Text | Jinning On April 30, Yuanwang Technology (stock code: 002291) released its 2023 annual report and 2024 first quarter report + financial report related content. In the financial report, a set of data deserves attention. In 2023, due to the increase in investment costs broug

text | Jinning

html On April 30, Yuanwang Technology (stock code: 002291) released its 2023 annual report and 2024 first quarter report + financial report related content. In the

financial report, a set of data deserves attention.

In 2023, due to the increase in investment costs brought about by the expansion of the new business - Yuanwang x27 theme park, as well as increased labor costs and historical issues, Yuanwang Technology will lose approximately 1.049 billion yuan.

In the first quarter of 2024, Yuanwang Technology’s total merchandise volume (gmv) reached 4.5 billion yuan, an increase of 80% compared with the same period in 2023, cash flow turned positive to 174 million yuan, and revenue increased by 43.44% year-on-year.

The former seems to be the "radical" innovation of Yuanwang Technology, which is a huge investment based on competition and continuous growth of performance.

The latter shows that the short-term returns on this investment have already appeared.

More importantly, in the current macro environment of sluggish domestic demand and sluggish consumption, such a noteworthy report card is enough to show that the leading domestic live broadcast companies have the ability to meet the cyclical challenges of the industry. Be able to withstand pressure, swim against the current, go through cycles, and move forward steadily.

1. Hidden worries in the rush of the industry

The famous British economist John Maynard Keynes proposed that economic development will inevitably have four stages of prosperity, panic, depression, and recovery, with obvious regularity. This is the cyclical nature that people often talk about.

This is true for macroeconomics, and so is industry development.

For the live broadcast e-commerce industry that once created countless GMV myths, after seven years of development, it has ended its barbaric growth and entered a new stage, with the turning point of the cycle looming.

If we only look at growth, the current live broadcast e-commerce is still in the growth range. Data from iResearch shows that China’s live streaming e-commerce market will reach 4.9 trillion yuan in 2023, a year-on-year growth of 35.2%. The performance of

leading companies has also improved steadily.

Yuanwang Technology’s performance report shows that in Q1 2024, its GMV will reach 4.5 billion yuan, an increase of 80% compared with the same period in 2023, which is much higher than the industry growth rate.

In addition, the total GMV achieved in Q1 2024 will be approximately 2.432 billion yuan, an increase of approximately 25% over the same period last year. In the mid-term of Oriental Selection's fiscal year 2024 (June-November 2023), the live broadcast e-commerce business GMV reached 5.7 billion yuan, an increase from 4.8 billion yuan in the same period last year.

But while the industry is improving, the crisis has arrived.

In 2023, from Li Jiaqi's "Which Li is more expensive" to Dong Yuhui's "composition dispute", from "lowest negotiated price" to "choose one of two brands", these industry events that are frequently on the hot search all reveal the industry's " The hidden worries of "winning at a low price" and "relying on big anchors" have emerged.

This is directly related to the development model of live broadcast e-commerce.

Currently, China’s live streaming e-commerce has developed several relatively mature business models. The first is that the company's development is highly dependent on the absolute super style of the top anchors. Mei One and Oriental Selection are representatives of this type of model. The "Essay Controversy" in the Oriental Selection that became very popular at the end of 2023 exposed the risks of this model.

More live broadcast e-commerce companies are beginning to form a matrix, hoping to make the pie bigger and reduce their dependence on leading anchors. Such as making friends and being humble at the moment.

Regarding industry bottlenecks and difficulties in the company's development, Yuanwang Technology chose to face the problems head-on. For example, in view of the losses caused by the increase in labor costs, the vacancy waste and low labor efficiency caused by the concentration of resources, the reusability of live broadcast operation tools that does not meet expectations, etc., Yuanwang Technology has in-depth commercialization in the intelligent management of labor costs and the horizontal expansion of IP. , amateur anchors and celebrity derivative accounts have all responded to the effective live broadcast duration.

2. Exploring the efficient gathering place of live broadcast

From barbaric growth to competition of internal strength. The current live broadcast e-commerce industry has reached a new crossroads. During the industry transformation period, entrepreneurs' forward-looking and strategic vision often determine the company's survival. Reflected in corporate management, it is not enough to just reduce risks and build a solid bottom. It is also necessary to make arrangements in advance to create second and third growth curves and build sustainable growth. This is also the core logic of Yuanwang Technology’s business layout in recent years.As a technology-driven new consumer service platform,

has never stopped exploring new technologies and new business formats. In the process of enterprise development, the multi-point layout seems to be complicated and complicated, but in fact they are all focused on polishing the high-speed replication capabilities of the live broadcast business, in order to integrate with each other and generate fusion at a certain point in time. Does

have such an efficient field that can break through the existing live broadcast collaboration model and be compatible with and utilize the mature supply chain, live broadcast scenarios, services, standardized teams, operating tools and other advantages? The answer given by is yes.

