我们首次覆盖公司，目标价为5.79港元，投资评级为“买入”。我们采用基于市销率的相对估值，给予阜博2023年6倍市销率，目标市值为122.7亿港元。
　　随着全球流媒体和社交网络的发展，内容侵权的场景更加复杂。由于现存的版权保护机制尚待完善，中国大量中小内容创作者的内容受到侵权行为侵犯，并未得到有效保护和维权。作为全球领先的内容保护服务商，拥有全球最大的内容指纹数据库，阜博的技术和行业积累可以满足国内外内容持有者对内容保护的迫切需求。
　　我们预期阜博在中国的业务拓展有望超市场预期。市场普遍认为，国内版权高度分散，难以聚合。我们认为，背靠阜博行业领先的技术，国内业务可通过和地方平台共同搭建版权保护中心有效聚拢分散的市场需求。因此，公司的业务增长具有极大前景。
　　催化剂：关于原创版权保护的新政策或文件出台；关于版权侵权事件的报道；阜博的内容客户升级合作合同。
　　风险提示：客户对新开发的内容保护服务接受度低；中国内容保护意识发展慢于预期。

研究报告全文：股票研TableTitleTeddyLin林荣叶CompanyReportVOBILEGROUP03738HK究8675523976692EquityResearch公司报告阜博集团03738HKrongyelingtjascomhk30December2022ATableSummaryWorldPioneerofOVCPBuildingupAHeadofSteaminStreamingInitiateWithBuy公开全球在线内容保护先河乘流媒体发展之浪蓄势待发首予买入评级司WeinitiatewithaBuyratingandaTPofHK579WeadoptrelativeTableRank报valuationbasedonprice-to-salesratioWeassignVobilea2023price-to-salesRatingBuyInitialratioof6xwithatargetmarketvalueofHK1227billion告CompanyReportCompanyWiththedevelopmentofglobalstreamingmediaandsocialnetworksthescene评级买入首次覆盖ofcontentinfringementismorecomplicatedAstheexistingcopyrightprotectionmechanismisstilltobedevelopedalargenumberofsmalland6TablePrice-18mTP目标价HK579medium-sizedcontentcreatorsinChinahavenotbeeneffectivelyprotectedandprotectedfortheircontentinfringementsAstheworldsleadingcontentprotectionserviceproviderwiththeworldslargestcontent股价告SharepriceHK3360fingerprintdatabaseVobilestechnologyandindustrialaccumulationcanmeet证报theurgentdemandofdomesticandoverseascontentrightsholders券Stockperformance究WeexpectVobilesbusinessexpansionintotheChinesemarkettoexceed股价表现研themarketsexpectationsItisgenerallybelievedthatthedemandofcontent研TableQuotePic02ofreturn究protectioninChinaishighlyfragmentedanddifficulttoaggregateWebelieve01券thatinChinathefragmentedmarketofdemandcanbeeffectivelygatheredby00报jointlybuildingaprotectionplatformwithlocalplatformsrelyingonVobiles01告证industry-leadingtechnologyAsaresultVobilesbusinessexpansiongrowthhas02EquityResearchReportabrightfuture0304CatalystsNewpoliciesordocumentsonoriginalcontentrightprotectioninChinaReportsofcopyrightinfringementinChinaVobilescustomersofcontent0506TabrightsholdersupgradethecooperationcontractwithVobile07leIRiskCustomerslowacceptanceofnewlydevelopedprotectionservices08Jan-22Feb-22Mar-22Apr-22May-22Jun-22Aug-22Sep-22Oct-22Nov-22Dec-22HISVobileslower-than-expecteddevelopmentofcontentprotectionawarenessinChinanfo1传我们首次覆盖公司目标价为579港元投资评级为买入我们采用基于市销率的相对估值给予阜博2023年6倍市销率目标市值为1227亿港元播ChangeTablePriceChangeinSharePrice1M3M1Y文随着全球流媒体和社交网络的发展内容侵权的场景更加复杂由于现存的版权保护机制尚待股价变动1个月3个月1年Abs完善中国大量中小内容创作者的内容受到侵权行为侵犯并未得到有效保护和维权作为全32541453化绝对变动球领先的内容保护服务商拥有全球最大的内容指纹数据库阜博的技术和行业积累可以满足ReltoHSIndex行95393309国内外内容持有者对内容保护的迫切需求相对恒指变动AvgSharepriceHK业353040平均股价港元我们预期阜博在中国的业务拓展有望超市场预期市场普遍认为国内版权高度分散难以聚SourceBloombergGuotaiJunanInternationalMediaCultureSector合我们认为背靠阜博行业领先的技术国内业务可通过和地方平台共同搭建版权保护中心有效聚拢分散的市场需求因此公司的业务增长具有极大前景催化剂关于原创版权保护的新政策或文件出台关于版权侵权事件的报道阜博的内容客户升级合作合同风险提示客户对新开发的内容保护服务接受度低中国内容保护意识发展慢于预期TabYearTableEndTurnoverNetProfitEPSEPSPERBPSPBRDPSYieldROEleI年结Profit收入股东净利每股净利每股净利变动市盈率每股净资产市净率每股股息股息率净资产收益率nfo21231HKmHKmHKCentxHKxHK2020A340294811874735na7100460730000001532021A6865282267711851250283508034200000020阜2022F1441433266261238na271407584400000017博2023F204422216875179695437422088438000000962024F284044133220315688969214107731000000160集团TableBaseDataSharesinissuem总股数m21176Majorshareholder大股东YangbinBernardWANG128MarketcapHKm市值HKm71151Freefloat自由流通比率5773monthaveragevol3个月平均成交股数000348708FY22NetgearingFY22净负债股东资金Netcash52WeekshighlowHK52周高低HK36500920FY22EstNAVHKFY22每股估值港元66VOBILEGROUP03738GROUPVOBILEHKSourcetheCompanyGuotaiJunanInternationalSeethelastpagefordisclaimerPage1of19TablePageHeaderVOBILEGROUP03738HKTABLEOFCONTENTS1raMthgiRelbaT1InvestmentSummary321AGlobalPioneerinOnlineVideoContentProtection422Industry-leadingTechnologyasFoundationofCustomerLoyalty430December202223SuccessfulAcquisitionsofComplementaryTechnologiesFormingSoundProfitModel624GreatPotentialforBusinessGrowthinVerticalandHorizontal72HowMuchGrowthThereisforContentProtection831GrowthofStreamingIncreasesDemandforProtectionHorizontallyandVertically832TheVerticalExpansionofGlobalBusinessIncreasesMonetizationforContent112raMthgiRelbaT33ThroughcooperationwithlocalplatformsinChinathefragmenteddemandisaggregated1134AcquisitionofParticleTechnologyOpenupChinasMarketGeneratingSynergies123EarningsEstimates144WhatistheCurrentMarketPenetrationRate1503738HK5ValuationandRisks17阜博集团VOBILEGROUPReportCompanySeethelastpagefordisclaimerPage2of19TablePageHeaderVOBILEGROUP03738HK1InvestmentSummary1raMthgiRelbaTInvestmentThesisStreamingmediahasfurtherseizedtheviewingshareoftraditionalTVintheworldandnetworkmediaplatformshavebecomethemainwayofcontentpublicityandpromotionThedemandforcontentprotectionisincreasinglyintensifiedintermsofscenecomplexityandtechnicalaccuracyAtthesametimealthoughChinascontentrightprotectionpoliciesandtheawarenessaregraduallymaturingtheexistingmechanismforcontentprotectionisstillgenerallyunabletoeffectivelyprotectcontentrightsholdersAlargeamountofcontentofsmallandmedium-sizedcontentcreatorsinChinaisstill30December2022unabletobeeffectivelyprotectedAstheworldsleadingcontentprotectionserviceproviderwithmorethan17yearsofbusinessaccumulationandtheworldslargestcontentfingerprintdatabaseauthorizedbycontentrightsholdersVobilestechnologyandindustrialaccumulationcanmeettheurgentdemandofdomesticandoverseascontentrightsholdersWeexpectthatVobilesbusinesswillmaintainhighgrowthinthefuturedrivenbytheinevitabletrendofstreamingmediadevelopmentandfavorabledomesticpoliciesWeexpectVobilesexpansionintotheChinesemarkettoexceedthemarketsexpectationsItisgenerallybelievedthatthedemandofcontentprotectioninChinaishighlyfragmentedanddifficulttoaggregateandthebusinessgrowthislimitedWebelievethatthefragmentedmarketcanbeeffectivelytargetedbyjointlybuildingaprotectionplatformwithlocalplatformsrelyingonVobilesindustry-leadingtechnologyTosumupVobilesbusinessexpansiongrowth2israveryMtpromisinghgiRandecanlbaTcontinuetodelivermore-than-expectedperformanceCatalystforinvestmentNewpoliciesordocumentsonoriginalcontentrightprotectioninChinaReportsofcopyrightinfringementinChinaVobilescustomersofcontentholdersupgradetheircooperationcontractswithVobileVobilewatermarktracingserviceispopularizedonstreamingmediaplatforms03738HKRisk1ChinesecontentrightsholdersawarenessofcopyrightprotectionhasnotbeenimprovedasexpectedandVobilesbusinesspenetrationofcontentprotectioninChinaisslower-than-expected阜博集团2OverseascontentrightsholdersdemandforVobilesDTCtracingvalue-addedservicesisless-than-expectedVOBILEGROUPReportCompanySeethelastpagefordisclaimerPage3of19TablePageHeaderVOBILEGROUP03738HK21AGlobalPioneerinOnlineVideoContentProtection1raMthgiRelbaTVobileGroupLimitedVobileortheCompanyisagloballeadingonlinevideocontentprotectionOVCPSaaSproviderwhichhasleverageditsleadingonlinecontentprotectiontechnologiesbackedbypreviousacquisitionstoscaleupcontentmonetizationVobilenotonlyhasdevelopeditsowncoretechnologywithhighindustrybarriersbutalsoobtainscomplementarytechnologiestoimprovethebusinessmodelthroughacquisitionandmergerformingaprofitmodelwithlong-termhigh-speedgrowthVobilesuccessfullyacquiredParticleCultureTechnologyGroupHangzhouCoLtdParticleTechnologyinMay2022markingtheopeningofanewchapterinChinasonlinevideocontentprotectionand30December2022monetizationmarketVobileisthefirstcompanyintheindustrytoproposeonlinemonitoringtechnologyasadevelopmentstrategyVobilewasfoundedinSiliconValleyin2005andreceivedstrategicinvestmentfromDisneyandATTin2007Since2007VobilehasbecomethemostimportantcontentprotectionserviceproviderofDisneyInadditiontoDisneytheworldssixmajorfilmcompaniesworld-renownedbroadcastandtelevisioncompaniessuchasABCholdersoftopsportseventssuchasNBAandtheworldstopstreamingplatformssuchasNetflixareallimportantcustomersofVobileFigure-1Vobilesclientsandbusinesspartnersaretheworldsleadingdigitalcontentassetholdersoroperators2raMthgiRelbaTGlobalContentRightsHolderBusinessPartner03738HKofPlatform阜博集团ContentRightsHolderInChinaVOBILEGROUPSourcetheCompanyGuotaiJunanInternational22Industry-leadingTechnologyasFoundationofCustomerLoyaltyVDNATechnologyVDNAistheCompanysfoundingtechnologyThevideocontentprotectionbusinessoftheCompanyismainlybasedontheVDNAtechnologyVideoDNAordigitalfingerprintingtechnologydevelopedbythefounderYangbinWangsincehefoundedVobilein2005RelyingontheVDNAtechnologywithexcellentcapabilitiesofmonitoringandcontentprotectingVobilewasawardedtheindustrysbestcontentprotectiontechnologycertificationbyMovieLabsanindependentnon-profitReportorganizationfoundedbyDisneyParamountTwentiethCenturyFoxSonyPicturesUniversalandWarnerBrosstudiostoadvanceresearchanddevelopmentinmotionpicturedistributionandprotectiononlyoneyearafteritsestablishmentIn2017Vobilereceivedthe69thTechnologyEngineeringEmmyAwardwhichrecognizedVobilesVDNAtechnologyforitsCompanycontributiontothetelevisionindustryinprotectingthevalueandcopyrightoffilmandtelevisioncontentSeethelastpagefordisclaimerPage4of19TablePageHeaderVOBILEGROUP03738HKVDNAtechnologyofVobileranked1stintheindustryinrecognitionrateandaccuracyofidentifyinginfringingcontentAccordingtothefingerprinttechnologyevaluationorganizedbytheMotionPicture1AssociationraMthofgAmericaiRMPAAelbaTVDNAtechnologyofVobilerankedfirstamongallparticipatingtechnologiesinscanning100hoursofinfringementcontentwithinfringementrecognitionrateofnearly100andaccuracyrateofnearly100VobilestechnicalstrengthisextremelyadvancedintheindustryFigure-2VobilesVDNAranked1stamongallparticipatingtechnologiesinthetechnologycompetitionofMPAA30December20222raMthgiRelbaTSourcetheCompanyGuotaiJunanInternationalPrinciplesofVDNAtechnologyVDNAtechnologyisvideofingerprintidentificationtechnologyItsmainoperationmodeistoprovideSaaStoolsforcontentrightsholderswhouseSaaStoolstoconvertthecontentsintodigitalfingerprintsanduploadtheencrypteddigitalfingerprintstoVobilesserverVobileusesthefingerprintextractedtoscanthevideocontentand03738HKdownloadsitesofmorethan200000videowebsitesinthewholenetworkincludingwebdiskP2PsearchengineOTTboxandotherchannelsBycomparingthecontentitcanidentifywhetherthereisinfringingcontentofitscustomersAftercontinuousiterationandupdateVDNAtechnologyhasbeenabletoidentifyinfringingcontentprocessedbycroppingblurring阜博集团flippingetcgreatlyimprovingtheidentificationabilityThroughVDNAtechnologycontentrightsholderscanrealizethecontentidentificationandmonitoringofthewholenetworkvideoandensuretheorderlyspreadofcontentcopyrightintheworldFigure-3IllustrationoftheapplicationofVDNAtechnologyVOBILEGROUPTextPictureAudioVideoExtractthefigurecharacteristicsVobilecanidentifyinfringingcontentacrosstheInternetthathasbeencroppedadjustedcolorcontrastrotatedchangedcolorblurredorreversedGenerateVDNAReportSourcetheCompanyGuotaiJunanInternationalCompanySeethelastpagefordisclaimerPage5of19TablePageHeaderVOBILEGROUP03738HKWatermarkingTechnology1raMthgiRelbaTOnlinevideowatermarkisakindofmarkerpermanentlyaddedtoeveryframeofvideovisiblyorinvisiblyThewatermarkisaddedtoandoftenhiddenwithinamediafileoftenjustauniqueidentificationnumberOnlyvideoswithaddedwatermarkscanbeidentifiedOncethewatermarkisremovedthroughcertaintechnologiesthevideowouldloseprotectionWatermarkinghastheadvantageofprecisioncomparedwithfingerprintingasitcantracetheoriginalsourceofillegalcontentHoweverwatermarkingtypicallyrequireshigherinvestmentinpowerfulserversduringthewatermarkinsertionprocess30December2022PrinciplesofWatermarkingtechnologyWatermarkingtechnologyhasbeenwidelyusedincinemasbeforebeingappliedtosmartmobiledevicesItsmainworkingprincipleistoaddinvisibleandinaudiblewatermarkstovideooraudiocontentbutthiswatermarkisuniqueandcanberecognizedbytechnologyprovidersIfwatermarkedvideoandaudiocontentisuploadedtotheInternetthecontentrightsholderscanrelyonthewatermarkinginthevideototracethesourceofthepiratedcontentTakecinemaasanexampleifthewatermarkedmoviecontentissecretlyrecordedandspreadtothemarketthetechnicalserviceprovidercantracethesourcetothespecificcinemaandthespecifictimeofthebroadcasthallthroughthewatermarkCurrentlyVobileappliesthewatermarkingtechnologytothemobileterminalVobileaddswatermarkingtothestreamingvideosothatthesourceofthepiratedcontentcanbetracedtothespecificdeviceandthespecificstreamingmediasubscriptionaccountandthecontentrightsholderscandirectlysuetheinfringerandshutdowntheinfringerssubscriptionaccountthusgreatlyenhancingthecontentprotectionabilityanddeterrencetotheinfringer2raMthgiRelbaTFigure-4IllustrationoftheapplicationofwatermarkingtechnologyVobileIdentifyingwatermarkprovideinformationaboutinfringingsubscriberstostreamingplatforms03738HKTracingtheInfringingUploadtoInternetsubscriberEmbedaninvisible阜博集团watermarkStreamingplatformVideocontentStreamingsubscribersIllegalrecordingDeliverycontentDisplayonscreemVOBILEGROUPShutdownaccountsandprosecutethoseinvolvedSourcetheCompanyGuotaiJunanInternational23SuccessfulAcquisitionsofComplementaryTechnologiesFormingSoundProfitModelAlthoughVobilehasastrongalgorithmictechnologyasafoundationthemonetizationoftechnologylargelycomesfromaseriesofacquisitionstrategiesforcomplementarytechnologiesDuringthecontinuousexpansionofcontentprotectionsubscriptionservicesVobilehassuccessfullyrealizedthecomplementaryrealizationofitsowntechnologiesthroughfouracquisitionsinfiveyearsandthecompanysrevenuehasmaintainedaCAGRgrowthof540in2017-2021TheacquisitionofIP-EchelonimprovedthecodeandtechnologyofcoremonitoringIn2018VobileacquiredallsoftwareandrelatedcodeofIP-EchelonwhichwasanAustraliandataanalysisproviderfocusingonthedevelopmentandReportapplicationofdataanalysistechnologyinthefieldofcontentprotectionservicesVobileconsolidatedthecoremonitoringcapabilityofVDNAtechnologywiththetechnologyofacquisitionandenhancedtheabilitytoidentifycontentinchannelssuchasP2PandwebdiskCompanySeethelastpagefordisclaimerPage6of19TablePageHeaderVOBILEGROUP03738HKVobileacquiredthehighlevelofAPIrightonYoutubefromZEFRIn2019InNovember2019VobilecompletedtheacquisitionofRightsIDandChannelIDbusinessesfromZEFRanAmericandigitalcontent1roperationaMtandhgrealizationiReSaaSlbaTserviceproviderAftertheacquisitionVobileisabletogainaccesstooneofthefewYouTubeshigh-levelAPIWithRightsIDandChannelIDtheCompanyexpandeditsbusinessintocontentmonetizationservicesByleveragingthedataofcustomerbaseandintegratingacquiredcomplementarytechnologiesVobileisabletohelpcontentrightsholdersgainfullcontrolovertheirmediaassetsontheInternetRightsIDByusingVDNAtechnologyandsemanticidentificationtechnologyRightsIDworkswithYouTubeFacebookand30December2022otherplatformstoscanplatformsforcontentrightsholdersandfindinfringingcontentWhentheinfringingcontentisfoundRightsIDdeclarescopyrighttotheplatformsoastoobtainthedistributionofadvertisingrevenuegeneratedbytheinfringingcontentRightsIDchargescustomersinrevenue-sharingmodeVobilehelpsthecontentrightsholderstoobtaintheadvertisingrevenuegeneratedbytheinfringingcontentandgetsacertainpercentageoftherevenueChannelIDChannelIDhelpscontentrightsholdersmanagetheirbrandedchannelsonYouTubeFacebookandInstagramandprovidesdataanalysisandoptimizationstrategiestoexpandthereachofthechannelandhelpbetterconnectwithitsviewersandfansChannelIDchargingmodeincludessubscriptionandrevenuesharingmodeIfcustomersonlyusefeaturessuchasChannelIDdatamonitoringanalyticsetctheyonlypayasubscriptionfeeInthesharingmodelVobilehelpscontentrightsholdersbuildandoperatetheircontentchannels2ronaMYouTubethgigeneratingRelbaTrevenuefromchanneladvertisingTheacquisitionofwatermarktechnologypavethewayforanewDTCDirect-to-CustomercontentprotectionserviceIn2020VobileacquiredwatermarkingtechnologyfromVeranceacompanydevelopingaudiowatermarkingtechnologywithatechnicalfoundationofmorethan20yearsTheadditionofwatermarktechnologyimprovesthecontentprotectioncapacityofVobilemakingitsbusinessabilityrealizethewholeprocessfrommonitoringtotracingAftertwoyearsofresearchand03738HKdevelopmentandtechnologyintegrationweexpectthatthewatermarkingtechnologyacquiredbyVobilewillstarttooperateonthesubscribermonitoringserviceofstreamingmediacustomersin2023forminganewmonetizingmode阜博集团TheacquisitionofParticleTechnologyasanewmilestoneintotheChinesemarketIn2022VobilecompletedtheacquirementofParticleCultureTechnologyGroupHangzhouCoLtdParticleTechnologyParticleTechnologyisengagedinprovisionofSaaSforvideodistributionandedgecomputingaswellascontentmonetizationservicesinChinaParticleTechnologysmonetizationbusinessallowsdistributionofcontentsondesignatedplatformsinChinawhileVobilesmonetizationbusinessenhancescustomersrevenuestreamsviaprotectingIPrightsinoverseasThetwocompanieshaveVOBILEGROUPdifferentclientsthusallowingforcross-selling24GreatPotentialforBusinessGrowthinVerticalandHorizontalVobileshighcustomerloyaltyandindustry-leadingtechnologytogetherconstituteastrongindustrybarrierVobilehasestablishedasolidcustomerbasewithtrustedlong-termrelationshipswhichincludeglobalpremiercontentcreatorsrightsholdersandplatformssuchasHollywoodfilmstudiostelevisionnetworksstreamingplatformsblockchainandNFTmarketplacesVobilescustomersofcontentrightsholdershavehighloyaltyAlthoughtherearepeersintheindustrywhohavethesimilartechnologyandprovidesameservicesthebasisofthebusinessisbasedonthe247real-timemonitoringofglobaldigitalcontentassetsonthewholenetworkVDNAtechnologyistheexistenceofthehighestidentificationrateandaccuracyintheindustryandasmalldifferenceinrateofaccuracycancauseahugedifferenceinreturnforcontentrightsholdersoveralongperiodoftimeSecondandmoresolidisthatthebusinesstakesanextremelylongtimetobuildacustomerbaseIttakeshourstoconvertthecontentsintodigitalfingerprintsanduploadingtheencrypteddigitalfingerprintstoserverAtpresentthedatabaseofmorethantwomillionfingerprintsofcontentassetsaccumulatedbytheCompanythroughmorethantenyearsisaninsurmountablebarrierfornewplayersintheindustryVobilesbusinessmodelisdrivenbyitsabilitytoserveadditionalcontentandtohelpgeneratemorerevenueforIPReportrightsholderclientsInordertocaptureVobilesfuturesuccesstheCompanywouldcontinuetoenhanceitsabilitytoexpanditscontentbaseretaincustomerswhileincreasingcontentpenetrationoffermoremonetizationchannelstoincreaserevenueforIPrightsholdersdevelopnewsolutionstomeetindustryandclientneedsenhanceitsecosystemandpartnerrelationshipsCompanyexpandcontentverticalsexpandgeographiccoverageandbuildwithafocusonmaximisinglong-termvalueSeethelastpagefordisclaimerPage7of19TablePageHeaderVOBILEGROUP03738HKFigure-5VobilehasdevelopedasoundprofitmodeltomaintainpositiveprofitabilityintheSaaSindustry1raMthgiRelbaTContentprotectionSaaSserviceContentmonetisationvalue-addedservicesContentpenetration30December2022ExpandinggeographicExpandingcontentCorecoverageTechnologyVideosocialplatformsIPrightsholderclientsverticalsVDNAandWatermarkingandvariouswebsitesLargeaccumulatedcontentbasemorethan2millionmediaassetsworldwideandmediaassetsofnearlytwomillionhoursdistributedonpay-per-viewplatformsinChinaRevenueofSubscriptionservicesRevenueofvalue-addedservices2raMthgiRelbaTSourceQuestMobileGuotaiJunanInternational2ContentProtectionGrowthPotential03738HK31GrowthofStreamingIncreasesDemandforProtectionHorizontallyandVertically阜博集团DrivenbythedevelopmentoftheonlinevideoindustryandtheindustrygrowthdividendofstreamingmediaweexpectVobiletomaintainsolidgrowthincontentprotectionofglobaldigitalcontentassetsVobilehasreachedalmostalloftheworldsmostimportantcontentrightsholderswhoseusagesarestillgrowingstronglyAsviewersconsumemorestreamingmediatheamountofcontentrightsholdersneedtobecoveredbycontentprotectionincreaseaccordinglyensuringVOBILEGROUPthegrowthofcontentprotectionsubscriptionservicesAtthesametimetherearestillalotofpotentialcustomersforVobiletoexploitamongwhichthemosttypicalistheholdersoftheglobalsportseventsWiththedevelopmentofstreamingmediainDTCmodeVobileintendstoprovidethemostefficientcopyrightprotectionsolutiontoensuretheexclusivityofcontentdistributionandavoidviewershipoutflowwhichwillbekeytoDTCplatformsrevenueandcustomerretentionstrategiesThetrendofstreamingasthemainstreamwaytowatchmoviesisirreversibleTeemingwithanarrayofliveon-demandandad-supportedoptionstocomplementtraditionalsubscriptionoptionsstreaminghastransformedtelevisionviewinglightyearsbeyonditsoriginsasanonlinereplacementforphysicalmovierentalsAndaudienceshavefollowedComparedwithmid-2020whenconnectedTVusageskyrocketedaspeoplestayedhomeamidCovid-drivenshelter-in-placerestrictionstotalTVusagehasreturnedtoseasonalnormsbutstreaminghastakenamuchbiggerseatatthetableAccordingtoNielsenbetweenMay2021andMay2022streamingusageincreasedmorethan21intheUnitedStatesStreamingusagehasmaintainedmorethanone-thirdoftotalTVusagesinceJune2022InNovemberstreaminginallofitsflavorsaccountedfor382oftotalTVusageintheUnitedStatesanewhighwatermarkandupfrom285ayearagoReportCompanySeethelastpagefordisclaimerPage8of19TablePageHeaderVOBILEGROUP03738HKFigure-6StreaminghasbecomethemostmainstreamwayforAmericanstowatchTVcontentBroadcastCableOthersStreaming1raMthgiRelbaT10090224216221273261264260249247244242260257807034460351345338369368365329318369373356354504043889285513830December20229110084827230738920382337348350369373285277289287297304319100SourcetheNielsenCompanyGuotaiJunanInternationalStreamingcontentreachedupto80ofhouseholdsintheUnitedStatesThenumberofhomesthatstreamedcontentinamonthonCTVintheUSreached853mninMarch2022up6YoYaccordingtoComscoreCTVIntelligenceThetopthreestreamingplatformspenetratedmorethan60percentofhouseholdsintheUnitedStatesasofMarch2022withNetflix2raMthgiRelbaTaccountingforawhopping80ofthepenetrationFigure-7TheCTVHouseholdsreachandhourswatchedperhouseholdofthetopSixStreamingplatformsinUSHourswatchedperhousehold90458080403903738HK7035346462336030504725阜博集团4039362017301315201110105VOBILEGROUP00NetflixYouTubeAmazonHuluHBOMaxDisneySourceComscoreCTVIntelligenceGuotaiJunanInternationalNoteThefigureswasasofMarch2022TheleadingstreamingplatformsarestillgainingstrongstreamingusagegrowththroughtheirownapproachesAndgivenaudiencesappetiteforstreamingcontentviewingvolumeincreasedacrossvirtuallyeverymeasuredservicewithNetflix131HBOMax122andYouTube118leadingthewayOnayear-over-yearbasisstreamingusageisupmorethan41andperhapsmoreimportantlythereisnosingleroutetoviewershipgrowthForexampleNetflixHBOMaxandYouTubethetopgainersinNovembereachgainedviewingvolumethroughdifferentapproachesaccordingtoNielsenReportCompanySeethelastpagefordisclaimerPage9of19TablePageHeaderVOBILEGROUP03738HKFigure-8TheproportionofTVusageinUSthesixleadingstreamingplatformsaccountfor1raMthgiRelbaTPlutoTVDisneyAmazonHuluYouTubeNetflixOtherstreaming4035262830292930392940263637382325332522212423333431303033883080856973762060675858575761157630December202280767372666877686466646610107108113591889495989296991021030SourcetheNielsenCompanyGuotaiJunanInternationalLivesportseventsaroundtheworldaretransitioningintostreamingmediaThegrowingabundanceofvideostreamingservicesandcontentprovidesaudienceswithamplechoiceoutsideoftraditionalTVoptionsAndselectsportsleaguesaretransitioningaswellAccordingtoNielsentheNFLsThursdayNightFootballTNFbecameexclusivetoAmazonPrimeVideo2raMthgiRelbaTin2022Startingin2023MajorLeagueSoccerreachedadealwithAppletomakeAppleTVtheexclusivestreamingsourceforMLSLeaguesCupMLSNEXTProandMLSThe10-yearpartnershipwillrequirefanstosubscribetoanewMLSstreamingserviceonlyavailableontheAppleTVappandtherewillbenolocalblackoutsFansofsportseventsarealreadyreadyforstreamingAccordingtoNielsenFanInsights80ofsportsfans76ofNFLfansand89ofsoccerfanshaveregularlyorsometimeswatchedsportsonanystreamingoronlinechannel202203738HKPercentagesreflecthowregularlyorsometimestheseaudienceswatchviaeachmediaoptionFromasheerviewingperspectiveaudiencesappearfarmoreengagedwithstreamingNFLgamesonAmazonthantheyarewithwatchingthemonpremiumcableNielsenTVviewershipdatashowsthatthefirstthreeTNFgamesonAmazonPrimeVideoin2022attracted阜博集团significantlymoreviewers13mn11mnand117mnrespectivelythaneachofthesevenThursdaygamesfromlastyearthatairedonlyontheNFLNetworkThedevelopmentofstreamingmediaiseagerforhighaccuracyvideocontentprotectiontechnologyAccordingtoParksAssociatesaninternationallyrecognizedmarketresearchandconsultingcompanyspecializinginemergingconsumerVOBILEGROUPtechnologyproductsandservicesthepotentialrevenuefromover-the-topOTTstreamingserviceslikeNetflixandpay-TVproviderslikeComcasthasbeeneatenawaybyrampantpiracyinworldwideandtheproblemislikelytogetworseinthecomingyearsParksAssociatesestimatesthatvideopiracywillcostpayTVandOTTprovidersUS91bninrevenuein2021By2024thatnumberwillincreasetoUS125bnanincreaseof38Currently27ofUSbroadbandsubscribersengageinsomeformofpiracyoraccountsharingaccordingtoParksAssociatesMostpiratesarealsoknowntosubscribetoatleastoneOTTserviceNotonlyaretheycontentthievesbuttheyarealsovideoenthusiastsparticipatinginOTTvideoservicesandTVsubscriptionservicesMeanwhile20ofUSbroadbandusersusepiratedappswebsitesorjailbrokendevicesAftertwoyearsoftechnologyintegrationVobileisreadyforprovidingend-to-endprotectionsolutionsforDTCClientsWiththeincreasinglyvigorousdevelopmentofstreamingmediatheexistingcontentprotectionservicesandvalue-addedservicesonsocialplatformshavebeenunabletomeettheneedsofcontentrightsholdersInotherwordsthetraditionalcontentprotectionsubscriptionservicesandcontentmonetizationservicesarenolongerenoughtocoverthelossesofcontentrightsholderserodedbyinfringersBycombiningitsfingerprintingandwatermarkingtechnologiesVobilewillprovidetheultimateeffectivecopyrightprotectionsolutionforDTCclientsBynotonlyaccuratelyidentifyinginfringingcontentbutalsotracingtheoriginalsourceofinfringementVobilessolutionwillachievethefull-chainprotectionforDTCcontentcoveringfromitsdistributiontostreamingadaptingtotheevolvingindustryandnewestclientsrequestsReportCompanySeethelastpagefordisclaimerPage10of19TablePageHeaderVOBILEGROUP03738HK32TheVerticalExpansionofGlobalBusinessIncreasesMonetizationforContent1raMthgiRelbaTWiththedevelopmentofvideosocialmediaVobilesdiversificationofmonetizingcontentforitscustomerscontentwillbecomeanewspaceforrevenuegrowthDistributionandpromotiononsocialmediahasbecomeaninevitabletrendfordigitalcontentassetsexposingVobilesexistingbigclientstomorescenesofbeinginfringedTheCompanycangetsteadysubscriptionrevenuefromtheprotectionofacontentassetbuttheunlimiteddistributionofthecontentassetonsocialmediacangenerateimmeasurablecommercialrevenuesuchasadvertisingrevenueIthasbecomeanimportantdirectionfortheverticaldevelopmentofVobiletoprotecttheinterestsofitscustomerswhoareinfringedononlinesocialmedia30December2022ThereisstillplentyofroomforVobiletoincreasepenetrationofcustomerscontentassetsFormanyclientsofcontentrightsholderstheyinitiallyprioritizeprotectingthelatestandmostimportanthitsoveroldercontentassetsAstheyearspasstheymayalsoseenoneedtoprotectthecopyrightsoftheoutdatedcontentassetsHoweverwiththedevelopmentofsocialmediaanyfilmandtelevisionislikelytoformatemporarypopularityonsocialmediaandgeneratecorrespondingcommercialincomeIncreasingthepenetrationrateofexistingcustomerscontentassetsandincreasingtheirmonetizationrevenueisanothergrowthspaceIn2022WarnerBrosDiscoveryWBDupgradedVobilesservicecontractasacaseinpointUnderthenewcontractVobilewillprovidecomprehensivecontentprotectioncoverageforallWBDscontentassetsincluding247monitoringandmonetizingofinfringingcontentonYouTubeFacebookandothersocialmediasitesCurrentlyVobilehasbecomethelargestoreventheonlycontentprotectionserviceproviderforallleadingmediaand2entertainmentraMthgcompaniesiRelinbaTtheworldbutinfactthereisstillalotofroomforimprovementinthepenetrationrateofallcontentassetsofitscustomersandthistrendisbecomingmoreandmoreobviouswiththedevelopmentofsocialmediaWithmorecontentassetscoveredbyVobileandthedevelopmenttrendofvideosocialmediathecontentmonetizationrevenuecanmaintainrapidgrowthinthefutureVobilescontentmonetizationspacegrowsrapidlyastheCompanycoversmorecontentassetsAtthesametimemanystreamingcompanieshaveinvestedheavilyinvideocreation03738HKonsocialmediaplatformsparticularlyYouTubesincethethirdquarterof2021totestthemarketableeffectivenessofnewcontentandpromoteittoviewersAccordingtoConvivastreamingincreasedcontentoutputonYouTubeby97in3Q21whichresultedinan84increaseinviewsanda24increaseinuserengagementThisisatrendweexpecttocontinueand阜博集团forcemorecontentrightsholderstopromotetheircontentonsocialmediaThistrendhasalsosignificantlyincreasedthenumberofsituationsinwhichcopyrightinfringementoccursbutithasalsomadethewayforVobiletoprotectandmonetizecontentmorediversified33ThroughcooperationwithlocalplatformsinChinathefragmenteddemandisaggregatedVOBILEGROUPVobilehasthecoretechnologytosolvetheseriousproblemoframpantinfringementinChinabutitneedstopenetrateintotheChinesemarketslowlythroughcooperationwiththelocalleadingplatformsCopyrightawarenessisgrowinginChinaandthereisastrongdemandforcopyrightservicesinChinaHowevercopyrightinfringementisrampantandcontentrightsholdersinChinaareexcessivelydispersedTheChinesemarketisanincrementalmarketwithgreatpotentialforVobileBypartneringwithleadingInternetplatformsandculturalcreatorswithlocalgovernmentbackgroundsVobilehasbeenabletobringtogetherthefragmenteddemandforcontentrightprotectionThegovernmentbegantoattachimportancetocontentinfringementandrelevantprotectionpoliciesweregraduallyimprovedWeexpectthatthecontrolofshortvideoinfringementcontentwillgraduallybecomestricterAccordingtotheDetailedRulesofContentReviewStandardsforShortNetworkVideos2020shortnetworkvideosshallnotbecutoreditedwithoutauthorizationIn2021VobileprovidedinfringementmonitoringservicesfortheonlinelivebroadcastingandrebroadcastingoftheTokyoOlympicGamesInJanuary2022CCTVInternationalfiledalawsuitagainstDouyinplatformforprovidingalargenumberofGIFsandshortvideosoftheTokyoOlympicGamesclaimingRMB100mnintotalandrequiringtheplatformtodeletetheinfringingvideosandlinksOnOctober262022XianIntermediatePeoplesCourtmadeajudgmentoffirstinstanceontheinfringementcaseofMoJinTheWormValleyonDouyinplatformrulingthatDouyinshouldcompensateTencentmorethanRMB324mnBasedontheabovefactswebelievethatthefightagainstpiracyinfringementReporthasbecomeamust-dofromanoptionforvideoplatformsFacedwithhighinfringementcostsshortvideoplatformshavetoconsiderstrengtheningthemanagementofinfringingvideoswhichisthegreatopportunityforaleadingcontentprotectionservicesproviderlikeVobileCompanySeethelastpagefordisclaimerPage11of19TablePageHeaderVOBILEGROUP03738HKWebelievethatwiththedevelopmentofcopyrightawarenessinChinaVobilesoverseascontentprotectionandcontentmonetizationbusinessmodelcanbecopiedtotheChinesemarkettoachieve1rabusinessMthgexpansioniRelAsbaTmainstreamaggregatorsoforiginalUGCcontentshortvideoplatformssuchasDouyinKuaishouandBilibilialsohavetheirownneedstoprotectuniquequalitycontentWeexpectthatintheshorttermshortvideoplatformswithmoreinfringingcontentwillpayattentiontothepotentialinfringementbehaviorswithintheirplatformsandmakecorrespondingrectificationsoastocooperatewiththesustainabledevelopmentofcopyrightecologyAtpresentVobilehasreachedcooperationwithKuaishouTheCompanywillidentifyandprotecttheshortvideocontentontheplatformbasedonVDNAtechnologyandtheopenAPIinterfaceofKuaishouWiththematchingandnegotiationbetweenmajoraudioandvideoplatformsinChinaand30December2022Vobileaswellasthegradualimprovementofthecontent-relatedrevenuedistributionsysteminfringingshortvideocontentandinfringinglongvideomayrefertoYouTubeadvertisingdistributionmodelforcooperationandVobileisexpectedtoopenthebusinessceilingintheblueseaoftheChinasOVCPmarketChinascontentrightprotectionpoliciesandawarenessaregraduallymaturingbuttheexistingmechanismforcontentprotectionisstillgenerallyunabletoeffectivelyprotectcontentrightsholdersBehindtheseriousinfringementoftraditionalcopyrightprotectiontherearethreeobviousshortcomingsintheChinascopyrightprotectionindustry1Thelackofstandardizedservicesofthecontentmanagementandthelackofinformationcommunicationintheprocessofcopyrighttradingultimatelyleadtothedifficultyofdistributingcopyrightincomefairlyandeffectivelyamongtheoriginalcreatorsandrelatedinstitutions2Thetraditionalwayofcontentprotectionistime-consumingandcostlyIt2isrdifficultaMttohprotectgiRmassiveelbaTcontentcomprehensivelyandcontentdistributionhassecurityproblems3Theprocessofself-proofofcontentcreatoriscomplicatedcomplicatedformalitiesdifficulttofindinfringementtime-consumingandcostlyrightsprotectionanddifficulttoeffectivelyprotectoriginalworksVobilehasestablishedstrategiccooperationwithInternetandculturalplatformstoimproveitsservicecoveragecapabilityforsmallandmedium-sizedcontentprovidersinChinaInDecember2020Vobilecompletedtheallocationof03738HKsharestothewholly-ownedsubsidiaryofAntTechnologyandreachedstrategiccooperationVobilewillprovidevideoandaudiocontentprotectiontechnologyforQuezaothedigitalcopyrightserviceplatformoperatedbyAntChainandplanstoprovideoverseasonlinecopyrightmanagementandmonetizationservicesforthisplatformComparedwithtraditionalcontent阜博集团rightsprotectionmethodsQuezaohasasignificantadvantageoflowservicefeeandhighefficiencyTheprocessofcontentrightprotectionisasfollows1IntheconfirmationoftherighttodepositcertificatethetraditionalofflinewayrequiresmanualregistrationandthescheduleisusuallyatleastoneweekwhiletheQuezaocansavethetimeofthecreatorbythereleaseofthecertificateimmediately2IntermsofcontentmonitoringtraditionalmanualsearchcostscanbeuptohundredsofthousandsofRMBbutQuezaothroughthetechnicalservicesprovidedbyVobilecanqueryworksimmediatelyafterVOBILEGROUPpublicationandinformtheresultssynchronouslyandthecostismostlywithinRMB1003Intermsofinfringementevidencecollectiontraditionalofflineevidencecollectiontakes2-3daysandcostsuptothousandsofRMBwhileQuezaostechnologycancompleteevidencecollectionwithin30minutescostingonlyaboutRMB1004Appealingandrecoveringinfringedrightsisthemosttime-consuminganddifficultpartoftraditionalcopyrightprotectionThehighpricehasalsobecomeathresholdforsmallandmedium-sizedcreatorstoprotecttheirrightsThetechnologyofQuezaomakesbatchprocessingarealityanduserscanspend9-20daysandhundredsofRMBtocompletetheprocessingAtpresentVobileisbuildingstrategicpartnershipswithanumberoflocalgovernmentmediagroupssuchasHunanDailyandmorecontentprotectioncenterplatformslikeQuezaowillbebuiltinthefuture34AcquisitionofParticleTechnologyHasOpennedupChinasMarketGeneratingSynergiesThroughtheacquisitionofParticleTechnologytheCompanyhasenteredthecontentdistributionbusinessinChinacreatingsynergieswiththecontentprotectionbusinessAsspecifiedontheno181documentissuedbytheNationalRadioandTelevisionAdministrationOTTOverthetopplatformslikeTencentvideoandYoukuarenotallowedtodistributecontentdirectlytoTVchannelsDVBIPTVParticleTechnologyisalicenseddistributorofcontentbetweenchannelsParticleTechnologyprovidedawayforOTTplatformstomonetizetheircontentsAccordingtothecompliancerequirementsofdifferentcontentchannelsandformatconversionthecontentispackagedbyParticleTechnologyintonewproductsanddistributedtoReporttheterminalplatformsParticleTechnologyrepackagedthecontentintoanewproductbylinkingresourcesfromtheseplatformsintoauthorizedIPTVplatformsin2019viaasoftwaredevelopmentkitNamedAuroraTV极光TVforTencentVideoandCoolMeow酷喵forYoukutheseproductsarechargedtousersbyoperatorswhowouldthensharerevenuewithCompanyParticleTechnologyTencentvideosandcontentownersTheproductsalsooffervalueaddedservicessuchaschild-specificmusic-specificandgaming-specificpackagesSeethelastpagefordisclaimerPage12