Phoenix New Media Ltd (NYSE: FENG)

Phoenix New Media Ltd, or FENG, operates as a leading new media company in China, providing premium content on an integrated Internet platform. Its stock symbol is FENG, and it is part of the new media industry.

FENG's core business activities involve providing access to professional news and other quality information and user-generated content (UGC) on the Internet and through PCs and mobile devices. The company's content is organized into major verticals, including news, military affairs, video, technology, finance, entertainment, automobiles, sports, real estate, and home living. The content is derived from four major sources: professional content, original content, we-media content, and online literature content. Professional content is acquired from approximately 232 third-party professional content providers, while original content is produced in-house by FENG's content team. We-media content is user-generated content that is uploaded to FENG's PC websites, mobile applications, and mobile websites through we-media accounts. Online literature content includes genres such as science fiction, urban romantic fiction, and mystery fiction.

FENG's content is monitored and screened by a team of employees and outsourced staff members to remove inappropriate or illegal content. The company utilizes AI technology to ensure the efficiency and safety of its content monitoring. FENG provides its content and services through three major channels: PC channel, mobile channel, and third-party channel. The PC channel consists of ifeng.com, which comprises interest-based content verticals and access to licensed digital format books and e-commerce platform. The mobile channel includes ifeng news application, ifeng video application, mobile Internet websites i.ifeng.com, and digital reading applications.

FENG generates revenue through advertising and paid services. Advertising services are primarily provided through its PC channel and mobile channel, including ifeng.com, i.ifeng.com, and mobile applications. FENG offers a wide range of advertising solutions, including online advertisements, online video advertisements, user activities, live promotions, and cross-media public relations campaigns. Paid services primarily consist of paid contents and E-commerce and others. In 2023, FENG derived 48.0% and 52.0% of its paid services revenues, respectively, from paid contents and E-commerce and others. However, the company's paid services revenues decreased from RMB89.0 million in 2022 to RMB72.7 million in 2023, primarily attributable to the decrease in E-commerce revenues as the company closed certain E-commerce business lines in 2023.

FENG is a leading new media company in China, with a strong brand reputation and a large user base. The company's affiliation with Phoenix TV, a leading global Chinese language TV network, enhances its brand recognition and credibility. FENG's competitive advantages include its ability to produce high-quality original content, its strong brand recognition, and its extensive distribution network. FENG's customers include individual users, advertising agencies, and brand advertisers. The company's advertising clients include both Chinese and international brand advertisers.

FENG's brand names and/or trade names of its products and services include ifeng.com, i.ifeng.com, and mobile applications. The company faces several risks, including the risk of losing its license and priority over any third party to use Phoenix TV's content and licensed trademarks, which could have an adverse effect on its paid services business and video advertising business. FENG may also have conflicts of interest with Phoenix TV, which could impact its ability to resolve conflicts on terms favorable to FENG.

In terms of environmental, social, and governance (ESG) matters, FENG is committed to corporate social responsibility and meeting society's changing needs. The company is committed to living up to its social responsibilities and to facilitating meaningful public affairs dialogue. FENG provides public welfare information and organizes charity events through its media platform to gather resources from charitable organizations, media partners, and caring enterprises. The company's aim is to promote charity, facilitate public welfare, and environmental protection projects, and make contributions to society's sustainable development.