Net profit plummeted by 3651%, and Great Wall animation was in trouble again

The performance continues to be depressed, the downward trend of the coking industry is intensifying, and the highly expected animation industry has failed to demonstrate its value. Where will great wall animation go

since 2014, Sichuan Shengda, which is under the revenue of great wall film and television group, has been fighting high in the capital market. It has successively invested 1.016 billion yuan to acquire seven game and animation companies at a high premium, thereby realizing the transformation from a coal company to a game and animation company, which has attracted great attention from the market

but two years later, this listed company, which has been renamed Great Wall animation, did not soar as investors expected, its share price has been depressed, and its performance has deteriorated

the 2016 semi annual report released by Great Wall animation on the evening of August 28 showed that the net profit attributable to the shareholders of the listed company of Great Wall animation turned from profit to loss, with a loss of 94.6479 million yuan, a decrease of 3651.09% over the same period last year

the performance continues to be depressed, the downward trend of the coking industry is intensifying, and the highly expected animation industry has failed to show value. Where will great wall animation go

although great wall animation has been transformed for nearly two years, from the perspective of the composition of its main business, the coking industry is still one of the main sources of operating income. In the first half of the year, it achieved a revenue of 65.2355 million yuan, accounting for nearly 40%, second only to the 71.416 million yuan operating income achieved by the game industry. In addition, the animation industry and the tourism industry achieved operating revenues of 31.2402 million yuan and 7.844 million yuan respectively

it is worth noting that although the operating revenue of the coking industry accounts for a relatively large proportion, the coking industry has also brought large losses due to the three difficulties of "sharp market contraction, sharp increase in environmental protection pressure, and shortage of working capital". According to the data, Shengda coking, a subsidiary of Great Wall animation, lost 39.8305 million yuan and 116 million yuan respectively in 2015 and January may 2016, which had a great adverse impact on the performance of listed companies

Great Wall animation said that at present, the company has initially formed a large cultural enterprise covering animation design, production, animation games, creative tourism, toy sales and other animation businesses. However, the performance of animation and related industries of the company in the past two years is not optimistic

from 2014 to 2015, Great Wall animation successively invested 1.016 billion yuan to acquire seven game and animation companies at a high premium, but the company's large-scale acquisition did not bring much help to the company's performance. The company's 2015 annual report shows that it achieved a net profit of 18.3865 million yuan, but after deducting non recurring profits and losses, the net profit was a loss of 18.0561 million yuan

although the performance did not improve, it did not seem to stop the pace of Great Wall animation's layout in the animation industry. At the end of June this year, the company again invested 708million yuan to acquire two animation industry chain companies, Lingjing technology and mini world

Southwest Securities said in its research report, "Lingjing technology and mini world have great growth potential and advantages in their own operations, and the synergy effect may exceed expectations."

however, Southwest Securities also pointed out in the risk prompt of the research report, "the risk that the landing of the M & a plan is not as expected, the risk of related alternative technologies, the risk of the acquisition plan or adjustment, and the performance of the merged enterprises is achieved or not as promised."

in addition, the reporter noted that after the plan to acquire two animation industry chain companies, Lingjing technology and mini world, the Shenzhen Stock Exchange issued inquiry letters twice, asking Great Wall animation to explain many existing problems

in fact, Great Wall animation's optimism about related industries has not brought substantial improvement to the company's performance. Not only that, the company's financial tension has always been with it

according to the semi annual report released by Great Wall animation, the net cash flow from its investment activities during the reporting period was -90.7495 million yuan, and the net cash flow from its operating activities in the same period was 5.44 million yuan, a sharp decline of 78.47% over the same period last year. The debt ratio is as high as 76%

perhaps due to the poor performance in the past two years, Great Wall animation has just experienced a round of personnel changes. On August 18, Great Wall animation announced that Shen Xijie, the vice chairman and general manager of the company, and pan Xianyun, the director, resigned for personal reasons. The successor of Shen Xijie is Ma Liqing, the director of Tianmu pharmaceutical, and the major shareholders of Tianmu pharmaceutical and Great Wall animation are great wall group. However, from the perspective of Ma Liqing's working experience, he has no working experience in the animation industry

as for the impact of the company's declining performance, high debt ratio and changes in the board of directors on the company, a relevant person from the company's secretary office only told reporters, "please refer to the announcement in the semi annual report for performance issues. Changes in directors are related to the future development of the company's animation industry. Specifically, you are welcome to attend the company's board of directors on September 8 for face-to-face communication."

editor: Yvonne