Event: on December 28, 2021, the company issued an announcement on the fixed increase plan, which plans to raise no more than 800 million yuan. Among them, 1) 210 million yuan is used for AI intelligent marketing system project investment; 2) RMB 300 million is used for live broadcast and short video intelligent marketing ecological platform project; 3) 290 million yuan was used to repay bank loans and supplement working capital.
Our comments are as follows:
The fixed increase of investment promotes the development of virtual human, and the implementation of virtual human concept is basically good. The company plans to invest 210 million yuan in the fixed increase scheme for AI intelligent marketing system, including two technology development sub directions: intelligent marketing platform development and virtual digital human. Focusing on the field of virtual digital human, the company plans to gradually establish a virtual human real-time interaction technology based on AI intelligent marketing technology through force face and motion capture, content production construction and software and hardware equipment, so that it can be applied to a wide range of scenes such as variety shows, film and television dramas and stages. At the same time, the company has built a complete virtual human development path, divided the development process into three stages of “giving birth to people, raising people and educating people”, and accumulated virtual digital human incubation experience to ensure the implementation of technical achievements. The full link technology and experience of live broadcast operation such as 3D modeling accumulated by the company in the field of automobile marketing have reserved a large number of underlying materials of virtual elements for the company. We believe that the establishment of the company’s virtual human development process and the superposition of its reserves in technology and team will help the “virtual human” from concept to fundamentals.
The target of fixed increase issuance is Bowen investment of state-owned subsidiary, and pay attention to the follow-up catalysis. The issuing object of this fixed increase of the company is Bowen investment, a wholly-owned subsidiary of Zhejiang cultural investment (the actual controller is Zhejiang Provincial Department of Finance). Hangzhou Zhewen Interactive Group Co.Ltd(600986) of Zhejiang Cultural Investment Holdings Co.Ltd(600715) After taking shares, it will give support to listed companies in many aspects such as new business layout, and empower listed companies in multiple dimensions such as capital, license and business. For example, in the first half of 2021, the company relied on shareholder resources for debt financing, and the company’s financial expenses decreased by 31.51% year-on-year in the first half of 2021. We believe that the standardization of state-owned assets is rigorous, the flexibility and efficiency of private enterprises are superimposed, and we look forward to the evolution and breakthrough of the company’s business model after the optimization of governance structure.
The original traditional marketing business has accumulated a large number of head customer resources, and the innovative business has made steady efforts. Zhewen Interactive Group Co.Ltd(600986) successively sold part of the equity of Binzhou real estate, keying real estate and digital 100, and stripped off traditional businesses such as real estate. At present Zhewen Interactive Group Co.Ltd(600986) the exploration of innovative business mainly focuses on the integration and Realization of film and television content, game E-sports and MCN live e-commerce. As of the mid-term report of the 21st year, the company has established a complete live broadcasting operation and service team, and has established more than 10 live broadcasting rooms with a total of more than 1000 square meters. At present, the live e-commerce business has been distributed in industries such as clothing, bags, shoes and hats, food FMCG, beauty cosmetics, daily chemicals, digital 3C, interest education, finance and insurance, and served nearly 30 brand customers.
The company’s original traditional marketing business has accumulated a large number of customer resources. The company’s ability to expand customers in the automobile marketing sector continued to increase during the 21 year interim report period, and the number of new orders increased significantly; In addition, the company’s customers are distributed in network services, automobile, e-commerce, games, FMCG and other industries. Specific customers include Ali, today’s headlines, JD, BiliBili, FAW Auto customers, Beijing Hyundai, Great Wall Motor Company Limited(601633) , Yili, Lilith, etc. Among them, there are 10 customers with a revenue scale of more than 100 million in the mid-term report period of 21 years. At the same time, the share of the company’s cooperation with various head media in the industry continues to increase, which has accumulated rich traffic operation experience for the company.
Investment suggestion: Zhewen Interactive Group Co.Ltd(600986) showed high performance growth in the first three quarters of 21 years, reflecting the company’s customer acquisition ability and its continuous growth ability as a core partner of head media. In terms of business structure optimization, the company stripped off traditional businesses such as real estate and began to explore innovative businesses such as virtual human and live e-commerce. It is recommended to pay attention to the empowerment of state-owned assets.
Risk tip: the challenge of transformation and upgrading, the risk of goodwill impairment, the risk of market competition, the risk of brain drain or shortage of core technology, and the uncertainty of non-public offering
