Beijing Jetsen Technology Co.Ltd(300182) (300182) announced on the evening of February 13 that Xinjiang Huaxiu Cultural Media Co., Ltd. (hereinafter referred to as “Xinjiang Huaxiu”), a holding subsidiary of the company’s holding subsidiary Jiecheng Huashi netju (Changzhou) Cultural Media Co., Ltd., recently signed a film and television program authorization contract with Tencent.
The announcement said that Xinjiang Huaxiu authorized Tencent to enjoy the right of information network dissemination within the scope of the contract with a total number of no less than 6332 film and television programs such as “golden age”. The contract amount is 1.8 billion yuan, accounting for 56.54% of the company’s operating revenue in 2020.
The company believes that if the contract is successfully implemented, it is expected to have a positive impact on the company’s operating results in 2022. In addition, the signing of this contract is to further deepen the cooperative relationship between the company and Tencent on the basis of the original good cooperation.
According to public data, the company has cooperated with Tencent for many years, and the transaction amounts of the two sides in the three fiscal years 2019-2021 are 729 million yuan, 372 million yuan and 450 million yuan respectively; Accounting for 25%, 15% and 15% of the company’s total revenue respectively.
It is noteworthy that the company’s performance has just reversed from a huge loss of more than 1.2 billion in 2020. On January 25, Beijing Jetsen Technology Co.Ltd(300182) announced the performance forecast. The company is expected to realize a net profit of 450-490 million yuan and a deduction of non net profit of 340-380 million yuan in 2021, turning losses into profits year-on-year.
Among them, the copyright operation business is the main reason for the turnaround of the company’s performance. Beijing Jetsen Technology Co.Ltd(300182) said that in 2021, the company took “content copyright operation” as the strategic core, focused on new media copyright operation and distribution, and formed a prominent business ecosystem in its main business. The company’s new media copyright operation and distribution business is expected to achieve an operating revenue of about 3.087 billion yuan and a net profit of about 561 million yuan last year.
In December 2021, the company said in an institutional survey: first, under the good situation of epidemic prevention in China, the cinema returned to normal and the company’s new film distribution business was restored; Secondly, new platforms such as watermelon video, station B and live broadcast platform have been introduced into the director’s video field, and the demand for copyright of the company has also increased significantly.
From the core idea of Beijing Jetsen Technology Co.Ltd(300182) copyright operation, in 2021, the company continued to dig deep into the needs and cooperation of existing customers, strengthen the distribution of film library and enhance the liquidity of film library; At the same time, we will further strengthen the exploration of new business models and carry out joint operation with the massive content gathered by Huashi Netcom.
In addition, the company also seized the development opportunity of large screen in 5g era, expanded the family multi screen digital distribution mode, and built a family living room theater. Huaxi Securities Co.Ltd(002926) believes that the company’s move is highly consistent with the spirit of industry development plans such as “expanding new formats of film consumption” and “on-demand cinemas and on-demand cinemas” proposed in the 14th five year plan of the film industry.
From the perspective of policy, policy documents such as the outline of strengthening the country with intellectual property rights, the 14th five year plan for the film industry and the detailed rules for the review of short video content are significantly conducive to the long-term development of the company’s film and television copyright operation business.
Southwest Securities Co.Ltd(600369) according to the research report, the company is the largest content copyright integration service provider in China, with more than 50000 hours of exclusive network broadcasting rights and about 80000 hours of non exclusive, leading the industry in terms of stock copyright reserves. At the same time, the company has video terminals such as Tencent, Youku, iqiyi and mango, operators such as China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) and high-quality customers such as hardware providers such as Huawei and Xiaomi.
