Wen Miao Mirror Entertainment is written by Xiao Man and edited by Zhang Fengyi.
Experienced the epidemic in 2020, for any film and television company, it has experienced unprecedented difficulties.
After half a year’s closure, domestic cinemas ushered in a season of recovery, but the performance of the domestic film market, which has entered the Lunar New Year file cycle, is still tepid, and the daily box office remains at around 30 million.
Recently, the third quarter financial reports of 20 listed film and television companies have been disclosed. There were as many as 15 film and television companies that lost money in the first three quarters, of which WANDA CINEMAS lost as much as 2.015 billion, ranking first, while Huace Film and Television, which focuses on TV drama business, made a profit of 203 million yuan.
The fourth quarter and the Lunar New Year file are not only the last hope for companies to turn over their performance, but also the future and destiny of many film and television companies. If they lose money for two consecutive years, WANDA CINEMAS will be "ST" and Huayi Brothers will also face the risk of being delisted.
At this important schedule node, we don’t need to be "calm", but we are more eager to be "crowded".
According to the third quarterly report, WANDA CINEMAS achieved an operating income of 3.214 billion yuan and a net profit loss of 2.015 billion yuan in the first three quarters.
As WANDA CINEMAS suffered a huge loss of 4.729 billion yuan last year, it will be specially treated as a "ST share" according to the provisions of the Shenzhen Stock Exchange that "the net profit has been negative for two consecutive years". If Wanda can’t work miracles in the fourth quarter of this year, it may become a "ST WANDA CINEMAS".
At the critical moment, on the evening of November 9, WANDA CINEMAS released the Report on the Issuance of Non-public Offering of A Shares and the Listing Announcement, announcing that the total amount of funds raised reached 2.93 billion yuan, which was the first company in the film and television industry to complete the fixed increase this year and the largest fixed increase project in the history of A-share film and television industry.
The lock-up period of this fixed increase is 6 months, and Wanda will be used to build new cinemas, replenish the company’s working capital and repay funds. Affected by this news, it opened in the morning of November 10th, and WANDA CINEMAS once had a daily limit.
This year’s WANDA CINEMAS is a bad year, with few bright spots in the market business. The overseas cinema industry laid out many years ago has now become a huge drag.
In 2012, Wanda Group invested $2.6 billion to acquire 100% equity of AMC Entertainment, and WANDA CINEMAS became the largest cinema line operator in the world.
After many years, Wanda continued to adhere to the business philosophy of "Buy in buy buy". After successively acquiring cinemas such as Odeon, UCI and armike, AMC also became the largest cinema company in the United States.
When the epidemic struck, AMC’s once proud scale advantage suddenly became the company’s huge weakness.
At the beginning of this year, AMC announced the closure of 1,000 cinemas. Since then, it has fired a number of employees and launched a salary reduction plan for cinema executives. Even so, AMC has recently reported that funds are in a hurry. Some Wall Street analysts said that the bankruptcy of AMC is almost a foregone conclusion.
The situation in the American market is in dire straits, and domestic business is also difficult to do. Wanda currently has more than 600 cinemas in China. During the closure of the epidemic, the fixed costs of Wanda Studios such as depreciation, rent, employee compensation and financial expenses were high, which made its revenue performance suffer a great impact.
At the same time, in the film and television business sector, Wanda has not achieved outstanding results. Although there is a film jointly produced by The Sacrifice and WANDA CINEMAS, it is a drop in the bucket for WANDA CINEMAS, which suffered huge losses, given that the film has not reached the box office volume of 1 billion at present.
With Detective Chinatown 3’s announcement of the Spring Festival in 2021, it is almost announced that WANDA CINEMAS has completely abandoned this year’s film market.
In September, Wanda Film and Television Group released the annual film list for 2021-2022, and released more than 40 new film and television projects, such as Get My Brother Away 2, Searching for Dragons 2, Ghost Blowing the Lantern, Miskilling 2 and Seeing You, by Detective Chinatown 3 in one breath.
Wanda’s film and television business is betting on the next two years. This year’s Lunar New Year file has been abandoned. WANDA CINEMAS announced that its business will return to normal in the fourth quarter, but Wanda’s return to blood will be very limited in the case of a depressed market.
