Yesterday, IKEA held a media communication meeting in response to another fatal incident of MALM chest of drawers. Zhu Changlai, president of IKEA Retail China, said that the recall of malm chest of drawers was not repeated in China, but the affected consumers could continue to seek wall-mounted accessories, wall-mounted installation and other services, and the product has not been discontinued so far. Recently, another child was hit by this chest of drawers, causing IKEA to recall 17.3 million chest of drawers in the United States and Canada. Up to now, similar accidents have caused eight children to die.

　　IKEA has no recall plan in China.

　　In response to the question that the IKEA China market was treated differently, Zhu Changlai explained yesterday that the United States and Canada did not recall this time, but reiterated the information of the last recall. Although IKEA has no further recall plan in the China market, it is "strengthening the depth and breadth of the recall" and "making 3,000 phone calls a week, and has conveyed the precautions to customers."

　　She stressed that although IKEA has no plans to continue to recall this product, it will continue its after-sales service, including return and full refund. "Our response measures have also been affirmed by the AQSIQ." Zhu Chang said. According to IKEA, the chest of drawers continues to be produced and sold, and there is no plan to stop production.

　　The sold chest of drawers can be returned in full.

　　Zhu Changlai introduced that IKEA China has taken four measures to deal with the chests of drawers in malm that have been sold: First, for customers who have bought chests of drawers in malm, IKEA will continue to provide wall fittings free of charge to ensure their safe use; Second, consumers can contact IKEA staff, and IKEA will provide free on-site installation and fixed services; Third, for consumers who don’t want to continue to use malm chest of drawers, they can return the products to IKEA stores, and IKEA will refund the full amount; Fourth, consumers can also contact IKEA to provide door-to-door collection service, and IKEA will also refund the full amount. At the same time, according to IKEA, when customers buy this product in the IKEA store, the sales staff will also remind them that the product needs to be on the wall.

　　Zhu Changlai said that there are similar risks in the entire home furnishing industry. What we need to do now is to warn of the existence of risks and awaken everyone’s attention to furniture safety. "What we want to emphasize is that as long as IKEA is firmly fixed on the wall, there is no safety and quality problem. Any chest of drawers higher than 75 cm may fall when standing up." She said. Zhu Changlai also stressed that so far, there has not been any lawsuit in China related to the injury of children caused by chest of drawers in malm, and the sales volume of this chest of drawers this year is not very different from last year.

　　The "problem chest of drawers" has sold over 2 million pieces in China.

　　Ikea malm chest of drawers has repeatedly overturned, resulting in the death of many children. On June 29th last year, IKEA finally announced that it would recall 8 million malm series cabinets and 21 million other types of wardrobes and dressers in the United States and 6.6 million in Canada due to the risk of falling over. In December last year, IKEA agreed to compensate the families of three American children who were crushed to death by their chest of drawers for a total of 50 million dollars (about 347 million yuan), and donated 150,000 dollars to children’s hospitals and non-profit organizations in the name of these three children.

　　It is reported that since 2006, IKEA has sold 2 million malm chests of drawers in the China market, of which more than 22,000 chests of drawers have been recalled, of which more than 8,000 have been returned to IKEA, and some consumers have applied for free wall service.

　　In China, IKEA was interviewed by AQSIQ last year, and in July 2016, it initiated the recall of drawers in malm. At present, the recall notice of malm chest of drawers can still be seen on IKEA official website. IKEA requires all customers who have bought the following chest of drawers from IKEA to check whether the chest of drawers at home is connected to the wall. If the wall connector is missing or in doubt, please choose the nearby IKEA store to get it for free.

　　On November 30th, Shanghai Quality Supervision Bureau interviewed IKEA (China) Investment Co., Ltd. on November 29th, aiming at the recall situation of IKEA malm cabinet series products concerned by the society, asking enterprises to earnestly fulfill the recall obligation, immediately organize defect investigation and analysis, and take effective measures to ensure the personal and property safety of consumers.

    On April 18th, Huawei Pura 70 series new mobile phones were put on sale, and the online mall was sold out in one minute. The reporter saw in Huawei’s offline stores that there were long queues of experience and purchase customers.

    This new machine is made of Xuanwu toughened Kunlun glass, equipped with new HarmonyOS 4.2, and equipped with dual satellite communication of Beidou satellite and Tiantong satellite, which supports sending picture messages. It can capture the ultra-high-speed motion moment of 300 km/h, the ultra-high-speed wind and flash, and the high-speed rail can be clearly photographed.

    Reporter: Bai Yu, Li Sijia

    Produced by Audio and Video Department of Xinhua News Agency

Online appointment registration makes it more convenient to see a doctor; Experts can consult remotely and enjoy quality medical services at home; Online payment and settlement of medical insurance, and continuous improvement of the comprehensive medical security service system …

With the development of information technology, "Internet+medical care" has released great potential, and new medical service models are constantly emerging, which is not only conducive to the rational use of medical resources, but also provides patients with a better medical experience.

At present, in order to coordinate the prevention and control of normalized epidemic situation and meet the basic medical needs of the masses, the amount of consultation on Internet diagnosis and treatment has been further improved. Internet medical care has broken the time and space restrictions, not only played an important role in epidemic prevention and control, but also enabled other patients to receive medical support in time during the epidemic prevention and control. During this period, how can all localities optimize the Internet medical service model? How to expand the online medical service space? What new medical experience has Internet medical care brought?

Data sources: National Health Commission, National Telemedicine Center, Lilac Doctor Data Research Institute, Analysys Consulting and Zhiyan Consulting.

Optimization process of appointment visit

Online booking time is more accurate, and there is no need to sign in twice after arriving at the hospital.

"You need a minor operation, but before the operation, you must first look at the problem of premature heart beats." After listening to the diagnosis given by the gynecologist of the First Affiliated Hospital of Xiamen University, Ms. Chen, who lives in xing lin cun, jimei district, Xiamen, quickly took out her mobile phone and made an appointment for the number of Cardiovascular Department next Wednesday through "Beautiful Xiamen Wisdom and Health" WeChat WeChat official account.

Enter WeChat WeChat official account, click on the hospital appointment module, select the hospital, outpatient department, experts, and time of visit in turn, and submit the confirmation … In a word, Ms. Chen has completed all the procedures of online appointment and registration.

"It’s really convenient to see a doctor now! After the online appointment is successful, show the gossip health code, and after entering the hospital through temperature measurement, you can sit directly in front of the clinic and wait for the call. " Convenient, fast, smooth and comfortable, it has now become a medical experience for Xiamen citizens.

In order to solve the problem of registration, improve the medical environment and enhance the medical experience of citizens, Xiamen began to build an appointment system in 2009 to support citizens to make appointments by telephone, website and hospital self-service machines. "With the development of information technology, citizens’ demand for multi-channel, efficient and convenient reservation platforms is also rising." Ye Lishan, director of Xiamen Health and Medical Big Data Center, introduced that since 2014, Xiamen has built and launched a unified outpatient appointment platform in the city, and launched a number of online appointment channels such as WeChat WeChat official account and APP while realizing the unified management of hospital appointment sources in the city.

In addition to building more yuan and more convenient online booking platform, Xiamen has also continuously optimized and reformed the treatment process of various hospitals. Ye Wei introduced, "We will make the online appointment time accurate to minutes. Patients can make an online appointment for the hospital number source, and after arriving at the hospital, they can wait for the call directly according to the appointment time, without having to make a second sign-in."

According to statistics, up to now, the online booking platforms for outpatient clinics in Xiamen have served more than 57.95 million people. Among them, since the beginning of this year, 2.3 million people have achieved medical treatment through online appointments.

Remote consultation is efficient and convenient.

Three-dimensional reconstruction of lung CT images by AR technology.

Frontline doctors collect cases, upload image data in real time, and MDT multidisciplinary experts consult to determine the best treatment plan … Recently, the 5G Smart Medical Innovation Center of the First Affiliated Hospital of Kunming Medical University conducted a remote consultation with a COVID-19 patient in Yunnan Infectious Diseases Hospital through the technology of "internet plus Smart Medical".

Tao Bo, deputy director of the outpatient office of the First Affiliated Hospital of Kunming Medical University, introduced that during the remote consultation, many lung CT images were captured from the Internet Cloud Hospital of the First Affiliated Hospital of Kunming Medical University, and the three-dimensional reconstruction was completed by AR technology. "Experts only need to wear AR glasses, so that the two-dimensional picture can be three-dimensional, and the organ, lesion shape and fine structure can be presented in 360-degree HD, and patients can get accurate and personalized diagnosis and treatment."

In addition to AR technology, 5G technology is also applied in remote consultation. On January 29th, the First Affiliated Hospital of Kunming Medical University and China Mobile Yunnan Company launched the online free diagnosis and treatment platform for pneumonia in novel coronavirus based on 5G network. More than 20 experts make online diagnosis and treatment every day, and make remote diagnosis for patients to avoid cluster infection caused by a large number of patients.

Shortly after the platform was launched, the First Affiliated Hospital of Kunming Medical University issued a smart diagnosis and treatment list for a critically ill patient in COVID-19. It was a 66-year-old patient who was transferred from the isolation treatment point to Baoshan People’s Hospital because of the sudden deterioration of his condition. After receiving the application for assistance from Baoshan People’s Hospital, the First Affiliated Hospital of Kunming Medical University organized three remote multidisciplinary expert consultations within 24 hours, and successfully rescued the patient from the dying line.

Tao Bo introduced that Internet technology has provided support for the real realization of the Internet medical service mode of "primary examination, superior diagnosis, superior prescription and primary treatment" and the graded diagnosis and treatment mode of "primary diagnosis, two-way referral, rapid and slow division, and up-and-down linkage". "As long as there is a network, we can treat patients anytime and anywhere. For some areas with relatively weak medical standards, remote diagnosis and treatment has broken the time and space restrictions, allowing people to enjoy quality medical services at their doorstep. "

Fine management of online payment

Realization of "internet plus Medical Insurance" Payment Based on Face Recognition Technology

"It’s very convenient. You can pay for it and use medical insurance on your mobile phone, so you don’t have to wait in line at the hospital." Aunt Jing, a resident of Jinan City, Shandong Province, suffers from high blood pressure. It was inconvenient to go to the hospital to prescribe medicine and pay fees every month. Today, she can use her mobile phone to consult, buy medicine and pay in internet hospitals, eliminating the need to travel back and forth.

Aunt Jing is the beneficiary of Shandong Internet medical insurance big health service platform. In April this year, the platform was put into trial operation in Jinan, which realized the integration of online payment and settlement of medical insurance based on medical insurance electronic certificate and face recognition technology.

According to reports, on this platform, after the patient is authenticated by face recognition, the doctor can retrieve the patient’s electronic medical records for the past three months and prescribe online. In the future, the platform will build a comprehensive medical security service system of "internet plus medical insurance+medical care+medicine" to meet the diverse medical needs of disabled people, chronically ill patients, disadvantaged groups and 23 million elderly people in Shandong Province, such as online consultation, follow-up visit to buy medicines, continuation of chronic diseases, medical insurance payment and settlement, and home delivery of medicines.

Other regions are also actively exploring "internet plus Medical Insurance" payment. As early as 2018, Tongxiang City, Zhejiang Province included Wuzhen Internet Hospital in the scope of designated medical institutions for basic medical insurance in the city. Insured patients in this city can use medical insurance for reimbursement when they see a doctor in this hospital. In February of this year, Tianjin Medical Insurance Bureau issued a document to incorporate Internet medical services into the entity designated medical institutions it relies on to implement unified medical insurance agreement management. Since the beginning of this year, many designated medical insurance hospitals in Beijing have opened Internet diagnosis and treatment services, and insured patients can make online follow-up visits, prescribe medicines, and make online real-time medical insurance settlement.

In order to further promote the development of "Internet+medical care" and meet the diverse medical needs of the masses, in March this year, the Central Committee of the Communist Party of China and the State Council issued "Opinions on Deepening the Reform of Medical Security System", demanding the establishment of an effective and efficient medical insurance payment mechanism, innovating the management of medical insurance agreements, and supporting the development of new service models such as "Internet+medical care".

"On the one hand, the payment of’ internet plus Medical Insurance’ solves the problem that people can’t use medical insurance for online medical treatment, on the other hand, it also enables emerging Internet hospitals to get medical insurance support, which is conducive to further developing online medical services." He Bin, a special researcher at the Center for Public Policy Research of China Academy of Social Sciences, believes that some experience has been gained from exploration in various places, but the key to a stable and far-reaching "internet plus medical insurance" is to formulate a standardized charging method for Internet medical services, and do a fine management of medical insurance reimbursement to ensure that every medical insurance expenditure is implemented. (Reporter Shao Yuzi, Li Maoying, Shen Shaotie)

Manchester city was crowned the fifth champion.

Manchester City won the World Club Cup 4-0 in Nensai, Froumy.

In the early morning of December 23rd, the World Club Cup final was held between Manchester City and Nence, Froumy. In the end, Manchester City beat their opponents 4-0 and won the first World Club Cup in team history.

Alvarez scored a goal.

Forty seconds into the first half of the game, Manchester City scored the first goal, and Alvarez scored a goal in front of the door, which was also the fastest goal in the history of the World Club Cup. Then, in the 27th minute, Forden made a cross and Nino made an own goal.

Forden’s cross caused Nino to make an own goal.

Entering the second half with a 2-0 advantage, Manchester City played more skillfully-in the 72nd minute, Alvarez assisted Foden to attack the goal; At the last moment of the game, Alvarez added icing on the cake and finally locked the score at 4-0.

Forden tackles the goal.

After leading Manchester City to win the World Club Cup for the first time, Guardiola has led three different teams to win the World Club Cup for four times in his coaching career, all of which set competition records.

Alvarez scored twice.

Guardiola led Barcelona to win the World Club Cup twice in 2009 and 2011, and led Bayern to win the World Club Cup in 2013.

Guardiola, 52, also surpassed Ancelotti and became the coach who won the World Club Cup the most times. In addition, Guardiola is also the first coach to lead three different teams to win the World Club Cup.

"Winning this trophy means becoming the best team in the world. Our players, coaches and logistics staff work hard every day, which brings us such success." Guardiola said in an interview after the game.

"Now we have these five important titles, which are achievements that no other English team has ever achieved."

Guardiola (left) led three different teams to win the World Club Cup four times.

Qi zhou was injured and retired, and Guangdong fell behind in the top competition.

On the evening of 22nd, CBA played seven games in the 20th round of the regular season. All the top three teams in the standings won, and the battle for the top spot became fierce, while the fourth-ranked Guangdong team gradually fell behind after losing.

To make matters worse, qi zhou sprained his knee in the game, and the exact truce time is still unclear.

Qi zhou sprained his knee.

In the game against the Shanghai Men’s Basketball Team, there were 4 minutes and 02 seconds left in the third quarter. qi zhou was single in the low position. Facing the double double double team of Yan Pengfei and Li Hongquan, his right leg parted, causing his knee to fall to the ground in pain.

After lying on the floor for a long time, qi zhou was carried out by a stretcher … Guangdong coach Du Feng also said after the game that he did not know the specific injury of qi zhou, but hoped that the outside world could take care of the players.

Qi zhou was carried off the court on a stretcher.

In other competitions, the "leader" Xinjiang team played against Guangzhou team at home on the same day-Xinjiang team blossomed at the end of the quarter, making the visiting team unable to catch up, and finally won nine consecutive victories at home, 110-98, and continued to rank first in the league standings.

In the third quarter, the Zhejiang team hit an offensive climax of 40-26, which turned the situation around in one fell swoop and beat Sichuan team 104-98 to win 10 consecutive victories.

After this game, the record of Zhejiang team and Xinjiang team were both 17 wins and 3 losses, and Zhejiang team ranked second because of the disadvantage of winning and losing.

Team Liaoning, with a three-game winning streak, played against Qingdao, a team with good strength. Zhao Jiwei contributed 30 points and 8 assists to help the team win 100-92.

In other games, Nanjing team lost to Shanxi team 117-123 away; Shandong narrowly beat Beijing 110-107 away from home in overtime; Jiangsu beat Jilin 110-84 away.

Tres blew out the world wave.

Riyadh wins 3-1 Dammam cooperation, C Ronaldo passes and shoots.

In the early morning of the 23rd, in the 18th round of the Saudi League, Riyadh won 3-1 victory over Dammam Cooperation at home, and Cristiano Ronaldo made contributions to the team and became the hero of the victory.

In the 43rd minute of the first half, Telles blasted a world wave to help Riyadh win the first record. In the second half, Daman made a mistake in the backcourt, and Cristiano Ronaldo assisted brozovic to score the first goal of the league.

Cristiano Ronaldo assists brozovic.

After that, Ma’s fancy ball stopped and then broke into the restricted area, causing the opponent’s handball, and C Ronaldo hit the ball, further expanding the score difference.

After this game, Cristiano Ronaldo rewrote his goal count in 2023 to 51 goals, second only to Kane and Mbappé’s 52 goals.

It is worth mentioning that Cristiano Ronaldo’s goal is also helping the team to warm up for the trip to China.

C Ronaldo scored a penalty.

According to reports, Riyadh Victory officially released a warm-up video of China trip, and Cristiano Ronaldo also appeared in Chinese-"Hello, China! Are you ready? Riyadh victory is coming! "

According to Riyadh’s victorious itinerary, they will play against Shanghai Shenhua and Zhejiang teams in Shenzhen Universiade Center Stadium on January 24th and 28th.

Gu Ailing.

Gu Ailing ranks second in the world in the list of female athletes’ income.

A few days ago, Forbes published the list of the highest-paid female athletes in 2023. China athletes Gu Ailing and Zheng Qinwen were on the list.

Among them, Gu Ailing ranked second in the ranking with a total income of $22.1 million, and Zheng Qinwen ranked 15th with an annual income of $7.2 million.

It is worth mentioning that the annual income announced by Forbes includes two parts: on-site income and off-site income-Gu Ailing’s on-site income is only $100,000, and off-site income has reached $22 million.

Forbes commented on Gu Ailing: "She is a rare athlete whose income has not declined during the Winter Olympics. This freestyle skier and model has long-term sponsorship all over the world."

Compared with Gu Ailing, Zheng Qinwen, a tennis player in China, earned more on-court income, reaching $1.7 million and off-court income of $5.5 million.

Not only Zheng Qinwen, but also tennis players occupy most seats on this list.

Among the top 10 players, nine are from the tennis field-Polish tennis star Swatek won the first place with a total income of $23.9 million, followed by Gu Ailing, and the third place was American tennis player Goff.

Sun Yingsha (third from left), a player from Shenzhen University, high-fived her teammate Chen Meng (second from right) after winning the women’s team semi-final. Xinhua News Agency reporter Liang Xushe

Shandong Luneng Team and Shenzhen University Team joined forces in the Table Tennis Super Finals.

On December 22nd, the 2023 China Table Tennis Club Super League Finals kicked off in Shenzhen. In the women’s team semi-finals, Shandong Luneng team and Shenzhen University team defeated their opponents respectively and joined forces in the finals.

