The market capitalization of Huayi, Wanda and Light shrank by more than 10 billion in the first half of the year. Is the giant reshuffle approaching?

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As of press time, the current market capitalization of Wanda Film, Huayi Brothers and Light Media has evaporated by about 2.4 billion, 5 billion and 2.6 billion respectively compared with the beginning of this year, totaling about 10 billion. Coupled with the semi-annual report released by Light Media on August 24, so far, three of the five major private film companies have disclosed their performance in the first half of the year.

on August 28th, both Wanda Film and Huayi Brothers released their 2017 semi-annual reports on the evening of Qixi Festival. Coupled with the semi-annual report released by Light Media on August 24, so far, three of the five major private film companies have disclosed their performance in the first half of the year.

original title: the market capitalization of Huayi, Wanda and Light shrank by more than 10 billion in the first half of the year, all due to empiricism?

it is too early to say that several giant companies in the film market will face a reshuffle, but this day is getting closer and closer.

Wanda Film: realized total operating income of 6.617 billion yuan, up 15.6% over the same period last year. Of this total, the net profit belonging to shareholders of listed companies was 887 million yuan, up 10 per cent over the same period last year.

Huayi Brothers: the total operating income was 1.466 billion yuan, down 0.15% from the same period last year. Of this total, the net profit belonging to shareholders of listed companies was 430 million yuan, up 42% over the same period last year.

Light Media: the total operating income was 1.029 billion yuan, an increase of 42.62% over the same period last year. Among them, the net profit belonging to shareholders of listed companies was 400 million yuan, an increase of 24.61% over the same period last year.

although the figures are good, the total net profit of the three companies is also close to 2 billion. However, the facts behind the figures show that the "Big three", which represent the trend of the entire film market, actually have hidden worries.

1. Wanda Film

Wanda Film grossed 4.33 billion yuan in the first half of the year, an increase of 8.02% over the same period last year. The company achieved non-box office revenue of 2.38 billion yuan, non-box office business maintained rapid growth, non-box office revenue accounted for 36% of business income, the proportion continued to increase.

as of June 30, 2017, the company has opened 455 cinemas with 4000 screens. In the first half of 2017, the company added 54 new studios and 436 new screens, and the development of studios maintained a rapid growth rate.

it is worth noting that Wanda's gross profit margin in the film industry dropped by 0.47% to 15.6%. Among the sub-products, the gross profit margin of movie revenue also fell by 2.16% to 8.43%.

however, the bigger hidden worry for Wanda Film is overseas investment. Netizens have speculated that Wanda's "double kill of stock and debt" is related to its overseas investment.

at present, Wanda's total overseas investment is as high as 250 billion yuan. This does not include the two projects of more than 10 billion US dollars announced by Wang Jianlin to be launched overseas this year, one in Malaysia and the other in Indonesia.

in mid-June this year, the CBRC asked all banks to investigate the credit granting and risk analysis of several enterprises, including Wanda, HNA Group, Fosun, and Rosenneri of Zhejiang Province. most of the targets are private enterprise groups with fierce overseas investment and greater exposure to the banking industry in recent years.

it is worth noting that after "100 days after Wang Sicong disappeared", rumors of Wang Jianlin being restricted from leaving the country at Tianjin Airport recently spread. Although Wanda refuted the rumors on the morning of the 28th, the shares of VANDA HOTEL Development still fell more than 8% on the 28th (Wanda Film is currently suspended).

2. Huayi Brothers

Huayi Brothers' overall business income and the business income of the film and television entertainment section declined in the first half of the year.

during the reporting period, the company's operating income decreased by 0.15% compared with the same period last year. Among them, the business revenue of the film and television entertainment sector decreased by 6.41% compared with the same period last year. Dad, Crazy Yue pry Beauty, Romantic death History, World of Warcraft, and Beautiful Accidents, the top five film and television productions totaled 130 million yuan in revenue, accounting for 8.91% of the business income.

the gratifying thing is," Wrestling! Dad, which closed in July 2017 with a combined domestic box office of 1.295 billion, was a non-Hollywood imported film with a high box office in the mainland market by the end of the reporting period.

in addition, the company's revenue from brand licensing and live entertainment increased by 77.54% compared with the same period last year. The operating revenue of the Internet entertainment sector was 27300 yuan, down 8.48% from the same period last year.

in addition to the decline in business revenue, Huayi's gross profit margin in the film and television entertainment section also dropped by 4.68%. Compared with its 2016 data, Huayi's operating profit in the film and television entertainment section also fell from 520 million in the first half of 2016 to 440 million in the first half of 2017. It can be seen that although Huayi's overall net profit this year increased by 42% over the same period last year, only as far as the film and television entertainment section is concerned, it still needs to be strengthened.

