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Source: Changjiang Business Daily
Shen Yourong, reporter of Changjiang Business Daily.
After a year and seven months, Hebei Radio and Television Wireless Media Co., Ltd. (hereinafter referred to as "Wireless Media") finally got the IPO registration approval.
According to the official website of the Securities Regulatory Commission, the Securities Regulatory Commission issued an IPO approval on May 22, agreeing to the initial public offering of shares by Wireless Media.IndianpokerApplication for registration.
The main business of wireless media is IPTV integrated broadcast and control service. With the rapid rise of Internet TV and mobile, the company is facing challenges. In 2022 and 2023, the company's operating income and net profit belonging to the shareholders of the parent company (hereinafter referred to as "net profit") declined continuously. The company expects that operating income and net profit will continue to decline in the first half of this year and the whole year.
According to the latest prospectus, this IPO, Wireless Media plans to raise about 11%.Indianpoker.50 million yuan.
However, the necessity and rationality of wireless media fund-raising have been questioned, because the company is not short of money at all. By the end of 2023, the company's total assets were 2.081 billion yuan, monetary funds plus financial products totaled 1.79 billion yuan, and the corresponding interest-bearing liabilities were 0 yuan.
In addition, the total cash dividend paid by Wireless Media to shareholders from 2018 to 2022 is about 621 million yuan.
Query on the reappearance of IPO fund-raising circle
Since the beginning of this year, the A-share market IPO has paid high attention to the necessity and rationality of fund-raising. Although wireless media has got the approval of IPO, the market has not stopped questioning its circle of money.
Wireless Media plans to raise 1.15 billion yuan for the construction of three projects in this IPO release. The three projects are Hebei IPTV integrated broadcast and control platform systematic transformation and upgrade project, content copyright procurement project and intelligent hypermedia business cloud platform project, respectively, with a corresponding investment amount of about 212 million yuan, 396 million yuan and 601 million yuan, totaling 1.209 billion yuan. The corresponding funds to be raised are about 212 million yuan, 396 million yuan and 542 million yuan.
The construction period of the three projects is 1 year, 3 years and 4 years respectively. As it is invested in stages and in batches, if you take into account the fund-raising will earn a certain amount of interest (or financial income), this fund-raising can solve the funds needed for the investment of the three projects.
If we take a look at the financial statements of Wireless Media, it will make people wonder why the company still needs to raise funds for the construction of the above three projects.
Wireless media has enough money. By the end of 2023, the paper currency fund of wireless media has reached 1.778 billion yuan, and the transactional financial assets have reached 13 million yuan. All the transactional financial assets are financial products that have not yet been redeemed. Monetary funds plus wealth management products add up to 1.79 billion yuan.
At the end of the period, the company's total assets were 2.081 billion yuan, and monetary funds plus financial products accounted for 86.02% of the total assets. The remaining assets are contract assets, accounts receivable, fixed assets, intangible assets, etc.
On the debt side, the total debt of the company is only 194 million yuan, of which the interest-bearing liability is 0 yuan. Under liabilities, it is mainly composed of accounts payable and employees' salaries payable. The company's final asset-liability ratio is only 9.31%.
With so much money, why does wireless media rely on fund-raising for project construction? Where is the rationality and necessity of such a large-scale fund-raising?
There is also much doubt that before IPO, wireless media carried out large dividends, and even suspected of surprise dividends.
Specifically, from 2018 to 2022, the company successively distributed cash dividends of 50 million yuan, 200 million yuan, 130 million yuan, 90 million yuan and 151 million yuan, totaling 621 million yuan.
Among them, after the completion of the dividend in December 2018, in January 2019, the company carried out the dividend again, and the signs of surprise dividend were obvious.
Competition intensifies and performance continues to shrink
On the one hand, it is trying to raise money heavily with IPO to build the project, and on the other hand, the profitability of wireless media continues to decline, and the company does not seem to have broad prospects for development.
Wireless Media is the main body of the new media market operation under Hebei Radio and Television Station. In recent years, the company has joined hands with the three major telecom operators to develop IPTV business, and the number of users has exceeded 15 million. According to the company, it has created the "Hebei speed" and "Hebei phenomenon" of the industry, and is at the domestic leading level in terms of user scale, business revenue, technology research and development and industry impact.
The company's main business is IPTV integrated broadcast control service. According to the different ways of providing program content and end-user payment, Hebei IPTV service is subdivided into basic services, value-added services and shopping channel transmission services. The basic business mainly provides live broadcast and basic on-demand audio-visual program services to end-users, value-added services mainly provide personalized on-demand audio-visual program services to end-users, and shopping channel transmission services mainly provide channel landing services for the operators of shopping channels.