of19TablePageHeaderVOBILEGROUP03738HKThehugegrowthspaceofIPTVandOTTpromotesthebusinessdevelopmentofParticleTechnologyTheconstructionofIntelligentBroadcastingandTelevisionadvocatedbyChinahasacceleratedandIPTVand1rOTTaMaretboominghgiRAccordingelbtoaTstatisticsfromtheNationalRadioandTelevisionAdministrationandtheMinistryofIndustryandInformationTechnologyasofJuly2022thenumberofIPTVusersnationwidehadexceeded368mnup168from2020Bytheendof2021thenumberofOTTusersinChinareached11bnup134YoYIPTVandOTTasrepresentativesofnewcontentmediapromotethegrowthofpayingusersandleadthetransformationoftraditionalbroadcastingandtelevisionenterprisesunderthecircumstanceoffavorablepoliciesandcontinuousgrowthofuserbaseFigure-9ThenumberofIPTVusersinChinaexceededFigure-10ThenumberofOTTusersinChinaexceeded30December2022368mnin1H221083mnin202112001204003689010833493508031510009551007030027482160800802505020060060154404201503040040100202002raMthgiRe20lbaT5010000020182019202020212022072018201920202021NationalIPTVusersmnYoYgrowthRHSNationalOTTusersmnYoYgrowthRHSSourceNationalRadioandTelevisionAdministrationofChinaGuotaiSourceNationalRadioandTelevisionAdministrationofChinaGuotaiJunanJunanInternationalInternational03738HKParticleTechnologysservicesdiversifyVobilesbusinessParticleTechnologysmainbusinesscanbedividedintotwocategoriesSaaSforvideodistributionandedgecomputingandcontentmonetizationservicewhichaccountfor40and60oftotalrevenuerespectivelyUnderSaaSforvideodistributionandedgecomputingserviceParticleTechnologyprovides阜博集团integratedvideotechnologyservicevideodistributionedgecomputingservicesandhybridcloudsolutionsservingcustomersincludingtopcontentplatformssuchasYoukuTencenttelecomandcableoperatorsnewmediaandinternetserviceproviderssuchasAlibabaTencentBytedanceHuaweiCloudBaiduUndercontentmonetizationserviceParticleTechnologycarriesoutstrategiccooperationwithcontentrightsholdersincludingglobalfilmstudiosandtelevisionnetworksandtopplatformstobringtogetherhigh-qualitycontentfromYoukuTencentSonyandParamountetcandprovidesVOBILEGROUPvideo-basedproductsoperationsandmonetizationservicestotelecomoperatorsnewmediaandcableoperatorsviaTVandmobiledevicesReportCompanySeethelastpagefordisclaimerPage13of19TablePageHeaderVOBILEGROUP03738HK3EarningsEstimates1raMthgiRelbaTBasedontheindustryandtheCompanyssituationwemakethefollowingassumptionsaboutVobilesprofitabilityinthenextthreeyearsAssumption1WeexpectthatthenumberofcontentprotectioncenterplatformsbuiltinpartnershipwithlocallargeplatformsinChinatoincreasebyoneortwoayearlargelydrivingtherevenuefromsubscriptionservicesSecondlyParticleTechnologysoriginalvideodistributionandedgecomputingbusinessisalsoinaperiodofrapidgrowthWeforecastthatthe30December2022revenuefromsubscriptionserviceswillgrowby2066343and339in2022-2024respectivelyAssumption2MainlydrivenbythedevelopmentofsocialmediaandDTCstreamingthevalue-addedservicesonsocialplatformsisgrowingatahighspeedMeanwhileParticleTechnologyscontentmonetizationserviceisalsotakingadvantageofthepolicydividendWiththestrengtheningofcopyrightawarenessandwillingofpayingforwatchingcontentinChinaweexpectthatthecontentmonetizationserviceinChinawillmaintainfastgrowthWeforecastthattherevenuefromvalue-addedserviceswillgrowby723488and433in2022-2024respectivelyAssumption3Asthecomputingservicesintegratedinplatformshasahighgrossmarginlikecontentprotectionserviceswe2raMthgiRelbaTexpectthegrossmarginforsubscriptionservicestocontinuetoincreaseasthenumberofChinesecontentprotectioncenterplatformsincreasesWeforecastthattheCompanysgrossmarginforsubscriptionserviceswillbe54588and631in2022-2024respectivelyAssumption4WeexpecttheDTCwatermarktracingservicetobeofficiallylaunchedin2023whichwillincreasethegrossmarginofvalue-addedservicesWeestimategrossmarginforvalue-addedservicestobe314351and363in2022-2024respectively03738HKTable-1KeyAssumptionsforEarningsForecasts2020A2021A2022F2023F2024F阜博集团RevenuebygeographicareaUnitedStates32015951520972129310148591356955oftotal941750500496478MainlandChina1141716616171266110069851389933oftotal34242494493489Othercountriesregions8718515874792237893553VOBILEGROUPoftotal2608051133RevenueHKmnSubscriptionservices766511974356054028129681088512YoYna15762066343339Value-addedservices23814346000079278811793631689659YoYna932723488433Others2550029093432435189262270YoYna14120200200Totalrevenue340294686528144143320442222840441YoY131310171100418389GrossmarginSubscriptionservices800800540588631Value-addedservices395390314351363Overall487508411447467Sellingandmarketingexpenses-74762-97862-158558-224864-312449ofrevenue-220-143-110-110-110Administrativeexpenses-58200-128840-201801-245307-284044ofrevenue-171-188-140-120-100RDexpenses-52488-111840-172972-204422-284044ofrevenue-154-163-120-100-100NetptofitHKmn811872267726626168751332203YoY61-1279-21745338969NotetheCompanyGuotaiJunanInternationalReportCompanySeethelastpagefordisclaimerPage14of19TablePageHeaderVOBILEGROUP03738HK4WhatistheCurrentMarketPenetrationRate1raMthgiRelbaTMarketPenetrationRateforGlobalMarketWecountthecontentrightsholderstotalbudgetforprotectedcontentasthetotalpotentialmarketvalueWebelievethatthecorevalueofcontentprotectionistosafeguardthecommercialvalueofdigitalcontentassetsWhetherthecontentisuploadedtotheInternetillegallyorusedforcommercialpurposesonsocialmediaaftereditingitisaviolationofthecommercialvalueofthecontentThevalueofVobilesservicesliesinsafeguardtheaboverelatedinterestsAccordingtoour30December2022understandingoftheindustrywiththedevelopmentoftheglobalonlinevideoindustryandtheawarenessofcontentprotectionithasgraduallybecomeanindustryconsensusforcontentrightsholderstotake1ofcontentrelatedrevenueastherevenuecostofcontentprotectionWetakethefourlargestglobalDTCstreamingmediaentertainmentcompaniesasanindustrybenchmarkBasedonourviewoftheindustryaboveweconsiderapercentageofthetopglobalcontentrightsholdersDTCbusinessrelatedrevenuesasthetotalpotentialmarketsizeoftheoverseasOVCPbusinessthevalueofwhichreflectsthetotalannualbudgetoftheglobalcontentrightsholdersoncontentprotectionrelatedservicesWeselectedfourmediaandentertainmentcompaniesDisneyNetflixWarnerBrosDiscoveryandParamounttorepresenttheindustryWhenitcomesto2raMthgiRelbaTstreamingmoviesjusttwocompaniesDisneyandNetflixhavemorethan95ofthemarketaccordingtoNielsens2021streamingdataThebusinessofATTsWarnerMediawasmergedwiththeDiscoveryChanneltoformWarnerBrosDiscoveryWBDwhichwentpublicontheNasdaqStockMarketinApril2022Withnearly100mnsubscribersWBDwouldhavethefirepowertochallengethecurrenttwogiantsofthestreamingindustryNetflixandDisneytobecometheNo3playerinthestreamingspaceAccordingtothelatestearningsreleaseDisneyNetflixandWBDcurrentlyhave2357mn2219mnand949mnstreamingsubscribersrespectivelywhichalladdupto5525mn03738HKTable-2EstimatesofglobalexcludingChinamarketpenetrationforcontentprotectionincludingvalue-added202020212022F2023F2024FDisney阜博集团DTCsubscribersmn121179236nanaDisney74118164nanaESPN101724nanaHulu374447nanaSubscriptionfeesUSmn76451202015291nanaNetflixDTCsubscribersmn189211223nanaVOBILEGROUPSubscriptionfeesUSmn247572951531