G.h.y Culture & Media Holding Co., Ltd. · SGX:XJB
G.h.y Culture & Media — H1 2021 Earnings Presentation
38 slides from G.h.y Culture & Media's earnings presentation, Aug 11, 2021
Slide 1: 6M2021 Financial Results
6M2021 Financial Results 11 August 2021
Slide 2: Disclaimer
Disclaimer This presentation is prepared for information purposes only, without regard to the objectives, financial situation nor needs of any specific person. This presentation does not constitute an offer or solicitation of an offer to sell or invitation to subscribe for any securities nor shall i
Slide 3: Content
Content Sections 1 About G.H.Y Culture & Media 4 2 6M2021 Business Update 8 3 Financial Review 12 4 Business Strategies and Growth Plans 18 5 Appendix – Financial Statement and Company Overview 25 3
Slide 4: About GHY
Section 1 About GHY “The Little Nyonya 小娘惹”
Slide 5: Leading player in the media and entertainment industry
Leading player in the media and entertainment industry Growth is supported by increasing internet penetration rates(1) Connecting people through innovative online video and content TV Program and Costumes, Props and Film Production Make-up Services and Concert Production Services Talent Management S
Slide 6: Overview of businesses and revenue models
Overview of businesses and revenue models Diversified business segments across the value chain Businesses Types of revenue models Working Partners / Customers / Artistes TV Program and Film 1. Engaged by the customer for production by the Group for a fixed fee Production 2a. Produced by the Group an
Slide 7: Well-positioned within the drama production value chain
Well-positioned within the drama production value chain End-to-end capabilities providing full oversight of production and greater cost management Value Chain of Drama Series Licensing Fee Upstream IP Owner Investor Copyright Licensing Midstream Screen Writer Shooting Crew Director Actor Producer Br
Slide 8: 6M2021 Business Update
Section 2 6M2021 Business Update “Horror Stories of Dynasty Tang 唐朝诡事录”
Slide 9: Recent business highlights
Recent business highlights Capturing opportunities amidst market headwinds to strengthen portfolio capabilities The Group continues to invest in content development and its end-to-end production capabilities to expand its portfolio of entertainment content and products. JAN JUN JUN JUL AUG Enhanced
Slide 10: Production milestones in 6M2021
Production milestones in 6M2021 Stronger second half expected with upcoming drama and projects Completed Released TV drama series Horror Stories of Films I Come From Beijing – Tang Dynasty Heavenly Blessings 唐朝诡事录 我来自北京之 福从天降 Ongoing I Come From Beijing – TV drama series Sisterhood The Rise of the P
Slide 11: Business update on COVID-19 impact
Business update on COVID-19 impact Minimising disruptions to ensure safe and sustainable business operations May - June ▪ Malaysia government reimposed two-week movement control order in response to the resurgence in COVID-19 cases in May, and subsequently imposed full lockdown nationwide in June Wh
Slide 12: Financial Overview
Section 3 Financial Overview “The Ferryman – Legends of Nanyang 灵魂摆渡之南洋传说”
Slide 13: Revenue breakdown by segments
Revenue breakdown by segments Sustained growth momentum led by TV program and film production Revenue (S$’ m) Revenue Breakdown by Business Segment (S$’ m) -36.9% +17.9% +85.5% 40.6 43.8 -100% +553.1% 21.9 37.2 14.8 0.5 3.2 6M2020 6M2021 TV Program and Film Concert Production Costumes, Props and Mak
Slide 14: Profitability impacted by external variables beyond control
Profitability impacted by external variables beyond control Diversified business model partially mitigated COVID-19 impact Gross Profit (S$’ m) GP (S$’ m) and GP Margin (%) by Business Segment N/A 55.4% Gross Profit 26.3% Margin for 6M2021 -36.9% 8.0 19.6 11.2 10.7 12.3 4.0 -0.2 0.4 TV Program and F
Slide 15: Resilient performance amidst challenging industry landscape
Resilient performance amidst challenging industry landscape Affected by the absence of one-off disposal gain and contributions from Concert Production business recorded in 6M2020 6M2020 Net Profit Breakdown (S$’ m) Net Profit YoY (S$’ m) 14.0 12.0 -3.1 10.0 8.0 -14.1% 13.0 6.0 -8.0 4.0 +2.1 4.0 2.0
Slide 16: Healthy working capital cycles
Healthy working capital cycles Investing for future growth Net Cash (Used In)/Generated from Operating, Investing and Financing Activities (S$’ m) Net cash generated from (used in) operating activities 9.5 (1.6) (0.0) (10.4) Net cash used in investing activities (12.6) Net cash used in financing act
Slide 17: Resilient balance sheet with net cash
Resilient balance sheet with net cash Well-placed within the industry value chain to pursue organic and inorganic growth Net Working Capital & Cash and Cash Equivalents at end of period (S$’ m) 380.0 150.0 111.9 330.0 76.1 100.0 Net Working Capital 280.0 230.0 50.0 Cash and Cash Equivalents at end o
Slide 18: Business Strategies and Growth Plans
Section 4 Business Strategies and Growth Plans “The Hou Mansion 侯门”
Slide 19: Expand international reach and regional presence
Expand international reach and regional presence Penetrating new markets in Southeast Asia by expanding our foothold from Singapore Expand regional production capacity and distribution capabilities - Proposed investment in Clover Films Group - JV investment in Xiamen Jinzhao Film Culture & Media Inv
Slide 20: Diversify pipeline portfolio of entertainment content
Diversify pipeline portfolio of entertainment content Leveraging on technological advances to expand content offerings TV Program & Film Online short-form videos Production • One-year collaboration with Kuaishou to produce a collection of short form video series (at least 25 episodes of >120 seconds
Slide 21: Preparation for ramp-up in Concert Production Business
Preparation for ramp-up in Concert Production Business Partnering more artistes and growing the talent portfolio to support core business PRC Japan ✓ Maintains a small team to manage operating costs but has the flexibility and agility to ramp up once concert dates are confirmed given the long-standi
Slide 22: Nurture future talents and bolster local talent
Nurture future talents and bolster local talent Supporting our ambitions to expand our regional footprint ✓ Identify and promote talent across Southeast Asia • Provide valuable exposure to end-to-end production capabilities and opportunity to learn from industry professionals • Tie-ups with industry
Slide 23: Summary
Summary Building an entertainment ecosystem to be a leading player in Asia Pacific Ability to produce high quality Management bench strength and well-received dramas and with experience and films led by capabilities spanning the whole end-to-end production business value chain capabilities Sustainab
Slide 24: The Ferryman: Legends of Nanyang
The Ferryman: Legends of Nanyang Riding on The Success of The Ferryman Drama Series The Ferryman The Ferryman The Ferryman: TV Drama Series(1) Film (1) Legends of Nanyang 2014 - 2016 2018 August 14, 2021 iQIYI iQIYI iQIYI Distribution: China Distribution: China Distribution: Overseas Viewership: 6 b
Slide 25: Appendix: 6M2021 Financial Statements
Section 5 Appendix: 6M2021 Financial Statements “The Little Nyonya 小娘惹”
Slide 26: Financial Statements (6M2021)
Financial Statements (6M2021) Group For the half year ended 30 June 2021 30 June 2020 Change Change (Unaudited) (Audited) Increase / (Decrease) Increase / (Decrease) $’000 $’000 $’000 % Revenue 43,785 37,152 6,633 18 Cost of sales (31,452) (17,594) 13,858 79 Gross profit 12,333 19,558 (7,225) (37) O
Slide 27: Appendix: Company overview
Section 5 Appendix: Company overview “Dance of the Sky Empire 天舞纪”
Slide 28: Track record of commercial success
