---
title: "Domestic and international expansion remains steady and normalized (Summary of Focus Media's 2022 Performance Communication Meeting)"
description: "The following is the Q&amp;A record of the 2022 annual report and the 2023 first quarter performance communication meeting of Focus Media (SZ), and the financial report interpretation can refer to &#3"
type: "topic"
locale: "en"
url: "https://longbridge.com/en/topics/5994603.md"
published_at: "2023-05-12T07:45:05.000Z"
author: "[Dolphin Research](https://longbridge.com/en/news/dolphin.md)"
---

# Domestic and international expansion remains steady and normalized (Summary of Focus Media's 2022 Performance Communication Meeting)

**The following is** $ Focus Media.SZ **2022 Annual Report and Q1 2023 Performance Communication Conference Q&A Record, the financial report interpretation can refer to "** [**Focus Media: Disappointing Results? Wave Goodbye and Look to the Future**](https://longportapp.com/en/topics/5592727?invite-code=032064) **"**

**Q: Does the company have plans to enter Vietnam?**

A: In 2023, the company will continue to expand overseas markets, with the goal of covering countries such as Vietnam. The company has proven that the Focus Media model can be quickly replicated in overseas markets, especially in Asia. We are optimistic about the development potential of overseas business in the long term and will continue to promote the layout of overseas market business to help Chinese brands go global.

**Q: Does "media leasing" in the right to use assets refer to the location of the elevator rented or the TV or poster frame used to publish advertisements?**

A: The company rents elevator locations, and elevator TVs and poster frames are fixed assets of the company.

**Q: Focus Media is shrinking its domestic battlefield and expanding its overseas market. But the scale of Xinchao is getting bigger and bigger. Will it pose a real challenge to Focus Media?**

A: In the future, the company will still focus on the domestic main business and continue to actively and orderly expand the development of high-quality resource locations, further improving the quality and quantity of coverage locations.

**Q: What is the gross profit margin of Focus Media's intelligent screens?**

A: The gross profit margin of the company's building media in 2022 was 58.70%.

**Q: The number of sales personnel in the company has decreased to some extent. Can you talk about how the company considered this?**

A: The company attaches great importance to personnel efficiency management, conducts special training and performance audits for sales personnel, and improves the efficiency of each person. In the future, the company will continue to focus on improving personnel efficiency to ensure the healthy and benign development of the sales team and business.

**Q: How does President Jiang view the impact of cost reduction and efficiency increase in the Internet industry on the company's revenue and gross profit margin? Can you look forward to the future trend of Internet advertising?**

A: The company has diversified customer industry types, including the Internet. At present, the advertising investment of head Internet customers is gradually recovering.

**Q: There are already local elevator media companies in the Vietnamese market. Do you think the Vietnamese market can accommodate two companies to develop together?**

A: The company has successfully proven that the Focus Media model can be quickly replicated in overseas markets, especially in Asia. The company is optimistic about the development potential of overseas business in the long term.

**Q: In recent years, Focus Media's performance in investment business can be described as poor, and many investment targets have suffered heavy losses. Will the company reduce the proportion of investment in fund allocation in the future and focus more on the main business and returning to shareholders?**

A: The investment performance in the past few years has not been particularly ideal. In the future, we will focus more on core business, provide customers with more efficient and valuable products and services, expand our advantages, achieve stable and high-quality development of the company's business, and also strive to do a good job of shareholder returns through dividends and other means.

**Q: According to the dividend management system released by the company in 2023, when the company is in the mature stage of development and has no major capital expenditure arrangements, the minimum cash dividend ratio is 80%. Jiang, is the company in the mature stage now?**Q: Is it foreseeable and stable for the future dividend ratio to reach more than 50%?

A: The company is in the mature stage of development, and in the future, the company will formulate dividend return plans based on the actual use of funds, and strive to do a good job of shareholder returns through dividends and other means.

Q: Are there any special difficulties in expanding foreign business compared to domestic business? If so, what are they?

A: Overseas business expansion needs to comprehensively consider local cultural differences, regulations and policies, market competition, exchange rate fluctuations and other factors. The company has successfully proven that the model of Focus Media can be quickly replicated in overseas markets, especially in Asian markets. The company has a long-term positive outlook on the development potential of overseas business and will continue to promote it.

Q: What is the specific meaning and purpose of "sales business expenses" in financial expenses?

A: The company's sales business expenses mainly refer to the performance commission of the company's sales personnel. The sales business expenses are not only related to the contract sales amount signed by the sales personnel. In the process of accounting for the sales business expenses, factors such as the account age coefficient of the signed sales contract payment, the sales price discount coefficient, the city level where the sales personnel are located, and whether they are historical stock customers will also be comprehensively considered.

