Huawei Culture's performance in the first three quarters increased by 2.3 times, and the transformation results were immediate

Huawei Culture disclosed its third-quarter 2016 financial report on the evening of October 26. The report pointed out that the company achieved operating income of 569 million yuan in the first three quarters of this year, a year-on-year increase of 60.10%, and a net profit of 157 million yuan, a year-on-year increase of 229.30%. The company stated that during the reporting period, the merger scope included Shenzhen First Wave Network Co., Ltd. and Zhejiang Dream Xingshengyuan Film and Television Culture Co., Ltd., while the merger scope for the same period last year only included Shenzhen First Wave Network Co., Ltd., resulting in an increase in operating income.

After being a toy for 20 years, he has invested heavily in the entertainment industry.

Data show that Huawei Culture was formerly known as Guangdong Huawei Toy Craft Co., Ltd. In the 19 years since its establishment, the company's main income has always relied on toy products. Data shows that the gross profit margin of the company's products remains at around 22%-25% all year round, which is also a high level in the real industry. It can be seen that Huawei Culture's toy products are profitable.

In 2015, the entertainment industry began to explode. As a derivatives company downstream of the entertainment industry chain, Huawei Culture has also begun to deploy this field.

Rough statistics show that in 2015, Huawei Culture had spent more than 2 billion yuan in order to enter the entertainment industry, including acquiring 80% equity of Shenzhen First Wave Company, purchasing 100% equity of Fantasy Star Shengyuan, and initiating the establishment of an industrial M & A fund. Huawei Zhexing (Youxing Partnership) and participating in the investment to establish Zhonghua Culture.

In sharp contrast, since its listing in 2010, the company has achieved a total net profit of only 326 million yuan. That is to say, in the past year, Warwick Culture's M & A spending was 6 times the company's total net profit for the previous six years.

However, Huawei Culture still has not stopped the pace of "buying, buying". Since the beginning of this year, Huawei Culture has spent another 450 million yuan to purchase a 100% stake in Letong.

Two years after a makeover, film, television and games have become the main body of revenue.

Following the acquisition and expansion actions, on May 11,"Huawei Shares" announced that it would change its name to "Huawei Culture". In order to completely transform the entertainment industry, Warwick Culture decided to "completely break up" with the toy business that has relied on it for 20 years. On the evening of September 27, Huawei Culture announced that it planned to divest 100% equity of its toy manufacturing business subsidiary Huaxing Technology to its actual controller Guo Xiangbin for 185.5 million yuan. After the transaction is completed, the listed company will no longer engage in toy production and sales and realize a complete transformation into an Internet culture.

From the acquisition of the first wave of companies to the spin-off of the toy business, Huawei Culture took only two years, and its speed of doing things can be seen in the financial report. In the first half of this year, the company realized operating income of 355 million yuan, with a year-on-year growth of 116.22%; net profit attributable to shareholders of listed companies was 88.7576 million yuan, with a year-on-year growth of 252.05%. Among them, the revenue of film and television and game business reached 238 million yuan and 73.99 million yuan respectively, which has become the main source of operating income of the company.

After the transformation, Huawei Culture has been fully fired. This year, Huawei Culture has released dramas such as "Boiled Woman Detective" and "Lonely Empty Court Spring Wanting Late," leading the market ratings. Works such as "Give up on Me, Hold on to Me" and "The Star Sky and the Sea" are ready to be released, continuing to drive the release of results throughout the year. In the performance forecast released on the 26th, the company expects 2016 profits to increase by 150% to 200%. The company said that it was mainly due to the breakthrough growth in the performance of film and television drama modules, and the transfer of 100% equity of its wholly-owned subsidiary Huaxing Technology to obtain investment income, and the normal and orderly development of other module businesses.

Yien.com compiles and releases it based on public information and media reports

Editor: Nancy