Star Hui Entertainment’s two main business is frustrated: Can the game support "football dream"?

  Original title: The two today for major mains of Xinghui Entertainment is frustrated: Can the game support ”football dream”? Source: China Business News

  Xu Xinyi reporter Wu Kezhong reported

  In the first half of this year, Most game companies made a lot of money, but Xinghui Interactive Entertainment Co., Ltd. (hereinafter referred to as ”Xinghui Entertainment”, 300043.sz) is ”against the trend” loss.

  Recently, Star Hui Entertainment released the 2021 and semi-annual report showed that the company achieved operating income of 530 billion yuan, a year-on-year decreased by 37.7%, achieving net profit – 1.97 billion yuan, a year-on-year drop of 348.28%.

  It is reported that the main business of Xinghui Entertainment is divided into three sectors of games, football clubs and toys. Due to the acquisition of the Spanish Football Club, the Operation todays india news of China Wulei joined, Xinghui Entertainment was named in the capital market. However, by the decline in the Spanish club last year, the company’s football business revenue was reduced. Xing Hui Entertainment’s half-year report show that the football club is affected by the downgrade of the game last season, the club is from TV broadcast rights revenue of 29,498,900 yuan, which is reduced by 86.48% from the previous year.

  On September 23, Xinghui Entertainment said that the ”China Business News” reporter said that the company’s sports business losses in the first half of the year, the Spanish club business has not had problems, and financial support is required in the short term.

  Football club performance is heavy

  In addition, Xinghui Entertainment has increased in addition to the income and profit of the toy aaj tak live lucknow today business, and the performance of the game and football club has fallen. Among them, the net profit of the game is nearly 60%, and the net profit of the football club has fallen into a negative value.

  According to Xinghui Entertainment official website, the company has started investing in the Spanish in the football club in 2015, and has been 99.61% of the club. The company claims to be the first A-share listed company that holds the top club of European League. On July 9, 2020, the Spaniards were buried in Barcelona, ??falling from Liba to X.

  Affected by the new crown pneumonia epidemic and football clubs last season downgrade, in the first half of the year, Xing Hui Entertainment’s football club business has a thousand feet. Xinghui Entertainment has shown that the company’s football club business achieved the main doordarshan mumbai business income of 71.76464 million yuan, a reduction of 75.78% from the same period of the previous year, accounting for 13.55% of operating income; net profit-2.15 million yuan. Affected by the Football Club last season downgrade, the revenue from TV broadcast rights is 29,498,900, which is reduced by 86.48% from the same period of the previous year; from sponsorship and advertising, ticket, member, player transfer, football derivatives and other aspects of $ 42.2653 million It is reduced by 45.95% from the previous year.

  Star Hui Entertainment results have caused attention to the supervision department. On September 8, the Shenzhen Stock Exchange issued a letter of questioning the company, requiring the cause of the football club business and the domestic game business income significantly decline.

  Star Hui Entertainment said in the reply to the Shenzhen Exchange that the proportion of the revenue distribution of the La Ora League and the His Lace is 9:1. The decline in degradation, in the first half of 2021, the Spanish Club confirmed that the TV’s revenue revenue was 86.48%. The company also said that the sponsorship and advertising revenue from Spanish declined by 61.55% year-on-year, with a year-on-year year-on-year decline in 67.24%. The gross profit margins of these three income sources are around -400%.

  Although the cash account has fallen sharply, the team’s maintenance cost is relatively fixed. The company said that the business cost of football clubs mainly includes the depreciation of the course and training ground, players amortization and player salary, ”change amplitude is far from income fluctuation.” Compared with the same period last year, the total cost of the football club fell only 16.39%.

  Relying on old games

  In addition to the football club, the game sector that occupies the ”Half-Wanjiang Mountain” of the Star Hui Entertainment Revenue has also appeared in the first half of the year’s net profit and even ”waist”.

  The financial data shows that the game business of Xinghui Entertainment in the first half of the year has reached 279 million yuan, which reduces 26.78% from the same period of the previous year, accounting for 52.71% of the total operating income; achieving net profit 52.328 million yuan, a reduction of 58.25% from the same period of the previous year; Realize overseas business income of 150 billion yuan, an increase of 6.45% from the same period last year, accounting for 53.68% of the game revenue.