Q: 1) Is there hope for overseas revenue to reach the scale of domestic revenue in the future? 2) Is there a possibility of price increase in the second quarter of this year?

A: 1) The company has a long-term positive outlook on the development potential of overseas markets. 2) The company's list price will be comprehensively considered based on external market environment, its own point expansion situation, and customer's recognition of the value of elevator advertising.

Regarding the adjustment of the list price this year, we will decide whether to carry out routine price increases based on the market situation at that time.

Q: The company has been reducing advertising points in third-tier cities in recent years. What is the reason for the low efficiency of advertising points in third-tier cities? Is the per capita income low? Or is the population not concentrated enough?

A: Regarding the adjustment of our advertising points in third-tier cities, this decision was made based on comprehensive consideration of income levels, population density, and the distribution of commercial and residential areas. We have always been committed to providing the most valuable media resources to maximize advertising benefits and create greater value.

Q: Have you considered standardizing and digitizing the sales of advertising, rather than relying on the current salesperson model?

A: As a traditional offline advertising media platform, Focus Media still relies mainly on the salesperson sales model. At the same time, the company will actively embrace digital transformation, continue to adhere to the sales-driven strategy, explore and introduce digital and standardized tools, and strive to improve the comprehensive quality of sales personnel to enhance the overall operating efficiency of the company.

Q: The company's fixed assets have depreciated by 400 million yuan per year in recent years, and the remaining fixed assets in the 2022 annual report will be less than 600 million yuan. Does the company plan to update or add new media assets on a large scale in the next year or two, as it did in 2018 and 2019?

A: In the future, under normal external market conditions, the company plans to maintain stable expansion.

Q: The company's media resources in third-tier and below cities have shrunk by about 13%. Does the company plan to slow down the expansion of third-tier and below cities in China and focus on Southeast Asia?A: Regarding the adjustment of our advertising locations in third-tier cities, this decision was made based on comprehensive considerations of income levels, population density, and the distribution of commercial and residential areas. We have always been committed to providing the most valuable media resources to maximize advertising benefits and create greater value. In addition, the company has a long-term positive outlook on the development potential of overseas business and will continue to promote it.

Q: Regarding the other accounts payable of RMB 846 million in the 2022 annual report on page 134, is this sales commission for sales personnel?

A: Yes, thank you.

Q: Is the company's expansion overseas mainly focused on communities or office buildings? What is the proportion of the two?

A: There are both office buildings and residential buildings, and the situation varies from country to country.

Q: Will the elevator media advertising industry be replaced by other industries in the future?

A: As an important part of outdoor advertising, elevator media advertising industry has its unique advantages and value. Elevators in buildings are basic infrastructure in cities. The most common daily life scene of elevators represents four words: mainstream crowd, must pass, high frequency, and low interference, which are the core resources that ignite brands. The important significance of the company's elevator media is to penetrate the brand into the daily life scenes that mainstream people must pass through in the city, thereby achieving effective reach to users.

Focus Media has become the core entry point for offline traffic and will increasingly become the core way to ignite brands in the era of fragmented media, achieving concentrated influence on urban mainstream people.

Q: Regarding the expansion of overseas business, I have two questions: 1) According to the current financial report information, South Korea and Singapore are developing well, but their revenue scale is not large, and there is still a lot of room for growth compared to the overall economic strength of the country. Are there any factors that may potentially restrict business expansion? 2) The shareholding ratios of the companies in Japan and Malaysia are very high. Will there be potential political obstacles?

A: 1) The company is optimistic about the overseas elevator media market, including South Korea and Singapore. In the future, with the further penetration of locations and the gradual increase of display rates, we can expect further growth in overseas revenue scale. 2) The political culture and national conditions of each country overseas are different, and we will fully consider the corresponding external environmental conditions before entering each country. Thank you for your attention.

Q: The company has cancelled its listing plan in Hong Kong. Is it because the current Hong Kong market is sluggish and the listing cannot reflect the company's intrinsic value?

A: The termination of the planned issuance of H shares and listing in Hong Kong is the result of a careful consideration of factors such as the capital market environment, actual operating conditions, capital needs, and business development plans.

Q: The 2021 annual report mentioned that "according to Sullivan's research report, as of the end of 2021, in terms of the number of building media locations, Focus Media ranked first with a market share that is 1.8 times that of the sum of the second to fifth competitors in both office and residential buildings; in terms of the number of elevators covered, Focus Media ranked first in both office and residential buildings, and is the largest office building media group and community media group in China.""Can you share the latest relevant data for this year?"

A: "The 2022 data will be updated and shared with investors through the company's website and other channels in a timely manner."

Risk disclosure and statement for this article: [Dolphin Analyst Disclaimer and General Disclosure](https://support.longbridge.global/topics/misc/dolphin-disclaimer)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