2016

3. Light Media

Light Media participated in investing, distributing and counting seven films during the reporting period, with a total box office of 1.383 billion yuan. Among them, five films were released during the reporting period, including "wreaking havoc in Tianzhu", "the dedication of suspect X", "Chunjiao to save Zhiming", "returning to the wolves" and "hunting for guns". There are two films released in 2016 and some box office carried forward to the current reporting period, including "teenager" and "your name." ". Revenue from the film business increased over the same period last year.

however, the gross margin of light in films and derivatives has also fallen by nearly 9 per cent. Entering the second half of the year, what annoys the light most may be missing out on the popular style of "Wolf Warriors 2".

in fact, light invested in "Wolf Warriors 2" in the early stage, but chose to exit halfway. Under the choice of the same 800 million guarantee, the light bet on "three generations and ten miles of peach blossoms" in the same period as "Wolf Warriors 2". However, as of press time, Wolf Warriors 2 has grossed $5.45 billion in its 34 days, while Peach Blossom has grossed $540 million in its 26 days.

History is always strikingly similar. Light Pictures, which was once on the list of investors in the animated film "the return of the Great Saints", later opted out for a variety of reasons. While "return of the Great Saints" set a box office record for domestic animated films with a box office of 957 million yuan, Yan chose to take "regret medicine" and invested 20 million yuan on July 14, 2015. together with Tian Xiaopeng, a member of the core team of the film "return of the Great Saints", he set up an October Culture Company with a stake of 20%. However, the dark horse can no longer be copied.

in the project in the second half of the year, there is still no movie with the appearance of "popular style". Of course, "Shadow cannot be judged by appearance".

4. The three movie giants have lost 10 billion of their market capitalization this year

all three have hidden worries, which is the epitome of the entire Chinese film market. According to statistics, the total box office in the first half of 2017 was 27.173 billion, and the total box office excluding service fees was 25.5 billion, an increase of 4 percent compared with 24.585 billion in the same period in 2016, while the increase in the first half of 2016 was more than 21 percent over the same period in 2015.

so far, most of the imported films have been contracted out of this year's total box office of 39 billion, with 45 films accounting for about 60% of the box office, while domestic films have accounted for nearly five times the number of imported films, losing at the box office.

it is worth mentioning that the box office in the first quarter of this year declined for the first time in nearly five years, and what is even more shocking is that the monthly box office of domestic films in March and June accounted for only 7%. Had it not been for Wolf Warriors 2, the dark horse in the summer, the film market would still be having a hard time in the second half of the year.

behind the explosion of "Wolf Warriors 2", it is also "a general whose success is withered by thousands of bones". Behind the dominance of a single film is the large-scale loss of other cannon fodder films.

237 domestic cinema films have been released so far, of which 30 have grossed more than 100 million at the box office, 14 in summer, accounting for 10% of the total, and about 60 less than 100 million, accounting for about 25.3% of the total. The remaining 65% did not escape the fate of being reduced to cannon fodder and did not stir up a splash in the market.

part of the production cost in the above table, Declared cost as an estimated value Therefore, profits and losses are for reference only. Welcome to correct

it is not difficult to see from the data that 80% of domestic films in 2017 are still losing money, and only less than 10% of the high-quality content can really make money. (this article mainly considers profits and losses from the perspective of box office recovery. in fact, in terms of video rights, business cooperation, sequel development, implantation and even the company's capital valuation, the film side all has its own recycling system)

however, this year, the three giants Wanda, Light and Huayi all lack high-quality content controlled by the main investment. The decline in gross profit margin in film and television also shows that it lacks the layout of popular style movies. However, missing the "Wolf Warriors 2" is not because these big companies are short of gold and silver, nor is it because they are inexperienced. On the contrary, the bosses of the company have lost in experience, and even made "empirical mistakes."

after having successful experience, it is inevitable to have a "stable" mentality, so I want to copy and follow suit. I don't want to take risks or make bold attempts, but I don't realize that this fast-changing film market is for people who don't stick to conventions. for those who try boldly.

Heroes emerge from troubled times. When the whole film industry falls into a turning point, it is the opportunity for small and medium-sized film and television companies. Betting on high-quality content, a "Wolf Warriors 2" can make Beijing culture shock front-line echelon, the market value once exceeded 15 billion, an increase of as much as 56%.

in sharp contrast, the market capitalization of Wanda, Light and Huayi has been in the doldrums since 2016.

under the background that the performance of the film market does not meet the expectations, the trend of film and television stocks is also relatively weak.

as of December 31, 2016, the market capitalization of film and television leading stocks Wanda Film, Huayi Brothers and Light Media fell 55%, 47% and 35% respectively compared with a year ago, evaporating 78 billion, 29.5 billion and 19.5 billion respectively, totaling 127 billion. Other stocks also performed poorly, with New Culture and Alpha Animation & Culture both down more than 50 per cent.

as of press time, the current market capitalization of Wanda Film, Huayi Brothers and Light Media has evaporated by about 2.4 billion, 5 billion and 2.6 billion respectively compared with that at the beginning of this year, totaling about 10 billion.

it is too early to say that several giant companies in the film market will face a reshuffle, but this day is getting closer and closer. When the disaster comes, the giant creatures at the top of the food chain are the first to bear the brunt. On the contrary, the small and medium-sized organisms at the back of the food chain are more likely to survive and counterattack.

Edit: mary