Huaxia audiovisual education with "broken arm" has gone out of the valley?

The word "education" may be of great significance for Huaxia audiovisual. Initially, when Huaxia Audiovisual Education submitted the prospectus, the name was "Huaxia Audiovisual Media", but it was not successfully listed. Subsequently, the prospectus changed the media to education and landed on the capital market.

In recent years, in the cold winter of film and television, education has become an absolute pillar of Huaxia audiovisual.

A few days ago, Huaxia Audiovisual Education released the first half of the year: revenue of 378 million yuan, of which higher education (media and art) and vocational education business accounted for 75%.

Broken arm business

In the first half of the year, the performance of Huaxia Audiovisual Education had a good performance.

Revenue increased by 75%year -on -year, and gross profit was 182 million yuan, an increase of 30.8%year -on -year. The continuous operating net profit was 125 million yuan, an increase of 18.6%year -on -year. During the period, the profit was 165 million yuan, an increase of 79.8%year -on -year. After adjusting the pure profit of 148 million yuan, a year -on -year increase of 39.4%.

The main data has achieved a year -on -year growth, which has boosted the capital market's confidence in Huaxia audiovisual. Before the profit warning was released on August 28, the stock price of Huaxia audiovisual education increased significantly, and the stock price rose 12.4%on September 1.

However, as the stock price declined in the future, the financial report of Huaxia Audiovisual Education did not change the fund's fundamentals -it depends on the support of education business.

In this quarter, the education business is still the absolute main force of Huaxia audiovisual. The revenue from higher education and vocational education was 282 million yuan, an increase of 33.1%year -on -year, and the proportion of revenue was nearly three -quarters. At the beginning of the market, Huaxia Audiovisual Education was a two -main business company in film and television+education, and the two major businesses had close internal connections. Film and television production cooperate with higher education, which allows Huaxia audiovisual education to form a unique model of "front shop and back factory". The capital market has even analogized its tvb and "TVB artist training class" model in Hong Kong.

However, the epidemic in 2020 came, and the film and television industry fell into a cold winter. The Huaxia audiovisual education immediately lost one of the main force -film and television.

Due to the time difference between film and television production and distribution, the film and television production and investment business income of Huaxia Audiovisual Education in 2020 still accounts for 54.1%; by 2021, the proportion of film and television business will drop sharply to 18.2%. Although this quarter has picked up, the proportion is still only 25.4%.

The cliff -like decline in film and television business has led to Huaxia Audiovisual Education that can only rely on the education business.

In the past two years, the main trends of Huaxia Audiovisual Education are almost concentrated in the education sector. In March 2020, its universities were transferred from independent colleges to private higher education institutions named Nanjing Media College. In 2021, Huaxia Audiovisual Education entered into a purchase agreement with several independent third parties to acquire all the control interests of all Olympic Academy, with a total cost of 450 million yuan.

From the perspective of performance, the education business is very stable, and although Huaxia Audiovisual Education has completed the transfer, it is not worried about the source of the source. As of June 30, 2022, the number of students in the group was about 24,508. But at present, the number of universities can accommodate about 24,000, indicating that the school is already saturated.

The stability of the education business has caused Huaxia Audiovisual Education to fall further. However, due to the slump of film and television business, in the first half of 2022, although the revenue of Huaxia Audiovisual Education increased year -on -year, it declined compared to the same period in 2019 and 2020.

The story of Huaxia Audiovisual Education has not been successful. Relying on the education business alone, it is almost the same as the business model of other private universities, and the scarcity of the target is greatly reduced.

So, how sluggish is its film and television business?

Bad film and television production and investment

Compared with 2021, the film and television production and investment business of Huaxia audiovisual education in the first half of this year has improved.

In the first half of the year, the revenue of film and television production and investment business was 95.841 million yuan, a year -on -year increase of more than 22 times. It's not how good this business is, but the performance of last year too bleak. In the first half of last year, the income of this business was only 4.16 million yuan, and in 2020, the income of this business reached 427 million yuan. It is enough to see the miserable film and television production and investment industry during the epidemic.

According to financial reports, only one drama of Huaxia Audiovisual Education brought income in the first half of the year. That is to say, the first round of the TV series "New Residence Covenant" (55%of the group's investment) generated income, and in the first half of last year, Huaxia Audiovisual Education did not even confirm the income of the first round of TV series.

Film and television production and investment business are expected to be investment -based. According to the financial report, Huaxia Audiovisual Education has invested in 4 film and television dramas, namely "Breaking the Sky" (30%of the Group's Investment), "The Character of Ladies" (40%of the Group's Investment), "White Feather Meteor" (3%investment in the group) "Pentium Age II" (60%of the group's investment).

Compared with the beginning of listing, "Mrs. Qing", "East Evil Poison", "Bronze Wedding", "Emperor Kangxi" and other episodes, Huaxia audiovisual education is 100%investment. This also means that at this stage, Huaxia audiovisual education is very cautious about film and television business.

In terms of progress, the income brought by film and television business in the short term may still be limited. At present, "Breaking the Sky" has been completed, and the issuer is applying for a license. The TV series "Pentium Times II" is in the writing stage, and the TV series "The Character of Ladies" is expected to complete the shooting process in September 2022. The TV series "Bai Yu Meteor" has obtained the required issuance permit. In the short term, the most likely to bring income is "Breaking the Sky" and "White Feather Meteor", but the investment ratio of Huaxia audiovisual education in these two dramas is only 30%. Not only that, in the film and television industry, the vision of Huaxia audio -visual education is unique. In the first half of the year, the "New Living Covenant", Douban scored only 5.6 points. Since the listing, it has been almost all of the works delivered by Huaxia Audiovisual Education. Without outstanding works, it is often difficult to get higher benefits and attention, and it is difficult to have a positive impact on the growth of long -term income.

In the state of the sluggish film and television business, Huaxia audiovisual education has not improved in new businesses.

Mizuki source with gray head

In the first half of this year, Huaxia Audiovisual Education strikes the media and art training business.

The most noticeable is Mizuki source. In December 2020, Huaxia Audiovisual Education announced that its wholly -owned subsidiary Bicheng Art Consulting (Nanjing) Co., Ltd. acquired 100%equity of Mizuki Source of the art and art examination training institution at a total cost of 300 million yuan. At that time, this business told the story of the entire life cycle.

However, this acquisition is very short -lived. The financial report shows that on March 28 this year, Huaxia Audiovisual Education, the founder of Shui Muyuan and its associates established an agreement, and transferred all the equity of Shui Muyuan to the founder and its associates of Mizuki source on April 12.

In addition, Huaxia Audiovisual also closed the China Media and Art Training Center, Huaxia Audiovisual Art Growth Center in March this year. This center is also very short in operation: it was opened in September 2021, mainly providing drama, music, dance and art courses for children aged 3-12.

Regarding the reasons for the stripping business and shutdown center, Huaxia Audiovisual Education stated that considering the increasing strict regulatory regulations and the potential impact of the uncertain factors of COVID-19 uncertain factors on operation, performance and performance. But in fact, for non -disciplinary training, supervision has not made clear ban on capitalization and offline training. The termination of related businesses is undoubtedly facing greater challenges that originally made thin business.

Looking at the future, the media and art training business has basically stopped; the film and television business is in a state of downturn, and it is difficult to see the opportunity to restore the past growth for a while; only the education business is supported. Huaxia audiovisual education on the broken arm has stabilized in the first half of the year, but it still cannot see the prospect of going out of the valley.

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