Xinli medias revenue and operating performance in the first half of 2020 did not meet the expectations. As a result, the company recorded a provision for impairment of goodwill and trademark rights of RMB 4.41 billion, and the net loss of Yuewen group was RMB 3.31 billion.
Yuewen group summarized the so-called structural problems, including:
1u3002 The online reading business is facing challenges. In the past, the authors feelings were not fully taken into account and the incentive mechanism was not improved. Some writers were worried about the contracts launched in history.
2u3002 The free reading business failed to meet expectations.
4u3002 There is a lack of a mechanism and top-down planning to promote the construction of IP centric content and operation strategy.
5u3002 In the past, business negotiations with business partners were based on simple mechanical business logic, and no long-term win-win relationship was established.
Source: Netease Entertainment editor: Han Chong_ NBJ11345