China A-share market is about to usher in the news site "national team"

Liu Jia

Following the People's Network, China's A-share market is about to usher in another news site "national team." On June 27, Xinhuanet.com appeared on the SFC's IPO (Initial Public Offering) list of pre-disclosed businesses. Xinhuanet intends to issue 51,900,000 new shares, accounting for 25% of the total issued share capital. The total amount of investment to be invested in this offering is approximately RMB1,497 million, which is proposed to be listed on the Shanghai Stock Exchange.

Earlier, the top of the head "official media first wave" of the People's Network landing A-share market, plans to raise 527 million yuan, 8.55 billion yuan raised over the market reached 13.82 billion yuan. Whether Xinhua will extend the popularity of People's Daily Online when it landed on the A-share market has drawn much attention from the market.

Xinhua said in the prospectus, the raised funds plan to invest in Xinhua all media information and application services cloud platform project, Xinhua mobile Internet integration, processing, distribution and operation system business projects, Xinhuanet big data intelligent analysis system Project, Xinhua New Media Application Technology R & D Center project and Xinhuanet online education project.

Insiders told the "First Financial Daily" reporter said that the unique authority of the resource advantages, a wide range of influence and professional news team created by the talent advantage is Xinhuanet in the capital market, an important basis, but in the future whether in the market The test of the competition will still face no small challenge. "Xinhua Net opportunities and challenges co-exist after the market."

Last year revenue 456 million

Xinhuanet Co., Ltd.'s controlling shareholder and actual controller are Xinhua News Agency. As of the signing date of this prospectus, Xinhua News Agency directly holds 82.46% shares of Xinhuanet, indirectly holding 3.00% and 2.54% shares of the Company through News Development Shenzhen Company and Information Society respectively, holding a total of 88% shares of Xinhuanet .

Prospectus shows that from 2011 to 2013, Xinhuanet revenues were 278 million, 331 million and 456 million yuan, net profit was 131 million, 136 million and 168 million yuan.

In contrast, the People's Network in 2013 operating income 1.028 billion yuan, up 45.18%; net profit attributable to shareholders of listed companies 273 million yuan, an increase of 29.75%.

Similar to traditional portals, online advertising is an important source of revenue for Xinhua. In 2011, Xinhuanet's online advertising business realized a revenue of 152 million yuan, accounting for 54.55% of operating income. By 2012 and 2013, Xinhua News Agency revenue from online advertising business respectively 183 million and 290 million, an increase of 20.58% and 58.67%, accounting for 55.19% and 63.67% of revenue, respectively.

In the mobile Internet field, in 2011, Xinhua Mobile Internet business revenue of 2002.33 million, accounting for 7.2% of operating income. In 2012 and 2013, Xinhua Mobile Internet business generated revenue of 21,246,800 yuan and 38,144,700 yuan, up 6.11% and 79.53% over the previous year respectively, accounting for 6.41% and 8.37% of operating revenue.

It is worth noting that the prospectus also released the Xinhua News Agency 2013 annual financial statements.

Data show that as of December 31, 2013, Xinhua News Agency total assets of 11.696 billion yuan, net assets of 9.32 billion yuan; 2013 annual revenue of 6.054 billion yuan, revenue and expenditure balance of 960 million yuan.

Its subordinate units, the highest net profit of Shanghai Securities News, reached 214 million yuan in 2013; reference news newspaper and Xinhua News Agency News Information Center, respectively, net profit of 98,275,500 yuan and 39,775,600 yuan; which is called the network search "national team Pangu search last year net loss of 56.749 million yuan.

Opportunities and challenges co-exist

Strong shareholder background, unique resource advantages and authority, timeliness, originality and multilingual and all media content, and a wide range of influence, Xinhuanet is listed on the competitive advantage. Some analysts expect this reporter, Xinhua after the listing, do not rule out the emergence of the People's Daily Online before the listing, by the market stir may.

However, whether it can withstand the test of marketization in the future, Xinhua News Agency will still face a lot of challenges.

In contrast, the People's Network achieved operating income of 1.028 billion yuan in 2013, which is about 2.25 times of the revenue of 456 million of Xinhua's network last year. The net profit of People's Network last year was 273 million yuan, about 1.63 times of Xinhua's net profit last year. In addition, according to the announcement, People's Daily Media Technology Co., Ltd., a subsidiary of People's Daily Online, a lottery-related business, achieved a net profit of nearly 10 million yuan last year.

And Xinhua said in the prospectus, in addition to the company's business model is more similar to other major central and local news sites, the industry's mature commercial website with its rich user resources, the company may operate Xinhua network traffic and The amount of customers caused some impact, and then have an impact on operating income.

In addition, with the continuous expansion of the company's operating scale, the proportion of state purchased service business in operating income will show a downward trend, and the impact on the operating performance of the Company will gradually diminish. From 2011 to 2013, the revenue from state-purchased service business accounted for 19.35%, 16.23% and 13.98% of the Company's operating revenue respectively.

Xinhua said although the above service needs and the unique advantages of the company to ensure that the country has a certain stability in the purchase of services business, and gradually reduce the proportion of operating income in the company, but once the provision of services terminated, it will be possible Impact on the company's business performance.

Xinhua also tax incentives and government subsidies as a business risk. From 2011 to 2013, the tax concessions and the government grants after deducting the income tax accounted for 28.48%, 32.58% and 29.20% of the net profit for the same period respectively. If the corporate income tax concessions and government subsidies preferential policies can not be sustained, the company's operating results will be adversely affected.

However, Xinhua is trying to change the pattern of over-reliance on online advertising revenue. The fundraising plan to be invested in five projects include: all media information and application service cloud platform (645 million yuan); mobile Internet integration, processing, distribution and operation system business (532 million yuan); intelligent big data analysis System (129 million yuan); new media application technology research and development center (90.09 million yuan) and online education (101 million yuan).