CCCI Chinese: Investment Opportunities For Subdivided Track Still Exist In The Low Period Of Cultural Industry

"At present, the cultural industry does not seem to be in the climax of the industry cycle, but some subdivision areas are still full of investment opportunities, such as animation, E-sports are very worthy of attention." He Wenjin, general manager of CIC / CIC, told the 21st century economic report.

It is understood that China Construction Investment and construction investment Chinese are two investment platforms of China Construction Investment Group, and they have been working together since May this year. Among them, CCDI focuses on investment in high-end manufacturing field, and its Chinese language is arranged in the fields of cultural media, consumer goods and services, medical and health care. The projects invested include SF express, mango TV, Huace film and television, Caesar tourism, etc.

Up to now, the total asset management scale of CCDI / CCDI in Chinese is 23 billion yuan, including nearly 10 billion yuan in culture and consumption. Due to its long-term focus on investment and research in the cultural industry, CICI / CIC has launched the report on investment and development of China's media for five consecutive years (revised as the report on investment and development of Chinese cultural consumption in 2020).

Recently, in an interview with the 21st century economic report, he Wenjin talked about the investment logic of CCDI in Chinese, the differentiated advantages brought by the attribute of state-owned assets to the team, and his judgment on the future investment trend of cultural industry.

The Yangtze River Three Gorges E-sports competition was held in Chongqing. Visual China

Choose a good track and dig deep into the industrial logic behind the project

As a state-owned investment institution, CCDI's Chinese investment preference has certain characteristics. He Wenjin said: first of all, due to the nature of state-owned assets, the team will attach great importance to the fields that are combined with the national industrial policies, as well as some strategic emerging industries.

Second, the team pursues stability, hopes that the project has high certainty, mature business model and sustained profitability, and prefers to find industry leaders to invest in the track segments.

Third, the industry has the potential to study the industry behind the project. In May, for example, CCPIT participated in a private offering of petty shares, a pet food company. The investment in the project is due to the company's continued optimistic about the pet market.

Statistics show that, compared with Japan, the United States, Australia and other countries, China's household pet ownership ratio is about 17%, which belongs to a relatively low level. The team believes that with the development of China's economy, household disposable income has further increased, and with the arrival of an aging society, China's pet food industry may have a great improvement.

"At present, the pet market is about 200 billion, of which pet food accounts for about 100 billion, which represents the future. So we invested in patty, which has been growing faster in the past two years. " He Wenjin said.

Accompany the growth of enterprises and invest in long-term value with their own funds

The attribute of state-owned assets also brings some advantages of differentiation to the Chinese language of CCDI. He Wenjin introduced that as the investment and industrial platform of China Construction Bank Investment Co., Ltd. in the field of cultural media and large consumption, in the past few years, CCB has continued to invest in the field of cultural consumption, and has played the role and responsibility of state-owned capital in cultural construction in the new era by promoting high-quality content production and platform technology update.

At the same time, CCPIT uses its own funds to invest. Compared with the market-oriented institutions, the time pressure of investment exit is relatively small, which can accompany the project growth for a longer time. "For some very good companies, we are very willing to cooperate for a long time. We believe that slow work leads to fine work, and good things are cooked slowly. " He said.

It is understood that CCCI invested in mango TV in the early stage, and accompanied mango TV to grow from its inception to a market value of 100 billion yuan. Under the condition that the industry generally continued to burn money, it became a video website with outstanding profitability.

"We are a competent shareholder. We can bring in some strategic perspectives and industry thinking while bringing money in. We know how to help and support management and promote the implementation of relevant strategies. " He Wenjin said.

For example, at the beginning of this year, CCDI invested in Caesar tourism in Chinese. Since this year, due to the epidemic situation, the tourism market has been greatly frustrated, and many travel companies, including Caesar travel, have been affected. "After the investment, Caesar management talked about a lot of micro level situation and the pressure of daily operation. "To provide space for enterprises to coordinate with domestic enterprises in terms of strategy, consumption pattern and development after tax exemption." He said. Caesar tourism has also established the strategy of taking tourism as the core and building cultural tourism retail complex.

In addition, CCPIT will set up funds together with the invested enterprises to invest in the upstream and downstream industries of the enterprises, so as to achieve more synergy and bring more resource empowerment to the invested enterprises.

Cultural consumption has been improving for a long time, focusing on animation, E-sports and "culture +" formats

In the past two years, the cultural industry has been in a cold winter, and the number and scale of investment have also decreased significantly. In this regard, the demand of consumers is in a low period. For example, with the development of 5g, the combination of cultural industry and technology has become a trend, which may become the "fuse" for the rise of the next wave of industries.

Zhang Lulu, assistant to the general manager of CCDI / CCDI, also said in the recent release of the report on the development of China's cultural consumption investment (2020), the internal and external environment has been continuously tightened in the past two years. In particular, this year's global outbreak of new pneumonia has caused a sustained impact on the real economy. The cultural consumption industry is one of the industries most directly affected by the epidemic situation and economic growth 。

"We judge the development of the industry, short-term crisis, long-term is good." Zhang Lulu said that in recent years, the development of cultural related industries is still relatively rapid. Since the epidemic, the development of the industry has shown a trend of differentiation according to its own characteristics. Tourism, cinema and performance have been suspended for a long time, the production progress of film and television companies has been delayed, and the new media industries such as online video, short video, network live broadcast, online reading and online news have maintained a good growth trend.

However, the periodic impact does not change the long-term trend. The epidemic situation is difficult to change the inherent consumption pattern of the mass consumer groups in the past, and it will not change the people's growing needs for a better life and the general trend of consumption upgrading. From the perspective of industry segmentation, emergencies accelerate the industry differentiation, screen and verify the real demand, the investment value related to rigid demand consumption, spiritual consumption and health consumption is becoming more and more prominent, and the cultural consumption field will also present more structural opportunities.

For the Chinese language of CCDI, although the proportion of investment in the cultural industry has been appropriately reduced in the past two years, its attention to the industry has not weakened. In he Wenjin's view, animation, E-sports and other subdivision track are full of investment opportunities. At the same time, CCPIT also pays attention to the integration of cultural industry and other industries, making investment layout in "culture + technology", "culture + tourism" and other "culture +" formats.