In the first semi-final, Shandong Luneng team faced Shanghai Longteng team. Chen Xingtong/Qian Tianyi defeated Yi Chen/Sun Mingyang 3-0 in the first set, Manyu Wang reversed Zhang Rui 3-2 in the second set, and Shandong Luneng led 2-0 with a big score.

In the third set, Yi Chen beat Chen Xingtong 3-1, and pulled back one point for the Shanghai Longteng team. In the fourth set, Manyu Wang defeated Sun Mingyang 3-1, and Shandong Luneng finally defeated its opponent 3-1 and advanced to the final.

Sun Yingsha returned the ball in the women’s team semi-final. Xinhua News Agency reporter Liang Xushe

The other semi-final was played between Shenzhen University and East China University of Science and Technology.

In the first set, Chen Meng/Kuaiman beat Zhao Shang/Li Yake 3-0, which was the first place for the Shenzhen University team. In the second set, Sun Yingsha beat Wang Yidi 3-0, expanding the team’s lead. In the third set, Li Yake last stand of East China University of Science and Technology beat Chen Meng 3-0.

Sun Yingsha, who played again, defeated Zhao Shang 3-0 and led the Shenzhen University team to win 3-1.

Sun Yingsha said after the game: "The overall performance of this game is relatively normal. I am very happy to be able to enter the final. We still have to concentrate on every game on the field."

Can Sun Yang still go to the Paris Olympics?

Publicity of "Measures for Selection of Swimming Events in Paris Olympic Games"

On the 22nd, the Swimming Management Center of the State Sports General Administration publicized the "Measures for the Selection of Swimming Events for the 2024 Paris Olympic Games" (hereinafter referred to as the "Selection Measures"), which elaborated on the selection basis, basic conditions, athletes’ eligibility, the principle of registration, the selection of coaches and the determination of the list.

According to the Selection Method, the selection of athletes is based on three events: the individual final results of the Fukuoka World Swimming Championships in 2023, the Doha World Swimming Championships in 2024 and the results of the National Swimming Championships in 2024.

Athletes’ eligibility includes single event and relay, and at most two athletes in each event are selected. All of them need to pass 10 special physical fitness assessments, with a full score of 10, and 10 items with a total score of less than 60 will be disqualified.

Specific events include vertical vertical jump, pull-ups, leaning down, starting 15 meters, swimming in the main event with maximum strength, etc.

Athletes and related auxiliary personnel who have been involved in doping violations shall not be selected into the national team in any capacity and be disqualified according to the requirements of the anti-doping management regulations of the State Sports General Administration.

Special feature of 1905 film network The Spring Festival in 2021 is equally exciting online and offline. The Legend of Shaolin Temple’s diary of making a fortune, released in PVOD mode, leads the online movie Spring Festival file.

"At present, the movie of pay-per-view (PVOD mode) has just started the trial stage. At this stage, the distribution of box office income has not been announced simultaneously with online movies, and these problems will be refined after it matures and stabilizes in the later stage." Manager Wang, senior account director of iQiyi, said this in an interview with 1905 Film Network.

The three platforms are still in the exploration stage because of the announcement mechanism of online movie box office revenue based on PVOD model. The 2021 online movie Spring Festival file adopts two box office receipts of this distribution model, and no data has been released yet.

In addition, Xiao Dianjun took the TOP10 of the seven-day long holiday box office ranking as the statistical range (data source: Cat’s Eye APP online movie daily list), and sorted out the box office data of Aiyouteng online movie Spring Festival file. According to this rule, the total box office of the three platforms of Aiyouteng in the Spring Festival in 2021 is 48.736 million (excluding the box office revenue of online movies in PVOD mode, the same below).

Whether it is the box office output or the popularity of the producers, the online movie Spring Festival file is far from the cinema market. This makes people wonder, can online movies really have Spring Festival files?

Youaiteng Spring Festival transcript

The online movie Spring Festival in 2021 is more formal than before.On February 5th, under the guidance of the Network Audio-visual Program Management Department of the State Administration of Radio, Film and Television, the Network Working Committee of the China Film Association, together with the three platforms of iQiyi, Tencent and Youku, put forward the concept of "Spring Festival online movie file" for the first time, and published 43 film lists including past cinema works.

In addition to The Legend of Shaolin Temple’s "Make a fortune Diary" two head online movies, A Writer’s Odyssey’s "Crowd" Detective Chinatown 3 and other behind-the-scenes documentaries of cinema Spring Festival movies also landed online. The list of online movies for the Spring Festival in 2021 is more abundant.

According to public statistics, from February 11th to February 17th, the total box office of Youaiteng online movies was 48.736 million. Among them, the box office of the three major video platforms is divided into 25.306 million Tencent videos, 15.052 million iQiyi and 8.378 million Youku.

According to statistics, the total score of TOP5 in the box office of Tencent Video Spring Festival is 22.227 million, accounting for 87.83% of the overall box office of the platform. Among them, the war film "The Counter-Strike" starring Chiu Man-Cheuk topped the list with a score of 8.322 million in three days. Wu Qihua and others starred in "The Dragon Coffin in Lop Nur", which took 6.655 million yuan at the box office, followed closely.

The cumulative box office of the Spring Festival box office of iQiyi is 10.526 million, accounting for 69.93% of the overall box office of the platform. "Dragon Crescent Moon Knife", "God of Wealth 2" and "Genius Quema" ranked among the top three in the box office of the platform with 4.537 million, 2.003 million and 1.988 million respectively.

The cumulative box office of Youku Spring Festival TOP5 was 7.358 million, accounting for 87.82% of the overall box office of the platform. Making waves 3, Angry King Kong of South Shaolin and Wolong Matrix of Jin Jue ranked in the top three with 2.996 million, 1.453 million and 1.205 million respectively.

Among the online movies in non-PVOD mode, Tencent Video’s Counter-Strike, Lop Nur’s Kowloon Sky Coffin and iQiyi’s Dragon Crescent Moon Knife became the first, second and third place in the online movie box office in the Spring Festival in 2021. The three films are all listed in the online movie Spring Festival file list released in the early stage.

From the perspective of film types, comedy, action and drama films have relatively high box office output. This is similar to the performance of the cinema film Spring Festival in 2021. In the choice of viewing types, online and offline converge.

During the Spring Festival, although there is no specific box office data released by The Legend of Shaolin Temple’s "Get Rich Diary", two films are on the hot list of online movies, ranking in the top three. The addition of Wang Baoqiang, Song Xiaobao and other cinema movie café s is of great benefit to enhancing the popularity of movies.

It is worth mentioning that during the seven-day long holiday during the Spring Festival, there is a military theme theme work in the TOP5 of Youaiteng box office. The fever of main melody works is spreading from cinema to online movie market.

There is no Spring Festival file for online movies?

The Spring Festival file is often a gathering place for well-known producers of cinema films, but the online movie market is quite different.

According to the above statistics, the number of well-known producers participating in the Spring Festival of online movies in 2021 is very small. In addition to Youku and Taomeng, it is difficult to find other head producers in the industry, such as strange trees and fish.This may have an important causal relationship with the "gold content" of online movies during the Spring Festival.

According to the Annual Report of China Online Movie Industry in 2020, the number of online movies in 2020 is 769. Among them, 79 films broke through 10 million at the box office, an increase of 41 films over the same period of last year. Among these films, except for The Big Sky, Alien Event, Wild King and Crocodile Island (excluding PVOD mode online movies), other films with box office exceeding 10 million were not released during the Spring Festival.

Just as the Spring Festival file of cinema movies is gradually cultivated the day after tomorrow. With the support of the government and the platform, the future online movie Spring Festival file may be worth looking forward to.

In the face of more distribution modes, the online movie Spring Festival file is also full of more imagination.

According to Song Jia, general manager of iQiyi Film Center, the online distribution mode of movies is divided into four stages. At present, the fourth stage is the member +PVOD mode, that is, members also have to pay for viewing separately.

The Legend of Shaolin Temple’s Diary of Getting Rich, which was released in the Spring Festival of online movies in 2021, adopted this distribution mode. The final box office score of the film is worthy of attention.

In addition, the head online movies began to try to broadcast on multiple platforms simultaneously, further opening the ceiling of the box office. Under this simulcast mode, daoist magic, the highest-priced online movie at the box office, was born.

Whether there will be more head online movies in the future, it is full of imagination to choose this multi-platform broadcast +PVOD distribution mode during the Spring Festival file. How big this imagination is depends on the box office results of The Legend of Shaolin Temple’s "Diary of Getting Rich" published in the future.

At present, the opportunities and challenges of online movies during the Spring Festival coexist. The formation of the three golden slots in the online movie market still needs good films and time to cultivate.

　　Editor’s Note of China Economic NetShenzhen Jiangbolong Electronics Co., Ltd. (hereinafter referred to as "Jiangbolong") will hold its initial meeting on December 16, 2021. The company plans to list on the Growth Enterprise Market of Shenzhen Stock Exchange this time, and the number of public offerings will not be less than 10% of the total share capital of the company after the issuance, and it will not exceed 42 million shares. The sponsor and lead underwriter are CITIC Jiantou Securities Co., Ltd. and the joint lead underwriter is HSBC Qianhai Securities Co., Ltd. Jiang Bolong plans to raise 1.50 billion yuan this time, of which 700 million yuan will be used for the second phase construction project of Jiang Bolong Zhongshan Storage Industrial Park, 350 million yuan will be used for enterprise-level and industrial-level storage research and development projects, and 450 million yuan will be used to supplement working capital.　

　　From 2018 to January-June, 2021, Jiangbolong’s operating income was 4.228 billion yuan, 5.721 billion yuan, 7.276 billion yuan and 5.302 billion yuan respectively, of which the main business income was 4.228 billion yuan, 5.721 billion yuan, 7.276 billion yuan and 5.301 billion yuan respectively.　

　　From 2018 to January-June, 2021, Jiang Bolong received cash of 4.135 billion yuan, 5.874 billion yuan, 7.539 billion yuan and 5.338 billion yuan, respectively.　

　　From 2018 to January-June, 2021, Jiangbolong’s net profit was-58,436,900 yuan, 127 million yuan, 276 million yuan and 680 million yuan respectively, of which the net profit attributable to the owners of the parent company was-56,539,700 yuan, 128 million yuan, 276 million yuan and 680 million yuan respectively.　

　　From January to June of 2018 to 2021, the net cash flow generated by Jiangbolong’s operating activities was-212 million yuan,-173 million yuan, 424 million yuan and-971 million yuan respectively.　

　　From January to September 2021, Jiangbolong’s operating income was 7.679 billion yuan, a year-on-year increase of 67.45%; The net profit was 948 million yuan, a year-on-year increase of 3997.91%; The net profit attributable to shareholders of the parent company was 948 million yuan, a year-on-year increase of 3997.91%; The net profit of returning to the mother after deduction was 871 million yuan, a year-on-year increase of 475.74%; The net cash flow from operating activities was-838 million yuan, compared with-2,645,900 yuan in the same period of last year, with a change ratio of-31,562.27%.　

　　Jiang Bolong estimates that the operating income in 2021 will be 9.600 billion yuan to 10.140 billion yuan, an increase of 31.94% to 39.36% compared with 2020; The net profit attributable to shareholders of the parent company is 960 million yuan to 1.035 billion yuan, an increase of 247.53% to 274.68% compared with 2020; After deducting non-recurring gains and losses, the net profit attributable to shareholders of the parent company is 883 million yuan to 958 million yuan, an increase of 186.80% to 21.116% compared with 2020.　

　　From 2018 to January-June 2021, the total assets of Jiangbolong were 2.751 billion yuan, 4.033 billion yuan, 5.055 billion yuan and 5.673 billion yuan respectively; The total liabilities were 706 million yuan, 924 million yuan, 1.592 billion yuan and 1.603 billion yuan respectively.　

　　After review, from January to September 2021, the total assets of Jiangbolong were 6.091 billion yuan, an increase of 20.50% over the end of last year; Total liabilities were 1.751 billion yuan, up 9.98% from the end of last year.　

　　From 2018 to January-June 2021, the current ratio of Jiangbolong was 3.60 times, 3.95 times, 2.76 times and 3.06 times respectively, the quick ratio was 1.54 times, 1.87 times, 1.32 times and 0.86 times respectively, and the asset-liability ratio (parent company) was 5.30%, 9.19% and 0.86 times respectively.　

　　From 2018 to January-June 2021, the average asset-liability ratio of comparable listed companies in the same industry was 56.77%, 54.01%, 51.65% and 54.49% respectively. Among them, Smart Global’s asset-liability ratio is 72.19%, 61.16%, 64.14% and 76.66%, Weigang’s asset-liability ratio is 66.34%, 66.89%, 65.80% and 63.09%, and the pirate ship’s asset-liability ratio is 79.94%, 79.54% and 66.　

　　From January to June of 2018 to 2021, Jiangbolong’s monetary funds were 531 million yuan, 1.198 billion yuan, 1.585 billion yuan and 603 million yuan respectively, accounting for 22.83%, 34.47%, 36.86% and 12.76% of current assets respectively.　

　　From 2018 to January-June, 2021, the deposits in Jiangbolong Bank were 531 million yuan, 1.198 billion yuan, 1.585 billion yuan and 603 million yuan respectively, accounting for 99.98%, 99.99%, 100.00% and 99.99% of the monetary funds respectively.　

　　From 2018 to January-June 2021, the book value of Jiangbolong’s accounts receivable was 407 million yuan, 409 million yuan, 385 million yuan and 610 million yuan respectively, accounting for 17.50%, 11.77%, 8.96% and 12.93% of current assets respectively.　

　　From 2018 to January-June, 2021, the balance of accounts receivable of Jiangbolong was 408 million yuan, 410 million yuan, 386 million yuan and 611 million yuan respectively, of which the balance of accounts receivable within three months was 397 million yuan, 405 million yuan, 353 million yuan and 611 million yuan respectively.　

　　From 2018 to January-June, 2021, the amounts paid back by Jiang Bolong after the accounts receivable period were 408 million yuan, 409 million yuan, 386 million yuan and 537 million yuan, respectively, and the proportions of the paid back after the period were 99.87%, 99.90%, 100.00% and 87.88%.　

　　From 2018 to January-June 2021, the turnover rate of accounts receivable of Jiangbolong was 13.83 times, 14.02 times, 18.33 times and 21.30 times respectively, and the average of comparable companies in the same industry was 7.79 times, 7.11 times, 7.39 times and 7.59 times respectively.　

　　From 2018 to January-June, 2021, the accounts receivable turnover of Smart Global, a comparable company in the same industry, was 6.13 times, 5.33 times, 5.18 times and 5.61 times respectively, the accounts receivable turnover of Weigang was 9.75 times, 8.91 times, 9.66 times and 8.53 times respectively, and the accounts receivable turnover of pirate ships was 7.68 times and 6.76 times respectively.　

　　From 2018 to January-June 2021, the book value of Jiangbolong’s inventory was 1.333 billion yuan, 1.825 billion yuan, 2.246 billion yuan and 3.393 billion yuan respectively, accounting for 57.26%, 52.53%, 52.24% and 71.84% of current assets.　

　　From 2018 to January-June 2021, the inventory balance of Jiangbolong was 1.391 billion yuan, 1.852 billion yuan, 2.267 billion yuan and 3.457 billion yuan respectively, and the inventory depreciation reserve was 58.156 million yuan, 27.0826 million yuan, 21.3206 million yuan and 64.1743 million yuan respectively.　

　　Jiang Bolong said that the company’s ending inventory is relatively large, and may further increase with the expansion of the company’s operating scale.　

　　From 2018 to January-June 2021, the inventory turnover rate of Jiangbolong was 3.04 times, 3.23 times, 3.15 times and 2.95 times respectively, and the average of comparable companies in the same industry was 5.21 times, 5.31 times, 5.25 times and 4.23 times respectively.　

　　From 2018 to January-June, 2021, the inventory turnover of Smart Global, a comparable company in the same industry, was 5.72 times, 5.73 times, 6.43 times and 4.97 times respectively, the inventory turnover of Weigang was 6.13 times, 5.71 times, 4.60 times and 3.50 times respectively, and the inventory turnover of pirate ships was 5.64 times, 5.82 times and 5.50 times respectively.　

　　From 2018 to January-June, 2021, Jiang Bolong’s short-term loans were 271 million yuan, 350 million yuan, 414 million yuan and 574 million yuan respectively, accounting for 41.82%, 39.72%, 26.57% and 37.15% of current liabilities respectively.　

　　From 2018 to January-June, 2021, the comprehensive gross profit margin of Jiangbolong was 7.62%, 10.71%, 11.96% and 21.59% respectively, and the gross profit margin showed an overall upward trend.　

　　From 2018 to January-June, 2021, the average gross profit margins of comparable companies in the same industry were 15.17%, 17.42%, 19.05% and 21.54% respectively. Among them, the gross profit margins of Smart Global are 22.62%, 19.60%, 19.28% and 18.44% respectively, while those of Weigang are 6.05%, 11.07%, 14.82% and 18.60% respectively, and those of pirate ships are 11.95%, 16.14% and 20.53 respectively.　

　　According to Jiangbolong’s product categories, the gross profit margin of embedded storage is 6.41%, 14.21%, 10.84% and 24.63%, the gross profit margin of solid-state disk is 4.60%, 5.27%, 9.75% and 15.33%, and the gross profit margin of mobile storage is 10.16%, 10.34% and 18.33% respectively.　

　　From 2018 to January-June, 2021, the sales amount of Jiangbolong to the top five customers was 929 million yuan, 1.803 billion yuan, 2.510 billion yuan and 1.789 billion yuan respectively, accounting for 21.98%, 31.51%, 34.49% and 33.74% of the total sales respectively.　

　　It is worth noting that in 2018, the largest customer of Jiangbolong was the listed company Weir, and the sales amount of Jiangbolong to Weir in that year was 315 million yuan. By 2019, Weir was ranked as the fourth largest customer of Jiangbolong, and the sales amount of Jiangbolong to Weir in that year was 236 million yuan. From January to June in 2020 and 2021, Weir withdrew from the list of the top five customers of Jiangbolong.　

　　From 2018 to January-June, 2021, the purchase amount of Jiangbolong from the top five suppliers was 2.861 billion yuan, 3.962 billion yuan, 4.980 billion yuan and 3.879 billion yuan respectively, accounting for 73.41%, 70.37%, 71.96% and 72.40% of the total purchase amount respectively.　

　　From 2018 to January-June, 2021, the overseas sales accounted for 85.24%, 85.19%, 84.74% and 83.59% respectively, and the overseas purchases accounted for 95.65%, 93.38%, 87.61% and 87.93% respectively.　

　　From 2018 to January-June 2021, the domestic income of Jiangbolong was 624 million yuan, 847 million yuan, 1.110 billion yuan and 870 million yuan respectively, accounting for 14.76%, 14.81%, 15.26% and 16.41% of the main business income respectively.　

　　From 2018 to January-June 2021, Jiangbolong’s overseas income was 3.604 billion yuan, 4.873 billion yuan, 6.165 billion yuan and 4.431 billion yuan respectively, accounting for 85.24%, 85.19%, 84.74% and 83.59% of the main business income respectively.　

