is one of the important overseas markets of the company. In 2019, the company’s sales revenue to the U.S. market accounted for 29.86% of that year’s overseas sales revenue. However, in recent years, the economic and trade frictions between China and the United States continue to escalate, and commercial game and entertainment machines have been included in the tariff range of the United States. At the same time, China has also imposed tariffs on some goods imported from the United States, resulting in the company’s rising cost of purchasing game kits from the United States. It was only in March this year that it was affected by the new regulations that the import tariff was exempted. < / P > < p > and it’s still a time bomb. If the business environment of overseas business changes significantly due to trade policy, economic development, political environment, etc., it will have an adverse impact on the company’s business performance. Iqoo5 series debut strength interpretation of “120 super full mark flagship”

Author: zmhuaxia