Maoyan Entertainment Announces 2020 Annual Results

BEIJING, March 30, 2021 /PRNewswire/ — Maoyan Leisure (“Maoyan” or the “Firm”, 1896.HK), a number one platform offering revolutionary Web empowered leisure companies in China, as we speak introduced its audited consolidated outcomes for the 12 months ended December 31, 2020.

Full 12 months 2020 Monetary Highlights

• Income was RMB1,365.7 million, in contrast with RMB4,267.5 million in 2019.
• Gross revenue was RMB537.3 million, in contrast with RMB2,657.1 million in 2019.
• Promoting and advertising and marketing bills decreased by 68.6% to RMB485.8 million from RMB1,547.8 million in 2019.
• Loss for the 12 months of 2020 was RMB646.3 million, in contrast with a revenue of RMB458.9 million in 2019.
• Adjusted EBITDA^[1] was adverse RMB360.3 million, in contrast with optimistic RMB946.4 million in 2019.
• Adjusted internet loss^[2] was RMB435.6 million, in contrast with an adjusted internet revenue of RMB703.2 million in 2019.

BUSINESS REVIEW AND OUTLOOK

On this announcement, “we”, “us” and “our” consult with the Firm.

In 2020, attributable to COVID-19, all of the cinemas in mainland China had been shut down for 183 days from January 23, 2020, which posed unprecedented difficulties and challenges all through the complete film trade worth chain. Because the epidemic was saved underneath management in China and the sturdy client demand for offline film watching was launched constantly, the field workplace of the Chinese language film market has bounced again considerably, taking the lead in trade restoration amongst world film markets.

Throughout the outbreak of the epidemic, we took energetic measures to help the restoration of the trade, enhanced our platform service capabilities, diversified our reserve of contents and strengthened the extent and depth of our participation within the trade. In the meantime, leveraging on our asset-light enterprise mannequin and strict price administration, we had glorious risk-resistant capacity and driving drive of enterprise improvement, which assist us higher mitigate the influence of the epidemic and promote the restoration and sturdy improvement of the Firm’s enterprise.

Hold Agency Foothold to Scale back Price and Improve Effectivity

Since 2020, the nationwide field workplace market has confirmed sturdy momentum of restoration and improvement. In 2020, the full gross field workplace for China’s film trade was roughly RMB20.3 billion. At the same time as cinemas strictly applied the 75% attendance restrict imposed by the federal government, the seven-day field workplace on Nationwide Day Vacation in 2020 was RMB3.7 billion, which was recovered to greater than 80% stage in comparison with that in 2019 vacation interval. As of December 31, 2020, the cumulative variety of cinema screens in mainland China elevated by 8.3% year-over-year to 75,581. As of February 28, 2021, China’s year-to-date complete field workplace grew by 7% to greater than RMB15.5 billion.

For Maoyan, our film ticketing enterprise has recovered together with the restoration of the market. Throughout the reporting interval, our market share was secure and we continued to take care of our main place within the trade. Sooner or later, we are going to proceed to advertise the development of ticketing system, strictly management our prices and bills of ticketing enterprise, stabilize the market share and income efficiency, and additional enhance the profitability of ticketing enterprise.

Construct up Profound Energy by Cultivating High quality Contents

In 2020, we’ve participated in lots of films and TV sequence, which have been successively launched to the general public with the re-opening of cinemas and the broadcasting of TV stations and video platforms. As an necessary participant within the pan leisure trade, we continued to reinforce our extent and depth of participation within the trade, strengthened content material reserves, continued to increase our footprints upstream into the trade, and additional improved the penetration and profitability of the blockbuster contents.