　　After long-term technology accumulation, Jiangbolong has formed 47 core technologies closely related to its business, achieved 12 achievements based on core technology research and development, and is engaged in 25 major research and development projects. The Shenzhen Stock Exchange raised questions about the company’s core technology and core competitiveness in the first round and the second round of inquiries about Jiang Bolong. These include: explaining the reasons why the number of invention patents obtained during the reporting period is significantly less than that outside the reporting period, whether most of the current patents of the issuer are obsolete and have no great commercial value, and whether the core technology of the issuer is advanced; Explain the importance of the relevant license of SD memory card to the issuer, the relevant license fee and license period, and whether it can ensure the issuer’s long-term use; Before the signing of the license agreement in June 2019, whether the issuer involved in the use of relevant licenses, whether there were disputes or potential disputes.　

　　According to the prospectus, there are a number of related party transactions in Jiang Bolong, among which a related party sales amount reached 114 million yuan in 2019, which was for Jiang Bolong to sell storage products such as solid state drives to U Lucky International (HK) Co., Ltd. (Youxiang International (Hong Kong) Co., Ltd.). The company is an enterprise in which Xing Xiaobo, the brother of Cai Huabo’s eldest brother and spouse, one of Jiang Bolong’s real controllers, holds 100% shares. In addition, Jiang Bolong’s real controllers Cai Huabo, Cai Lijiang and others have provided unlimited guarantee for Hong Kong Jiang Bolong, a wholly-owned subsidiary of the company.　

　　The price of products sold by Jiang Bolong to related parties is much lower than the unit price of similar products. Shenzhen Stock Exchange’s second round of audit inquiry on Jiang Bolong shows that in 2019, Jiang Bolong sold 114 million yuan to related party Youxiang International (Hong Kong); In 2018-2019, it sold 20,035,100 yuan and 13,083,700 yuan to Hengchu Trade respectively, and sold 6,825,800 yuan and 24,214,400 yuan to friends and partners. In 2020, it will sell 25,855,700 yuan to CLP Port. The selling price of Jiangbolong to related parties is far lower than the selling unit price of similar products. For example, the selling unit price of Jiangbolong to Youxiang International in 2018-2019 ranged from 14.71 yuan/piece to 26.57 yuan/piece, while the average selling unit price of Jiangbolong’s solid-state drives in the same period was 108.74 yuan/piece and 143.28 yuan/piece.　

　　Shenzhen Stock Exchange requires Jiang Bolong to explain the fairness of related party transactions, the reason why the issuer’s sales price to related parties is much lower than the unit price of similar products, whether there is a big difference between the content and model of products sold by the issuer to the related parties and the issuer’s main product sales structure, the necessity and rationality of related transactions, and whether there is any interest transfer situation.　

　　In addition, Jiang Bolong’s equity transfer has also caused the Shenzhen Stock Exchange to pay attention to the inquiry, whether it obviously regulates profits and whitewashes performance. Shenzhen Stock Exchange’s first inquiry about Jiang Bolong showed that the company’s investment income from the disposal of long-term equity investment in 2020 was 107 million yuan, mainly due to the sale of a 2.61% stake in Microelectronics. In November, 2020, Jiangbo Longzi Company Tibet Yuanshi transferred 0.78% and 1.83% equity of a microelectronics company to Kaiying Venture Capital and Chuangke Town respectively. After the completion of the above-mentioned equity transfer, Jiang Bolong’s remaining shareholding ratio in a microelectronics company was 4.79%. At the same time, he no longer sent directors to a microelectronics company and did not participate in its daily operation and management activities, which was considered to have no significant impact on it. He adjusted the remaining 4.79% equity to other non-current financial assets and re-measured it at fair value. As the fair value of a microelectronics company’s equity was higher than the book value of long-term equity investment, a large amount of current investment income was recognized. According to public information, after the transfer, Jiang Bolong remains the third largest shareholder of Deyi Microelectronics.　

　　Shenzhen Stock Exchange requires Jiang Bolong to explain the rationality of the issuer’s confirmation of the investment income of a microelectronic equity sold until 2020 in combination with the payment time and the change time of industrial and commercial registration. Whether the above-mentioned equity transfer time is close to the end of the reporting period has obvious motives for regulating profits and whitewashing performance shows whether Kaiying Venture Capital and Maker Town are related or closely related to the issuer’s actual controller, Dong Jiangao and their related parties.　

　　According to the data released by China Flash Memory Market (CFM) and Omdia(IHS Markit), in 2020, the company ranked seventh in the global market share of eMMC products, third in the global market share of Lexar memory cards and fourth in the global market share of Lexar flash drives. According to public information, the market share of DDR5 is expected to rapidly surpass DDR4.　　

　　The Shenzhen Stock Exchange asked Jiang Bolong to briefly explain the differences in application fields, implementation functions, storage capacity and technical routes of various products of the issuer; Explain the difference between the technical level of the issuer’s main products and its main competitors, and the price difference between the issuer’s main sales price and the similar products with the same specifications of its main competitors, and analyze whether the issuer is competitive compared with its main competitors; Combined with the substitution of DDR5 for DDR4 and the latest technology development in the storage industry, this paper explains whether the issuer’s main product types and technical routes are facing the risk of being replaced or eliminated, and gives a risk warning in the prospectus.　

　　Jiang Bolong said in his reply that the global semiconductor memory market is huge, and the company’s operating income is growing rapidly, but the market share is small and there is broad room for growth.　

　　Jiang Bolong has a commercial secret infringement dispute litigation. According to the prospectus, the case is in the first instance stage and is currently undergoing judicial appraisal related to the facts of the case. Jiang Bolong sued the Shenzhen Intermediate People’s Court on the grounds that the defendants Hao Lu, Zhao Ying and Shenzhen Jingcun Technology Co., Ltd. infringed the commercial secrets of Jiang Bolong’s testing technology. On June 22, 2020, the Shenzhen Intermediate People’s Court issued the Notice of Accepting Cases to accept the case. Defendant Hao Lu was a retired employee of Jiang Bolong and participated in the research and development of LPDDR3 testing technology. Jiang Bolong discovered that the defendant was selling products containing the above testing technology in the market at the end of 2018, so he sued the defendant to stop the infringement and jointly compensated Jiang Bolong for economic losses and punitive damages totaling 132,044,800 yuan. Jiang Bolong disclosed the draft prospectus on December 9, 2021, showing that as of the signing date of the prospectus, the case was in the first instance stage. At present, judicial expertise related to the facts of the case is being carried out. In addition, Jiang Bolong’s WeChat WeChat official account published a message on July 13, 2020. On July 7, 2020, the company suddenly received a lawyer’s letter from Jingcun Company, claiming that Jiang Bolong deliberately concealed the facts and framed others.　

　　According to the prospectus, Cai Huabo, the controlling shareholder of Jiang Bolong, was involved in the case of Ji Zhen, the former deputy head of Nanshan District, Shenzhen, as a witness. According to the criminal judgment No.350 (2017) at the beginning of Guangdong 03 Criminal Sentence made by Shenzhen Intermediate People’s Court on December 18th, 2017 and the Criminal Ruling No.395 (2018) at the end of Guangdong Criminal Sentence made by Guangdong Higher People’s Court on June 8th, 2018, Ji Zhen introduced Huade Company and Jiang Bolong to Cai Huabo on the grounds of supporting his student Zeng Moming to start a business. Huade Company’s business scope includes integrated circuit business and Jiangbolong Co., Ltd. has outsourcing cooperation with other manufacturers in testing business. Therefore, Jiangbolong Co., Ltd. signed an entrusted testing contract with Huade Company and paid a testing fee of 1 million yuan, but Huade Company failed to fulfill its corresponding contractual obligations, and this testing fee was actually occupied by Ji Zhen. Hou Jizhen was convicted of accepting bribes and corruption, and the case has been closed.　

　　According to the refereeing document network, in the first half of 2013, Shenzhen Jiangbolong Electronics Co., Ltd. (hereinafter referred to as "Jiangbolong Company") applied to the Nanshan District Government for funding for science and technology projects, and with the help of the defendant Ji Zhen, it finally won the funding for science and technology projects of RMB 2 million. Since then, Ji Zhen asked Cai Mobo, the chairman of the company, that the company sign an entrusted test contract with Huade Company and pay the test fee of RMB 1 million. Cai Mobo agreed. On November 27th, 2013, Ji Zhen appointed Zeng Moming to sign a contract with Jumbolong Company on behalf of Huade Company. On January 6, 2014, Jumbolong Company transferred RMB 1 million to Huade Company. The contract was not actually performed, and it was a false contract. The so-called test fee was the benefit fee charged by Ji Zhen to Jiang Bolong Company, which was used by Ji Zhen for personal purchase.　

　　According to the prospectus, Jiang Bolong distributed cash dividends of 20 million yuan and 59.3383 million yuan in April 2018 and May 2021 respectively. Regarding the above cash dividends, Shenzhen Stock Exchange asked Jiang Bolong to analyze and explain the necessity and appropriateness of the relevant large cash dividends, and whether they match with Jiang Bolong’s financial situation, focusing on analyzing and explaining the rationality of Jiang Bolong’s cash dividends in the case of losses in 2018, such as the articles of association of Jiang Bolong. Explain the use of dividend funds of Jiang Bolong’s actual controller and major shareholders.　

　　Mainly engaged in the research, development, design and sales of Flash and DRAM memories.　

　　Jiang Bo is mainly engaged in the research, development, design and sales of Flash and DRAM memories. The company faces the application market and consumer market of consumer electronics, industry, communication, automobile, security, monitoring and other industries, and provides customers with high-performance, high-quality and innovative memory chips and products. The company has four product lines: embedded storage, solid-state hard disk, mobile storage and memory stick.　

　　The draft prospectus disclosed by Jiang Bolong on December 9, 2021 shows that as of the signing date of the prospectus, the controlling shareholder of the company is Cai Huabo, and the actual controllers are Cai Huabo and Cai Lijiang. Cai Huabo and Cai Lijiang are brothers and sisters. Together, they directly and indirectly control 246 million shares, accounting for 66.33%, of which Cai Huabo directly holds 162 million shares, accounting for 43.68%. Cai Lijiang directly holds 14.7 million shares, with a shareholding ratio of 3.96%; At the same time, Cai Huabo indirectly controlled 69.3 million shares, accounting for 18.69%, by being the executive partner of Longxi No.1, Longxi No.2, Longxi No.3, Longjian Management and Longxi No.5..　

　　Cai Huabo is the largest shareholder of Jiang Bolong, with a shareholding ratio of 43.68%; The National IC Fund is the second largest shareholder of the company, with a shareholding ratio of 6.93%; Cai Lijiang is the eighth largest shareholder of the company, with a shareholding ratio of 3.96%; Longxi No.1, Longxi No.2 and Longxi No.3 are the fourth, fifth and sixth largest shareholders of the company respectively, with shareholding ratios of 5.13%, 5.13% and 4.80% respectively; Longxi No.5 is the twelfth largest shareholder of the company, with a shareholding ratio of 1.70%.　

　　According to the prospectus, Cai Huabo is a China citizen with no permanent residency abroad. He was born in 1976 and has a high school education. From 1996 to 1999, he served as a salesman of Shenzhen Haiyangwang Investment Development Co., Ltd.; Jiang Bolong Co., Ltd. was founded in 1999 and has served as general manager, executive director and chairman of Jiang Bolong Co., Ltd.; From 2015 to 2018, he served as an independent director of Beijing Junzheng Integrated Circuit Co., Ltd.; He is currently the chairman and general manager of the company.　

　　Cai Lijiang, a China citizen with no permanent residency abroad, was born in 1976 and graduated from Jiangxi Hualian Institute of Foreign Trade with a junior college degree. From September 1998 to October 1999, he served as a design engineer of Shenzhen Baoan Debao Industrial Development Co., Ltd.; Since October 1999, he has worked in Jiang Bolong, and now he is the senior vice president of the company.　

　　Jiang Bolong plans to be listed on the Growth Enterprise Market of Shenzhen Stock Exchange this time. The number of public offerings is not less than 10% of the total share capital of the company after the issuance, and it does not exceed 42 million shares. The sponsor and lead underwriter are CITIC Jiantou Securities Co., Ltd., and the joint lead underwriter is HSBC Qianhai Securities Co., Ltd. Jiang Bolong plans to raise 1.5 billion yuan this time. After deducting the issuance expenses, he will invest in the following projects:　

　　1. The second phase construction project of Jiangbolong Zhongshan Storage Industrial Park, with a total investment of 700 million yuan, plans to invest 700 million yuan to raise funds; 2. Enterprise-level and industrial-level memory research and development projects, with a total investment of 361 million yuan, and plans to invest 350 million yuan to raise funds; 3. Replenish the working capital. The total investment of the project is 450 million yuan, and it is planned to invest 450 million yuan to raise funds.　

　　In the first half of 2021, the operating income was 5.302 billion yuan, and the net profit was 680 million yuan.　

　　From 2018 to January-June, 2021, Jiangbolong’s operating income was 4.228 billion yuan, 5.721 billion yuan, 7.276 billion yuan and 5.302 billion yuan respectively, of which the main business income was 4.228 billion yuan, 5.721 billion yuan, 7.276 billion yuan and 5.301 billion yuan respectively.　

　　From 2018 to January-June, 2021, Jiang Bolong received cash of 4.135 billion yuan, 5.874 billion yuan, 7.539 billion yuan and 5.338 billion yuan, respectively.　

　　From 2018 to January-June, 2021, Jiangbolong’s net profit was-58,436,900 yuan, 127 million yuan, 276 million yuan and 680 million yuan respectively, of which the net profit attributable to the owners of the parent company was-56,539,700 yuan, 128 million yuan, 276 million yuan and 680 million yuan respectively.　

　　From January to June of 2018 to 2021, the net cash flow generated by Jiangbolong’s operating activities was-212 million yuan,-173 million yuan, 424 million yuan and-971 million yuan respectively.　

　　In 2018, 2019 and January-June, 2021, the net cash flow generated by Jiangbolong’s operating activities was lower than the current net profit, mainly because with the expansion of production and operation scale, the company’s inventory scale grew rapidly, and the cash expenditure for purchasing goods and accepting labor services was relatively large; In 2020, the net cash flow generated by the company’s operating activities was higher than the current net profit, mainly because the downstream customers paid back more actively and the sales paid back well when the market was good and the storage products were in short supply. At the same time, the company adopted a more active purchasing and stocking strategy. In the fourth quarter of 2020, the inventory purchase scale was large, and the amount of accounts payable increased rapidly at the end of the credit period.　

　　It is estimated that the annual operating income in 2021 will be 9.600 billion yuan to 10.140 billion yuan, and the net profit returned to the mother will be 960 million yuan to 1.035 billion yuan.　

　　After review, from January to September 2021, the total assets of Jiangbolong were 6.091 billion yuan, an increase of 20.50% over the end of last year; Total liabilities were 1.751 billion yuan, up 9.98% from the end of last year.　

　　From January to September 2021, Jiangbolong’s operating income was 7.679 billion yuan, a year-on-year increase of 67.45%; The net profit was 948 million yuan, a year-on-year increase of 3997.91%; The net profit attributable to shareholders of the parent company was 948 million yuan, a year-on-year increase of 3997.91%; The net profit returned to the mother after deduction was 871 million yuan, a year-on-year increase of 475.74%.　

　　From January to September 2021, the net cash flow generated by Jiangbolong’s operating activities was-838 million yuan, compared with-2,645,900 yuan in the same period of last year, with a change ratio of-31,562.27%.　

　　Jiang Bolong said in the prospectus that from January to September 2021, the net cash flow generated by the company’s operating activities was-838 million yuan, and the net outflow increased rapidly compared with the same period of last year, mainly because on the one hand, with the expansion of production and operation scale, the company’s inventory increased by 1.182 billion yuan at the end of September 2021 compared with the end of last year, and the cash expenditure for purchasing goods and accepting labor services was relatively large; On the other hand, the company’s operating income maintained steady growth, and the accounts receivable at the end of September 2021 increased by 309 million yuan compared with the end of the previous year.　

　　In addition, based on the current operating conditions and market environment of Jiangbolong, the company expects its annual operating income to be 9.600 billion yuan to 10.140 billion yuan in 2021, an increase of 31.94% to 39.36% compared with 2020; The net profit attributable to shareholders of the parent company is 960 million yuan to 1.035 billion yuan, an increase of 247.53% to 274.68% compared with 2020; After deducting non-recurring gains and losses, the net profit attributable to shareholders of the parent company is 883 million yuan to 958 million yuan, an increase of 186.80% to 21.116% compared with 2020.　

　　Jiang Bolong’s above-mentioned 2021 annual performance forecast is only a reasonable estimate of the management’s operating performance, and it does not constitute the company’s profit forecast or performance commitment without being audited or reviewed by certified public accountants.　

　　In the first half of 2021, the total assets were 5.673 billion yuan and the total liabilities were 1.603 billion yuan.　

　　From 2018 to January-June 2021, the total assets of Jiangbolong were 2.751 billion yuan, 4.033 billion yuan, 5.055 billion yuan and 5.673 billion yuan respectively, of which the current assets were 2.327 billion yuan, 3.475 billion yuan, 4.299 billion yuan and 4.723 billion yuan respectively.　

　　From 2018 to January-June, 2021, Jiang Bolong’s total liabilities were 706 million yuan, 924 million yuan, 1.592 billion yuan and 1.603 billion yuan respectively, of which current liabilities were 647 million yuan, 881 million yuan, 1.560 billion yuan and 1.546 billion yuan respectively.　

　　From 2018 to January-June 2021, the current ratio of Jiangbolong was 3.60 times, 3.95 times, 2.76 times and 3.06 times respectively, the quick ratio was 1.54 times, 1.87 times, 1.32 times and 0.86 times respectively, and the asset-liability ratio (parent company) was 5.30%, 9.19% and 0.86 times respectively.　

　　From 2018 to January-June 2021, the average asset-liability ratio of comparable listed companies in the same industry was 56.77%, 54.01%, 51.65% and 54.49% respectively. Among them, Smart Global’s asset-liability ratio is 72.19%, 61.16%, 64.14% and 76.66%, Weigang’s asset-liability ratio is 66.34%, 66.89%, 65.80% and 63.09%, and the pirate ship’s asset-liability ratio is 79.94%, 79.54% and 66.　

　　In the first half of 2021, the monetary fund was 603 million yuan.　

　　From January to June of 2018 to 2021, Jiangbolong’s monetary funds were 531 million yuan, 1.198 billion yuan, 1.585 billion yuan and 603 million yuan respectively, accounting for 22.83%, 34.47%, 36.86% and 12.76% of current assets respectively.　

　　From 2018 to January-June, 2021, the deposits in Jiangbolong Bank were 531 million yuan, 1.198 billion yuan, 1.585 billion yuan and 603 million yuan respectively, accounting for 99.98%, 99.99%, 100.00% and 99.99% of the monetary funds respectively.　

　　The balance of accounts receivable in the first half of 2021 was 611 million yuan.　

