Cross boundary football accused of playing trick Lehman shares outlook to be observed

In the case of poor performance of the main industry, Lehman intends to develop LED business and sports industry, the implementation of the dual main strategy". But by 2015, Lehman's operating income accounted for about 90% of the LED industry, the sports industry accounted for only about 10%, the future is still a long way to go

Experienced in the period from 2008 to 2010 after the explosive growth, with the influx of capital outside the industry, the domestic LED industry overcapacity, from 2011 to 2013, the entire industry is very competitive, related to the performance of listed companies are underperforming. LED as a large manufacturer of Lehman shares in 2011 net profit of 33 million 100 thousand yuan, down by 15%.

The pressure increased sharply after Lehman's shares began to find a breakthrough and embarked on a cross road football media. So why choose Lehman football industry? Is it possible to play in a strange field? How to convert existing LED services into sports resources? What will the future look like? With these questions, the investor news reporter recently called the company's public phone, but no one answered, sent a letter to the public mailbox, did not receive a reply.

How to play football

How is a LED company involved in the football industry?

In 2011, Chinese Football Association Super League (by China Football Association, is the highest level of the mainland China occupation football league, referred to as "super") is interested in using the LED display screen to replace the fixed advertising board previously, in advertising, can enhance its commercial value and publicity, but the company does not want to dig in a penny to buy the LED screen. Therefore, Lehman shares on the way to replace the resource cooperation, became the official partner and the only super LED screen supplier.

That year, Lehman shares with CSL Limited liability company (hereinafter referred to as "super company") signed a cooperation agreement in 5 years, the former is provided by the LED display equipment means the replacement of 12 minutes per game advertising display time, 2012, this part of the advertising time is all for the company's own brand promotion, from 2013 to 2014, Lehman shares as an official partner of the Super League retained 2 minutes for its own brand promotion, the remaining 10 minutes of foreign sales, and by the super company to provide maintenance and technical support costs, each year more than 3 million yuan.

Lehman shares and the super cooperation, then also received a lot of questions. The media has used the "super sale" to attack the cooperation, said even if the LED screen by Lehman announced their 75 million price rather than outside the famous 22 million Lehman Corp, 5 years have only invested 15 million yuan each year for every 12 minutes of advertising rights (and Lehman as well as one of the 10 minutes of advertising and marketing rights), Wanda Plaza the annual investment of 55 million yuan in cash to get 10 minutes of advertising rights for comparison, is quite cheap. Over the next few years, advertising expenses rose, due to the LED display instead of fixed advertising board publicity of commercial value, and in 2014 to 2013 in Lehman's repurchase part of the advertising time, repurchase cost and service costs each year to bring about 18000000 yuan income for Lehman shares. And in cooperation, let Lehman shares a taste of some sweetness, by the end of 2011, the company through repeated demonstration and analysis, that the sports industry can expand the space, there are a lot of business opportunities, and decided to enter the sports industry. However, it is worth noting that the high cost of the contract in 2016, advertising this fat is more and more the eye, the next few years, the benefits will it fall on the head of Lehman shares, does not guarantee. If the future can not be renewed, it will give Lehman's dream of a great impact on the sports industry.

Perhaps aware of the new field strength is insufficient, according to public information, in 2011 after Lehman's sponsorship of the super, and in 2014 sponsored a football league title, and occupation, the establishment of the Portuguese sports culture fund, Lehman keishing Lehman shares media, the world's second largest sports marketing company, Switzerland infront Sports media group. 2015, Lehman shares also announced that it will implement the dual main strategy, the sports industry and the original LED business development.

However, though the bank shares in the sports industry shows great ambition, still need to pay attention to the 2015, Lehman shares revenues in LED industry accounted for about 90% of the sports industry accounted for only 10%, this was put forward and the president of the company football advertising revenue to reach 50% target is still far. And sports industry experts pointed out that the return of the sports industry is slow, large investment, the need for a longer process and strong capital. In this case, Lehman's shares in 2014 and 2015 revenues were 405 million yuan, 380 million yuan, net profit was 32 million 70 thousand yuan, 18 million 300 thousand yuan in 2015, revenue fell 6%, net profit fell 43%, the Lehman shares slightly less stamina. Insiders pointed out that this huge investment lasting for the sports industry to actively enter the domestic other big companies, Hengda, Wanda, Ali may not have much problem, but for a small size compared with Lehman, there may be a larger burden.

Acquiring company poor profitability

Rely on the football field LED advertising sales is not stable, Lehman shares are still overweight sports industry. Which has a large investment is released in February 29th this year, will be 780 million yuan acquisition of Vision China Group Co., Ltd., China's new culture as a result of the company's 100% stake. But the company can continue to help Lehman shares