Edweixuan’s net profit increased by more than 300% last year, and metaverse business is expected to be launched within this year

Huaxia Times reporter Yu Sha Hu Jinhua reports from Shanghai

On March 7, edway, a Hong Kong listed company, announced its annual performance announcement for the year ended December 31, 2021, and the company’s annual performance hit a record high.

The report shows that last year, the company’s revenue increased by 97.4% year-on-year to about RMB 904.1 million, the net profit increased by 307.1% year-on-year to about RMB 102.6 million, and the net interest rate was 11.3%, up 5.8 percentage points year-on-year.

In this regard, ed Weixuan told the reporter of Huaxia times that with the successful upgrading of the group to a pan fashion brand data interactive marketing group, the strong growth and digitization process of the luxury market in mainland China have accelerated, promoting the long-term and sustainable growth of its profitability.

Record performance

The announcement shows that during the reporting period, the group’s revenue increased by 97.4% year-on-year to about RMB 904.1 million, the net profit increased by 307.1% year-on-year to about RMB 102.6 million, and the net interest rate was 11.3%, up 5.8 percentage points year-on-year.

It is reported that edweixuan was listed on the main board of the Hong Kong Stock Exchange in January 2020, mainly engaged in experience marketing scheme, digital marketing and IP operation. The company achieved rapid growth and hit a record high in fiscal year 2021.

The reporter noted that the “14th five year plan for digital economy development” issued by the State Council once again defined the development direction of digital economy and the importance of developing digital economy. By the end of 2021, the scale of China’s digital economy and related industries is expected to reach 42.4 trillion yuan, an increase of 8.2% over last year. Edweisen said that the digital economy has become an important driving force of social and economic growth, creating more opportunities for the upgrading of edweisen’s data interaction business.

At the same time, the report on China’s luxury market in 2021 released by Bain company pointed out that the scale of China’s personal luxury market in fiscal year 2021 doubled compared with that in fiscal year 2019. After a 48% increase in fiscal year 2020, it is expected to increase by 36% in fiscal year 2021, reaching nearly RMB 471 billion. China novel coronavirus pneumonia has increased its global luxury purchases in China by more than 90% in 2021, and has reached a record high due to the tourism restrictions on new crown pneumonia.

Benefiting from this, the company’s experience marketing and digital marketing business has achieved very significant growth. Specifically, during the reporting period, the revenue of experience marketing business was about RMB 686.0 million, an increase of 120.3% compared with about RMB 331.4 million in the same period last year; The revenue of digital marketing and promotion business was about 201.7 million yuan, an increase of 51.3% over about 133.3 million yuan in fiscal year 2020; The revenue of IP expansion business was about RMB 16.3 million, an increase of 22.6% compared with about RMB 13.3 million in fiscal year 2020.

According to the introduction, the company actively promoted the data interactive marketing business in 2021. At present, fashion shows and exhibitions are not only the main activities with a large number of live audiences in China, but also the carrier of online content of secondary marketing activities. They can create huge online exposure through data interactive services and help the brand enhance its influence in the Chinese market, More than 200 wonderful offline activities were completed in fy2021. During the year, the company established a joint venture with vision entertainment to expand its e-commerce solution for buffeting live broadcasting, and significant progress has been made in just five months. When only Zhang Li and Chen Yanfei live broadcast e-commerce goods, the group achieved a total volume of commodity transactions of about RMB 473.9 million in the whole year.

According to the Research Report of Guosheng securities, edweixuan group complies with the trend of online and diversified marketing, and continues to tap new growth points of metaverse, new IP and other businesses, which is expected to enable business closed-loop, stable growth of performance and “buy” rating.

Metaverse with Shanghai Design Week

On January 8, 2022, Shanghai Economic and Information Technology Commission held a meeting to plan the industry and informatization work in 2022, emphasizing accelerating the layout of the new track of digital economy, closely following the urban digital transformation, layout the new track of metaverse, develop application scenarios and cultivate key enterprises. PwC predicts that the market size of metaverse will reach US $1.5 trillion by 2030. Everbright Securities also said that it is expected that the market scale of domestic metaverse will reach 640 billion yuan in 2025.

The huge opportunity of metaverse market has attracted great attention from edvison. On January 16, 2022, the company announced the launch of a new metaverse business of “immersion + participation + sustainability”, Strategic investment takes a stake in Beijing weikuai technology group, a leading enterprise in China’s Yuanyu virtual content production field, and establishes a joint venture with its subsidiary Beijing weikuai Technology Co., Ltd. to jointly create a new field of Pan fashion metaverse marketing, with edweixuan holding 51%.

Subsequently, on February 18, edvison group announced that it had reached a strategic partnership with Shanghai Design Week and would fully participate in the brand promotion and operation of “Shanghai Design Week” in the next decade. At the same time, it will provide metaverse virtual theme social display platform for “Shanghai Design Week”, realize scientific and technological empowerment and promote the high-quality development of “Shanghai Design Week”.

At present, Shanghai’s creative and design industry is in a period of vigorous development, with a total output of more than 1.2 trillion yuan in 2021, with a growth rate of nearly 20%. In the future, it is expected that the total output of Shanghai’s creative and design industry will maintain an average annual double-digit growth. By 2025, the total output of Shanghai’s creative and design industry will exceed 2 trillion yuan, and build a “city of design” with prosperous design industry, integrated with urban characteristics and connected with the global innovation network.

For this cooperation, ed Weixuan said that he established a strategic partnership with Shanghai design week to provide a design exchange platform for domestic and foreign design industries, help local brands go to sea and introduce foreign brands to China, attract global excellent design talents and high-quality resources, and build local and international original design centers, Promote Shanghai to become a “world-class” design capital. “We have made new breakthroughs in IP business expansion, and Shanghai Design Week will become one of our growth explosion points in the future,” said Liu Jinyao, CO chairman and chief executive of edweixuan

Wu Daiqi, CEO of siqisheng company, said in an interview with Huaxia times that ED Weixuan announced that he had reached a strategic partnership with Shanghai Design Week, which is a strong alliance. Shanghai has ranked among the best in the field of culture and creative design in China, and edweisen’s main business is experience marketing and entertainment sports IP. Such cooperation is conducive to the entry of design resources and talents, promote the layout of metaverse, and use IP to build immersive experience marketing or cultural and creative paradise.