On the evening of January 30, Songcheng Performing Arts (300144) released its 2023 performance forecast, and the company expects to achieve operating income of 18 in 2023500 million yuan - 20500 million yuan, with revenue of 4$5.8 billion; The estimated loss is 97 million yuan - 18.2 billion yuan, if the investment income and impairment loss formed by the long-term equity investment of Huafang Group are not considered, the net profit attributable to the parent company is 7500 million yuan - 900 million yuan.
Songcheng Performing Arts said that the company's strong performance in 2023 benefited from the overall recovery of the national tourism market, and last year's cultural tourism consumption ushered in a recovery, the company's scenic spots have resumed business one after another, and the number of operating days, tourists, operating income and gross profit of the main performing arts business have increased significantly compared with the same period last year.
In 2023, cultural tourism consumption will restart and continue to recover, and various scenic spots under Songcheng Performing Arts will resume operation one after another, ushering in a boom in performances. According to data from the Ministry of Culture and Tourism of the People's Republic of China, the number of domestic tourists and tourism revenue in the first three quarters of 2023 increased by % year-on-year, respectively. According to the announcement, Hangzhou Songcheng will stage 18 performances in a single day for two consecutive days during the "May Day" period in 2023, becoming the most popular scenic spot except for West Lake; In the summer, Hangzhou citizen activities were carried out, setting a new record of 21 performances in one day, and at the same time realizing the social benefits of promoting Song Yun culture and benefiting the people. Themed activities such as the Eternal Love Festival and Songcheng Wonderful Night will be held to continue to attract young people, tap potential customers, and open up a new situation for future customers.
In addition, after the rectification and improvement of Songcheng Performing Arts Xi'an and Shanghai projects, the product quality has been greatly improved, and it has entered the top of the local scenic spot hot list, popularity list, praise list and collection list, the number of tourists and user reputation have exceeded expectations, and the operation strategy oriented by market share and word of mouth has achieved remarkable results. The overall tourism market in Lijiang and Guilin continued to be hot, and the company's two projects gave full play to the advantages of product content, continued to strengthen marketing and promotion, increased theme festival activities, and achieved beautiful business performance, and the operating data of the two projects in the summer peak season greatly exceeded the level of the same period in 2019.
Songcheng Performing Arts was founded in 1994 and listed on the Shenzhen Stock Exchange in December 2010, becoming the first stock of Chinese cultural performing arts. Songcheng Performing Arts has been deeply involved in the performing arts industry for more than 20 years, and has created the business model of "theme park + cultural performing arts", and has 8 self-operated scenic spots and 3 asset-light output projects across the country.
In the past few years, the cultural tourism industry has been adversely affected by shrinking demand and has fallen into a downturn as a whole, and Songcheng Performing Arts has increased its investment against the trend, with a significant increase in the number of theaters and seats, and a significant increase in reception capacity; At the same time, we will complete the optimization and upgrading of younger, parent-child facilities and equipment and product content, and make arrangements in advance to meet new trends such as younger, individual customers, and thematic cultural and tourism consumption; In addition, the company has also carried out significant rectification and upgrading of newly opened projects in Xi'an and Shanghai, and completed the investment and construction of Foshan projects to further enhance the company's growth potential.
At the beginning of the new year in 2024, Harbin will take the lead in bringing "southern small potatoes" out of the circle, and cultural tourism around the country has started fancy "involution", all signs indicate that cultural tourism consumption is full of momentum, and the cultural tourism market in the Year of the Dragon will further recover.
It is reported that in 2024, Songcheng Performing Arts' Foshan project will open during the Spring Festival, and the sales volume on the first day of pre-sale has exceeded 100,000 copies. According to the company's asset-light revenue recognition rules, it is expected to contribute a large amount of design and planning fees with ultra-high gross profit margin to help the company's profit growth.
Songcheng Performing Arts said that compared with 2023, the company's various projects will be "attended" throughout the year, mature projects will continue to tap potential, and cultivation projects will become more and more mature, which will inject new momentum into the company's performance growth; Management and employment are expected to be further deepened and improved, which will escort the company's profit growth from the "throttling" side.
Looking forward to 2024, the growth point of Songcheng performing arts will be mainly reflected in six aspects: first, the further recovery of industry demand, Harbin has recently become popular in the circle, and cultural tourism in various places has reached a new height, indicating that the momentum of cultural tourism consumption is full, and the company will benefit from the further recovery of industry demand; In 2023, some of the company's scenic spots will open in March, Shanghai Songcheng will only open in July, and in 2024, all scenic spots will be open normally, and the increase in the number of opening days will bring about an increase in the number of tourists, which in turn will bring an increase in operating income; Third, the cultivation projects in Xi'an and Shanghai have further matured, and after the rectification and upgrading of the two projects in Xi'an and Shanghai, the number of tourists and user reputation in 2023 will exceed expectations, and it is expected to usher in better growth in 2024; Fourth, Foshan and other new projects opened, the Foshan project will be officially opened on the first day of the Lunar New Year, the first day of pre-sale sales have exceeded 100,000 copies, the future can be expected, in addition, the Three Gorges eternal love is progressing smoothly, 2024 is expected to recognize a large asset-light income; Fifth, mature projects to further tap the potential, the company's operation strategy is flexible and changeable, for diversification, segmentation, thematic, personalized, specialized, young market trends have made a lot of preparations, mature projects to tap the potential is also a growth pole that cannot be ignored; Sixth, vertical management and optimization of the employment structure will continue to reduce costs, improve operational efficiency, and promote profitable growth.
It is worth noting that on the same day as the release of the performance forecast, Songcheng Performing Arts also issued an announcement on the proposed provision for the impairment of long-term equity investment, based on the principle of prudence, Songcheng Performing Arts made an impairment provision for the difference between the recoverable amount of long-term equity investment and its book value of Huafang Group on December 31, 2023, and planned to make an impairment provision for long-term equity investment after impairment test8600 million yuan - 900 million yuan, resulting in a corresponding decrease in net profit attributable to the parent company of 8600 million yuan to 900 million yuan, during the reporting period, the non-recurring profit and loss included in the current profit and loss had an impact on the net profit of Songcheng Performing Arts of about 12 million yuan.
Songcheng Performing Arts said in the announcement that affected by factors such as the complex external environment and the decline in the prosperity of the live broadcast industry, Huafang Group took the initiative to adopt a more cautious operation strategy, further strengthened risk management and internal control measures, and the overall operation scale shrank, and the operating performance declined sharply, but the main business is still operating normally. After this provision, the impairment risk that the market has been worried about has been released, and Songcheng Performing Arts has achieved light travel, and will focus more firmly on the main business of performing arts in the future.