By way of cinema films, Maoyan has participated as a producer/distributor in three of the 4 films that every achieved greater than RMB1 billion field workplaces in 2020, respectively My Individuals, My Homeland, Legend of Deification and The Sacrifice. In addition, the flicks, reminiscent of One Second and Again To The Wharf produced and primarily distributed by us have had optimistic reception within the trade, which additional validate our capacity in film choice, promotion and distribution. For instance, Again To The Wharf, as the primary realised film self-produced by Maoyan, was shortlisted for the twenty third session of SIFF Golden Goblet Awards, and associated unit of Cairo Worldwide Film Competition and IFFAM.

We have now constructed up an ample reserve of contents which can be launched in 2021 and past. We may even proceed to reinforce our participation in high quality films going ahead, particularly to deeply take part within the blockbusters for the necessary events. For instance, we’ve participated in 5 of the seven films that had been launched on the primary day of the Spring Competition in 2021 as a producer/distributor. Amongst them, the film Hello, Mother, which we acted as the principle producer and assured distributor, realized glorious efficiency and turned out to be the darkish horse within the Spring Competition of 2021. As of March 30, 2021, the field workplace is over RMB5.3 billion, rating the Second within the historical past of Chinese language films. There can be a sequence of high quality films that we performing as producer/distributor at opportune time, together with however not restricted to 1921, Raging Hearth, Chinese language Medical doctors, Throughout the Livid Sea, Warriors of Future and Knock, Knock. 

As well as, we’ve additionally began the self-production of cinema films since 2019. Leveraging our excessive skilled customary and content material improvement experience, we’ve produced extra high quality contents to increase the depth of our proprietary content material reserves and strengthen our personal IPs improvement. After Again to the Wharf, we’re at the moment in energetic manufacturing of films reminiscent of On Your Mark, Sport Begin, A Movie Is Born, Flaming Cloud, Moses On The Plain, The Girl within the Storm and New 5 Golden Flower which can be launched successively. 

Along with cinema films, we had been additionally consistently enriching content material classes, and continued to extend the manufacturing and participation of TV sequence and streaming films. In 2020, we co-produced two TV dramas with Tencent reminiscent of Miss Crow and Mr. Lizard and Babel. The law-themed suspense TV sequence The Final Straw developed and produced by us is deliberate to be shot within the first half of 2021, which can be solely broadcasted on Youku. Genius Go Expertise, Magnificence in Reality, Love Me If You Dare and a number of other different TV sequence self-produced by Maoyan are deliberate to be shot this 12 months. Apart from, we’ve steadily established a strong roadmap for producing streaming film content material in quite a lot of classes reminiscent of northeastern comedy, new martial arts, and army, and so on. We plan to launch these on-line films steadily in 2021 and past.

Make Entire Community Integration to Proceed to Strengthen Web Leisure Promotion Platform Capabilities

As a number one home film distributor and a complete Web leisure advertising and marketing platform, we gave full play to the character and benefits of our “Web and Leisure” platform. We continued to construct an internet and offline built-in advertising and marketing ecosystem, built-in the assets and benefits of Maoyan’s personal platform and the foremost platforms within the trade to help the film producers with more and more focused and successfully promotion options. 

To handle the totally different ranges of promoting calls for throughout the entire trade, we offer each standardized and customised film promotion options. Our standardized promotion and distribution merchandise, reminiscent of knowledge consulting, precision advertising and marketing, materials administration and monitoring listed in Maoyan Professional, present help to film producers to enhance effectivity. As well as, we additionally offered custom-made services for trade associate to obtain optimum promotion and distribution efficiency. For instance, for the film Hello, Mother, which was important produced and assured distributed by us, we made steady improvements by combining the environmental adjustments and the traits of the film underneath the epidemic scenario, and successively launched a number of revolutionary promotion and distribution options, reminiscent of “cloud highway present”, “cloud block reserving” and “pink packet” and so on., helped to spice up the film’s enchantment, generate viewers curiosity resulting in its official launch, and make it stand out above different competing titles. Our capacity of steady accumulation and innovation has been well known by the market and additional proved the promotion and distribution capacity of Maoyan.

