Financial data of 13 companies + detailed explanation of toy business of 9 companies
Editor’s note: This article is from the WeChat public account “San Wen Yu” ( ID: hi3wyu) , author: three entertainment.
The epidemic has also directly affected the toy industry.
In the first half of 2020, only 5 of the 13 listed/listed companies whose main business includes toys have increased revenue, and 3 companies have both increased revenue and non-net profit. And one of these three companies lost money.
However, toy/derivatives companies are more resistant to risks than companies whose main business is animation content production and services. For example, as of June 31, 2020, the cash and equivalent balances of 13 companies are all positive, including Aofei Entertainment 590 million yuan, Chuangyuan Culture 240 million yuan, Meisheng Culture 690 million yuan and so on.
As another example, only 5 of these 13 companies lost money in the first half of the year.
The 7 profitable companies are:
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The revenue of Chuangyuan Culture was 481 million yuan, a year-on-year increase of 10.59%, and non-net profit deducted from 14.21 million yuan was a year-on-year decrease of 65.72%;
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Mosaic’s revenue of 480 million yuan decreased by 7.17% year-on-year, and non-net profit deducted from 8.49 million yuan increased by 124.68% year-on-year;
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The revenue of elite animation was 53 million yuan, a year-on-year decrease of 18.04%, and non-net profit of 6.5 million yuan was a year-on-year decrease of 37.26%;
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Lvlin’s preschool education revenue was 47 million yuan, a year-on-year decrease of 9.34%, and non-net profit of 1.06 million yuan was a year-on-year decrease of 31.76%;
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Miracle’s revenue of 143 million yuan decreased by 7.98% year-on-year, and non-net profit deducted from 2.91 million yuan increased by 277.59% year-on-year;
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Yuli Intelligent’s revenue of 122 million yuan decreased by 3.76% year-on-year, and non-net profit of 2.18 million yuan decreased by 48.67% year-on-year;
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The revenue of Chicco Cultural and Creative Technology Co., Ltd. was 23 million yuan, a year-on-year increase of 58.46%, and non-net profit of 5.52 million yuan was up 134.39%;
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Xiaobailong’s revenue increased by 33.82% year-on-year to RMB 46 million, and its non-net profit increased by 114.72% year-on-year to RMB 1.31 million.
In the financial report, these 13 companies all mentioned the impact of the epidemic on the company’s business and revenue.
For example, in the first half of the year, Aofei’s toys, themed businesses, and movies were all affected by the epidemic. Aofei Entertainment’s revenue was 1.088 billion yuan, a year-on-year decrease of 19.97%; non-net profit deducted -55,882,800, a year-on-year decrease of 166.14% .
For another example, in the first half of the year, Meisheng Cultural Camp was 480 million yuan, a decrease of 7.17% from the same period last year. The main reason was that overseas sales of animation apparel and toys declined compared with the same period last year due to the impact of foreign epidemics. Among them, the revenue of IP derivatives (including some animation apparel) in the first half of the year was 182 million yuan, down 26.275% year-on-year.
Another example is Elite Animation, whose operating income fell 18.04% year-on-year due to the impact of the epidemic.
The production and sales of toys are inseparable from offline consumption scenarios. During the strict control of the epidemic, the temporary suspension of factories affected production and consumer consumption. With the domestic epidemic under control, user consumption is rapidly recovering, and many companies also indicated that their business revenue will improve in the second half of the year.
At the same time, we must also face one point. Although my country’s market is gradually growing and has become the world’s second largest toy consumer market, even the internal economic cycle can bring good sales to toy companies. In 2019, the Chinese toy market has benefited from consumption upgrades, and the retail market has continued to grow. In 2019, the retail scale of toys in my country was approximately 83.7 billion yuan, an increase of 5.93% year-on-year.
However, according to statistics from the General Administration of Customs of China, in 2019, my country’s toy exports amounted to 215.2 billion yuan, a year-on-year increase of 29.6%. European and American countries are still the world’s largest toy consumer market, accounting for about 60% of the world’s share, and these markets, as well as some countries in Africa, Asia and other overseas regions, are still experiencing severe epidemics, which will continue to affect the business of my country’s re-exported toy companies. For example, Chuangyuan Culture’s manual puzzle business-in the first half of 2020, the company’s manual puzzle revenue was 48 million yuan, a year-on-year decrease of 50.31%.
Introduction of 9 key companies
1, Aofei Entertainment
Aofei Entertainment’s main business mainly includes content creation and operation, toy sales, baby products, games, and other businesses.
Further subdivided by product type, in the first half of 2020, Aofei’s toy sales, film and television, television media, games, and information service business revenues all declined, down 36.23%, 22.63%, and32.85%, 18.32%, 32.30%.
The half-year revenue from toy sales was 390 million yuan, a year-on-year decrease of 36.23%. Aofei said that there are two reasons for the decline in the toy business:
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The epidemic broke out on a global scale, and the company’s toy offline terminal sales business was affected to a certain extent;
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The company’s new products in 2020 will mainly be listed in the second half of the year, so the performance of the first half of the year will be affected.
In terms of products, Aofei Entertainment’s IP toys are mainly based on the well-known domestic brand “Audi Double Diamond”: including its own animation IP “Super Flying Man”, “Cute Chicken Team”, “Armor Warrior”, and “Bala La” “Little Magic Fairy”, etc., develop and produce series of toys in various styles such as transforming toys, dolls, equipment, tops, yo-yos, and four-wheel drive vehicles. And toys that cooperate with well-known IP licenses, such as “Little Pig Peppa”, “Little Hero in Pajamas” and “SpongeBob SquarePants” series.
As for non-IP toys, the domestic well-known brand “Ao Bei” is the main product. It mainly provides professional educational toys for infants and children aged 0-3. Adhering to the brand concept of “multiple intelligence” theory system, we develop different toys for different “months of age”. The best-selling toy styles include age-specific rattles, bed bells, teethers, Cloth book etc.
In addition to the traditional toy business and the infant and child business operating through the dual brands of Aubay and babytrend, Aofei is also exploring the trendy play business. From August to November, it will successively launch the “Onmyoji” IP Jenga blind bag Series, Q version of the blind box series and boutique hand-made series of products, in the future, Aofei Chaowan will form cooperation with more external IPs, and gradually extend to many IPs in the “youth-like” platform.
With the rapid rise of the young people’s play market, the company followed the trend and launched blind box, hand-made and other products. New toy brand series such as “Vision Building Blocks” have also been launched on the market in recent years.