In December 2023, "Yuanwang x27 park" officially opened in Hangzhou, and launched a special live broadcast together with CCTV News. On the opening day, the total GMV exceeded 220 million yuan, marking a key step for Yuanwang to expand the consumption scene from offline to online. , adjust the company’s internal live broadcast strategy and contract contracting, summarize and refine service experience in new consumption scenarios, improve the integration capabilities of supply chain, live broadcast methodology, and consumption scenarios, and lay the foundation for future large-scale replication of industrial chain projects and testing of new business format integration. .

html For more than 0 years, Yaowang Technology has been self-researching and upgrading the digital platform "Yuanwang Cloud". Through the application of cutting-edge technologies such as big data and big language models, it has realized the standardization of live broadcast processes, large-scale analysis, and intelligent product selection. It is the first step in the live broadcast e-commerce industry. Best-in-class productivity tools. According to reports, Yaowang Cloud has attracted 25,000 brands to settle in, has served more than 25,000 live broadcasts, has accumulated more than 40 million orders, and has accumulated 8.2 million live broadcast minutes. With the integration of digital systems and offline aggregation venues, After "Double Wings", it has brought leapfrog development to the enterprise. The benefits of

are obvious. Judging from the first quarter financial report of 2024, since the opening of Yuanwangx27 at the end of 2023, in Q1 2024, the number of live broadcast venues increased by 157% year-on-year, the number of live broadcast accounts increased by 108%, the revenue increased by 43.44% year-on-year, and GMV reached 4.5 billion. It is expected that The annual GMV exceeded 10 billion.

From 2018 to the present, Yuanwang Technology has continued to practice in many businesses such as anchoring, supply chain, and Yuanwang Cloud. It has been rationalized and aggregated in Yuanwang x27, and the optimization of "scenarios" has finally produced a fusion of business strength. From the 2024 first quarter financial report It can also be seen from various data, which is also Yaowang's recognition of its own strategy.

From a mid- to long-term perspective, Yuanwangx27, as a business complex that integrates digital and real things, is also a gathering place for the industrial chain. It well connects the various entities in the industrial chain, and through an omni-channel integrated supply chain service system, Realize the improvement of service value. In the context of China's industrial upgrading and brand upgrading, this model will gain greater room for growth in the future, and "live streaming + real estate" will therefore become a real long-term strategy, making the live streaming e-commerce industry more worthwhile. The imagination space of expectation.

More importantly, this model also helps Yuanwang better give full play to the leading role of the "chain owner" of the industry chain, promote the application of big data, aigc, digital people and other live broadcast technologies in brands and industries, and become a new consumer It serves as an "accelerator" for growth and promotes supply-side structural reform from the consumer side. The combination of business, cultural creativity, and cultural tourism will make Yuanwang Technology’s IP operations more unique, thus enhancing its brand influence. The resulting increase in brand equity is also a benefit that cannot be ignored.

3. Building a solid “bottom” in the upward cycle

For Xie Rudong, chairman and CEO of Yuanwang Technology, “conservative thinking” is the bottom line for the company’s business security. Therefore, since starting his business, he has always adhered to the replicable and standardized business philosophy, laid out plans in advance during the industry's upward cycle, built a solid bottom, and improved the ability to resist risks.

is reflected in the business model. Enterprises represented by Yuanwang Technology have established a unique counter-trend model by operating multiple IPs at the same time, deeply exploring the potential of IPs. Under this model, Yuanwang Technology has established an anchor matrix of more than 100 celebrities and experts, and at the same time established standardized business processes and built complete professional operations, delivery, content and other marketing support, which has greatly reduced the need for "people" in the development of the enterprise. Dependence can be said to have solved the problem of “de-overheading” in advance.

The leading organizations in the live broadcast industry have various resources, each with its own characteristics. However, Yaowang's advantages in celebrities, publicity, traffic delivery, and professional content creators have enabled it to actively expand its business margins, operate a small matrix, and distribute live broadcasts around celebrities and other IPs. Slice and test commercial marketing such as variety shows and short plays to explore a more diverse and robust monetization matrix.

This has allowed Yuanwang Technology to maintain steady growth despite the industry storms in recent years.

From a revenue perspective, since the merger in 2019, Yuanwang Technology’s revenue growth has remained above 30%, growing rapidly. In Q1 2024, this number will reach 50%. In terms of

gmv, in 2021, Yuanwang Technology’s gmv will be approximately 10.255 billion yuan, a year-on-year increase of 138.49%. On this basis, it will increase by another 46.27% in 2022, reaching 15 billion yuan. In 2024, Q1's GMV growth rate will once again outperform the industry.

Compared with previous years, Yuanwang Technology tripled its GMV and doubled its revenue in just 3 years. The continuous growth of data is the best footnote of the "distant view model". The

cycle is both an opportunity and a challenge. If you make good use of it, you can usher in new growth. Yuanwang Technology builds a solid bottom in "normal times". During the transformation period, it plans forward, explores new growth points, and makes bold investments. In "wartime", it will naturally be able to see miraculous results. This is the power of Yuanwang Technology to transcend cycles and the key to its steady and long-term development.