With a view to help the belief and implementation of promotion and distribution merchandise, we continued to construct and enrich our promotion and distribution assets, and devoted ourselves to constructing our omni-channel media ecosystem overlaying the entire scenes of customers’ on-line life. Up to now, the full person variety of our Maoyan mini program ecosystem overlaying WeChat, Douyin, Baidu and different platforms has exceeded 450 million.

We had been dedicated to creating trade standardization indicators, reminiscent of “real-time wish-list gathering” and “real-time pre-sale” index of Maoyan Professional, and improved the width, depth and accuracy of the protection of such indicators, aiming to supply a extra correct and efficient reference indicators and codes of conduct. Take “real-time wishlist gathering” for example, we continued to strengthen cooperation with main platforms such as Douyin on movie knowledge and platform cooperation to get entry to the entry of every viewer, and we accessed with Douyin’s “wish-list” index, enabling the film producers to consistently monitor the accuracy and effectiveness of the promotion and distribution efficiency of all platforms.

Embrace Adjustments to Fortify Service Skill of Knowledge Platform

Leveraging on Maoyan’s benefits within the film ticketing platform and steady participation within the pan leisure trade, we’ve gathered a wealth of trade knowledge. Apart from, we consistently expanded knowledge sources, up to date knowledge dimensions {and professional} capabilities, strived to present complete {and professional} knowledge reference for the complete trade, and to supply the greatest knowledge evaluation and knowledge help options for trade companions.

In 2020, we additional strengthened the cooperation with main on-line platforms, accessed to knowledge sharing assets, and improved the trade reference indicators in movie field workplace, unique music, film visitors knowledge, person search knowledge and different facets, together with however not restricted to:

• Accessed to Tencent Video’s streaming film field workplace efficiency knowledge, turning into the primary platform to gather this key metric from all three of the foremost Chinese language video platforms together with Tencent Video, iQIYI and Youku;
• Launched “Uni Chart” of Tencent Music Group which syndicated knowledge on film MV lists, film soundtrack lists, TV sequence MV lists, TV sequence soundtrack lists and selection present soundtrack lists to assist our trade companions simply monitor the effectiveness of their music advertising and marketing initiatives;
• Launched “Weibo Film Chart” and mixed WeChat Film Reputation Chart and Baidu Film Reputation Chart to supply extra full social media reputation monitoring knowledge for the trade;
• Launched “Douyin Film Chart”, “Douyin Drama Chart” and “Douyin Reveals Chart”. The entire person knowledge hyperlink and ecosystem introduced by such knowledge complementarity means the great improve of the refinement of on-line promotion and distribution within the content material trade;
• Related the cinema assets of Maoyan to Baidu ecosystem via mini packages to acquire correct visitors of customers’ searches. On the similar time, linked with Baidu App, Bai Jiahao and Baidu Map to appreciate visitors aggregation inside Baidu ecosystem.

The excellent protection and integration of the above knowledge capabilities additional carry Maoyan’s platform service capabilities and knowledge service capabilities. In 2020, we offered knowledge service for greater than 40 films, overlaying films launched on Nationwide Day, New 12 months’s Day and Spring Competition and different main Chinese language vacation seasons. In 2021, we are going to proceed to reinforce our knowledge evaluation capabilities and knowledge help options for leisure contents. For instance, 4 of the seven films launched within the Spring Competition in 2021 used the information service of Maoyan Analysis Institute, which displays the protection charge of our knowledge service. Along with cinema films, we have additionally expanded the information service and platform service for streaming contents. For instance, we offered analysis and testing companies for Run For Younger, A Murderous Affair in Horizon Tower and different TV sequence, and offered knowledge service for Legend of Ravaging Dynasties 2, As soon as Upon a Time within the Northeast I Am Haizhu and different streaming films.