　　From 2018 to January-June 2021, the book value of Jiangbolong’s accounts receivable was 407 million yuan, 409 million yuan, 385 million yuan and 610 million yuan respectively, accounting for 17.50%, 11.77%, 8.96% and 12.93% of current assets respectively.　

　　From 2018 to January-June, 2021, the balance of accounts receivable of Jiangbolong was 408 million yuan, 410 million yuan, 386 million yuan and 611 million yuan respectively, of which the balance of accounts receivable within three months was 397 million yuan, 405 million yuan, 353 million yuan and 611 million yuan respectively.　

　　From 2018 to January-June, 2021, the amounts paid back by Jiang Bolong after the accounts receivable period were 408 million yuan, 409 million yuan, 386 million yuan and 537 million yuan, respectively, and the proportions of the paid back after the period were 99.87%, 99.90%, 100.00% and 87.88%.　

　　From 2018 to January-June 2021, the turnover rate of accounts receivable of Jiangbolong was 13.83 times, 14.02 times, 18.33 times and 21.30 times respectively, and the average of comparable companies in the same industry was 7.79 times, 7.11 times, 7.39 times and 7.59 times respectively.　

　　From 2018 to January-June, 2021, the accounts receivable turnover of Smart Global, a comparable company in the same industry, was 6.13 times, 5.33 times, 5.18 times and 5.61 times respectively, the accounts receivable turnover of Weigang was 9.75 times, 8.91 times, 9.66 times and 8.53 times respectively, and the accounts receivable turnover of pirate ships was 7.68 times and 6.76 times respectively.　

　　The inventory balance in the first half of 2021 was 3.457 billion yuan.　

　　From 2018 to January-June 2021, the book value of Jiangbolong’s inventory was 1.333 billion yuan, 1.825 billion yuan, 2.246 billion yuan and 3.393 billion yuan respectively, accounting for 57.26%, 52.53%, 52.24% and 71.84% of current assets.　

　　From 2018 to January-June 2021, the inventory balance of Jiangbolong was 1.391 billion yuan, 1.852 billion yuan, 2.267 billion yuan and 3.457 billion yuan respectively, and the inventory depreciation reserve was 58.156 million yuan, 27.0826 million yuan, 21.3206 million yuan and 64.1743 million yuan respectively.　

　　Jiang Bolong said that at the end of June 2021, the company’s provision for inventory depreciation increased, mainly due to the fluctuation of the market price of memory chips. From January to June 2021, the market demand for memory chips was strong, and the supply and demand of DRAM storage wafers were relatively tight. After the market price of memory chips rose rapidly in the first quarter, the price fell back in the second quarter. As a result, the company’s provision for inventory depreciation increased.　

　　From 2018 to January-June 2021, the inventory turnover rate of Jiangbolong was 3.04 times, 3.23 times, 3.15 times and 2.95 times respectively, and the average of comparable companies in the same industry was 5.21 times, 5.31 times, 5.25 times and 4.23 times respectively.　

　　From 2018 to January-June, 2021, the inventory turnover of Smart Global, a comparable company in the same industry, was 5.72 times, 5.73 times, 6.43 times and 4.97 times respectively, the inventory turnover of Weigang was 6.13 times, 5.71 times, 4.60 times and 3.50 times respectively, and the inventory turnover of pirate ships was 5.64 times, 5.82 times and 5.50 times respectively.　

　　Jiang Bolong said that the company’s ending inventory is relatively large, and may further increase with the expansion of the company’s operating scale. Every year, the company makes corresponding provision for depreciation according to the amount that the net realizable value of the inventory is lower than the cost. Because the gross profit margin of the company’s products is relatively low and the inventory scale is relatively large, in the future, if the market supply and demand change greatly, the raw material price fluctuates greatly, the product market price and gross profit margin drop sharply, and the technical iteration leads to the decline or elimination of product demand, the company will face the risk of inventory depreciation loss, which will adversely affect the company’s financial situation and operating results.　

　　In the first half of 2021, the short-term loan was 574 million yuan.　

　　From 2018 to January-June, 2021, Jiang Bolong’s short-term loans were 271 million yuan, 350 million yuan, 414 million yuan and 574 million yuan respectively, accounting for 41.82%, 39.72%, 26.57% and 37.15% of current liabilities respectively.　

　　Jiang Bolong said that at the end of each reporting period, the amount of short-term loans of the company showed an upward trend, mainly due to the increase in capital demand with the expansion of the company’s business scale.　

　　In the first half of 2021, the comprehensive gross profit rate was 21.59%, which was lower than the industry average in the first three years.　

　　From 2018 to January-June, 2021, the comprehensive gross profit margin of Jiangbolong was 7.62%, 10.71%, 11.96% and 21.59% respectively, and the gross profit margin showed an overall upward trend.　

　　From 2018 to January-June, 2021, the average gross profit margins of comparable companies in the same industry were 15.17%, 17.42%, 19.05% and 21.54% respectively. Among them, the gross profit margins of Smart Global are 22.62%, 19.60%, 19.28% and 18.44% respectively, while those of Weigang are 6.05%, 11.07%, 14.82% and 18.60% respectively, and those of pirate ships are 11.95%, 16.14% and 20.53 respectively.　

　　According to Jiangbolong’s product categories, the gross profit margin of embedded storage is 6.41%, 14.21%, 10.84% and 24.63%, the gross profit margin of solid-state disk is 4.60%, 5.27%, 9.75% and 15.33%, and the gross profit margin of mobile storage is 10.16%, 10.34% and 18.33% respectively.　

　　Jiang Bolong said that from 2018 to January-June 2021, the gross profit margin of the company’s main business was 7.62%, 10.71%, 11.97% and 21.59%, respectively, showing an upward trend. The changes in the gross profit margin of the company’s products were comprehensively affected by factors such as product structure, supply of upstream raw materials, fluctuation of storage market demand and changes in market competition pattern.　

　　In the second half of 2021, the purchase price of storage wafers and the sales price of storage products both fell after the rapid increase in the first half of the year, while the company’s inventory turnover days were about 3-4 months. Due to the interval between purchase and sales cycles, the change of the company’s product sales cost was lagging behind, which led to the decline of the company’s gross profit margin in the fourth quarter of 2021. It is estimated that the gross profit margin in the fourth quarter will be 14%-16%, compared with 2021.　

　　In the future, if the company’s product structure cannot be continuously optimized, the storage wafer supply or storage market demand fluctuates greatly, the market competition becomes increasingly fierce, and the product market price drops sharply, the company will face the risk of fluctuation or decline in gross profit margin.　

　　Risk of fluctuation of gross profit margin caused by fluctuation of wafer price.　

　　The main raw material of Jiangbolong products is storage wafers. From 2018 to January to June 2021, the cost of storage wafers accounted for 78.04%, 75.57%, 79.76% and 79.86% of the company’s main business cost, respectively. The market price changes of storage wafers and storage products have a great impact on the company’s gross profit margin.　　

　　Storage products with general specifications usually have an open market reference price, and the market price transmission mechanism is smooth. The change trend of the sales price of storage products is usually consistent with the change trend of the purchase price of storage wafers. However, because the unit price of product sales is affected by the market price at the point of sale and the unit cost is affected by the market price at the point of purchase, there is a production and sales cycle interval between them, and the change of product unit cost lags behind the change of product sales unit price, which makes the gross profit margin of memory manufacturers fluctuate with the fluctuation of wafer price. Other things being equal, in the rising stage of market price, the sales unit price rises before the unit cost, and the gross profit margin usually shows an upward trend; In the stage of market price decline, the sales unit price falls before the unit cost, and the gross profit margin usually shows a downward trend; When the market price is stable or fluctuating, the difference between the unit selling price and the unit cost is small, and the gross profit margin is usually stable. Therefore, due to the market price fluctuation of storage wafers during the reporting period, the company’s gross profit margin fluctuated due to the periodic interval between wafer procurement and product sales.　

　　In this context, if the market price of storage wafers rises sharply in the future, and the price increase of raw materials fails to be effectively transmitted, the sales price of the company’s products will not rise simultaneously; Or the market price of storage wafers has fallen sharply. Because it takes a certain period of time for procurement and production, the decline in product sales price precedes the decline in cost, which will cause the company to be unable to fully absorb the impact of wafer price fluctuation, so the company has the risk of fluctuation or decline in gross profit margin, which will adversely affect the company’s operating performance and profitability.　

　　The listed company Weil Co., Ltd. was the largest customer of Jiangbolong in 2018 and withdrew from the list of the top five customers in 2020.　

　　From 2018 to January-June, 2021, the sales amount of Jiangbolong to the top five customers was 929 million yuan, 1.803 billion yuan, 2.510 billion yuan and 1.789 billion yuan respectively, accounting for 21.98%, 31.51%, 34.49% and 33.74% of the total sales respectively.　

　　It is worth noting that in 2018, the largest customer of Jiangbolong was the listed company Weir, and the sales amount of Jiangbolong to Weir in that year was 315 million yuan. By 2019, Weir was ranked as the fourth largest customer of Jiangbolong, and the sales amount of Jiangbolong to Weir in that year was 236 million yuan. From January to June in 2020 and 2021, Weir withdrew from the list of the top five customers of Jiangbolong.　

　　Suppliers are relatively concentrated　

　　From 2018 to January-June, 2021, the purchase amount of Jiangbolong from the top five suppliers was 2.861 billion yuan, 3.962 billion yuan, 4.980 billion yuan and 3.879 billion yuan respectively, accounting for 73.41%, 70.37%, 71.96% and 72.40% of the total purchase amount respectively.　

　　Jiang Bolong said that the main raw material of the company’s products is storage wafers. Storage wafer manufacturing is a capital-intensive and technology-intensive high-barrier industry, with large capital investment, high technical threshold and obvious scale effect. These characteristics lead to a high concentration of global storage wafer supply and relatively concentrated suppliers.　

　　From 2018 to January-June, 2021, the company’s purchases from the top five suppliers accounted for 73.41%, 70.37%, 71.96% and 72.40% respectively. In the future, if there is a shortage of major raw materials such as storage wafers due to unexpected events such as natural disasters and major accidents, or due to geopolitical changes, trade frictions, changes in import and export and tariff policies, and cooperation relations, the major raw materials such as storage wafers required for the company’s production may not be supplied in a timely and sufficient manner, and in extreme cases, the supply may be cut off, thus affecting the stability of the company’s production and supply, which may have a major adverse impact on the company’s production and operation.　

　　Overseas sales and overseas purchases all exceed 80%.　

　　From 2018 to January-June, 2021, the overseas sales accounted for 85.24%, 85.19%, 84.74% and 83.59% respectively, and the overseas purchases accounted for 95.65%, 93.38%, 87.61% and 87.93% respectively.　

　　The company said that the scale and amount of overseas sales and purchases are relatively large, accounting for a relatively high proportion. The company’s product export and raw material procurement are mainly denominated and settled in US dollars, and the exchange rate change of RMB has a certain impact on the company’s operating performance. During the reporting period, the company’s exchange earnings were 8,886,400 yuan, 280,500 yuan, 3,356,600 yuan and-2,776,600 yuan, respectively, accounting for 0.19%, 0.99% and -0.35% of the total profits of the current period in 2019, 2020 and January-June 2021, respectively. If the RMB exchange rate fluctuates greatly due to the influence of domestic and foreign economic environment in the future, the company may face certain exchange rate fluctuation risk, which will adversely affect the company’s operating performance.　

　　From 2018 to January-June 2021, the domestic income of Jiangbolong was 624 million yuan, 847 million yuan, 1.110 billion yuan and 870 million yuan respectively, accounting for 14.76%, 14.81%, 15.26% and 16.41% of the main business income respectively.　

　　From 2018 to January-June 2021, Jiangbolong’s overseas income was 3.604 billion yuan, 4.873 billion yuan, 6.165 billion yuan and 4.431 billion yuan respectively, accounting for 85.24%, 85.19%, 84.74% and 83.59% of the main business income respectively.　

　　Jiang Bolong said that during the reporting period, the company’s main business income mainly came from Chinese mainland, Hong Kong, Macao and Taiwan, and the company’s income in Hong Kong, Macao and Taiwan was relatively high, which was consistent with industry practice. Hong Kong has a mature business environment, developed logistics system and convenient transportation conditions, and has strong advantages in resources and supporting capabilities. It has become an important international distribution center for electronic products. Considering factors such as logistics, trading habits, taxation and foreign exchange settlement, delivery in Hong Kong has become an industry practice, and some domestic customers mainly purchase through their Hong Kong branches or supply chain companies.　

　　Core technology and core competitiveness were questioned in two rounds.　

　　After long-term technology accumulation, Jiangbolong has formed 47 core technologies closely related to its business, achieved 12 achievements based on core technology research and development, and is engaged in 25 major research and development projects. In addition, Jiangbolong enhances its competitiveness through continuous technological innovation. By June 30, 2021, the company had obtained 426 valid patents at home and abroad (103 overseas patents), including 165 invention patents, won the China Patent Excellence Award twice and owned 65 software copyrights.　

　　Jiang Bolong suggested in the prospectus that the company has accumulated a number of core technological achievements and intellectual property rights through years of independent research and development, and established an internal control system related to core technologies. In the future, if the internal control system related to the company’s core technology is not effectively implemented, or the core technology is leaked due to gross negligence, malicious collusion and fraud, it may damage the company’s core competitiveness and adversely affect the company’s production and operation.　

　　The Shenzhen Stock Exchange raised questions about the company’s core technology and core competitiveness in the first round and the second round of inquiries about Jiang Bolong. These include:　

　　Combined with the substitution of DDR5 for DDR4 and the latest technology development in the storage industry, this paper explains whether the issuer’s main product types and technical routes are facing the risk of being replaced or eliminated, and gives a risk warning in the prospectus;　

　　Explain the reasons why the number of invention patents obtained during the reporting period is significantly less than that outside the reporting period, whether most of the current patents of the issuer are obsolete and have no great commercial value, and whether the core technology of the issuer is advanced;　

　　Explain the reasons why the number of invention patents applied for and obtained in the reporting period accounted for a small proportion of the number of invention patents issued by the issuer, and whether the issuer has strong innovation and creation attributes;　

　　Explain the importance of the relevant license of SD memory card to the issuer, the relevant license fee and license period, and whether it can ensure the issuer’s long-term use; Before the signing of the license agreement in June 2019, whether the issuer involved in the use of relevant licenses, and whether there were disputes or potential disputes.　

　　In 2019, related sales amounted to 114 million yuan.　

　　According to the prospectus, there are a number of related party transactions in Jiang Bolong, among which a related party sales amount reached 114 million yuan in 2019, which was for Jiang Bolong to sell storage products such as solid state drives to U Lucky International (HK) Co., Ltd. (Youxiang International (Hong Kong) Co., Ltd.). The company is an enterprise in which Xing Xiaobo, the brother of the spouse of Cai Huabo, one of Jiang Bolong’s real controllers, holds 100% of the shares.　

　　From January to June in 2018, 2019 and 2021, Jiang Bolong purchased the main control chips from Deyi Microelectronics and its subsidiaries for 15,569,300 yuan, 5,141,000 yuan and 21,972,500 yuan respectively. The company is a joint venture of Jumbo Longyuan, and part of its equity was transferred in November 2020; Li Zhixiong, director and deputy general manager of Jiang Bolong, once served as a director of the company, and retired in December 2020.　

　　In 2018 and 2018, Jiang Bolong purchased solid-state hard disks from Shenzhen Haoyouban Technology Co., Ltd. for RMB 3,826,500 and RMB 12,163,800 respectively. The company is an enterprise in which Xing Xiaoling, the eldest brother and spouse of Cai Huabo, one of Jiang Bolong’s real controllers, holds 80% of the shares and serves as the general manager and executive director, and Xing Xiaobo, the younger brother of Xing Xiaoling, holds 20% of the shares.　

　　From 2018 to 2020, Jiang Bolong purchased 21,000 yuan, 79,200 yuan and 174,500 yuan from Shenzhen Zhongdian Port Technology Co., Ltd. respectively. The company is an enterprise in which Cai Jing, director of Jiang Bolong, is a director.　

　　In 2018, Jiang Bolong purchased SSD from Sunshine Disk Trading Limited for RMB 212,600. The company is an enterprise in which Xing Xiaoling, the spouse of Cai Huabo’s eldest brother, holds 100% shares.　

　　In 2019 and 2020, Jiang Bolong purchased outsourcing accessories from Wuhu Jinsheng Electronic Technology Co., Ltd. for RMB 5500 and RMB 53000 respectively. The company is a company where Jiang Bolong’s director Zhu Yu once served as a director and retired in June 2018.　

　　In 2018 and 2019, Jiang Bolong sold storage products such as SSDs to U Lucky International (HK) Co., Ltd. (Youxiang International (Hong Kong) Co., Ltd.) for RMB 3,317,300 and RMB 114 million respectively. The company is an enterprise in which Xing Xiaobo, the brother of Cai Huabo’s eldest brother’s spouse, holds 100% of the shares.　

　　In 2018 and 2019, Jiang Bolong sold storage products such as mobile storage to Sunshine Disk Trading Limited for RMB 20,035,100 and RMB 13,083,700 respectively. The company is an enterprise in which Xing Xiaoling, the spouse of Cai Huabo’s eldest brother, holds 100% shares.　

　　From 2018 to 2020, Jiang Bolong sold storage products such as solid-state disks to Shenzhen Haoyouban Technology Co., Ltd. for RMB 6,825,800, RMB 24,214,400 and RMB 280,500 respectively. The company is an enterprise in which Xing Xiaoling, the eldest brother and spouse of Cai Huabo, one of Jiang Bolong’s real controllers, holds 80% of the shares and serves as the general manager and executive director, and Xing Xiaobo, the younger brother of Xing Xiaoling, holds 20% of the shares.　

　　From 2018 to January-June, 2021, Jiang Bolong sold 42,200 yuan, 43,500 yuan, 25,855,700 yuan and 6,895,600 yuan of embedded storage products to Shenzhen Zhongdian Port Technology Co., Ltd. respectively. The company is an enterprise in which Cai Jing, director of Jiang Bolong, is a director.　

　　From 2018 to 2020, Jiang Bolong sold storage products such as solid-state disks to Shenzhen Andaxing Technology Co., Ltd. for 1,103,800 yuan, 443,200 yuan and 169,200 yuan respectively. The company was an enterprise in which Jiang Bolong and Cai Huabo held 20% and 40% shares respectively in the first 12 months of the reporting period, and withdrew in February 2017.　

　　In 2018, Jiang Bolong sold storage products such as wireless memory to Shenzhen Yinglai Hechuang Electronics Co., Ltd. for 1,133,800 yuan. The company is an enterprise in which Cai Huabo’s eldest brother Cai Jinjiang holds 27.43% of the shares and serves as the executive director.　

　　From 2018 to 2020, Jiang Bolong sold 761,100 yuan, 12,400 yuan and 10,900 yuan of embedded storage products to Deyi Microelectronics and its subsidiaries respectively. The company is a joint venture of Jumbo Longyuan, and part of its equity was transferred in November 2020; Li Zhixiong, director and deputy general manager of Jiang Bolong, once served as a director of the company, and retired in December 2020.　