On August 21st, it was just one month since the cinema officially resumed work.
The Eight Hundred, which announced its withdrawal last year, was officially released on this day. In one fell swoop, the film broke the gloomy atmosphere of the market for a long time. At that time, under the condition of limiting the attendance rate by 30%, it eventually accumulated more than 3.1 billion and became the global box office champion in 2020.
The Eight Hundred not only boosted the confidence of the whole film market, but also gave Huayi Brothers in from the mire a shot in the arm.
As the first stock of film and television on the Growth Enterprise Market, Huayi Brothers lost 1.09 billion yuan and 3.96 billion yuan respectively in the past two years. If losses occur for three consecutive years, Huayi will also face the risk of delisting.
The crux of Huayi is not the continuous loss, but the lack of hope. After "Mobile Phone 2" and The Eight Hundred successively announced the withdrawal of files, Huayi’s hands are running out of cards. Tsui Hark’s "Four Kings of Di Renjie" was cold at the box office, while Xiaogang Feng’s Only Cloud Knows’s performance was mediocre, and the trump card was exhausted, but it still didn’t work, which made Huayi, who had been in the scenery, helpless and gradually marginalized.
Huayi Brothers’ third quarterly report shows that the company achieved operating income of 1.107 billion yuan, down 31.51% year-on-year, and net profit loss of 326 million yuan. It is worth mentioning that in the third quarter, Huayi achieved an operating income of 783 million yuan, up 45.02% year-on-year, which was mainly due to the nearly 600 million yuan of revenue from The Eight Hundred.
But at the same time, Huayi Brothers still suffered a loss of 94.563 million yuan in the third quarter, which was mainly affected by the non-recurring investment loss confirmed by the equity disposal of overseas joint venture company Brothers International LLC.
Looking at the performance in the first three quarters, Huayi’s main support point is still the film and television business, with revenue accounting for 89.88%. Brand authorization and live entertainment, which had made a high-profile March before, accounted for only 4.92%, and Internet entertainment accounted for 4.59%. However, in terms of film and television business, Huayi’s online dramas, such as Beggar with Nine Fingers, Kitchen with Fireworks, and Looking for Porcelain from Antique close encounter of mahjong, were all mediocre, which failed to cause market waves.
Obviously, there is only one The Eight Hundred, which can’t save Huayi, who is deeply mired in the mire.
Huayi also participated in the movie The Sacrifice, which, like Wanda, can bring very limited revenue. The Order to Serve the Gods produced by Huayi has been announced as the file for the Spring Festival in 2021. Since then, Lu Chuan’s "749 Bureau", Stephen Chow’s "Mermaid 2" and Xiaogang Feng’s "One Year in Spring" are all key projects of Huayi, and they can’t be missed.
In the past month, the share price of Light Media dropped from the highest of 16.66 yuan to 11.81 yuan, and its market value evaporated by about 14 billion yuan.
The data shows that the operating income of Light Media in the first three quarters was 481 million yuan, down 80.46% year-on-year; The net profit of returning to the mother was 63.7202 million yuan, down 94.26% year-on-year.
In the first three quarters of this year, the R&D expenses of Light Media increased by 61.16% compared with the same period of last year, and most of these funds were used in the animation production business of the company.
In 2015, Light established the striped house film industry, which specializes in the production of animated films. Ne Zha is the work that striped house has been pregnant for four years. The amazing box office of the film of 5.035 billion yuan made Light taste the sweetness for the first time, and it is reasonable for Light to continue to increase its animation business.
In 2012, "Sorry" made Light Media famous in World War I, and after many years of layout, Light finally ushered in a big explosion again, that is, the animated film Ne Zha released last summer.
As the box office in Ne Zha rises, the stock of Light Media also rises accordingly, even surpassing WANDA CINEMAS for a time, becoming the leader of film and television stocks. Until this year, the epidemic caused almost all major film companies to stop eating, but Light also made a small profit by developing derivatives of Nezha.