In the meantime, Maoyan additionally continued to connect significance to the information service and help for the entire trade, to maintain the entire trade companions knowledgeable of trade info and traits. In 2020, Maoyan Analysis Institute launched dozens of analysis reviews on the influence of the epidemic, field workplace and schedule, the streaming film market, and so on., to help the fast restoration of the trade with large knowledge.

Obtain Sound Development to Construct a Higher Life

Primarily based on the above, the pan leisure trade was severely impacted by the epidemic in 2020. Nonetheless, as a result of efficient administration and management over the epidemic and with the joint efforts of all trade individuals, the leisure trade in China ushered in full restoration after basic shutdown, and the New 12 months’s Day and Spring Competition releases in 2021 additionally recorded notable field workplace. Furthermore, sure films that we participated in, reminiscent of Hello, Mother, Detective Chinatown 3 and A Author‘s Odyssey, recorded glorious efficiency because of restoration of the Chinese language film market, which is predicted to additional increase the Firm’s efficiency for the primary quarter of 2021. We stay assured about our personal development prospect in addition to the general trade’s long-term wholesome improvement. We imagine the audiences will at all times help high quality contents. By embracing knowledge and improvements, making high quality contents attain to acceptable audiences we can assist to leverage the worth of the content material trade and construct a greater life.

As a number one platform to supply revolutionary Web companies for the entire leisure trade, we are going to proceed to reinforce our core talents, current extra high quality contents, additional enhance the primary service capability of the platform and facilitate the restoration and improvement of the trade. Lastly, we wish to categorical our heartfelt because of all colleagues, shareholders and trade companions for his or her belief and companionship. Allow us to work collectively and generate nice values for our trade!

About Maoyan Leisure

Maoyan Leisure (1896.HK) is a number one web platform offering revolutionary companies in China’s complete leisure trade. Since its inception, Maoyan has grown from an internet film ticketing service supplier to an revolutionary one-stop platform for leisure companies. Maoyan has a complete technique to change into a number one platform servicing the complete leisure trade in China.

This technique is supported by its 5 key platforms: its complete leisure ticketing platform, product platform, knowledge platform, advertising and marketing platform, and financing platform.

Non-GAAP Monetary Measures

To complement the consolidated outcomes of the Group ready in accordance with IFRS, sure further non-GAAP monetary measures (by way of, working revenue, working margin, revenue for the interval, internet margin, revenue attributable to fairness holders of the Firm, primary EPS and diluted EPS), have been introduced on this press launch. These unaudited non-GAAP monetary measures ought to be thought-about along with, not as an alternative choice to, measures of the Group’s monetary efficiency ready in accordance with IFRS. As well as, these non-GAAP monetary measures could also be outlined in another way from comparable phrases utilized by different firms.

The Firm’s administration believes that the non-GAAP monetary measures present buyers with helpful

supplementary info to evaluate the efficiency of the Group’s core operations by excluding sure noncash gadgets and sure influence of M&A transactions. As well as, non-GAAP changes embrace related non-GAAP changes for the Group’s materials associates based mostly on out there revealed financials of the related materials associates, or estimates made by the Firm’s administration based mostly on out there info, sure expectations, assumptions and premises.

Ahead-Trying Statements

This press launch accommodates forward-looking statements regarding the enterprise outlook, forecast enterprise plans and development methods of the Firm. These forward-looking statements are based mostly on info at the moment out there to the Firm and are acknowledged herein on the premise of the outlook on the time of this press launch. They’re based mostly on sure expectations, assumptions and premises, a few of that are subjective or past our management. These forward-looking statements might show to be incorrect and will not be realised in future. Underlying the forward-looking statements is a lot of dangers and uncertainties. Additional info concerning these dangers and uncertainties is included in our different public disclosure paperwork on our company web site.

Investor Relations Contact
Maoyan Leisure
Electronic mail: [email protected]

ICR Inc.
Xinran Rao
Electronic mail: [email protected]
Tel: +1 (212) 517-4035

SOURCE Maoyan Leisure

Associated Hyperlinks

www.maoyan.com