　　In 2018, Jiang Bolong sold storage products such as solid state drives to Wuhu Jinsheng Electronic Technology Co., Ltd. for 411,200 yuan. The company that changed the company to Jiang Bolong’s director Zhu Yu once served as a director has stepped down in June 2018.　

　　In 2018 and 2019, Jiang Bolong sold storage products such as wireless memory to Shenzhen Smart Bay Technology Co., Ltd. for 33,000 yuan and 10,800 yuan respectively. The company is an enterprise in which Cai Huabo’s eldest brother Cai Jinjiang holds 51.14% of the shares and serves as the general manager and executive director.　

　　Cai Huabo and Cai Lijiang, the actual controllers, have provided unlimited guarantees for wholly-owned subsidiaries.　

　　According to the prospectus, Jiang Bolong’s actual controllers Cai Huabo, Cai Lijiang and others have provided unlimited guarantees for Hong Kong Jiang Bolong, a wholly-owned subsidiary of the company.　

　　From July 29, 2015 to June 27, 2018, Cai Huabo provided unlimited guarantee for Hong Kong Jumbolong, which has been fulfilled; From June 29, 2016 to April 13, 2018, Cai Huabo, Cai Lijiang, Li Zhixiong and Netcom Technology (HK) Limited provided unlimited guarantee for Hong Kong Jumbolong, which has been fulfilled; From May 25, 2018 to August 19, 2021, Cai Lijiang provided unlimited guarantee for Hong Kong Jumbolong, which has been fulfilled; From June 27, 2018 to August 19, 2021, Cai Huabo provided Hong Kong Jiang Bolong with a guarantee of 75 million US dollars, which has been fulfilled. In addition, since January 12, 2018, Cai Huabo has continued to guarantee Hong Kong Jumbolong, which has not been fulfilled yet.　

　　In order to meet the normal capital demand under the background of the rapid development of Jiangbolong’s business, the company borrowed funds from Netcom Technology (HK) Limited and Shenzhen Jiangbolong Holdings Co., Ltd., which were controlled by the actual controllers, for temporary capital turnover. The above-mentioned capital borrowing was completed in 2018, and the interest was paid to Netcom Technology (HK) Limited with reference to the Hong Kong Interbank Offered Rate in the same period. The interest was not accrued for the capital borrowing from Shenzhen Jiangbolong Holdings Co., Ltd. due to its short term and small amount. Wang Jingyang and Bai Hongtao used personal funds as the company’s working capital outside the reporting period, and the above-mentioned funds were cleared in 2019.　

　　Jiang Bolong has twice borrowed funds from Netcom Technology (HK) Limited, amounting to US$ 4.9 million and US$ 12 million respectively; RMB 14 million was borrowed from Shenzhen Jiangbolong Holdings Co., Ltd..　

　　Outside the reporting period, Wang Jingyang and Bai Hongtao used personal funds as the company’s working capital, amounting to 3.57 million yuan and 1.42 million yuan respectively.　

　　In addition to the above matters, Jiang Bolong also has receivables and payables from related parties.　

　　The associated sales price is low. Shenzhen Stock Exchange asks whether the benefits are transferred.　

　　Shenzhen Stock Exchange’s second round of audit inquiry on Jiang Bolong shows that in 2019, Jiang Bolong sold 114 million yuan to related party Youxiang International (Hong Kong); In 2018-2019, it sold 20,035,100 yuan and 13,083,700 yuan to Hengchu Trade respectively, and sold 6,825,800 yuan and 24,214,400 yuan to friends and partners. In 2020, it will sell 25,855,700 yuan to CLP Port. The selling price of Jiangbolong to related parties is far lower than the selling unit price of similar products. For example, the selling unit price of Jiangbolong to Youxiang International in 2018-2019 ranged from 14.71 yuan/piece to 26.57 yuan/piece, while the average selling unit price of Jiangbolong’s solid-state drives in the same period was 108.74 yuan/piece and 143.28 yuan/piece.　

　　Shenzhen Stock Exchange requires Jiang Bolong to explain the fairness of related party transactions, the reason why the issuer’s sales price to related parties is much lower than the unit price of similar products, whether there is a big difference between the content and model of products sold by the issuer to the related parties and the issuer’s main product sales structure, the necessity and rationality of related transactions, and whether there is any interest transfer situation.　　

　　Jiang Bolong said in his reply that Hong Kong Youxiang is mainly engaged in the trade of electronic products such as storage, and has certain customer resources and sales channels in the field of storage products. Through cooperation with it, the company aims to expand the market sales of storage products such as solid state drives with its customer resources and sales channels, and it is necessary and reasonable to sell products to it.　

　　At the same time, in addition to selling to Hong Kong Youxiang, the company also sells the same model products to other unrelated third-party customers, accounting for about 20% of the sales to Hong Kong Youxiang, and the sales unit price is basically the same as that of unrelated third parties, so there is no interest transfer.　

　　Therefore, the difference between the sales price calculated by the company from Hong Kong Youxiang and the overall sales unit price of the company’s solid-state hard disk is mainly due to the difference in storage capacity and specifications, and the price calculated based on storage capacity is relatively small; It is necessary and reasonable for the company to sell products to Hong Kong Youxiang. The sales of the same model products to Hong Kong Youxiang account for a relatively small proportion, and the sales unit price is basically the same as that of unrelated third parties, so there is no interest transfer.　

　　When the time of equity transfer approached the end of the reporting period, it was asked whether it was obvious to regulate profits and whitewash performance.　

　　Shenzhen Stock Exchange’s first inquiry about Jiang Bolong showed that the company’s investment income from the disposal of long-term equity investment in 2020 was 107 million yuan, mainly due to the sale of a 2.61% stake in Microelectronics.　

　　In November, 2020, Jiangbo Longzi Company Tibet Yuanshi transferred 0.78% and 1.83% equity of a microelectronics company to Kaiying Venture Capital and Chuangke Town respectively. After the completion of the above-mentioned equity transfer, Jiang Bolong’s remaining shareholding ratio in a microelectronics company was 4.79%. At the same time, he no longer sent directors to a microelectronics company and did not participate in its daily operation and management activities, which was considered to have no significant impact on it. He adjusted the remaining 4.79% equity to other non-current financial assets and re-measured it at fair value. As the fair value of a microelectronics company’s equity was higher than the book value of long-term equity investment, a large amount of current investment income was recognized. According to public information, after the transfer, Jiang Bolong remains the third largest shareholder of Deyi Microelectronics.　

　　Deyi Microelectronics is mainly engaged in the design, technical development and sales of master control chips, and is the upstream manufacturer of the issuer’s industrial chain. In 2018 and 2019, Jiang Bolong purchased master control chips from Deyi Microelectronics for 15.5693 million yuan and 5.1410 million yuan.　

　　One of the questions asked by Shenzhen Stock Exchange to Jiang Bolong on the above issues is: combining the payment time and the change time of industrial and commercial registration, it shows that it is reasonable for the issuer to confirm the investment income of a microelectronic equity sold until 2020; whether there is obvious motivation to control profits and whitewash performance when the above equity transfer time is near the end of the reporting period, and whether Kaiying Venture Capital and Maker Town are related or closely related to the issuer’s actual controller, Dong Jiangao and their related parties.　

　　Shenzhen Stock Exchange asked Jiang Bolong to explain the reasons for not appointing directors to Deyi Microelectronics in the light of the current composition of the board of directors of Deyi Microelectronics and the fact that the issuer’s shareholding ratio is higher than that of the above-mentioned shareholders who have appointed directors to Deyi Microelectronics. Whether the basis for determining that the issuer has no significant influence on Deyi Microelectronics is sufficient, whether it should be determined that it has a significant influence on Deyi Microelectronics in accordance with the principle of substance over form, and whether there are cases in which a large amount of investment income is confirmed by not appointing directors and changing the accounting of Deyi Microelectronics.　

　　Jiang Bolong said in response to the two rounds of audit inquiries of Shenzhen Stock Exchange that the company’s equity transfer time was near the end of the reporting period, and it was fully considered to obtain a microelectronics equity financing arrangement, and it was determined through consultation with the counterparty that there was no motivation to regulate profits and whitewash performance, and there was no case of confirming a large amount of investment income by not sending directors or changing the accounting of Duiyimicroelectronics.　

　　Small market share　

　　According to the data released by China Flash Memory Market (CFM) and Omdia(IHS Markit), in 2020, the company ranked seventh in the global market share of eMMC products, third in the global market share of Lexar memory cards and fourth in the global market share of Lexar flash drives. According to public information, the market share of DDR5 is expected to rapidly surpass DDR4.　　

　　The Shenzhen Stock Exchange asked Jiang Bolong to briefly explain the differences in application fields, implementation functions, storage capacity and technical routes of various products of the issuer; Explain the difference between the technical level of the issuer’s main products and its main competitors, and the price difference between the issuer’s main sales price and the similar products with the same specifications of its main competitors, and analyze whether the issuer is competitive compared with its main competitors; Combined with the substitution of DDR5 for DDR4 and the latest technology development in the storage industry, this paper explains whether the issuer’s main product types and technical routes are facing the risk of being replaced or eliminated, and gives a risk warning in the prospectus.　

　　Jiang Bolong said in his reply that the global semiconductor memory market is huge, and the company’s operating income is growing rapidly, but the market share is small and there is broad room for growth.　

　　Memory, as an irreplaceable functional device in the fields of consumer electronics, communication equipment and Internet of Things, is now　

　　One of the most widely used core components in the information industry, in the global integrated circuit market, memory cores　

　　Chip has always been the product category with the largest market share of integrated circuits. According to the World Semiconductor Trade Statistics Organization　

　　(WSTS) data, the scale of the global integrated circuit industry in 2020 is 361.226 billion US dollars, of which memory cores　

　　The chip scale is $117.482 billion, accounting for 32.52% of the total scale of the integrated circuit industry.　

　　In 2018, 2019 and 2020, the company’s operating income was 4.228 billion yuan, 5.721 billion yuan and 7.276 billion yuan respectively. Based on the global semiconductor memory market size calculated by the World Semiconductor Trade Statistics Organization (WSTS), the company’s operating income accounted for only 0.40%, 0.78% and 0.90% of the global semiconductor memory market size, and its market share remained.　

　　Save a commercial secret infringement dispute litigation.　

　　Jiang Bolong has a commercial secret infringement dispute litigation. According to the prospectus, the case is in the first instance stage and is currently undergoing judicial appraisal related to the facts of the case.　

　　Trade secret infringement dispute: Jiang Bolong sued the Shenzhen Intermediate People’s Court on the grounds that the defendants Hao Lu, Zhao Ying and Shenzhen Jingcun Technology Co., Ltd. infringed the trade secret of Jiang Bolong’s testing technology. On June 22, 2020, the Shenzhen Intermediate People’s Court issued the Notice of Accepting Cases to accept the case. Defendant Hao Lu was a retired employee of Jiang Bolong and participated in the research and development of LPDDR3 testing technology. Jiang Bolong discovered that the defendant was selling products containing the above testing technology in the market at the end of 2018, so he sued the defendant to stop the infringement and jointly compensated Jiang Bolong for economic losses and punitive damages totaling 132,044,800 yuan.　

　　The subject matter involved in the above case is a test algorithm protected by Jiang Bolong in the form of trade secrets, not Jiang Bolong’s patented technology. The relevant testing algorithms are mainly used for testing LPDDR3 DRAM products. When the defendant infringes, because Jiangbolong still sells LPDDR3 products, the relevant testing technology is of certain importance. With the iterative upgrade of Jiangbolong LPDDR DRAM product line, the sales revenue and proportion of LPDDR3 decreased year by year. However, because LPDDR3 is still widely used in the low-end market, the related technologies still have great economic value for storage enterprises that mainly focus on this market.　

　　Jiang Bolong disclosed the draft prospectus on December 9, 2021, showing that as of the signing date of the prospectus, the case was in the first instance stage. At present, judicial expertise related to the facts of the case is being carried out.　

　　In addition, Jiang Bolong’s WeChat WeChat official account published a message on July 13, 2020. On July 7, 2020, the company suddenly received a lawyer’s letter from Jingcun Company, claiming that Jiang Bolong deliberately concealed the facts and framed others.　

　　Regarding the above lawyer’s letter, Jiang Bolong said that the company has sent a lawyer’s letter in time to reply, pointing out that the viewpoint of the other lawyer’s letter can’t be established at all, and reserves the right to safeguard its rights and interests by legal means.　

　　In addition, Jiang Bolong still has a labor dispute.　

　　On April 2, 2021, Jiang Bolong received the Notice of Respondent issued by the People’s Court of Nanshan District, Shenzhen, Guangdong Province. Ceng Sheng, a retired employee of Jiang Bolong, appealed for a judgment to order Jiang Bolong to fulfill the Supplementary Agreement of the Technology Transfer Framework Agreement, grant him 15,000 shares (tentatively 15,000 yuan) and bear the legal costs of the case.　

　　On December 5, 2019, Jiang Bolong signed the Technology Transfer Framework Agreement with three natural persons, including Chengdu elegant demeanour Electronic Technology Co., Ltd. (hereinafter referred to as "Chengdu elegant demeanour") and Ceng Sheng, stipulating that Jiang Bolong would receive some technologies from Chengdu elegant demeanour; On December 6, Jiang Bolong and Ceng Sheng signed the Supplementary Agreement to the Framework Agreement on Technology Transfer, stipulating that Jiang Bolong hired Ceng Sheng and others as employees, who were entitled to join Jiang Bolong’s employee equity incentive plan; On December 11th, Shanghai Jiang Bolong and Ceng Sheng signed the Labor Contract.　

　　On March 27th, 2020, Ceng Sheng and Shanghai Jiang Bolong signed the Agreement on Dissolution (Termination) of Labor Relations (hereinafter referred to as "Dissolution Agreement"), and Shanghai Jiang Bolong gave Ceng Sheng one-off compensation, and the Technology Transfer Framework Agreement, the Supplementary Agreement to the Technology Transfer Framework Agreement signed by Ceng Sheng and Jiang Bolong and the relevant equity incentives in the employment notice became invalid at the same time. On April 7th, 2020, Shanghai Jiangbolong paid all the severance compensation to Ceng Sheng in one lump sum according to the Termination Agreement.　

　　On May 17th, 2021, the People’s Court of Nanshan District, Shenzhen City, Guangdong Province ruled that the case was not an ordinary civil contract dispute but a labor dispute, and dismissed the plaintiff Ceng Sheng’s lawsuit. On May 23, 2021, Ceng Sheng refused to accept the above ruling and appealed to the Shenzhen Intermediate People’s Court. On July 8, 2021, the Shenzhen Intermediate People’s Court issued a Civil Ruling (2021) No.19702, which rejected the appeal and upheld the original ruling.　

　　In addition, Shanghai Jiang Bolong brought a lawsuit to the Yangpu District People’s Court in Shanghai for Ceng Sheng’s violation of the Agreement on Termination, requesting Ceng Sheng to return all the severance pay. On June 29th, 2021, the People’s Court of Yangpu District, Shanghai made the Civil Judgment (2021) No.11124 at the beginning of the Republic of China, and the judgment dismissed the claim. On August 10, 2021, Shanghai Jiang Bolong appealed to the Shanghai No.2 Intermediate People’s Court, and the case is still under trial.　

　　Cai Huabo, the controlling shareholder, is a witness in the bribery case.　

　　According to the prospectus, Cai Huabo, the controlling shareholder of Jiang Bolong, was involved in the case of Ji Zhen, the former deputy head of Nanshan District, Shenzhen, as a witness.　

　　According to the criminal judgment No.350 (2017) at the beginning of Guangdong 03 Criminal Sentence made by Shenzhen Intermediate People’s Court on December 18, 2017 and the Criminal Ruling No.395 (2018) at the end of Guangdong Criminal Sentence made by Guangdong Higher People’s Court on June 8, 2018, Ji Zhen supported his student Zeng Moming to start a business. Introduce to Cai Huabo that Shenzhen Huade Innovation Technology Co., Ltd. (hereinafter referred to as "Huade Company") cooperated with Jiang Bolong Co., Ltd. in SSD testing. Huade Company’s business scope includes integrated circuit business and Jiang Bolong Co., Ltd. has outsourcing cooperation in testing business with other manufacturers. Jiang Bolong Co., Ltd. signed an entrusted testing contract with Huade Company and paid the testing fee of 1 million yuan, but Huade Company failed to fulfill the corresponding contractual obligations, and this testing fee was actually occupied by Ji Zhen. Hou Jizhen was convicted of accepting bribes and corruption, and the case has been closed.　

　　Except for Cai Huabo, who assisted the public prosecution in this case, neither Jiang Bolong nor Cai Huabo was put on file for investigation or prosecution by the judicial authorities, and no criminal compulsory measures were taken. According to the Letter of Work issued by Shenzhen People’s Procuratorate on March 24th, 2021, Jiang Bolong Limited and Cai Huabo were not put on file for investigation by Shenzhen People’s Procuratorate, and were not prosecuted by Shenzhen People’s Procuratorate for suspected criminal offences. According to the Certificate of No Criminal Record issued by shenzhen public on February 8, 2021, Cai Huabo was not found to have a criminal record from March 6, 1976 to February 5, 2021.　

　　According to the refereeing document network, in the first half of 2013, Shenzhen Jiangbolong Electronics Co., Ltd. (hereinafter referred to as "Jiangbolong Company") applied to the Nanshan District Government for funding for science and technology projects, and with the help of the defendant Ji Zhen, it finally won the funding for science and technology projects of RMB 2 million. Since then, Ji Zhen asked Cai Mobo, the chairman of the company, that the company sign an entrusted test contract with Huade Company and pay the test fee of RMB 1 million. Cai Mobo agreed. On November 27th, 2013, Ji Zhen appointed Zeng Moming to sign a contract with Jumbolong Company on behalf of Huade Company. On January 6, 2014, Jumbolong Company transferred RMB 1 million to Huade Company. The contract was not actually performed, and it was a false contract. The so-called test fee was the benefit fee charged by Ji Zhen to Jiang Bolong Company, which was used by Ji Zhen for personal purchase.　

　　The testimony of the witness Zeng Moming (general manager of Huade Company) proves that one day in October 2013, Ji Zhen took Hua Mouzhi and me to visit Jiangbolong Company and introduced us to each other in the office of Cai Mobo, the head of Jiangbolong Company. A few days later, Ji Zhen asked me to go directly to Cai Mobo in the name of Huade Company, saying that there was a project cooperation between the two sides, amounting to 1 million yuan. As for the cooperation content, he did not mention it to me. After I met Cai Mobo, I asked him if he had a cooperation project of 1 million yuan. Cai Mobo said that Ji Zhen had already agreed with him, and there was no need to talk about it. Then he asked a manager surnamed Zhang from his company to come to his office to meet me specifically. I introduced the situation and left. A week later, Manager Zhang invited me to meet with Jiang Bolong Company. There were me, Manager Zhang and another manager Liu (female, in her fifties) of Jiang Bolong Company present. They put forward a contract on the spot, and the contents were not agreed, so they let me go back. Not long after, manager Zhang sent me the contract, the content of which was about testing the performance of memory. The contract was signed by manager Zhang on behalf of Jiangbolong Company. After I printed it, I signed and sealed it for Qiangmou and sent it back to Jiangbolong Company for signature and seal. At the beginning of 2014, Jumbolong Company transferred RMB 1 million to Huade Company by means of public-to-public bank transfer between companies, and Huade Company also provided corresponding invoices to Jumbolong Company.　