Track record of commercial success Testament to the high-quality content produced Commercial success of the dramas and films “The Little Nyonya 小娘惹” - Production in Singapore, Malaysia and PRC ✓ Ability to identify changes in consumer preferences in selection of drama and film projects with potentia
Slide 29: Overview of the production timeline
Overview of the production timeline Ability to exercise oversight and control with end-to-end production capabilities 1 to 2 months 1 to 4 months(1) 1 to 2 months Approx. 3 to 8 months Broadcast and/or Feasibility Study Preparation Work Production Post-Production Distribution ➢ Taking into considera
Slide 30: Management bench strength
Management bench strength Experience and capabilities spanning the Group’s business value chain Guo Jingyu Executive Chairman and Group CEO ▪ >25 years of experience as a producer, drama director and scriptwriter ▪ Formerly director, producer and scriptwriter with Perfect World ▪ Chairman of Youth C
Slide 31: Production team
Production team Including award-winning scriptwriters Guo Jingyu Xiao Ji Xiang Tian / Yeo Saik Pin 魏风华 Wei Fenghua 张弘弢 Zhang Hongtao Han Xiao Tian Producer / Scriptwriter / Scriptwriter Scriptwriter Director, previously Vice Best Screenplay for Best Web Drama President of Mediacorp “The Most Beautif
Slide 32: Production team
Production team Including producers involved in notable dramas and films in the PRC 薛鑫 Xue Xin 王冰 Wang Bing Leads the PRC Production Team Producer “Rush Year 刀锋1937” “The Legend of the Condor Heroes “The Red Lady 红娘子” 射雕英雄传（2017版）” “Brave Heart 2 勇敢的心” “Handsome Siblings 绝代双骄 “The Blue Blade 火蓝刀锋” （
Slide 33: Production team
Production team Directors with years of experience in the media and entertainment industry in the PRC 柏杉 Bai Shan Director “The Red Lady 红娘子” “Yangko Dance 大秧歌” “Brave Heart 勇敢的心” “Heroes 大侠霍元甲” 满意 Man Yi / Ju Xing Mao 信鹏 Xin Peng Director Director “The Ferryman 灵魂摆渡” Series “Candle In The Tomb 鬼吹灯”
Slide 34: Strong network of business relationships and partnerships
Strong network of business relationships and partnerships Across TV networks, video streaming platforms and other production companies TV Networks and Video Streaming Platforms Production Partners Quality of dramas and films and Management team’s experience enable the Group to establish a strong net
Slide 35: Project pipeline for TV Program and Film Production business
Project pipeline for TV Program and Film Production business Leveraging on experience and strong relationships to develop new entertainment content Legendary drama series Costume drama series The Ferryman - Sisterhood Horror Stories Nanyang The 10th Sealing Knife The Hou Legend of the Whimsical Worl
Slide 36: High internet penetration to capture PRC Drama Series market
High internet penetration to capture PRC Drama Series market Web series market expected to post 11.1% CAGR to hit RMB30.5b in the next 4 years Key Drivers Category Description Channels available Drama series with distribution licenses Both TV channels and PRC Internet Penetration Rate TV series issu
Slide 37: Wider commercialisation opportunities with online video platforms
Wider commercialisation opportunities with online video platforms Fueling higher revenue and budget to invest in premium drama series content TV Channels Implementation of the “One TV Series, Two Satellite TV Channels” (1) policy intensified competition among the TV channels for superior TV series O
Slide 38: Expected gradual recovery in Concert markets
Expected gradual recovery in Concert markets Total box office receipts to hit RMB2.8b and US$2.6b in PRC and SEA by 2024 Industry Value Chain Analysis Key Drivers • PRC concert market is largely driven by a selected pool of popular artistes, such as Jay Chou, Jacky Cheung and Mayday (in terms of num
G.H.Y Culture & Media Holding — H1 2021 Earnings Presentation on 6ix