  The inquiry letter of the Shenzhen Exchange pointed out that Xinghui Entertainment has continued to decrease in the scale of online game business in the past three years. In the first half of 2021, Xinghui Entertainment realized the revenue of the domestic game of 129 million yuan, a year-on-year declined by 46.23%. ”The decline in domestic business is significantly higher than the overall situation of the sector.”

  In this regard, Xinghui Entertainment gives two explanations: First, some of 2017, the game on the 2018 online ”is subject to life cycle law”, there is a certain decline in the first half of 2021; Second, some product heat decline, company Lower promotion, resulting in new users and active users to decrease.

  The 9 game products listed by Xinghui Entertainment is online from September 2017 to February 2021. On September 23, Xinghui Entertainment said that the reporter said that the life cycle of the game varies depending on each game product. The company said that the single product will be long-term planning, extending the life of the product through the new content in the game, extending the product line through the series.

  According to the data disclosed by Xinghui Entertainment Announcement, in the first half of 2021, the company’s domestic game revenue mainly came from ”game one” on September 2017 (the announcement did not disclose the specific game name), and the single product contribution was 2.4 billion yuan, accounting for proportion Super 60%.

  The reporter saw the official website of Xinghui Entertainment, September 2017, the company R & D, Tencent Game Agent issued by the mobile game ”Three Kingdoms Biography – Overlord Industry” online. The official website said: ”It is only 15 days, the game flows exceeds 100 million yuan, and the peak daily water reaches 10 million yuan.”

  The company disclosed in the first half of the year and the first half of 2021, the number of new users, the number of active users, the number of active users, and the number of pay users have fallen sharply.

  Liao Xuhua, senior analyst, said that the journalists said that the game business income of Xinghui Entertainment relies on ”Three Kingdoms Biography” and has not been sufficient. He pointed out that ”Three Kingdoms Biography” is already a product that is very long life cycle, but as an old game, the user’s loss is inevitable in the context of domestic SLG hot explosions in these two years. Relying on old products, it is the reason why Xinghui Entertainment Revenue continues to decline.

  Does a plate not give up?

  As a multi-headed company, Xinghui Entertainment is frustrated in the first half of the game business and football club, and the only growth of toy business revenue is only 24.83%.

  ”There are currently three sections.” In the request of Jet Hui Entertainment, it did not show it to give up a certain business.

  Xing Hui Entertainment said that the company said that the company’s sports business losses in the first half of the year, the Spanish club business is not problematic, and the financial support will be maintained in the short term.

  The company believes that this season’s Spanish club has returned to La, and the income will increase. Among the reply announcements against the Shenzhen Stock Exchange, Xinghui Entertainment also pointed out that the Royal Social League’s revenue is less than 60% of the British Super League’s transfer rights, and the future of La Liga still has a large growth space.

  However, the company also suggested that if the European has once expanded large-scale epidemic, there is a possibility of re-implementing the empty spot competition, and there is still a direct impact on derivatives and ticket income; in addition to the player injury, player competitive state, coaching team training command and competition The comprehensive impact of many factors such as schedule, the team’s performance is prone to fluctuations, and the club’s season ranking has a certain impact, which may result in degradation.

  As for the game business, Xinghui Entertainment said that the reporter said that there is currently two sections of SLG and secondary primary, and there will be SLG policy game project plans. In the reply to the deep exchange, Xinghui Entertainment said that the new game issued by the company in 2021 is mainly launched in the second half of the year, including the opera world girl to develop mobile games ”pure white chord”, oriental fantasy mmorpg mobile game ” ”Wait. The company claims that after the game is online, income, new users, and active users will increase.

  ”First team must form a consensus, put an end to the old game to eat,” Liao Xuhua believes that the game business of Xinghui Entertainment should be improved, we must dare to invest in new products, and master the release and operation of the new product in his own hands . He believes that although there is a risk of failure, but if it doesn’t do this, the future of Xinghui is marginalized in the game market.

  The semi-annual newspapers show that the R & D investment of Xinghui Entertainment is 10,974,600 yuan, and it is less than one tenth of sales expenses in the same period.

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