Release interim results. According to the financial report data, focus media achieved revenue of 4.611 billion yuan in the first half of the year, a year-on-year decrease of 19.35%, and the net profit attributable to the parent was 823 million yuan, up 5.85% year on year. Among them, 786 million yuan was contributed in the second quarter, that is to say, the profit scale in a single quarter exceeded the 778 million yuan in the first half of last year. < / P > < p > in the past two years, due to the influence of the macroeconomic situation, focus media has experienced problems such as the slow down of payment collection cycle and the loss of mainstream advertising. Meanwhile, in the face of the strong expansion of new media and other competitors, focus media has had to carry out resource allocation in advance, resulting in high cost. Since the fourth quarter of 2018, the company’s profit scale has declined for six consecutive quarters year-on-year 。 < p > < p > under the influence of “black swan”, the net profit of focus media has exceeded the market expectation, instead of falling, does it mean that the company has gradually stepped out of the low performance? Focus media was born in 2003 and became the first Chinese advertising media stock listed on NASDAQ in 2005. After the backdoor “Qixi holding” returned to a in 2015, the market value of focus media once exceeded 100 billion yuan. Due to the scarcity of building advertising and the high growth of its main business, focus media has attracted the attention of the capital market.
novel coronavirus pneumonia epidemic in 2020, the domestic advertising market demand declined sharply compared with the same period last year, and advertisers’ overall marketing motivation was insufficient. According to the data from January to June monitored by the Market Research Institute CTR, with the gradual stabilization of the epidemic situation, the market is also slowly turning around, but on the whole it is still showing negative growth. In this context, focus media’s revenue in the first half of the year fell again after 2019, down 19.35% to 4.611 billion yuan. The main business of focus media includes building media (including elevator TV media and elevator poster media), cinema screen advertising media and terminal store media. Among them, due to the suspension of cinemas nationwide in the first half of the year, the company’s cinema advertising revenue decreased the most in all businesses, only 145 million yuan, a decrease of 837 million yuan or 85.23% compared with 982 million yuan in the same period of last year, while the proportion of revenue decreased from 17.18% in the same period of last year to 3.15%. By the end of July, there were about 1400 cinemas signed by media companies. In addition, during the outbreak of the epidemic, due to the closure of some cities, communities and roads, the focus media’s elevator advertising was limited. The building media revenue was 4.444 billion yuan, down 5.41% year-on-year, accounting for 96.38% of the total revenue. However, focus media pointed out in its semi annual report that in the second quarter, with the release of elevator advertising back to normal, the demand of advertisers also gradually recovered, and the income of building media has achieved a rapid recovery. < p > < p > it can be seen from the financial report data that the revenue of focus media in the second quarter was 2.673 billion yuan, which has recovered to the income level when it was not affected by the epidemic in the same period of last year. The gross profit rate of the building media sector in the first half of the year also increased to 51.23%, an increase of 7.36 percentage points year-on-year. < / P > < p > it is worth noting that the customer structure of focus media continued to be optimized in the first half of the year. Among the building media revenue, the income from the consumer goods industry reached 1.71 billion yuan, an increase of 25.14% over the same period of last year, accounting for 37.09% from 23.9% in the same period last year, while the income from the Internet industry increased slightly by 2.72%, accounting for 25.12% from 19.73%. < p > < p > in the past few years, entrepreneurial Internet enterprises have been the main source of customers for focus media. However, since 2018, due to the tightening of the primary market financing environment, the growth of focus media’s income from the Internet industry shows signs of slowing down. Chairman Jiang nanchun once said that to boost the company’s performance, we need to adjust the customer structure. However, with the revenue decreasing by 20%, focus media’s net profit did not fall but rose, ending six consecutive quarters of decline. The net cash flow from operating activities increased by 87.57% to 2.021 billion yuan year-on-year, which was mainly attributed to the reduction of leasing costs and the control of various costs and expenses in the first half of the year. In the first half of 2020, the operating cost of focus media decreased to 2.267 billion yuan from 3.315 billion yuan in the same period of last year, with a decrease rate of 31.63%. Among them, the rental cost of cinemas and building sites is the largest. However, due to the impact of the epidemic, cinemas were closed, and some communities and affected office buildings could not normally publish advertisements during the epidemic period. As a result, the media rental cost of focus media in the first half of the year was reduced by 819 million yuan. < / P > < p > on the other hand, since the second quarter of 2018, focus media has been committed to expanding media sites, while in the second half of 2019, focus media has begun to optimize its points and slow down its expansion pace. In the first half of 2020, the number of media resources in Focus Media buildings will continue to decline steadily. According to the financial report data, by the end of the report period, there were about 663000 sets of self operated equipment in Focus Media’s elevator TV media, with a decrease of 54000 units. Among the elevator poster media, there were about 1.672 million self operated media, with a decrease of 108000. In addition, according to the relevant provisions of the Ministry of finance, the construction fee of cultural undertakings will be exempted in 2020. Therefore, in the first half of 2020, the amount of business taxes and surcharges of focus media was only 25.79 million, a year-on-year decrease of 150 million yuan; while the sales expenses in the first half of this year were only 883 million yuan, 16.52% lower than that of 1.057 billion yuan in the same period of last year. However, with the gradual alleviation of the epidemic situation, cinemas and office buildings are returning to work, whether focus media can continue to benefit from rent reduction and tax dividend, and further improve profits through cost control remains to be seen. Affected by the epidemic situation, whether the payment of core customers is normal and whether the aging structure is stable is another “hanging sword” on the head of focus media. < p > < p > in the first half of 2020, under the epidemic situation, the credit risk of accounts receivable of some stock customers increased, resulting in the credit impairment loss of focus media of 197 million yuan. As of the end of the reporting period, the company’s accounts receivable amounted to 3.479 billion yuan, accounting for 17.77% of the total assets, a decrease of 691 million yuan compared with 4.17 billion yuan at the end of 2019. < p > < p > it can also be seen from the details of shareholders’ shareholding that both Alibaba and Lucheng increased their holdings in the second quarter: Giovanna Investment Hong Kong Limited, Alibaba’s acting in concert In the second quarter, it increased its holdings by 151 million shares. As of the reporting period, Ali held 7.99% of the shares of focus media, which was the second largest shareholder. After BEIXIANG capital reduced its holdings in the first quarter, it increased its holdings by 22 million shares in the second quarter, accounting for 8.4% of the total shares, making it the third largest shareholder.