Because there are no heavy assets such as cinemas and cinemas, the light media, which travels lightly, can still make a small profit, although its revenue has fallen sharply. Ray’s revenue mainly comes from the movie Sheep Without A Shepherd, the derivative development of the movie Ne Zha in the first half of the year, and The Eight Hundred’s Buckwheat Grows Wild and My Girlfriend is a Robot, etc., which are all released by Ray’s participation or agency.
At the same time, the revenue of Legend of Deification, whose National Day box office exceeded 1.5 billion yuan, has not been included in the first three quarters, but according to the current market performance of Legend of Deification, the revenue that this film can bring to the light is about 400 million yuan.
At the end of Legend of Deification’s film, the light also released the eggs of the next film "Deep Sea". In addition, animated films such as "Big Fish Begonia 2" and "Journey to the West" are also ready to meet the audience.
In the three quarterly reports of film and television companies, Huace Film and Television has the most outstanding performance.
In the first three quarters, Huace achieved a total revenue of 1.894 billion yuan, up 44.60% year-on-year, and the net profit attributable to shareholders of listed companies was 203 million yuan, up 736.72% year-on-year.
As an old film and television company, Huace’s annual drama output ranks first in film and television companies for many years, and there are often explosions.
This year’s Huace has a costume romance drama "Beautiful South Song", an urban workplace drama "Ordinary Glory", and "In the Name of Family" with the theme of healing youth growth, with diverse types and good market response.
In terms of reserved projects to be broadcast, many plays, including "8090", "Dear, Beloved", "You are my city camp", "Mirror Twin Cities" and The Legend of Fei, have entered various platforms and TV programs.
In terms of movies, Huace film and television also has an important layout, not only participated in the recent popular movie The Sacrifice, but also the movie A Writer’s Odyssey, which is mainly directed by Huace, will be released in the Spring Festival next year.
In the context of the huge impact on the film market, Huace Film and Television, the main drama series, went upstream and handed over a stable answer sheet. Although this is not surprising, it is also a rare surprise.
After a huge loss of 2.306 billion yuan in 2019, Beijing culture was hit again in the first three quarters of 2020, and various businesses fell across the board.
The financial report shows that in the first three quarters of 2020, Beijing Culture realized an operating income of only RMB 13 million, a year-on-year decrease of 98.15%, and a net profit loss of RMB 117 million. At the same time of the decline in performance, the capital chain of Beijing Culture also tightened. The company’s asset-liability ratio rose from 24.22% in 2018 to 52.81% in the third quarter of this year.
Up to now, My People My Homeland, a film controlled by Beijing culture, has closed at the box office of 2.762 billion yuan, which is expected to turn the final performance of Beijing culture into a profit.
On the unilateral side of the film to be screened, Bath Buddy produced by Beiwen has announced the final file on December 11th, "Hello! Li Huanying is scheduled for the Spring Festival in 2021, and the series "Fengshen", with a total investment of nearly 3 billion, will also officially meet the audience next year.
Backed by the powerful background resources of Hunan Radio and Television, Mango Hypermedia often staged the magical drama of "making small and big".
According to the financial report, Mango Supermedia achieved operating income of 9.471 billion yuan in the first three quarters, up 15.05% year-on-year, and net profit attributable to shareholders of listed companies was 1.612 billion yuan, up 65.39% year-on-year.
The biggest advantage of mango hypermedia, which focuses on self-made content, lies in low-cost investment. No matter whether it is drama series or variety show, it can always harvest unexpected surprises. This year’s fire variety "Sister Riding the Wind and Waves" has helped the stock of Mango Hypermedia to soar to a new level with a market value of hundreds of billions. The next stop is happiness, in the name of my family, dear myself, glass and other dramas are also hot works with high topics, which has greatly increased the revenue of Mango TV.
Since then, Mango has also released a brand-new "Monsoon Plan" short theater in terms of incubating potential variety shows such as "Sister Braving the Wind and Waves 2" and "Brother with Thorns", and plans to build a total of ten short plays with 12 episodes per season.
In the first three quarters of 2020, Wentou Holdings achieved a revenue of 282 million yuan, a decrease of 80.64% compared with the same period of last year. The net loss attributable to shareholders of listed companies was 788 million yuan, and the net profit decreased by 1,860.57% year-on-year.
