The key is to increase the net profit of A-share film and television companies by more than 60%.

recently, 16 A-share listed film and television companies, including Huayi Brothers and Huatze Film and Television, have published their transcripts for the first half of the year.

original title: several A-share film and television companies are happy and sad

recently, 16 A-share listed film and television companies, including Huayi Brothers and Huatze Film and Television, have published their transcripts for the first half of the year one after another. The reporter combed and found that more than 60% of the film and television listed companies achieved an increase in net profit compared with the same period last year, but at the same time, nearly 40% of the companies' performance declined, and some companies suffered losses.

< strong > over 60% net profit growth < / strong >

with the release of China Film's 2017 semi-annual report on the evening of August 29th, 16 film and television listed companies, including Huayi Brothers, Huatze Film and Television, Wanda Film and China Film, have all released full semi-annual reports. Among the 16 companies, 10 companies achieved a year-on-year increase in net profits belonging to shareholders of listed companies, while 6 companies showed a decline in different proportions, of which only one company suffered a loss, that is, Huanrui Century, with a loss of nearly 40 million yuan.

Liu Gang, general manager of Shengchuang Investment in Beijing and Tianjin, believes that if only from the point of view of the net profit growth of more than 60% of the companies, the development of film and television listed companies in the first half of this year is relatively good, but it also needs to be analyzed according to the business development of each sector of each company.

the semi-annual reports released by various companies show that the reasons for the growth and decline of film and television listed companies are different. For example, Warsaw Bainer said in the announcement that the project revenue of the variety business sector is expected to be less than expected, which has a negative impact on the profits of the variety sector. In addition, although Huayi Brothers' overall net profit increased by 42.12%, the revenue of both the film and television entertainment sector and the Internet entertainment sector declined, while the revenue growth was achieved by brand licensing and live entertainment board, which increased by 77.54% compared with the same period last year. At the same time, investment also brought 541 million yuan in income, an increase of 77.94% over the same period last year.

A reporter from Beijing Business Daily observed that unlike the increase in net profit several times or even dozens of times in previous years, among the film and television listed companies that achieved net profit growth in the first half of this year, half of the companies increased by 10% or less. "the development of film and television listed companies can basically represent the average state of the whole market, while the low growth rate of net profit reflects that the overall film and television market has entered a relatively steady state of development." Liu Gang said.

< strong > prolonging the industrial chain becomes a new trend < / strong >

the performance of listed companies is the epitome of the development of the overall market, and the market will also affect the performance changes of related companies to a certain extent, especially at the present stage, the domestic film and television market has changed from the stage of rapid development to the period of adjustment, which will undoubtedly have a certain impact on the development of film and television listed companies in the market. In the face of the current market situation, in the first half of this year, film and television listed companies not only improve their own loopholes, but also continue to expand their business coverage. Upstream content companies try to strengthen the competitiveness of downstream areas such as cinema chains, while downstream terminal companies try to enter the upstream chain and increase industrial layout from different aspects.

among them, derivatives become the layout direction of many companies. For example, Chinese films have cooperated with Warner Brothers, Sony and other international film organizations to develop derivatives for films such as Transformers 5 and Wonder woman. By the end of the reporting period, the derivatives business had covered more than 1500 cinemas. And cooperate with Rosen, 7-11 and other convenience stores. At the same time, Light Media has also made continuous efforts in derivatives, and developed and launched derivatives from films such as "wreaking havoc in Tianzhu" and "Chunjiao Jiao Zhiming", which are sold in the "Light flagship Store" opened by Tmall.

in the view of Xu Shan, an investment analyst, due to the high investment risk of film and television projects and the increasing competition in the industry, the probability of "eye-catching and money-attracting" popular movies and TV dramas in the market in the past two years is extremely low. and this also forces listed companies to take advantage of the hottest mutual entertainment products nowadays, or to boost revenue by extending the industrial chain, so as to reduce the risk of relying on a single business.

< strong > improving production power is the key < / strong >

at present, the competition in the film and television market is still relatively fierce, at the same time, the number of new institutions entering the film and television industry is also gradually increasing, not only domestic capital, but also overseas capital is also eyeing the domestic market covetously. For film and television listed companies, due to the need to maintain stable performance, stock prices and market capitalization and other factors, they are also under greater pressure, especially for companies with declining net profits or even losses in the first half of the year. How to achieve catch-up in the second half of the year is a factor that has to be considered.

based on the special attributes of the film and television industry, "content is king" can be said to be the key for all enterprises to gain market competitiveness. Liu Gang believes that according to their own actual situation and relevant experience, we should first make the main business bigger and stronger to form core competitiveness, and then expand along the industrial chain. But during this period, we should not be blind, but should be related to our main business.

in addition, film and television listed companies can also pay attention to some large tuyere for advance layout, but this requires relevant companies to be able to prepare core teams and have core technologies when they enter the field.

of course, the initial stage of laying out a new business or cooperation model will inevitably hide risks and may lead to performance losses. Take Huanrui Century as an example, the company's net profit decreased by 183.69% compared with the same period last year, mainly because it tried a new cooperation model of "TV drama scheduling rights + advertising investment promotion and operation rights" with satellite TV platform. Xu Shan said that due to the intensification of market competition, major film and television companies are beginning to try new business models to broaden revenue channels, and it is normal for strategic losses to occur in the early stage. the most important thing is that companies should always raise their awareness of risk control. in case of losses, you need to adjust your strategy in a timely manner.

Edit: mary