　　The dividend for two years is nearly 80 million yuan.　

　　According to the prospectus, Jiang Bolong distributed cash dividends of 20 million yuan and 59.3383 million yuan in April 2018 and May 2021 respectively.　

　　On April 9, 2018, Jiang Bolong’s shareholders’ meeting reviewed and approved the profit distribution plan for 2017, and distributed a cash dividend of 20 million yuan (including tax) to all shareholders.　

　　In 2019 and 2020, Jiang Bolong did not distribute dividends.　

　　On May 20th, 2021, Jiangbolong shareholders’ meeting reviewed and approved the profit distribution plan for 2020, and distributed a cash dividend of 1.60 yuan (including tax) to all shareholders for every 10 shares, totaling 59.3383 million yuan (including tax).　

　　Regarding the above cash dividends, Shenzhen Stock Exchange asked Jiang Bolong to analyze and explain the necessity and appropriateness of the relevant large cash dividends, and whether they match with Jiang Bolong’s financial situation, focusing on analyzing and explaining the rationality of Jiang Bolong’s cash dividends in the case of losses in 2018, such as the articles of association of Jiang Bolong. Explain the use of dividend funds of Jiang Bolong’s actual controller and major shareholders.　

(Source: Qianweiyang Kitchen Guan Wei)

Interpretation of financial reports in the primary market, paying attention to the issuance process

On June 19, 2020, the CSRC disclosed in advance the application of Zhengzhou Qianweiyang Kitchen Food Co., Ltd. (hereinafter referred to as "Qianweiyang Kitchen") to "queue up" for listing. Looking back on history, in 2012, Qianweiyang Kitchen was wholly-owned by Zhengzhou Missing Food Co., Ltd. (hereinafter referred to as "Zhengzhou Missing Food"), a subsidiary of Synear Food Holdings Limited. Then in 2016, Qianweiyang Kitchen became independent from the missing system, focusing on expanding the catering channel market of quick-frozen noodles and rice products. As a former controller of missing food, how will Li Wei realize its development plan of "recreating 3-5 core categories exceeding 100 million yuan in existing products" with Qianweiyang Chef?

As a supplier of quick-frozen noodles and rice products of well-known chain catering brands such as KFC, Pizza Hut and Haidilao, the performance of Qianweiyang Chef in recent years is "average", but at the same time, Qianweiyang Chef is faced with problems such as lower gross profit margin than its peers, declining capacity utilization rate, and "dependence" on a single customer. In the face of the complex market environment, can Qianweiyang Chef "break through"? It’s still unknown.

one

The actual controller Li Wei holds 62.49% of the shares and "takes the helm" of 56 companies.

This listing, the sponsor of Qianwei Yangchu Cooperation is Guodu Securities Co., Ltd., the auditor is Deloitte Touche Tohmatsu Certified Public Accountants, and the law firm is Beijing Jingtian Gongcheng Law Firm.

According to the prospectus, the controlling shareholder of Qianwei Yangchu is Gongqingchengji Enterprise Management Consulting Co., Ltd. (hereinafter referred to as "Gongqingchengji"), with a shareholding ratio of 62.49%. Li Wei directly holds 100% equity of Gongqingchengji and indirectly controls 62.49% equity of Qianweiyang Kitchen, which is the actual controller of Qianweiyang Kitchen.

It should be pointed out that Li Wei, with a bachelor’s degree, did not hold a post in Qianweiyang Kitchen. In addition to Qianwei Restaurant, Li Wei also controls 8 overseas enterprises such as for Joy Development Limited and Genki HoldingsLimited, and 47 domestic enterprises such as Zhengzhou Huanghe Daguan Co., Ltd. and Henan Hailang Real Estate Co., Ltd..

As of June 8, 2020, the signing date of the prospectus, Qianwei Yangchu has a total of 16 shareholders. Except for Gongqingcheng, the top ten shareholders are Shenzhen Qianhai New Hope Chuangfu No.1 Investment Partnership, Zhuji Shangde Hewei Investment Partnership, Gongqingcheng Kaili Investment Management Partnership, Suqian Hanbang Investment Management Co., Ltd., Shenzhen Netju Investment Co., Ltd., Wei Xiuyan, Weng Lei, Zhao Jianguang and Beijing Jianyuan Times Investment Management Center.

Looking at the situation of its director, there are 8 directors on the board of directors of Qianwei Yangchu, including 3 independent directors; There are 3 supervisors and 4 senior managers.

Jian Sun, with a bachelor’s degree, is currently the chairman of Qianwei Yangchu and the executive director of Xinxiang Qianwei Yangchu Food Co., Ltd. (hereinafter referred to as "Xinxiang Qianwei"). He has served as a salesman of Henan Tianlong Industrial Co., Ltd.; Zhengzhou Miss Business Representative, Shanghai Company Manager, Hong Kong Company Manager and Deputy General Manager of Marketing Center; General manager of sales of Henan Yishengyuan Food Co., Ltd.; Deputy General Manager of Zhengzhou Central Daguan Real Estate Co., Ltd., etc.

Bai Rui, master’s degree, is currently the director and general manager of Qianwei Central Kitchen and the manager of Xinxiang Qianwei; He has served as an accountant in the Finance Department of Henan Guanlian Decoration Engineering Co., Ltd.; Accountant in charge of Henan Branch of Hisense Kelon Electric Co., Ltd.; Zhengzhou misses the manager of the settlement department, the manager of the fund management department and the assistant to the deputy general manager of the marketing center.

2

Mainly engaged in the production and sales of quick-frozen noodle rice products, accounting for over 90% of revenue.

According to the prospectus, Qianweiyang Kitchen was established on April 25, 2012, and its main business is the research and development, production and sales of quick-frozen noodle rice products for catering enterprises. According to the processing methods, quick-frozen noodle rice products can be divided into four categories: frying, baking, cooking, dishes and others. The specific products include fried dough sticks, sesame balls, egg tarts, sweet potato balls and cartoon bags.

From 2017 to 2019, the main business income of Qianwei Yang Kitchen was 592.9004 million yuan, 700.8488 million yuan and 888.6315 million yuan respectively. Among them, the total income of frying, baking and cooking products in the same period was 577,119,600 yuan, 690,869,300 yuan and 866,225,600 yuan respectively, accounting for 97.34%, 98.58% and 97.48% of the main business income in the same period, which was the main source of the main business income of Qianwei Central Kitchen.

In addition, from 2017 to 2019, the realized income of dishes and other products was 15.7808 million yuan, 9.9794 million yuan and 22.4059 million yuan respectively, accounting for 2.66%, 1.42% and 2.52% of the main business income in the same period, accounting for a relatively small proportion.

three

The upstream market is fully competitive, and the price of raw materials may fluctuate.

According to the prospectus, Qianweiyang Kitchen belongs to the quick-frozen noodle rice products industry. The upstream of the industrial chain mainly includes rice, noodles, oil, meat, vegetables, miscellaneous grains and other raw materials. The price and quality of raw materials are the two major factors that quick-frozen food enterprises are most concerned about.

It should be noted that raw material expenditure is the main operating cost of quick-frozen noodle rice products enterprises, and the development of upstream industry and the change of agricultural and sideline products prices have an important impact on the production and sales of quick-frozen noodle rice products industry; Although the upstream industries provide all bulk agricultural products (000061, stock bar) with full market competition, there is rarely a shortage of supply, but due to the complex and changeable economic situation in recent years, the prices of raw materials supplied by the upstream industries are still unstable, which has a certain degree of adverse impact on the development of the quick-frozen noodle and rice products industry.

According to the prospectus, the downstream of Qianweiyang Kitchen is online and offline sales channels and cold chain logistics industry. At present, there are two mature offline sales channels for quick-frozen noodles and rice products. One is to connect with C-end consumers through shopping malls, supermarket chains, convenience stores, etc., and the other is to distribute them to B-end customers such as restaurants, enterprises and institutions, hotels, etc. through self-management and distribution.

In addition, the market demand and development level of downstream industries determine the future development direction and scale of the quick-frozen noodle and rice products industry. At the same time, with the sustained development of the national economy and the increasing awareness of consumers on food health, the products of the quick-frozen noodle and rice products industry have been continuously improved in quality and various indicators. Therefore, the quick-frozen noodle rice products industry and the downstream industry promote each other and develop circularly.

four

The performance is "average" and the gross profit margin is lower than the average level of peers.

In recent years, the performance of Qianweiyang Chef has been "mediocre".

According to the prospectus, in 2017-2019, the operating income of Qianwei Central Kitchen was 593,317,100 yuan, 701,202,700 yuan and 889,282,900 yuan respectively, which increased by 18.18% and 26.82% respectively in 2018-2019.

In the same period, the net profit of Qianwei Yangchu was 46,559,100 yuan, 58,678,900 yuan and 74,121,300 yuan respectively, which increased by 26.03% and 26.32% respectively in 2018-2019.

(Source: Qianweiyang Kitchen Prospectus)

From 2017 to 2019, the net cash flow generated by the operating activities of Qianwei Central Kitchen was 91,522,200 yuan, 12,413,000 yuan and 86,412,700 yuan respectively.

It is worth noting that in recent years, the production and sales rate and capacity utilization rate of Qianweiyang Kitchen have shown a downward trend.

From 2017 to 2019, the sales volume of Qianwei Yang Kitchen was 54,875.48 tons, 63,550.1 tons and 76,598.86 tons respectively, and the production and sales rates were 98.14%, 98.9% and 94.98% respectively. The capacity utilization rates are 87.37%, 100.4% and 81.29% respectively.

In recent years, the gross profit margin of Qianweiyang Kitchen is lower than the average of the same industry.

In 2017-2019, the gross profit margin of Qianwei Yang Kitchen was 22.69%, 23.83% and 24.5% respectively, while in the same period, Sanquan Food (002216, shares bar), Anjing Food (603345, shares bar), Zhongyin Babi, Haixin Food (002702, shares bar) and Huifa.

In this regard, Qianweiyang Kitchen said that due to the obvious differences in sales models, downstream customers, product structure and sales scale of comparable companies in the same industry, the gross profit margin also showed certain differences.

five

The top five suppliers account for nearly 50% of purchases, which may constitute a "dependence" on a single customer.

According to the prospectus, the sales model of Qianweiyang Kitchen is mainly divided into direct sales and distribution, and the two are relatively stable. From 2017 to 2019, the sales revenue of Qianweiyang Kitchen’s distribution model accounted for 59.41%, 59.31% and 58.98% respectively; In the same period, its direct sales revenue accounted for 40.59%, 40.69% and 41.02% respectively.

From 2017 to 2019, the total sales of Qianwei Yang Kitchen to the top five direct customers were 218,028,400 yuan, 255,128,100 yuan and 320,882,300 yuan respectively, accounting for 36.75%, 36.38% and 36.08% of the total operating income in the same period respectively.

During the reporting period, that is, from 2017 to 2019, the total sales of Qianwei Yangchu to the top five distribution customers were 56,518,600 yuan, 77,401,700 yuan and 100,831,300 yuan respectively, accounting for 9.53%, 11.04% and 11.34% of the total operating income in the current period, respectively, and the proportion of revenue showed an upward trend.

It should be pointed out that from 2017 to 2019, the sales revenue of Qianwei Yangchu to the largest customer Yum! China Holdings Co., Ltd. (hereinafter referred to as "Yum! China") and its related parties accounted for 29.95%, 30.2% and 30.72% of the operating income respectively.

In this regard, Qianwei Yangchu said that as a T1 supplier of Yum! China, Qianwei Yangchu has a stable cooperative relationship with Yum! China, but there is still the risk that Yum! China will reduce orders or even terminate cooperation in the future, which will lead to a decline in the operating performance of Qianwei Yangchu.

In recent years, the suppliers of Qianweiyang Kitchen are more concentrated.

From 2017 to 2019, the purchase amount of Qianwei Yang Chef from the top five suppliers was 176.229 million yuan, 199.4039 million yuan and 261.8332 million yuan respectively, accounting for 48.12%, 46.14% and 47.05% respectively in the same period.

six

The total fundraising exceeds 409 million yuan, which will increase the production capacity by 80%.

With this listing, Qianwei Yangchu plans to raise 409 million yuan, which will be used to invest in "Xinxiang Qianwei Yangchu Food Co., Ltd. Food Processing Construction Project (Phase III)" and "Headquarters Base and R&D Center Construction Project" respectively.

Among them, the "Xinxiang Qianwei Yangchu Food Co., Ltd. Food Processing and Construction Project (Phase III)" plans to use 377 million raised funds, and the planned construction period of the project is 24 months. The implementation subject is Xinxiang Qianwei, a wholly-owned subsidiary of Qianwei Yangchu. The project has a total land area of 35,288 square meters and a total construction area of 53,760 square meters, including 30,000 square meters of food processing workshops (double floors) and 23,760 square meters of three-dimensional cold storage. After the completion of the project, the production scale of quick-frozen rice products with an annual output of 80,000 tons will be formed.

It is worth noting that in 2019, the existing production capacity of Qianweiyang kitchen products was 99,200 tons, that is, the new production capacity of the above projects accounted for 80.65% of its existing production capacity.

Qianweiyang Kitchen said that after the above-mentioned projects are completed and put into production, the overall capacity utilization rate of the company will reach over 90% by then. Considering the seasonality of product sales and the gradual increase of market concentration of large-scale quick-frozen noodle rice products, the issuer’s new capacity increase will basically be digested.

On the other hand, Qianweiyang Chef also admits that the investment projects with raised funds fail to achieve benefits as scheduled, or the market situation changes unpredictably after production, or the company cannot effectively explore new markets. After capacity expansion, the company will have certain risks of unsalable products or idle capacity.

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Wonderful review of the past

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This article first appeared on WeChat WeChat official account: Jinzhengyan. The content of the article belongs to the author’s personal opinion and does not represent Hexun.com’s position. Investors should operate accordingly, at their own risk.

Wen | Deep-sounding Zuyang

Last year’s short play, which was soaring all the way, is still "YOLO" in the Spring Festival this year.

In the past Spring Festival, short plays took 800 million yuan in just eight days, accounting for one-tenth of the box office of the Spring Festival movies. When Spring Mountain School, Stealing Photos and Sora are hot searches, short plays still hold up a public opinion position: the Spring Festival explosion "I became a stepmother in the 1980s" has become the focus of hot discussion from the leading actor to the behind-the-scenes trader, and the short play "Big New Year’s Day" in Tik Tok has ignited the "divorce AA system", and the star’s appearance in short plays has once again triggered discussion.

Not only at home, but also overseas short plays during the Spring Festival are in full swing. On the first day of the new year, TopShort, a short drama platform owned by Jiashu, surpassed Netflix in the Japanese iOS bestseller list. Guohai Securities Research Report predicts that the future market space of short dramas will exceed $30 billion.

Although the Spring Festival has passed, the power of the short drama Spring Festival file continues. The short drama concept stocks in the A-share market are all red, and many stocks such as Xinyada, Guomai Culture and Huayang Lianzhong have daily limit. The platform is also constantly overweight, and short plays are becoming more standardized and refined. Recently, bilibili is experimenting with short plays with monthly subscription, and Tik Tok has increased the recommendation of small programs. Aauto Quicker will upgrade the Star Mang short plays this year, which will lower the threshold for creators and increase their income.

At first glance, short drama seems to be a rare growth industry this year, but in fact, most practitioners are cautious about it. When the industry flies through the expansion period, the logic of the tuyere changes quietly, and then it is bound to be a more bitter battle. At the end of the Spring Festival, "Deep Ring" interviewed Wang Xiaoshu, the founder of Jiashu Technology, and discussed three major issues in the short play:

What is the development space for the business model of short plays?

How will the production factors of short plays change?

The short play is still in the wild period, where is the real opportunity?

How will the business model evolve?

There is an unwritten law in the commercial market: after any new track is popular, the capital with a keen sense of smell always gives feedback first. Film and television, reading and comics have all experienced the peak period of financing. On the other hand, short drama, since its birth in July 2021, has seen the daily limit of short drama concept stocks from time to time, but we rarely see the financing behavior of short drama companies.

In Wang Xiaoshu’s view, this is a problem of "business model"-at present, short play is a relatively good and healthy business with relatively good cash flow. In other words, if it’s just a short play of small programs, there is no need for financing.

In fact, according to the different sources of development and business logic, short plays are generally divided into two categories: one is short plays with small programs, which gain users’ attention by investing in streams. After users jump into small programs, they use "plot hooks" to attract users to pay, which is more traffic-oriented in nature. The other category is the boutique short drama released by the platform account. Traditional film and television companies and MCN institutions have settled in accounts and released short dramas on the short video platform, and users can watch them for free, mainly relying on brand implantation.

From this point of view, the business model of short plays has been relatively rich as a whole, including user recharge, information flow advertising and brand implantation. At present, users’ top-up is still the mainstream income mode, and it also contributes the most. In the future, Wang Xiaoshu believes: "There is more free space. In terms of income composition, advertising and brand income will increase substantially this year, and the combined data of the two may exceed the user’s recharge."

Small programs and short plays on the line around the Spring Festival

Indeed, the growth momentum of information flow advertising and brand implantation can be seen in this year’s Spring Festival file.

Last year, "Oh, the Empress Comes to Work", "Mr. Fu’s vest can’t be hidden after the flash marriage" and "Wushuang" were blessed with three explosions, and the advertising of short drama information flow continued to climb up ten million or even over one hundred million. By the Spring Festival this year, the market is even more "rolled up". According to the new wrist report, during the Spring Festival, many platforms gave high-quality traffic and rebate support, and the traffic of Tik Tok short drama applets exceeded that of WeChat short drama applets.

The Spring Festival is the peak period of user activity, and short plays bring their own eye-catching physique, which strongly stimulates users. Advertisers who have always followed users’ attention naturally can’t sit still. During the Spring Festival, they "packaged" a number of short plays in one breath, which gave them a sense of existence.

Judging from the incoming brands, the Internet platform is still a big producer of short plays. For example, Tmall exclusively named three short plays of Aauto Quicker during the Spring Festival, I Open a Bar in Dasong, Yuanyang Duane, and Super Working Family. The short play All the Way Home starring Song Muzi has the exclusive title of JD.COM Automobile.

Short play implantation

Jiashu short play is also cooperating with some brands at present. Wang Xiaoshu told "Deep Sound" that for brand owners, compared with TVC advertising and long drama implantation, the core advantage of short drama lies in "certainty".

First, the preparation and production cycle of short plays is short. Whether shooting or communicating with brands, efficiency is the first criterion. Wang Xiaoshu said that sometimes the screenwriter takes his laptop directly to the brand side to modify, how to implant the picture and what new requirements are there. The two sides communicate in time and can finish the modification in one day and satisfy the brand owner.

