Yingke has repurchased shares again.

Yingke will repurchase shares during the year.

I learned that Yingke announced on the Hong Kong Stock Exchange that the company repurchased 246,000 shares at HK $ 1.02-1.04 per share on May 19, with a total cost of HK $ 253.78 million .

It is worth noting that since 2020, Yingke has carried out 42 stock repurchases, with a cumulative repurchase of 74.343 million shares, accounting for 3.564% of the issued share capital .

Frequent share buybacks may be related to the downturn in Inke ’s stock price. In the past two months, Yingke’s share price has been hovering around 1 Hong Kong dollar, and on March 23 it set a new share price since listing-0.88 Hong Kong dollar. Hong Kong stocks closed today, Yingke closed flat at HK $ 1.03, 73.25% lower than the issue price.

Inke ’s stock price changes in recent months, source: Snowball

In terms of performance, Inke did not hand in an answer that satisfied investors in 2019.

Financial report data shows that Inke ’s total revenue in 2019 was 3.269 billion yuan, a year-on-year decrease of 15.3%, the largest decline since the disclosure of data. In 2019, Yingke’s adjusted net profit dropped significantly by 87.92%, and it suffered a loss for the first time in the first half of the year.

According to the sharp decline in total revenue in 2019, Yingke ’s explanation is “increasing competition in the live broadcast industry.” Indeed, Yingke’s revenueThe structure is single, and the revenue of the live broadcast business always accounts for more than 95% of the total revenue. When the live broadcast business is impacted, the company’s overall operation is inevitably affected. In 2019, Inke ’s live broadcast revenue was 3.269 billion yuan, a decrease of 14.8% from the same period last year, dragging down total revenue.

In terms of competition, Inke has to face not only players in the original live broadcast industry such as Huya and Douyu, but also the impact of short videos and giants ’ Live layout.

In addition to Taobao, Douyin, etc., Baidu has also announced that it will promote Baidu live broadcast more actively in 2020, with 10 billion traffic and 500 million subsidies to create a Thousands of star anchors. It can be seen that live broadcasting will become a standard action for the company’s future development.

In this context, Inke has also carried out active business expansion, established a “interactive entertainment + social” development strategy, and began to force e-commerce live broadcast .

But as of now, Inke has not yet found its own second growth curve, whether it is a social app represented by “Jiemu” or “right The interactive entertainment apps represented by “Yuan” are quite niche, and their popularity is not high, and Yingke still has a long way to go in the future.