After signing a big-name artist in "Ode to Joy 2", Yineng Media's net profit fell by 11.67%

"Ode to Joy 2" was popular and Yang Shuo and Jiang Xin became popular, creating revenue of approximately 9.68 million yuan for the New Third Board Company Yineng Media. However, the growing brokerage business directly led to a 11.67% decline in the company's net profit.

Original title: Behind Yineng Media's signing of contracts with Jiang Xin and other big names: "Ode to Joy" was hit, and the company's profits were reduced

. On May 27, due to the broadcast of "Ode to Joy", Yang Shuo and Jiang Xin became popular. As contracted artists, they also created revenue of approximately 9.68 million yuan for the new board company Yineng Media. However, the increase in the popularity of actors has also forced Yineng Media to invest more operating costs. Last year, brokerage business directly led to a 11.67% decline in the company's net profit.

On October 21, 2015, Yineng Media registered on the New Third Board, mainly engaged in the investment, production, distribution, artist brokerage and derivative marketing of film and television dramas. The company has a radio and television program production and operation license.

The reporter understands that the TV drama business is the core business of Yineng Media. In 2016, Yineng Media invested in the filming and production of 5 TV dramas and acted as an agent for the distribution of 5 TV dramas, including "Narrow Road","Grasshopper" and "There is a Kind of Love to Let Go", etc. The total achieved operating income was 115 million yuan, a year-on-year increase of 31.12%.

From the perspective of project categories, in addition to the film and television drama business, the brokerage business is also a business of Art Media. Data shows that at present, Yineng Media has established a film and television entertainment industry management and artistic creation team including He Wei, Hua Qing, Kan Xiaoze, Chen Ziqiu, Cheng Qiang, Liu Jianhong, etc., and also has a signed artist team of famous domestic artists such as Yang Shuo and Jiang Xin.

Last year, due to the broadcast of "Ode to Joy", the company's contracted artists Yang Shuo and Jiang Xin became popular, and both performances and invitations for commercial activities increased, creating approximately 9.68 million yuan in operating income for Yineng Media, accounting for nearly 7% of revenue.

In 2016, Art Media achieved revenue of 142 million yuan. The reporter noted that although Yineng Media's operating income increased by 27.16%, its net profit fell by 11.67% year-on-year to only 30.6832 million; the overall gross profit margin dropped, from 53.05% to 44.75%.

The reporter found that the reason for the decline in Yineng Media's gross profit margin was also brokerage business. As the popularity of actors has increased, the cost of various brokerage services such as publicity, public relations, and clothing for actors has increased accordingly. Last year, the cost increased by about 5 million yuan compared with the previous period, but the revenue was similar to 2015.

It is worth mentioning that the gross profit margin of TV drama investment and production costs, which account for about 90% of Art Energy Media's operating costs, is basically the same as the previous period.

Editor: jessica