Wireless Media said that it is authorized by Hebei Radio and Television Station to carry out exclusive radio and television new media services such as IPTV content integration operation services in Hebei Province, and is the only operator of the triple play content integration broadcast and control platform in Hebei Province.
However, a cruel reality is that with the rapid development of new media business, end-users' choice of watching audio-visual programs is becoming more and more diversified.
In the view of analysts, in the era of mobile Internet, the rise of emerging platforms such as Douyin and Kuaishou has attracted a large number of groups, and its advantages such as accurate distribution have undoubtedly enhanced customer stickiness. On the contrary, the number of people watching TV is shrinking.
Although the number of IPTV customers of wireless media is fixed, it has a shrinking trend. From 2021 to 2023, the number of IPTV users of the company is 15.473 million, 15.4101 million and 15.3632 million respectively.
The business performance of wireless media is declining. In 2021, the company's operating income and net profit were 672 million yuan and 356 million yuan respectively, an increase of 6.60% and 11.13% over the same period last year. In 2022 and 2023, the company's operating income was 654 million yuan and 646 million yuan respectively, down 2.75% and 1.12% from the same period last year, while net profit was 291 million yuan and 284 million yuan, down 18.15% and 2.49% from the same period last year.
Revenue and net profit have declined for two years in a row, and this trend continues.
In the first quarter of this year, the company's operating income fell 8.24% compared with the same period last year, and net profit fell 24.41% compared with the same period last year. The company expects its annual operating income to change from-5.62% to-2.53% year-on-year, with a net profit range of 220 million yuan to 240 million yuan, with a year-on-year change of-22.51% to-15.46%.
Wireless Media admits that the company has the risk of terminal competition. In addition to IPTV, end-users can choose cable TV, Internet TV and other ways to watch TV programs; in addition to TV, PC and mobile are also important options for end-users to watch audio-visual programs. Although there are some differences in clarity, fluency and user experience among different viewing modes of audio-visual programs, under the premise that the total number of end customers and the time spent by unit customers are difficult to grow rapidly in a short period of time, if the IPTV programs operated by the company can not meet the diversified needs of end customers, the company's business may face the risk of diversion of end customers.
Rely on the decline of gross profit margin of the three major operators
Wireless media customer concentration is on the high side.
Wireless media platform is located at the large screen entrance of family intelligent life in the region, through the integration of multi-screen resources and technical capabilities to create an intelligent supermedia platform for education, health care, community and other fields. At present, the company is deeply excavating the intelligent development needs of vertical industries such as education, medical treatment, health care and community service, and gradually realize the strategic layout of "one cloud and multi-screen" integration and development.
The business of wireless media is inseparable from telecom operators. In fact, the company is highly dependent on China Mobile, China Telecom and China Unicom.
From 2021 to 2023, the above three telecom operators are firmly in the top three customers of wireless media. In the past three years, the company's sales to the three major telecom operators and their subordinate enterprises accounted for 98.08%, 97.35% and 96.47% of the current revenue, respectively.
Wireless media prompt risk that the company's customer distribution is more concentrated. If the company's main customers reduce the purchase or adjust the terms of cooperation from the company due to business adjustment or other reasons, resulting in a decrease in income or an increase in investment, it will have a negative impact on the company's business operation and performance.
It is worth mentioning that in the past three years, the comprehensive gross profit margin of wireless media has continued to decline, which is 60.65%, 56.39% and 54.08%, respectively.
According to the company, the change of its comprehensive gross profit margin is affected by many factors, such as the proportion of revenue from the company's IPTV basic business and value-added services, the proportion of the company's IPTV value-added services and partners, the bargaining power between the company and operators, user stickiness and other factors. If the company can not maintain its advantage in terms of video content richness and user satisfaction in the future. Lead to the loss of users, in a disadvantageous position in the business cooperation with telecom operators, or the copyright side and other suppliers to increase the purchase price, will lead to the decline of the company's gross profit margin.
There is also the risk of copyright disputes in wireless media. The company's main IPTV integrated broadcast and control business involves the use of audio-visual program copyright. Due to the wide variety and quantity of audio-visual program sources, the complexity of some program copyright chains, and the continuous improvement of laws and regulations and judicial interpretations related to the function of "looking back", there is still a risk of litigation or arbitration for infringing third-party copyright.
Prior to this, falling in love with the media once sued wireless media for copyright infringement and unfair competition disputes, and wireless media eventually compensated more than 10 million yuan.
In addition, Tianjin Boehner Culture Media Co., Ltd., Beijing iqiyi Technology Co., Ltd., and Guangzhou Junlin Culture Communication Co., Ltd. have sued wireless media for infringing on the right of network dissemination of works.