Every reporter: Ke Yang Every editor: Zhang Haini On May 13, perhaps affected by the investigation of the chairman, Tianyu Digits’ stock price dropped to the limit at the opening. On the evening of May 12, Tianyu Digital announced that Xu Dewei, the company’s chairman and general

Every reporter: Ke Yang Every editor: Zhang Haini

html On May 13, perhaps affected by the investigation of the chairman, the stock price of Tianyu Digits opened at the limit.

html On the evening of May 12, Tianyu Digits announced that Xu Dewei, the company’s chairman and general manager, has been investigated and detained by the Ningxia Hui Autonomous Region Supervisory Committee for suspected violations of joint duties. According to the announcement, this investigation only targets Xu Dewei personally and has nothing to do with Tianyu Digital Company.

html On the morning of May 13, regarding the impact of the investigation on the chairman of Tianyu Digits on the company, a reporter from "Daily Economic News" called the secretary office of Tianyu Digits. The operator told the reporter that the investigation of the chairman was Nothing to do with the company. As for whether there will be any subsequent measures to boost the stock price, the other party said that it will be subject to subsequent announcements.

The chairman was put on file for investigation less than a year after taking office

On the evening of May 12, Tianyu Digital announced that the company received the "Notice of Case Filing" and "Notice of Lien" from the Supervisory Committee of the Ningxia Hui Autonomous Region on May 11. Chairman and general manager Xu Dewei was investigated and detained by the Ningxia Hui Autonomous Region Supervisory Committee for suspected violations of joint duties.

Tianyu Digital stated in the announcement that this investigation is an investigation of Xu Dewei personally and has nothing to do with the company. The company has a complete governance structure and internal control mechanism, as well as a mature and efficient operation and management system. At present, the company's board of directors and supervisory board are operating normally, and the company's control rights have not changed. Other senior managers of the company are performing their duties normally, and the production and operation of the company and its subsidiaries are in normal order.

In addition, Tianyu Digital said that as decided by the company’s general manager’s office meeting, director and deputy general manager He Han will temporarily take charge of the company’s daily operations and management. This matter will not have a significant impact on the company's daily production and operations.

According to Tianyu Digital's 2023 annual report, Xu Dewei has served as the company's general manager since October 8, 2019, and has only served as the company's chairman since July 24, 2023. He took over as chairman for less than a year.

resume information shows that Xu Dewei was born in 1976, with Chinese nationality, no right of residence abroad, and a bachelor's degree. He once served as the Political Department Officer of the Yinchuan Detachment of the Armed Police, the Secretary-General of the General Office of the Yinchuan Municipal People's Government, the Deputy Director of the Yinchuan Municipal Financial Affairs Bureau, and the Beijing Sky Elephant. General manager of Nebula Private Equity Fund Management Co., Ltd. and executive deputy general manager of Yapotassium International Investment (Guangzhou) Co., Ltd.

may be affected by this. On May 13, Tianyu Digital opened at the limit, and as of press time, it was trading at 3.75 yuan/share.

html On May 13, regarding the impact of the investigation on the chairman of Tianyu Digits on the company, a reporter from "Daily Economic News" called the secretary office of Tianyu Digits. The operator told the reporter that the investigation of the chairman was related to The company has nothing to do with it. As for whether there will be any subsequent measures to boost the stock price, the other party said that it will be subject to subsequent announcements.

Loss of over 1 billion yuan in 2023

In 2023, Tianyu Digital achieved operating income of 1.761 billion yuan, a year-on-year increase of 1.07%, and net profit loss attributable to the parent company was 1.087 billion yuan, compared with a loss of 283 million yuan in the same period last year.

As for the reason for the loss, Tianyu Digital stated in the performance forecast that the main reason why the company's net profit attributable to shareholders of listed companies will be negative in 2023 is that the operating performance of some joint-stock companies that are not within the scope of the company's consolidated statements has declined significantly during the reporting period. , the company plans to accrue impairment provisions for long-term equity investments in some joint-stock companies, which will have an adverse impact on the company's net profit.

In 2021, Tianyu Digital will start its business transformation. In February 2022, Tianshen Entertainment announced that it would change its securities abbreviation from "Tianshen Entertainment" to "Tianyu Digits" to accelerate its transformation into the metaverse and digital economy. Compared with 2019 before the transformation, in 2023, the revenue share of Tianyu Digital's game business dropped from 53.83% to 1.42%. From the perspective of

products, among the company's main businesses in 2023, digital effect traffic achieved revenue of 1.531 billion yuan, a year-on-year increase of 1.93%, accounting for 86.91% of operating revenue; brand content traffic revenue was 142 million yuan, a year-on-year decrease of 23.15%, accounting for 8.07% of operating income; digital competitive platform revenue was 27 million yuan, a year-on-year increase of 7.19%, accounting for 1.51% of operating income. In terms of

gross profit margin, in 2023, the company's gross profit margin will be 22.04%, a year-on-year increase of 5.29 percentage points.Looking at different products, the gross profit margins of digital effect traffic, brand content traffic, and digital competitive platforms in 2023 will be 20.08%, 13.91%, and 85.92% respectively.

Judging from the 2023 annual report, Tianyu Digital has completely shifted its business focus to digitalization and artificial intelligence. Tianyu Digital stated in its annual report that the company takes digital technology as the cornerstone, digital parks as the carrier, and digital marketing as the entry point, combining "data elements ×" and "artificial intelligence +" to form a data element "aggregation - "Circulation-Application" complete link, using cutting-edge technologies such as artificial intelligence large models and metaverse, to create digital platforms such as "metasurfing-Yuanxiang Intelligent Cloud Platform" and "Mix Mix Intelligent Marketing Cloud Platform".

html On April 15, Tianyu Digits said in response to investors’ questions on the investor interactive platform that the company has accessed kimi for testing. The current application of relevant technologies has not had a significant impact on the company’s financial status and operating results.

In this regard, the above-mentioned staff member of the Secretary-General’s Office told the reporter of "Daily Economic News" that the company's subsidiary Yuanjing Technology, which is mainly engaged in virtual digital people, has completed the access. As for the impact of this business on the company's future performance, he said that virtual digital people themselves have invested a lot. The business is currently operating steadily, and it is temporarily unpredictable what impact it will have on the business in the future.

Daily Economic News