535nanaWarnerBrosDiscoveryDTCsubscribersmnna2097nanaSubscriptionfeesUSmnna55505716nanaParamountGlobalDTCsubscribersmn305667nanaSubscriptionfeesUSmn91661044211649nanaTotalDTCsubscribersmn340466622777933YoYgrowthna372334250200TotalDTCSubscriptionfeesUSmn4156857527641916932673486YoYgrowthna3841168060Marketshare800800800800800EstimateofrevenuescaleofglobalDTCstreamingUSmn5196071909802398665891857BudgetforcontentprotectionUSmn520719802867919BudgetforcontentprotectionHKDmn40585616626767687174USDHKD781781781781781VobilesrevenuefromglobalcontentassetsHKDmn31255381111711634YoYgrowthna773468443396SubscriptionservicesHKDmn7493163193227MonetizationservicesinsocialmediaHKDmn2384606499281317DTCtracingservicesHKDmnnanana5090ReportMarketpenetration7798129173228SourcetheCompaniesGuotaiJunanInternationalCompanySeethelastpagefordisclaimerPage15of19TablePageHeaderVOBILEGROUP03738HKEvenifVobilemaintainshighgrowthofservicerevenueinthefuturethereisstillalotofroomforincreasingglobalmarketpenetrationBasedonourresearchontheglobalfilmandtelevisionindustrywe1rassumeaMtthathgtheicontentRelDTCbaTbusinessrevenueoffourleadingmediaandentertainmentcompaniesaccountsforabout80oftheglobalindustryrevenueBasedon1ofrevenueascontentprotection-relatedbudgetwecalculatethatthepotentialglobalmarketforcontentprotectionincludingcontentmonetizationisHK6267mnin2022whileweprojectVobilesrevenuefromsuchmarketdemandtobeHK811mnin2022withamarketpenetrationof129WiththelaunchofDTCtrackingservicesin2023andrapidgrowthincontentmonetizationrevenueweexpectpenetrationtoincreasesignificantlyfrom2023to2024butonlytoreach228by202430December2022MarketPenetrationRateforChinasMarketVobilespenetrationrateforplatformcontentholdersinChinaisstillverylowForthepotentialOVCPmarketinChinawearedividedintotwopartsOnepartiscontentprotectionforvideoplatformsandtheotherpartiscontentprotectionforsmallandmedium-sizedcontentcreatorsAccordingtothedataofMobTechwecalculatedthattherevenuerelatedtothevideoindustryanduserpaidin2022wasaboutHK69bnDuetotheweakawarenessandwillingnessofcontentcopyrightholdersinChinatoprotectcopyrightwereducedtheproportionofuserpaidrevenueandcontentprotectionserviceasthebasiccostofrevenue005BasedonourassumptionsitisestimatedthatthepotentialmarketsizeofOVCPinChinaforlargevideoplatformcontentownersin2022isHK343mmwhiletheestimatedrevenueofVobiles2raprotectionMthgiservicesRelforbaTChinesecontentcopyrightholdersis10mnandthemarketpenetrationrateisonly3Table-3EstimatesofglobalexcludingChinamarketpenetrationforcontentprotectionincludingvalue-added20202021E2022E2023E2024EMarketsizeofChinasonlinevideoRMBbn120139163182200YoYgrowth170163168120100asuserpaidrevenue311348377387397MarketsizeofChinasvideopaidrevenueRMBbn374861708003738HKMarketsizeofChinasvideopaidrevenueHKDbn4254697989RMBHKD112112112112112BudgetforcontentprotectionHKDmn209271343395445阜博集团VobilessubscriptionrevenueforcontentprotectionHKDmn35101520Marketpenetration1518303744SourceMobTechtheCompaniesGuotaiJunanInternationalConsideringthatcontentrightprotectioniscurrentlyanurgentdemandforsmallandmedium-sizedcontentcreatorsVOBILEGROUPweexpectitspotentialmarketpenetrationspacetobeverylargeBasedonMobTechsdatawecalculatethattheadvertisingcopyrightdistributionandothercommercialuserelatedrevenuewillbeaboutHK113billionin2022Contentrightprotectionawarenessisrelativelystronginthissectorandweassumethatthewillingnesstospendoncontentprotectionserviceswillbeclosetoworldlevelsassumingaratioof1ofrevenueasbudgetforprotectionBasedonourassumptionsitisestimatedthatthepotentialmarketsizeofOVCPforsmallandmedium-sizedcreatorsinChinain2022isHK1135mmwhiletheprotectionservicerevenueofVobileforthesecontentholdersisestimatedtobeHK155mnandthemarketpenetrationrateis136in2022Table-4EstimatesofglobalexcludingChinamarketpenetrationforcontentprotectionincludingvalue-added20202021E2022E2023E2024EMarketsizeofChinasonlinevideoRMBbn120139163182200YoYgrowth170163168120100ascopyrightmonetizationandadsrevenue689652623613603MarketsizeofChinasvideopaidrevenueRMBbn8291101112121MarketsizeofChinasvideopaidrevenueHKDbn92102113125135RMBHKD112112112112112BudgetforcontentprotectionHKDmn9241017113512511353VobilesrevenuefromcomputingservicesinplatformsHKDmnna100155309531ReportMarketpenetrationna98136247392SourceMobTechtheCompaniesGuotaiJunanInternationalCompanySeethelastpagefordisclaimerPage16of19TablePageHeaderVOBILEGROUP03738HK5ValuationandRisks1raMthgiRelbaTWeinitiatewithaBuyratingandaTPofHK579Weadoptrelativevaluationbasedonprice-to-salesratioWeselectedeightHongKonglistedSaaScompaniesastheCompanyspeersthepeersgroupAccordingtoBloombergthepeersgroups2023PSratiorangesfrom17xto82xwithaweightedaveragePSof55XBasedonVobileshugepotentialroomforgrowthandleadingprofitabilityintheSaaSindustryweassigna2023PSof60xforitsvaluationTosumupwecalculatethereasonablemarketvalueoftheCompanytobeHK12265mnBasedonthelatestnumberofissuedshareswecalculatethecorrespondingfairvaluetobeHK579share30December2022Table-5PeersValuationHongKongListedSaaSCompaniesMarketPriceSalesPEPBROECompanyStockCapCodeCurrencyLastprice22F23F24F22F23F22F22FHKDmilSaaSIndustryKingdeeInternational00268HKHKD16621038266nana715757739KingsoftCorpLtd03888HKHKD2545413429574559140434670WeimobInc02013HKHKD633695546nana4627916137MingYuanCloud00909HKHKD690584941nana2211113501YeahkaLtd09923HKHKD201522171432719624708998LinklogisInc-ClassB09959HKHKD377655239260159082586662raMthgiRelbaTVobileGroupLtd03738HKHKD32351342425660943526840YiduTechInc02158HKHKD601354736na1624121755972ChinaYouzanLtd08083HKHKD019211815nanana2043519SimpleAverage5243353546303075WeightedAverage6855454545594162SourceBloombergGuotaiJunanInternationalNoteAbovevaluationsandROEarebasedonBloombergconsensusforecastsMarketcapandlastpriceareasat19September202203738HKMajorRisks1ChinesecontentrightsholdersawarenessofcopyrightprotectionhasnotbeenimprovedasexpectedandVobilesbusinesspenetrationofcontentprotectioninChinaisslower-than-expected2OverseascontentrightsholdersdemandforVobilesDTCtracingvalue-addedservicesisless-than-expected阜博集团VOBILEGROUPReportCompanySeethelastpagefordisclaimerPage17of19TablePageHeaderVOBILEGROUP03738HKFinancialStatementsandRatiosTableIncomeStatementTableBalanceSheet1raMthgiRelbaTIncomeStatementBalanceSheetYearended31DecemberHK0002020A2021A2022F2023F2024FYearended31DecemberHK0002020A2021A2022F2023F2024FTotalRevenue340294686528144143320442222840441Propertyplantandequipment153826190314283771445256Costofrevenues17473033775784885511311341515113Investmentproperties045328457814669748098Grosslossprofit1655643487715925789130881325328Right-of-useassets2242423239246662713329846Othergainsandlosses1424735516476151394950Goodwill603820607297613370619504625699Sellingandmarketingexpenses7476297862158558224864312449Otherintangibleassets8115011144911479211823612178358200128840201801245307284044GeneralandadministrativeexpensesFinancialassetsatfairvaluethrough30December2022Researchanddevelopmentexpenses52488111840172972204422284044profitorloss048316485584758649014Operatingprofit198861022959248238495444791Deferredtaxassets6224283603