Campus "Grandpa" Painstakingly For 17 Years Rushed To The Market, Three People Fail To Restructure And Then Go To The Motherboard.

In March 5th, the Limited by Share Ltd of the three party media group (hereinafter referred to as the "three person bank") will be examined by the SFC's first trial listing application.

Qian Jundong, the founder of the three line of business, founded a large advertising media company in the field of integrated marketing services relying on the campus reselling. Following the successful launch of the new three boards in 2015, and then the failure of the Xi'an tourism (000610.SZ) in 2016, three people launched a sprint to the motherboard IPO in April 2019 to issue 17 million 266 thousand and 700 shares and raise 1 billion 34 million yuan.

The company has three celebrities in 800 famous universities in China, and has a large number of "star customers": China Telecom, China Mobile, China Unicom, ICBC, Agricultural Bank of China, Yili Group, farmer Hill spring, Tsingtao Brewery and so on.

In addition, there are many three star shareholders. According to the prospectus published in October 15, 2019, the company has 4.26% stake in the company, three largest shareholder, sixth Beijing natural road holdings, and 2% Zhuhai light control stock, with seventh and tenth largest shareholders respectively.

Then, can we win the applause of the issuing committee?

The Business School of "Grandpa"

The course of the three person journey starts with Qian Jundong's pioneering story.

According to local media in Shaanxi, Qian Jun Dong was born in an ordinary peasant family in Anhui in 1980 and was admitted to Chang'an University in 2000.

Because of family reasons, Qian Jun Dong started his own business at university. He sold his walkman and English tapes at low prices through acquaintances, then sold them to school, and made the first pot of gold in his life. Over time, Qian Jundong also won the title of "money guide".

In 2003, when the third year of Qian Jun winter seized the opportunity to flourish the campus communications market, together with his fellow Cui Lei, with the registered capital of 500 thousand yuan, he established the first Xi'an three person information communication company limited funded by undergraduate students in Shaanxi Province, which is the predecessor of the three line.

In April 21, 2015, three people listed on the new third board to become the "first board of the new three board campus media". In those days, three people were awarded Shen Wan Hongyuan, Qilu Securities, Beijing Branch Yue Xin Investment Consulting Center (limited partnership), and Western securities stock subscription amount totaling 29 million 760 thousand yuan.

Landing the new three board is just the beginning, and the three line has tried to land A shares on the curve.

Since April 2016, three people have been planning to suspend business and reorganize assets of Xi'an tourism (000610.SZ).

Xi'an tourism acquisition plan shows that it plans to buy 100% stake in three yuan with 1 billion 104 million yuan.

At that time, the main hotels and management, catering services, tourist attractions in Xi'an tourism business stagnated, it is urgent to find new business growth point through the acquisition transformation, however, six months later, the two sides "controversial on important terms such as valuation, after many consultations still can not reach agreement" announced that "marriage" failed.

After delisting from the new third board in June 13, 2017, the three party immediately signed a listing guidance agreement with Xingye securities in October 26, 2017 and first disclosed the prospectus for the main board listing until April 2019.

Why is net profit rate slowing?

Head of the "China 4A Association member", "China Advertising Association Internet advertising Committee Standing Committee" and many other auras, also won the China Advertising Association "digital marketing class I advertising enterprise" certified three person line, what advantage to highlight the encirclement?

The prospectus shows that the three people are positioning themselves as "comprehensive advertising media enterprises engaged in integrated marketing services", mainly engaged in digital marketing services (including advertising agency, advertising plan planning and Implementation), scene activities services and campus media marketing services.

The three people said that at present, there are more than 800 famous media resources in the country, including campus bulletin boards, playground fences, dining tables, school cafeteria tables, new manuals, campus light boxes, car shed, rest seats shed, BBS and other campus media resources.

And its fund-raising of 1 billion 34 million yuan, is also used for "digital integrated marketing service system expansion", "Scene activity service system expansion", "campus media expansion", "creative center and business headquarters building" and other projects.

Judging from the performance, in the first half of 2016, the three main business income of the group was 367 million yuan, 757 million yuan, 1 billion 99 million yuan and 713 million yuan, respectively. The corresponding net profits were 72 million 553 thousand and 300 yuan, 97 million 762 thousand and 700 yuan, 124 million yuan and 45 million 101 thousand and 600 yuan respectively.

Among them, digital marketing business has become the main force of its revenue contribution. Take the first half of 2019 as an example, digital marketing revenue was 657 million yuan, accounting for 92.17% of total revenue.

What are the roles of the three students in campus marketing?

The prospectus October 15, 2019 showed that China Telecom and China Mobile were the top five customers in 2016 of -2019 in 2016, and the three largest five customers in 2017 to June 2019. Jingdong group and ICBC are the top five customers from 2016 to 2018.

Among them, the cooperation between three people and some major clients has been a long history: for instance, since 2004, it has cooperated with China Mobile, and has been working with China Telecom since 2008. Since 2013, it has started working with ICBC and Jingdong group, and has been working with the Agricultural Bank of China from 2014 to start cooperation with Yili Group in 2015.

In addition, the top five suppliers of the three line must not be underestimated.

2016 -2019 1-6 months, The three line has been working with the famous Internet media, such as APP, Tencent, Sina (including Sina micro-blog), NetEase, Iqiyi, potato culture, etc., and has obtained advertising resources through purchasing video patch ads, creative advertising, top column announcement, picture in picture advertisement, Optimus Prime advertisement, information flow advertisement and so on.

However, although the average annual compound growth rate of main business revenue is as high as 73.01%, the net profit margin of three people has slowed down in recent years.

According to the rough calculation of its financial data, in 2016 -2018, the net profit rate of the three people in the first three years was 19.7%, 12.9%, 11.28%, decreasing in successive years, while the net profit margin of three people in 2019 was 6.3%.

In addition, during the reporting period, the gross profit margins of three people were 38.99%, 27.24%, 25.34% and 16.8%, respectively, which is decreasing year by year.

An advertising marketer pointed out to the twenty-first Century economic analysis reporter that "the gross margins of customers in different industries are different, probably because the three party's upstream customers have greater voice power, especially when large customers demand higher returns when choosing advertising agents."

The prospectus also confirms this.

In 2016 -2019 June, the amount of rebates returned by three people to customers was increasing, which were 249 thousand and 300 yuan, 46 million 59 thousand yuan, 98 million 396 thousand and 200 yuan and 106 million yuan respectively.

In addition, the three banks also need to face high pressure of accounts receivable.

In 2016 -2019 1-6, the balance of accounts receivable of three people was 176 million yuan, 274 million yuan, 353 million yuan and 606 million yuan respectively. Among them, the balance of accounts receivable increased by 55.62% and 28.74% respectively at the end of 2017 and the end of 2018.

In response, the three party explained in the prospectus that "the top five customers of the company are mainly large quality customers of telecom operators, finance, fast moving consumer goods and the Internet. They have good creditworthiness and timely repayment. Accounts receivable balance accounts for more than 98% of the total accounts receivable at the end of each 1 years, and accounts for a shorter age. The possibility of bad debts is less."

In March 2nd, the reporter further telephoned the three person's public telephone, but the phone was never answered.

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