Secondly, short plays have less investment and higher cost performance. Under normal circumstances, the production cost of a short play is several hundred thousand, which is similar to the price of shooting a TVC advertisement, but the return rate of a short play is much higher than that of a TVC. A short play with more than ten episodes has a rich product implantation scene, and the brand can be continuously exposed, continuously deepening the audience’s cognitive impression.

Third, short plays are data-driven. After the brand is embedded in the short play, the exposure, the number of interactions and the brand search index are all quantifiable, and the brand owner has more effect indicators to refer to, and he can be "aware" every time he puts it in.

How do various factors of production change?

The development of the above business model is inseparable from the prosperity of content.

The short drama industry has been growing all the way, and two timing nodes are particularly critical. One is that in April 2022, Tik Tok released the launch and jump of WeChat applet, which directly boosted the short play to usher in a huge wave of outbreak. The daily income scale of the short drama industry has rapidly increased from several hundred thousand a day to ten million or more, and the ceiling of growth has been punctured. The other is the influx of professional production companies and MCN institutions, which has raised the professional level of short drama production.

Looking at the Spring Festival movie list, the producers behind it are almost all traditional film and television production companies, and many short plays are adapted from popular film and television IP.

Among the 10 short plays of Spring Festival staged by Tik Tok, "Go beyond it! A Juan is a derivative of the animated film The Lion Boy, which is produced by Beijing Wonderful, a subsidiary of Baina Qiancheng. "It’s windy on my way home" is adapted from the drama "Go to a windy place", which is produced and produced by Huace Film and Television. The game in disguise is a derivative short play of the movie "Put all your eggs in one basket", which is also the first time that a bad monkey has produced a short play.

Aauto Quicker’s short play "Wake up! The master behind Lord castellan is the original team of costume light comedy Protect Our Lord castellan. Guo Xiaoting and Andrew starred in the short play "Super Working Class", and the producer behind it was the other city film industry, which once produced "The annual meeting can’t stop! "Warm" and other movies.

In the small program drama market, we saw the news of the entry and preparation of the famous director team and film production company at the end of last year. Last Friday, the first short play "Violet Robbery" produced by Wanda Pictures and Lehua Entertainment was broadcast on the small program.

After the traditional film and television industry institutions entered the market, they also forced the content production of short plays to usher in iterative upgrading.

The most intuitive change is the adjustment of the talent structure in the industry. Wang Xiaoshu said that almost all the main producers in the short drama market have migrated from long dramas. After these new and truly good talents came in, the original production pattern of the industry was squeezed-the previous head was reduced to second-rate, and those who were not good at learning were directly eliminated.

Taking screenwriter as an example, Yan Min, the founder of short drama insider, once revealed that many screenwriters of short dramas were transformed from network writers, which made many short dramas more like video versions of online texts than traditional film and television production. However, with the specialization of production, Wang Xiaoshu observed that the main screenwriter who wrote well now became the screenwriter who originally wrote long plays, and after the transformation, he was "quite active" in the short play market.

Secondly, the production cost of short plays has been significantly increased. According to Wang Xiaoshu’s memory, the cost of shooting a short program in the early years was around 100,000 to 200,000, and then it gradually doubled to 400,000 and 500,000, and most of the soaring costs were used in shooting and production.

"For a 500,000 film, it may cost 100,000 yuan to buy IP and ask for a screenwriter, and the remaining 400,000 are all shot in seven to ten days."

According to "Deep Sound", according to the production links of short plays, the actor’s expenses account for the bulk of the cost. According to insiders, most of the leading actors are quoted at 3,000 to 5,000, and the head actors have reported tens of thousands of yuan a day. Li Qingling, the head of the micro-short drama business of Gumai Jiahe, once told Shenxiang: In the past, short drama group performances were calculated by the day, but now the price of each group performance has risen to more than 1,000 yuan.

With the blessing of professional teams and the continuous influx of hot money, the corresponding result is that the short drama has moved from the past earthy video of the grass-roots team to refinement and quality.

For example, the most direct change brought about by the rising price of actors is that the face value of actors is more "able to fight". One of the reasons why "I became a stepmother in the 1980s" swept the short video platform is that the hero looks like a collection of Wallace Huo and Sean Xiao.

"Short plays are the product of visual communication. From the user’s point of view, he actually doesn’t care about your cost, but only cares about whether it looks good or not." Wang Xiaoshu said.

I became a stepmother in the 1980s.

Another major upgrade is also reflected in technology. Virtual production, which has been mentioned repeatedly in the long drama market, is now being applied to short drama production.

Produced by Chuangyi Technology (the behind-the-scenes team of Liu Yexi), "Two Lives" is the first short play with virtual production, and 60% of the content is produced by virtual production. The city street view and aerial ropeway in the story are virtual assets. Xie Duosheng, co-founder and chairman of Chuangyi Technology, revealed that the cost of the whole drama is between 5 million and 10 million.

The short play going to sea is not as simple as imagined.

Undeniably, after professional producers entered the market, the cost of driving short plays soared and content production became more difficult. At this time, overseas was regarded as a new blue ocean by many entrants. In the second half of last year, China’s short plays violently drifted to the other side of the ocean, "harvesting" overseas audiences, but also set a highlight moment.

ReelShort, who entered the game earlier, boosted the data explosion growth in June last year with The Double Life of My Billionaire Hubband. After that, the new frequency was stabilized at 2 monthly shifts, and explosions continued to be launched. In November last year, Reelshort pushed TikTok to the first place in the US iOS entertainment list. ShortTV went online in September, 2023, and started to increase rapidly. At the end of September, ShortTV was ranked in the TOP10 of Google Store Entertainment Free List, and it was located in TOP1 for five consecutive days. TopShort, an overseas short drama platform of Jiashu, mainly focuses on the Japanese market, and has produced more than a dozen works. On the first day of the new year, it ranked higher than Netflix in the Japanese iOS bestseller list.

Both TikTok and Netflix are eco-level Internet head players. TikTok is not listed, with a valuation of over 100 billion. Netflix has been deeply involved in streaming media for more than 10 years, with a market value of 260 billion US dollars. The short drama platform, which is just in its infancy, can play against the giants for a short time, which is enough to see its influence in overseas markets.

Overseas explosive short play

But in fact, we see that these growth moments are not sudden behaviors, but the results of the long-term resource accumulation and market education of the short drama platform.

The parent companies or founders behind ReelShort, ShortTV and TopShort all have rich experience in online writing. ReelShort’s parent company, Chinese Online, launched the interactive visual novel platform Chapters from 2017, covering major countries and regions around the world. Wang Xiaoshu, the founder of Jiashu Technology, came into contact with the net in 2018, and then entered the short play platform TopShort, which has produced more than ten short plays before surpassing Netflix.

In the past, the online articles went to sea, which has cultivated a large number of overseas audiences’ cognition and preferences for tyrants, sadomasochism, Xianxia and other types, and accumulated a number of audiences for short plays. At the same time, the web IP also provided a rich and market-proven source reserve, which also laid the foundation for the subsequent short play.

Despite the past experience, in Wang Xiaoshu’s view, short play going to sea is not a short-term thing that can get excessive returns. All companies that do short play going to sea are not interested in the present, but in the opportunities in the market in the next three to five years.

Specific to the practical link, the short play going to sea is not as easy as expected.

For example, at the production level, practitioners must first face the differences in user habits at home and abroad. When TopShort first entered the Japanese market, it directly copied the domestic short plays and themes into the App, but Japanese users did not pay the bill. After that, TopShort began to try local production, and found out that Japanese users liked the theme of "cheating" through trial and error. However, in the short play market in China, "cheating" is only a negative behavior of the story characters, not the main line of the story, but in the Japanese market, it needs to be thoroughly written and filmed to adapt to users’ consumption preferences.

Secondly, China’s short drama companies need to do infrastructure construction to make original short dramas overseas. There is no category of short plays overseas. Directors, screenwriters and directors need to be trained from scratch, and even the most basic translations need to be re-found. Wang Xiaoshu revealed that TopShort visited a large number of Japanese companies in the early stage of its establishment and found many partners before setting up a local team in Japan. When shooting and producing, it is normal to light up and write scripts and communicate with local creators repeatedly.

TopShort short play

In addition to production, casting is also an important part of short plays. After the interconnection between WeChat and Tik Tok in China, short plays broke out. However, it is difficult to find similar breaking nodes overseas.

There is no ecological base for Applets in overseas markets, and there is no super app like TikTok, so the traffic is relatively scattered. However, the advertising materials posted to social media platforms such as Facebook and Tiktok need to be downloaded by users, registered and logged in before they can watch them, and the intermediate link is long, which is likely to cause traffic loss.

From this point of view, it is difficult to copy the story of overnight wealth in short plays overseas. Practitioners also need to be careful before entering the game-whether the level of content creation, risk-taking ability and the preferences of overseas audiences can get used to it, and whether the logic of creating vertical-screen short plays by domestic investment will be accepted by overseas audiences.

The following is part of the dialogue between Shenxiang and Wang Xiaoshu, the founder of Jiashu Technology:

[About business model]

Deep ring: What do you think is the turning point of the sudden outbreak of the short drama industry?

Wang Xiaoshu: The biggest turning point, I think, should be in March, 2012, when Tik Tok released the launch and jump of WeChat applet. The daily income scale of the industry has roughly changed from several hundred thousand a day to 10 million or more within half a year.

Because if it is hundreds of thousands a day, it is actually a business of 100 million to 200 million a year. But when it quickly broke through the ceiling and reached 10 million, it directly became a business of billions a year. Later, from a few billion to this one hundred and twenty billion, I think it has become a natural growth relatively. Therefore, Tik Tok’s intervention and efforts led to a rapid outbreak of short plays.

Deep ring: Now many listed companies are doing short drama business, but I see that startups in the short drama industry actually have no financing behavior, unlike when everyone was reading or making cartoons.

Wang Xiaoshu: I think generally speaking, it (short play) is a relatively good and healthy business with relatively good cash flow.

Of course, there may definitely be changes in the future. For example, if you do APP or AI, its business model will change, and financing may appear one after another. If it is a business model of pure small program payment, most of the company’s cash flow should be quite positive.

Deep ring: nowadays, almost all online companies are doing short plays, and the audiences of short plays and online content are also very coincident, and the payment mode is also very similar. It is also called online PPT, and short plays eat up the online market?

Wang Xiaoshu: At present, the impact is not too great. Short plays are mainly incremental markets. Generally speaking, the number of users who consume video is far greater than the number of users who consume text. In the past, we calculated that the whole novel market may be almost 10 billion a year. Short plays have now reached 30 billion to 40 billion, and it is definitely not squeezed out by this 10 billion.

However, if consumers’ consumption time is regarded as a whole and the overall consumption time has not changed, in terms of the distribution of time, after the rise of short plays, it may be that more people have moved from fragmented ultra-short videos of 15 seconds and 20 seconds to short dramas with relatively long narratives, that is, people who casually brushed short videos in Tik Tok before began to watch short plays, which has little to do with novels.

Deep ring: Because the online text is also paid and free, and now the mode of making money by watching short plays is still paid, do you think there will be any room for it in the future?

Wang Xiaoshu: I think there is a lot of free space. I think advertising revenue and brand revenue will definitely increase substantially this year. Advertising revenue is similar to the income brought by the information flow of effect, and brand revenue includes various implants in the early stage. From the perspective of composition, it is also possible for advertising and brand revenue to reach or even exceed user recharge.

Many people think that you can only make an APP for free, but this is not the case. There are many short drama theaters and a large number of short drama accounts in Tik Tok and Aauto Quicker platforms, and the penetration rate of this model far exceeds imagination. Last year, Aauto Quicker released data that the daily life of short drama users exceeded 260 million. In fact, such a large number of users have watched short dramas for free on Aauto Quicker, which is equivalent to the bottom of the pyramid. The chassis space is very large, and there are many opportunities for mining and screening.

Deep ring: Now there are many opinions that the money of short plays has been earned by the platform. In fact, not only the short play industry, but basically every industry is saying that it is working for Tik Tok and Aauto Quicker. Do you think this kind of benefit distribution is reasonable? Is it possible to change?

Wang Xiaoshu: I think in fact, in terms of business, there will be changes. For example, many short drama companies choose to go to sea this year. In essence, this is a process of exploring a better business model, whether to sell it at home or overseas. This is the problem of business model. I think short drama is a free market. You can freely choose whether to invest or not and where to make money.

However, from the perspective of profit composition, I also think that the income of content creators in the short drama industry is relatively small. This little is relative to movies, which are all about shooting a 100-minute story video, and users pay the bill, but the proportion of making movies may encourage creators more.

Of course, we have also seen some industry changes. For example, Tik Tok and Aauto Quicker have scheduled short plays, which actually encourages content creators to produce high-quality content for the platform. Although the business model is still free, I think it is also a subsidy. How to understand it? The left hand of the platform earns advertising fees by selling free short plays, and the right hand takes out part of the advertising fees to subsidize free short plays. Then the free short plays actually constitute the user base of some paid short plays. I think this cycle is established. Of course, the specific performance depends on the strength of the platform itself.

So I think it should be fine. I think the distribution of the whole profit pattern is dynamically evolving and constantly changing.

Deep ring: I just mentioned that the income composition of short plays includes recharge income, advertising income and brand income. I want to discuss with you again. Where are the difficulties and opportunities for brand implantation of short plays now?

Wang Xiaoshu: Recently, we are also doing a brand short play of a big company. In the process of doing it, we feel that the key lies in the docking of the two sides’ consciousness. We pay more attention to recharge, so advertisers have no demand for recharge, and more hope that its short play will be exposed to a greater extent; Or the brand owner wants to participate in the top-notch performance, then the problem may be that the schedule is relatively tight. In fact, it is understandable. After all, people on both sides of the content side and the brand side do one thing together, and mutual cognitive methods need to be run-in.

Brand owners still recognize the value of short plays. For them, it costs hundreds of thousands to shoot a good commercial, and the short play with similar price is more cost-effective. There are many stories in 100 minutes, so the exposure of the brand is sustainable and the user’s impression will be more profound.

At the same time, because of the way of short play, it is very suitable for publishing from media accounts, no matter whether its own brand account is rising or the brand customized short play is quoted by other platforms, the brand side thinks this is a good deal.

Deep ring: Like short drama implantation and long drama implantation, do you feel that the demands of the brand will be different?

Wang Xiaoshu: It’s not bad. Just kidding, I think short plays have a better sense of service, because we are now cooperating with brands to brand short plays, and the cost of a short play is several hundred thousand. Many brands will pay the full amount in advance, and then we will have a high degree of cooperation, whether we are directors, actors or screenwriters.

Secondly, I think the core is still fast, and it is done quickly by itself, and everyone runs in quickly. Sometimes our screenwriter takes his laptop directly to the brand to make changes. What do you say you want to do and what are your needs? We can make changes normally, and we can finish them in one day, and then satisfy the brand.

So overall, the cycle is short, the investment is small, and the effect of the service is still visible-how much exposure does my account have, how many interactive likes and comments, and will the brand’s search index be improved? These can be quantified. Compared with long plays, short plays are more certain.

Deep ring: Is it more often to directly connect with the brand, or will it be grafted on that platform?

Wang Xiaoshu: Platform. The current advertisers are basically platforms. Because we are also exploring this business model, the biggest advantage of Internet platform companies is that they are still relatively familiar with it. From the perspective of doing business, it is faster to make a list of platforms, and the platform itself has many sub-brands. If all these sub-brands are made in one round, it may be more than a dozen, which is guaranteed in quantity and sustainable. Most consumer brands are difficult to batch.

【 About production factors 】

Deep ring: Are there any important key nodes in your process of making Jiashu?

Wang Xiaoshu: I think "starting to do" is the first. I started writing in July, 2001. I was mainly writing free novels the year before, but I really felt that the best time for free novels had passed. At that time, tomatoes had great advantages, so I was confused about finding directions. Later, I saw this opportunity to combine our own story genes and abilities with trends such as new media and short videos.

Secondly, I think the production and upgrading of the whole content began last year, and many strong people joined in, which will make my understanding of the whole short play more film-oriented. Because at the earliest time, in fact, everyone’s requirements for video were not so high. After the professionals came in, the whole thing was quickly raised, and we also spent a lot of energy to catch up with the average line of the market.

I think these two things are very impressive. One is to seize the opportunity of the starting point. The outbreak of Tik Tok helped us to break the ceiling quickly. The other is that after the short play broke out, many strong people came in, and we also improved with them.

Deep ring: After these professional companies come in, what kind of influence will they have besides raising production costs?

Wang Xiaoshu: I think the production cost is at the level of comparison results. The real difference is that after a large number of Tik Tok MCN and professional production companies that make movies and TV series entered the market, the talent structure of the industry has undergone important changes.

For example, the main screenwriter who writes well now has become the original screenwriter who writes long plays. He has transformed into a short play with small programs and is very active in the market. Including directors and actors are also a migration of long dramas. You finally see the cost increase because the short dramas are finer and better, but in terms of the process, we are more concerned about the change of talents, which has been fully done by talents of medium and long dramas. Now this situation is more and more in the industry.

Deep ring: Are those people who used to do short plays eliminated?

Wang Xiaoshu: In fact, most of them have been eliminated. Of course, there will certainly be some people who are very capable of learning and can be active in the market, but from the perspective of the whole big industry structure, the former head may now be reduced to second-rate, and emerging and really good talents will come in and form a squeeze on them.

Deep ring: It’s like a math problem. After the influx of professionals, the cost will be higher and the profit will be thinner. Does the business model of short play support this surge in cost?

Wang Xiaoshu: So far, it’s actually fine. For example, we say that there may indeed be some producers or platform companies that will suffer mass losses this year, but after the whole market pulls the content to a level because of the head, it looks like malt, just like the situation we are facing, that is, you follow or not, because if you don’t follow, your business can’t go on; At least you have a chance if you follow. If you are in the top five in the whole market, you still make money, and if you are in the top ten, you should not lose money.

Now, the content cost has basically reached a stable period, and its cost growth is slow in a short time or for a long time. In the early years, it changed from 100,000 to 200,000 to 300,000 to 400,000 and 400,000 to 500,000. This change is very strong, and it has doubled. But now you have changed from 400,000 to 500,000, and this growth has become linear, so the impact on us is not great.

Deep ring: Listen, I feel that the short drama practitioners are still in an acceptable state for the platform and professional companies to raise the competition line, right?

Wang Xiaoshu: Objectively speaking, it is actually irreversible.

For practitioners, this incident happened a bit like the early cyber-movie. It was hundreds of thousands in the early days of filming a cyber-movie, and then it may be millions or even tens of millions. Of course, I don’t think short plays are very good, because short plays take the story route, not the special effects route. It will be somewhat different, but I think it can’t be confronted at the regular level. The only way is to actively cooperate with the transformation, because many colleagues have experienced things like what we are experiencing now.

