Hanwang Technology's first-quarter loss of e-book life cycle has been questioned

An industry analyst said that the e-book product life cycle is very short, I am not optimistic about it, so I do not study Hanwang Technology this company reporter Gaoqin these days, as China's e-reader leader Hanwang Technology ( SZ), due to falling stock prices, poor earnings performance, and reduced sales volume, investors and media have continued to raise suspicions, and even caused industry insiders to see the future of China's e-reader market, questioning the business model of Hanwang Technology. .

In response to numerous questions, Hanwang Technology Chairman Liu Yingjian responded in an interview with the media recently: “The performance of Hanwang in the first quarter is not good. I am responsible for the shareholders.”

Then, how should this responsibility Liu Yingjian be negative? As the leader of the e-book industry, the decline in the performance of Hanwang is the company's poor management, or is it a precursor to the decline of the e-book industry?

The performance was drastically reduced and the stocks burned. On April 19, Hanwang Technology disclosed a quarterly loss forecast announcement. It is expected that the net profit attributable to shareholders of the listed company from January 1 to March 31 this year would be a loss of 40 million yuan - 50 million yuan. In the same period of the previous year, it was a profit of 41.787 million yuan. The announcement of the loss of the first quarter of the previous quarter was 11.22.2 million yuan more than the fourth quarter of last year, more than 230% more than the previous quarter. Affected by the pre-losing announcement, Hanwang Technology's stock price closed at 60.07 yuan, down 9.82%. On the following three days, Hanwang Technology's stock price was up and down at 59 yuan, and the lowest reached 58.47 yuan. The stock price and Hanwang Technology Co., Ltd. May, 175 Compared to the high point of the yuan, it is embarrassing.

What are the reasons why Hanwang's technology loss is so huge? The main reasons for the company’s loss in performance were as follows: First, the e-book industry was affected by related products such as tablet PCs represented by IPad, which caused a decrease in sales and prices of the company’s electronic paper book products. Second, the company’s The increase in administrative expenses is large.

The afternoon of April 22 approached the close, and the reporter made a visit to a business department of Qilu Securities about the pre-deal loss of Hanwang Technology.

In the 50th year of the 50 years, Uncle Xu was very excited. Uncle Xu told reporters: “Because he did not like fast-forward, he bought Hanwang Technology last August. He hoped that Hanwang will have a substantial increase in income and profits this year. As for the good returns to shareholders, I did not expect the company not only to have no cash dividends, but also to have a pre-deal loss on the first year of the listing. After waiting 10 to 10 shares this time, I would like to look forward to returning the Hanwang back to 100 yuan, which is difficult.”

“Yes, what happened to this company? When it was reported in the March annual report, the quarterly report in April had lost such a big hole and gave Xu Grandpa an emergency. What kind of book the company did not sell well.” An aunt also picked up a few words.

The sharp decline in performance made it difficult for most investors who are optimistic about Hanwang Technology to accept this fact.

“Obviously after the company’s listing, the company did not make false accounts, but in 2010, the management cost was as high as 150 million yuan, which is twice the amount in 2009. This should be paid attention to.” Jing Xiaoyong of Central University of Finance and Economics An interview with a reporter from the Securities Daily said.

Jing Xiaoyong predicted that the annual loss of Hanwang Technology in 2011 will be the total amount of net profit of the company in 2009 and 2010. “The company should find new profit growth points as soon as possible. There are still 540 million yuan of super-raised funds not yet used when it is listed. It is the best policy for Hanwang Technology to identify and actually use it as early as possible.” Jing Xiaoyong said.

It seems that Liu Yingjian must come up with a “real knife real gun” action in order to be able to afford investors who support e-books. Otherwise, the phrase “I am responsible for shareholders” is still general.

The market prospect of e-books is still difficult to determine. Since the General Administration of Press and Publication issued an e-book industry development opinion on October 10, 2010, Hanwang Technology was the first e-reader company to be listed in China. Therefore, the company received favorable market performance. .

In November of the same year, Hanwang Technology disclosed that, with the approval of the General Administration of Press and Publication, the company obtained three qualifications: "The People's Republic of China Internet Publishing License", "The People's Republic of China Copying Business License", and "The People's Republic of China Publication Business License". The acquisition of qualifications can enhance the competitiveness of Hanwang Technology in the e-book industry.

However, Hanwang Technology’s unavoidable performance forced everyone to re-examine the emerging product of e-books. E-books, also known as e-readers, refer to publications that digitize the text, pictures, sounds, images, and other information content, and are storage media and display terminals for inserting or downloading digital text, pictures, sounds, videos, and other information content. The integrated handheld reader is a product of the integration of publishing and distribution with the Internet and digital technologies.

"The life cycle of the e-book is very short. I am not optimistic about this, so I don't research Hanwang Technology." A brokerage analyst answered the reporter's question very briefly.

"Hanwang's performance in the short-term performance is not good, but if the timely 'slimming' performance is still worth looking forward to." Zhanke Research Center analyst Zhang Yanan in an interview with the "Securities Daily" reporter said so.

Zhang Yanan believes that Hanwang’s sales of e-books are frustrated and that multi-line product strategies need to be adjusted. Moreover, Hanwang's prices are all slightly higher. Although this strategy is more effective in targeting the market in the early days of the product market, in the face of the mass consumer market, a miscellaneous product line will result in insufficient positioning accuracy of the product target audience. Affect the effectiveness of marketing and advertising marketing. In addition, Hanwang can save unnecessary advertising expenses and streamline institutions.

“In 2011, the estimated sales volume of the entire Chinese e-reader market will have a scale of around 1.6 million. When the sales boom of tablet PCs and iPad 1 products are greatly reduced, the sales volume of e-readers in China will inevitably suffer a certain impact, but the impact is currently on the market. Limited.” For the future of the e-book industry, Zhang Yanan is optimistic.

According to the latest data from Zero2IPO Research Center, the sales volume of Q1 China's e-reader market reached 282,500 units in 2011, compared with 305,100 units in the fourth quarter of 2010, down 7.41%, of which sales volume of Hanwang was 149,800 units. Compared with 193,600 units in the fourth quarter of 2010, the decrease was 22.62%. However, the poor sales of Hanwang provide opportunities for other manufacturers, such as Shanda Bambook's sales are very good. “Bambook benefits from the literary bookstore in Shanda. A large number of books and loyal consumer groups that are suitable for mobile readers have laid the foundation for their current success.” Zhang Yanan analyzed.

Informed sources also revealed that Fang was involved in the e-book market earlier, and later it also did a two-content platform, namely, the internet of sweet potatoes and love to read and love. Founder's e-books were mainly promoted in cooperation with China Mobile. But now it seems that the content of the two platforms is normal and the Founder e-book has begun to stagnate. Founder may shrink digital publishing business in the future, focusing on digital publishing technology providers.