Wentou Holdings said in the third quarterly report that the company’s operating income in the first three quarters decreased by 80.64% year-on-year, mainly due to the impact of the COVID-19 epidemic, the cinema was suspended from late January to mid-July, resulting in a significant decrease in revenue during the reporting period compared with the same period last year.
By September 30, 2020, Hengdian film and television had a total of 70,300 screens in China. In the first three quarters, the total box office of China film market was 7.563 billion yuan, a decrease of 84.20% compared with the same period of last year, which made Hengdian film and television revenue drop sharply.
After the cinema resumed work, Hengdian Film and Television continued to increase the layout of the cinema industry. In the third quarter, 16 new cinemas were opened and 102 new screens were added. In the first three quarters of this year, Hengdian Film and Television achieved an operating income of 399 million yuan, a year-on-year decrease of 81.27%, and a net loss attributable to shareholders of listed companies was 368 million yuan.
Jinyi Film and Television, which also specializes in cinema, also suffered a decline in performance. In the first three quarters of 2020, its revenue was about 220 million yuan, down 85.90% year-on-year. The net loss was about 406 million yuan, a year-on-year decrease of 487.33%.
In the first three quarters, Ciwen Media’s main revenue items included Trident, Thunder in the Restarted Sea, Chance of Winning and The Voice of Chinese Dreams Our Songs. Due to poor market performance, its revenue dropped sharply.
Ciwen Media achieved operating income of 338 million yuan in the first three quarters, down 60.28% year-on-year. The net profit attributable to shareholders of listed companies was 18.2825 million yuan, compared with 89.8912 million yuan in the same period last year.
In the first three quarters, Hualu Baina achieved an operating income of 73.633 million yuan, a year-on-year decrease of 84.53%, and the net profit attributable to shareholders of listed companies was 35.0971 million yuan, a year-on-year decrease of 61.53%.
Regarding the reason for the decrease in operating income compared with the previous period, Hualu Baina said that it was mainly due to the delay in the project progress during the reporting period and the decrease in repertoire income compared with the same period of last year.
Huanrui Century’s revenue in the first three quarters of 2020 was only 17.19 million yuan, a year-on-year decrease of 87.49%; The net loss was about 148 million yuan, a year-on-year decrease of 2716.26%.
Huanrui Century said that the decrease in revenue was mainly due to the decrease in drama series of some broadcast projects and the impact of the project cycle. The company’s film and television drama sales revenue and artist brokerage income decreased significantly compared with the same period of last year.
In 2018, it lost 927 million yuan, and in 2019, it lost 1.007 billion yuan. If it can’t make a profit for three consecutive years, Tang De Film and Television will be in danger of being directly delisted. Nowadays, Tang De film and television, which is dragged down by Ba Qing Chuan, is exhausted. In the first three quarters, the operating income was 170 million yuan, and the net loss attributable to shareholders of listed companies was 83.7 million yuan.
In the first three quarters, Happiness Blue Sea Cucumber invested in works such as Stewed Sydney with Rock Sugar, Trident, Children in the Bay Area and Happiness Will Knock on the Door, but it is difficult to have a decisive impact on the company’s revenue. In the first three quarters of 2020, Happiness Blue Ocean realized a total operating income of 217 million yuan, a year-on-year decrease of 84.5%, and the net profit attributable to shareholders of listed companies was a loss of 275 million yuan, a year-on-year decrease of 673.66%.
Since the cinema officially resumed work, the film and television market has shown obvious signs of recovery, and explosive works have appeared from big screen to small screen. As the first important financial report after the cinema resumed work, the third quarterly report of the film and television company has a very important weathervane significance for the current market performance and future trend.
Judging from the overall financial report, film and television companies are basically in the post-traumatic recovery period. If film and television companies in the post-cold winter era want to get back on track, it is essential to continuously output high-quality works. Whether it is to boost theater attendance or create topics to boost revenue, the principle of "content is king" will not change.
If winter comes, can spring be far behind? After the most difficult period, the next performance of the film and television market is worth looking forward to.