Doing fine products, cultivating high-quality talents, doing more exquisite creativity and refined operations, including brand tonality and content supervision, will all change, so I think this matter is inevitable.

Deep ring: Who is the most central role in the whole process of short play? How to form a more stable relationship between the company and these core talents?

Wang Xiaoshu: In our industry, the core is the script, and we can also tell stories.

In our job, the person in charge of the story is generally divided into two. The first one is product selection, or planning, which mainly sets the general direction and categories. The other is script implementation, which is the familiar screenwriter. These two positions are the editor-in-chief, so simply speaking, this position may be the core driving force. He is setting the direction, and he will go to the script implementation after setting the direction.

In fact, if a play is successful, I think the story accounts for 50%.

Deep ring: Now everyone in the industry is talking about quality, but in fact, users are looking for coolness when watching short plays. He wants a 70-point thing, but if you give him a 90-point quality, he will not appreciate it. So what is the promotion of short drama quality? Service road? Plot? Actor? How to grasp the degree of this boutique?

Wang Xiaoshu: Short plays are mainly aimed at mass consumers. What is our deepest understanding in this field? Many things are driven by human nature. For example, the actor’s face value, the actors we used in our early years, had a few hundred dollars a day, and there were one or two thousand days. Then the actor who is better now is at least five or six thousand a day, and even better, he may spend more than 10 thousand yuan a day. Then the so-called cost increase actually only brings about one change, that is, the face value can be played better.

People like to see beautiful things by nature, so from the user’s point of view, he actually doesn’t care about your cost, he only cares about saying that the short play I saw is good-looking. Many companies do short plays well, and to some extent, they are "rolled out". If you want to be more successful, you must meet the needs of users. The most basic needs of users are to see more beautiful people, more professional acting skills and stronger emotions. In our interpretation, these things are to use better people, so that the audience’s visual experience will be better.

Short play is a kind of visual communication, which is very intuitive. Your service is not good, your face value is not enough, and many problems are particularly obvious. Some angles are also related to its investment.

Nowadays, dozens of new dramas are put on the market every day. When you are in the stream, the paying ability and depth of the drama must be determined by the satisfaction of consumers. If consumers are satisfied, they will pay more. Paying more will make your bid high enough to get traffic. This is completely the logic of users voting with their feet.

So, for example, we both played a play today, and the actor you used was a little better than the actor I used, and everything else was just the same. From a certain point of view, your competitiveness might be stronger than mine. The pricing of short plays is more dynamic, but because your visual effect is better, that user may be willing to pay 50 yuan to watch your film, while my user is only willing to pay 45 yuan, which seems to be only 5 yuan short, but in fact it may be several times worse.

The video itself makes the good and bad exposed very obvious, and at the same time, the business model of streaming makes this gap more "Matthew effect", which is a bit strong and strong. Or, you can understand the investment flow as a lever. Your advantages and disadvantages are magnified by geometric multiples. You may be just a little at first, but the differences in various superpositions are very big in the end.

Deep ring: So do you do it yourself? Or should I outsource to those distributors?

Wang Xiaoshu: I think it is the different strategies of each company. Like a crowd, it will be more comprehensive. Like most of our startups, we will concentrate on one point. Like Kyushu, although we have almost the same time of establishment, Kyushu is basically purely self-funded and has a team of hundreds of people.

Deep ring: As you mentioned just now, the core of the short play is the script. We see that there are statistical data, and 80% of the short IP plays are online. Is this data accurate? I can see people collecting scripts every day in some short drama groups, which gives people a very contradictory feeling. What is the IP supply situation at the source of short dramas?

Wang Xiaoshu: Generally speaking, many heads and explosions are from well-known IP. The head company has its own novel reserve, a stable screenwriter team, and self-made scripts are the main ones. An IP is very classic, so it is normal to change it three times and five times. For example, Dragon King’s Order is a classic male frequency. As far as I know, it has been changed ten times. Ten short plays are called Dragon King’s Order, and the possible differences are gaiden, prequel and 123.

As for accepting scripts, I think it may still be a new company, which has no script ability and its own screenwriter team in a short time, but if he wants to make achievements, he can only buy them. I think this is a strategy of each company at different stages.

Deep ring: How much will it cost to buy IP now? What is the most expensive link in the whole process of short play?

Wang Xiaoshu: If you only count the source of the novel, the general price is tens of thousands of dollars.

If you want to look at it from the perspective of revenue, it is investment, but we generally don’t count investment as cost, which is called marketing expense, because investment will only happen in one situation, that is, your ROI has become positive. If you can’t vote, you won’t vote. If you don’t vote, you won’t lose money. Although the marketing cost is big, it is not the most difficult place. The most difficult thing is the shooting and production of the drama.

If you want to say the most expensive, it may still be the shooting and production. A 500,000 film may cost 100,000 yuan for IP and scriptwriting in the early stage, and the remaining 400,000 mainly happens in shooting. The shooting cycle of short plays is about 7 to 10 days, and the costs of cast members, costumes, scene props, etc. are all spent in 7 to 10 days after starting.

Deep ring: Short drama actors seem to be hard to be recognized by mainstream entertainment circles. Some film and television dramas explicitly say not to play short dramas when casting. What do you think of their development? This has also led to a chain of contempt. Big screenwriters don’t take short plays, and some actors from good schools in China Opera and North Film don’t shoot short plays. Short plays are the feeling of low in many people’s eyes. I wonder if you have any troubles in this regard?

Wang Xiaoshu: I can understand. First of all, it is a new thing. Objectively speaking, the short play business will last for two or three years. People don’t understand it or there are many misunderstandings, and we are very calm inside. Like the online novel industry in the early days, it has developed for more than 20 years since 2002, and then it has entered the mainstream field. The mainstreaming of short plays will also be an inevitable process.

The core of the content industry is the work to speak, whether the actors have acting skills or not, not by speaking, but the core logic is the satisfaction of consumers. Many actors were amateurs before cooperating with us. After cooperating with us, his fans may now reach hundreds of thousands or even millions, which is another way to grow.

Moreover, the fan stickiness of the head comedian is very scary. If the actor’s Tik Tok account has millions of fans, and there are dozens of fans, each with 500 people, then after a play starring him is launched, everyone in the group will comment, like and forward it. I personally think that actors in medium and long plays may spend the same money, but actors in short plays bring millions of fans, and the cost performance is still very high.

Now doing brand short plays, many brand owners will name names and say that I want someone in this industry. He is in line with my brand tonality. This is a very obvious change, and advertisers have begun to pay the bill.

I think a lot of changes are continuous. Just like making the sea now, many medium and long videos are also making the sea for many years, but the short drama has not been out for a long time. Last November, ReelShort (a short drama platform of Chinese online subsidiary) surpassed Netflix in North America, which has produced a very important influence in developed countries around the world. This has never been done before, and many inherent impressions in ideas need to be slowly told with facts and time.

[About going to sea]

Deep ring: When talking about short plays going out to sea, I feel that the maturity of short plays in overseas markets is still much worse than that in China. However, many media reports have made a lot of money by going out to sea, including that foreign users will like the themes that are popular in China. Everyone has some inherent impressions. Are these impressions consistent with the real situation?

Wang Xiaoshu: I think there is a big deviation, and many concepts may be wrong. I made my own sea, and now the company that made the sea used to be my colleague, just everyone or that group of people. Our common understanding is that going to sea is not a short-term behavior.

Because China is a unified big market, everything you do in China is ready-made. You go overseas to do short plays, overseas users are newer and more fragmented, and there are cultural obstacles. You need to do infrastructure work first. On the one hand, it is necessary to cultivate users, so that users can understand short plays and consume them. Secondly, it is necessary to cultivate creators, including screenwriters and directors. For example, when we do short plays in Japan, we have to find new translations from the basic to the most basic, and we have to help Japanese creators how to write scripts, shoot short plays and find rhythm. In any case, this is not a short-term thing that will get excessive returns. Moreover, the cost of overseas drama production is much higher than that of China. If the cost is high and infrastructure is needed, how can we make money? This is so unreasonable.

Therefore, I think it is a long-term behavior to go to sea. All companies that do short plays to go to sea are more interested in the opportunities in this market in the next three to five years.

Deep ring: It’s like you just mentioned that there is a key node in China, that is, Tik Tok has released the jump of WeChat applet and opened up the whole market. Will there be such a node abroad?

Wang Xiaoshu: I don’t think it will happen in foreign countries, because its ecology abroad is originally in the form of App, and App actually focuses on long-term benefits. There is no so-called hypermedia abroad, such as Facebook, Google and TikTok, and the traffic is very scattered, so generally speaking, it won’t change overnight. Its more strength comes from long-term continuous improvement and steady promotion. From this point of view, I don’t think it will have such a particularly exaggerated moment, or it may have. The first two explosions in ReelShort suddenly brought the market up and drove many manufacturers to the sea. Recently, some colleagues and partners have talked to me, and everyone thinks that there will be some landmark events that show that this road is feasible. The course of history cannot be changed, but more people can come in and do it together, that’s all.

Deep ring: TopShort, Jiashu’s overseas short drama platform, launched the "Star Project" at the content production level, giving a list of eight finished dramas. What is the supply of this localized production team? What are the specific methods to cultivate creators in the local market?

Wang Xiaoshu: We are all doing it by local teams in Japan. I think the most basic method is recruitment. In Japan, we have offices, long-term employees, external partners and a lot of visits to many Japanese companies.

Deep ring: Will it appear that the Japanese team will be educated for him, the market will rise, and then people will do it themselves? How can the investment we sow in advance maintain its advantages in the subsequent outbreak?

Wang Xiaoshu: First, your App has users, and user accumulation is your asset. Take Japan as an example. Whether it is the download list or the best-selling list, our Topshort is higher than Netflix, which means that your progress is faster than Netflix at this stage. This is easy to understand. If your growth rate can be maintained for a long time, then you will naturally form your own barriers at the user level and the brand level.

Second, we have a cognitive lead. Now the scale of short plays in China market is very large, which is a good soil for content creators. What kind of lens should be used for shooting, how to adjust your color and how to play your lighting? Slowly, there is an understanding of specific methods and the precipitation of details. It will take a long time for the real local creators to reach the same level of cognition as us in short plays after they have completely grown up.

I think many local talents don’t care so much about which company he must serve. In fact, it is more about which company will have better personal growth and economic returns. I think our enterprises in China still have advantages in this respect. They dare to give new people opportunities and invest in new people to learn. I believe that you have trained 10 such directors, and eventually two or three people think you are very good. This is your precipitation. In the long run, if you make a market in a country and continue to generate profits, you can still survive.

Deep ring: TopShort surpassed Netflix in Japan’s iOS. Why did it suddenly make such a breakthrough? What is the competition situation of short drama App overseas?

Wang Xiaoshu: Surpassing Netflix is a dominant result, and our process is always iterative.

Topshort is the same as ReelShort. Almost a dozen films have been filmed in Japan, and the App has been launched for a while. Our understanding of the Japanese market is improving. At the beginning, we translated dramas online and translated domestic dramas overseas. If the results are not good, then adjust, what kind of Japanese users like, what kind of aesthetics they have for actors, and constantly communicate with local creators.

To tell the truth, the taste of Japan will actually be heavier. Japanese dramas like cheating, but this is not a particularly big category in China. We are mainly fond of cheating. Cheating may be just a negative behavior of love rat, which leads to the tall image of positive people. But in Japan, cheating is the main line of a story, so we have to adapt to this change. Finding a creator is the same. In a local shooting team, it is very likely that the first one is not good, so remove it, and the second one is ok. Then we will see how to make progress and keep iterative growth.

In the process of adaptation, the most important thing is that the understanding of local users has deepened and the accumulation of local talents has become thicker.

Deep ring: Sora released everyone’s discussion, saying that the video generated by AI was the first to subvert the short drama industry. I don’t want to ask Sora’s influence on short dramas, but I want to say whether we use AI in the actual operation process now. Is it happening if it is really practical? Or is it too far away?

Wang Xiaoshu: I think it is quite far away. Sora is really revolutionary, but my point of view is also very clear. It helps 90% ordinary people, but not 10% professional creators.

For example, my son will go to school to give a presentation the next day, which is very difficult for him, so Sora can definitely help most ordinary people. For another example, you are an ordinary user and want to show the decoration designer the decoration style you want. After you have mastered this tool, you can send a video to the designer, and people will know how you want to feel.

But for us, a professional creator of 10%, what we pursue is the optimization of content quality, not the reduction of cost. Because the cost reduction is meaningless in some ways, just like when we shoot a film, there are tens of millions of top-ups in China. At this time, cost is not our most consideration. What we consider is how to make high-quality content.

Therefore, the main value of Sora is to reduce the cost of video production extremely, so he must help ordinary people. Ordinary people can’t make videos or it’s very difficult to do them, so AI is very helpful to him. For professional creators, a thing has a cool effect. If you tell others that it is made by robots, everyone will feel amazing, but if you tell them that you need to pay to see it, I don’t think most people will watch it.

To put it bluntly, it’s all driven by commercialization in the end. Professional content producers are faced with the consumer market where the public pays. A 100-minute short play costs an average of 500,000 yuan, which is a great cost advantage compared with tens of millions of movies. If there is a technology that can make the cost of short plays change from hundreds of thousands to tens of thousands of dollars, but the effect may be much worse than hundreds of thousands, then I think the payment logic will not stand.

　　　　　　 CCTV News:In recent years, the price of traditional Chinese medicine Panax notoginseng has been declining. At present, in Wenshan, Yunnan, the famous hometown of Sanqi in China, fresh Sanqi has been listed one after another, so what is the sales situation of Sanqi? Can growers make money?

　　　　　　 Mou Xing, a reporter from Wenshan Taiwan, said: "This is the Sanqi international trading market in wenshan city, Yunnan Province. These are all newly listed Sanqi this year. It’s nine o’clock in the morning, and the whole Sanqi market is busy. However, compared with the past, the price of Sanqi has fluctuated greatly."

　　　　　　 Jia Yongcui, a Sanqi vendor in Wenshan, Yunnan: "In 13 years, Xiaoqi sold for more than 320 yuan (dry Sanqi per catty), and now it is more than 50 yuan (per catty)."

　　　　　　 He Guoqiang, a Sanqi vendor in Wenshan, Yunnan: "In July, the 28 heads sold for more than 130 yuan (per catty), and the difference in July was about 40 yuan (per catty)."

　　　　　　 Since 2017, the price of Sanqi has been falling, and it has fallen to the lowest point in recent years. On the whole, taking 20 heads of Panax notoginseng as an example, it can be sold for more than 800 yuan a kilogram in 2017, and now the price is about one kilogram in 500 yuan, with a drop of about 40%. Sanqihua and Sanqi also fell by more than 40%.

　　　　　　 The price of Panax notoginseng fell, and growers had to lose money and sell it cheaply. The reporter learned that for every acre of Panax notoginseng sold by growers, it will cost about 10,000 yuan. So why is the once precious medicinal material Notoginseng worthless?

　　　　　　 Luo Jianxiang, a planter of Panax notoginseng, planted 10 mu of Panax notoginseng at first, and then expanded it in a large area when the price rose. There are many planters like Luo Jianxiang in Wenshan.

　　　　　　 Jia Yongcui, a Sanqi vendor in Wenshan, Yunnan, said: "It’s a large quantity, that is, if anyone has nothing to do, everyone will plant Sanqi."

　　　　　　 Tan Jiawen, deputy director of Sanqi and Traditional Chinese Medicine Industry Development Center in Wenshan Prefecture, Yunnan Province: "In the past few years, the price of Sanqi has risen, and many people have seen the benefits, so everyone has followed suit."

　　　　　　 According to the statistics of local authorities, the total planting area of Panax notoginseng in Wenshan reached 130,000 mu in 2019, 1.5 times that of 2018. It is estimated that the newly listed output of Panax notoginseng will be nearly 20,000 tons, which is the largest mining area and output since 2015.

　　　　　　 In order to alleviate the downward pressure on the Sanqi industry, the local government established the Sanqi Agricultural Planting Cooperative, officially launched the official flagship store of Wenshan Sanqi, and established the Wenshan Sanqi Auction Center. Local enterprises are also trying the model of company+farmer+deep processing to solve the production capacity of Sanqi.

According to a report by Korean Central News Agency on the 25th, Kim Jong-un, the top leader of North Korea, recently inspected the defense forces stationed in Changlin Island, the front line in the west of North Korea, and stressed that the army should be prepared for battle, enhance its combat effectiveness, conduct scientific training, and ensure the combat readiness of personnel and weapons. According to the report, Changlin Island is the "forefront of the motherland" of North Korea, and the late North Korean leader Kim Jong Il visited the island.

　

The report said that Kim Jong-un learned about the logistics supply and preparations for the troops stationed on the island, and ordered the coastal artillery units on duty to conduct shooting training. Kim Jong-un instructed the troops to carry out scientific, practical and high-intensity training close to actual combat, so as to ensure that soldiers are prepared politically, ideologically and physically to successfully complete any combat mission. Kim Jong-un also asked all levels of the People’s Army to do a good job in the overhaul and maintenance of technical equipment and weapons and equipment to ensure that any unit can carry out combat tasks at any time. He also presented binoculars, automatic rifles and machine guns to the defense forces, and took photos with all the defense forces soldiers and their families as a souvenir. General Park Jung-tien, Chief of Staff of the Korean People’s Army, and the Central Cadres of the Workers’ Party of Korea accompanied the inspection.

　

According to reports, Kim Jong-un also inspected the female soldier company of the 5492nd Army of the Korean People’s Army stationed in the southwest front line, and expressed "great satisfaction" with the company’s soldiers being highly vigilant in carrying out frontline defense tasks. According to the report, Kim Jong-un paid tribute to the monument of Kim Jong Il’s on-site guidance, inspected the company’s facilities for study, life and training, and specifically learned about the military life of female soldiers. Kim Jong-un instructed all the soldiers of the company to remember the honor, follow the revolutionary policy, and set off a training upsurge in the company, thus continuously strengthening the company into a company of god gunners.

This inspection was Kim Jong-un’s third public military-related activity in November. The first two were to observe the combat flight technology competition at Gema Airport in Yuanshan, and to guide the landing training of the Korean People’s Army aviation and air defence forces sniper divisions.

South Korean Defense Ministry spokesman Choe Hyun-soo expressed regret on the 25th that North Korea’s top leader Kim Jong-un directed coastal gun shooting in the buffer zone in the western waters. Cui Xianzhu said that North Korea’s military action violated the September 19 Military Agreement between the ROK and the DPRK, and we urge North Korea to stop all military actions in this region, which may aggravate military tension in the border areas between the ROK and the DPRK and violate the September 19 Military Agreement between the ROK and the DPRK.

South Korean Ministry of National Defense spokesperson Cui Xianyu (video screenshot)

Regarding whether there are plans to protest to North Korea, the South Korean Ministry of National Defense said it would make further observation. Lee Sang-min, spokesman of the South Korean Unification Ministry, said that according to the news released by Korean Central News Agency, this is the first time that Kim Jong-un has inspected the Changlin Island Defence Force since he took office, but it is not the first time that Kim Jong-un has inspected the border guards.