108684141289183676Totalotherincomeexpensesnet525510339144141635419883Prepaymentsanddeposits11941986208521902299Shareoflossesofanassociate01081130102Totalnon-currentassets77236894740898936510403491105671Financecosts5019420174181571634114707Profitbeforetax671381487631325210939415253Tradereceivables69518269637504501715478994154Incometax14049780146994218883051PrepaymentsotherreceivablesandProfitAfterTax811872267726626168751332203otherassets4794250877101863135736181814Non-controllingInterest00000Taxrecoverable13485363589964897138ShareholdersProfitLoss811872267726626168751332203Cashcashequivalents262362496865446514472214639180BasicEPSHKcents473511851238796915688Totalcurrentassets3811708227421058777132991718222862raMthgiRelbaTTotalAssets11535381770150204814223702662927957TableCashFlowStatementCashFlowStatementTradepayables50961136218297099361963484836Yearended31DecemberHK0002020A2021A2022F2023F2024FOtherpayablesandaccruals3870625709322082895830583Lossprofitbeforetax6713824172031325210939415253Leaseliabilities8117947399471044410966Financecosts5019420174000Taxpayable020094261223395944147Interestincome2091615000TotalCurrentLiabilities9778419149436537543532457053203738HKDepreciationofPPE13991028121413351468Changesinfairvalueofinvestment04474539161401Convertiblebonds829750000Depreciationofright-of-useassets1071610676107831089110999Interest-bearingborrowings1550500000LossondisposalofPPE1030000Leaseliabilities1484614790155301630617121阜博集团Amortisationofotherintangibleassets571511745120971246012834Deferredtaxliabilities1401727543358064654860512Impairmentoffinancialassets24065881150TotalNon-currentLiabilities26688842333513356285477633ChangesinfinancialassetsatFVTPL05075406032482598TotalLiabilities364672233827416711498178648165Shareoflossesofanassociate01081130102Others11483067830684827190675501Sharecapital359417417417417VOBILEGROUPChangeinworkingcapital13541109274351358238822357206Treasuryshares2198462437624376243762437Cashfromoperatingactivities33527247532479344549589875810Equitycomponentofconvertiblebonds115900000Reserves7989011598343169345119341082341812ChangeinPPE3325852281791127112286TotalShareholdersEquity7888661536323163143118720882279792Purchasesofotherintangibles112564043041239206190MinorityInterest00000Others0983800708210280279TotalEquity7888661536323163143118720882279792Cashfrominvestingactivities1128916466269417740101292565Proceedsfromissueofconvertiblebonds897900000TableFinancialRatioFinancialRatiosIssueofshares387178629702000Purchaseofshares1994594440002020A2021A2022F2023F2024FInterestpaid276066308000Grossmargin487508411447467Repaymentofborrowings2373121550501240409923279386Costtorevenue513492589553533Principalportionofleasepayments998910191102621033410407Sellingexpensetorevenue220143110110110Cashfromfinancingactivities20006739870913430210956689792RDexpensetorevenue154163120100100Adminexpensetorevenue171188140120100Netchangesincash222305481579275624300078493452Operatingprofitmargin581541117157Cashatbegofyear37480262362496865772525146203Netmargin239331883117ROE103201796160Effectofexchangeratechanges25779229000Cashatendofyear262362496865446514472214639180ROA70161476125ReportSourcetheCompanyGuotaiJunanInternationalCompanyTableCompanyRatingDefinitionSeethelastpagefordisclaimerPage18of19TablePageHeaderVOBILEGROUP03738HKCompanyRatingDefinitionTheBenchmarkHongKongHangSengIndex1raMthgiRelbaTTimeHorizon6to18monthsRatingDefinitionBuy买入RelativePerformance15orthefundamentaloutlookofthecompanyorsectorisfavorableAccumulate收集RelativePerformanceis5to15orthefundamentaloutlookofthecompanyorsectorisfavorableNeutral中性RelativePerformanceis-5to5orthefundamentaloutlookofthecompanyorsectorisneutral30December2022Reduce减持RelativePerformanceis-5to-15orthefundamentaloutlookofthecompanyorsectorisunfavorableSell卖出RelativePerformance-15orthefundamentaloutlookofthecompanyorsectorisunfavorableSectorTableRatingIndustryDefinitionRatingDefinitionTheBenchmarkHongKongHangSengIndexTimeHorizon6to18monthsRatingDefinitionOutperform跑赢大市RelativePerformance52raMthgiRelbaTorthefundamentaloutlookofthesectorisfavorableNeutral中性RelativePerformanceis-5to5orthefundamentaloutlookofthesectorisneutralUnderperform跑输大市RelativePerformance-5OrthefundamentaloutlookofthesectorisunfavorableDISCLOSURETableDISCLOSUREOFINTERESTSOFINTERESTS03738HK1TheAnalystsandtheirassociatesdonotserveasanofficeroftheissuermentionedinthisResearchReport2TheAnalystsandtheirassociatesdonothaveanyfinancialinterestsinrelationtotheissuermentionedinthisResearchReport3ExceptforCHINAGRANDPHARMACEUTICALANDHEALTHCARE00512HKLUZHOUBANK01983HKSFREIT02191HKJINSHANGBANK02558HKBANKOFZHENGZHOU06196HKGuotaiJunananditsgroupcompaniesdonotholdequaltoor阜博集团morethan1ofthemarketcapitalizationoftheissuermentionedinthisResearchReport4GuotaiJunananditsgroupcompanieshavenothadinvestmentbankingrelationshipswiththeissuermentionedinthisResearchReportwithinthepreceding12months5GuotaiJunananditsgroupcompaniesarenotmakingamarketinthesecuritiesinrespectoftheissuermentionedinthisResearchReport6GuotaiJunananditsgroupcompanieshavenotemployedanindividualservingasanofficeroftheissuermentionedinthisResearchReportThereisnoofficeroftheissuermentionedinthisResearchReportassociatedwithGuotaiJunananditsgroupcompaniesVOBILEGROUPDISCLAIMERThisResearchReportdoesnotconstituteaninvitationoroffertoacquirepurchaseorsubscribeforsecuritiesbyGuotaiJunanSecuritiesHongKongLimitedGuotaiJunanGuotaiJunananditsgroupcompaniesmaydobusinessthatrelatestocompaniescoveredinresearchreportsincludinginvestmentbankinginvestmentservicesetcforexampletheplacingagentleadmanagersponsorunderwriterorinvestproprietarilyAnyopinionsexpressedinthisreportmaydifferorbecontrarytoopinionsorinvestmentstrategiesexpressedorallyorinwrittenformbysalespersonsdealersandotherprofessionalexecutivesofGuotaiJunangroupofcompaniesAnyopinionsexpressedinthisreportmaydifferorbecontrarytoopinionsorinvestmentdecisionsmadebytheassetmanagementandinvestmentbankinggroupsofGuotaiJunanThoughbestefforthasbeenmadetoensuretheaccuracyoftheinformationanddatacontainedinthisResearchReportGuotaiJunandoesnotguaranteetheaccuracyandcompletenessoftheinformationanddatahereinThisResearchReportmaycontainsomeforward-lookingestimatesandforecastsderivedfromtheassumptionsofthefuturepoliticalandeconomicconditionswithinherentlyunpredictableandmutablesituationsouncertaintymaycontainInvestorsshouldunderstandandcomprehendtheinvestmentobjectivesanditsrelatedrisksandwherenecessaryconsulttheirownfinancialadviserspriortoanyinvestmentdecisionThisResearchReportisnotdirectedatorintendedfordistributiontoorusebyanypersonorentitywhoisacitizenorresidentoforlocatedinanyjurisdictionwheresuchdistributionpublicationavailabilityorusewouldbecontrarytoapplicablelaworregulationorwhichwouldsubjectGuotaiJunananditsgroupcompaniestoanyregistrationorlicensingrequirementwithinsuchjurisdictionReport2022GuotaiJunanSecuritiesHongKongLimitedAllRightsReserved27FLowBlockGrandMillenniumPlaza181QueensRoadCentralHongKongTel8522509-9118Fax8522509-7793WebsitewwwgtjacomhkCompanySeethelastpagefordisclaimerPage19of19