Lian cast the Road to the Transformation of Central and Southern Culture in "the Great cause of Building the Army" and "embroidered Spring Dao 2"

five mergers and acquisitions have been completed in three years, with a cumulative amount of 3.248 billion yuan. Central and South China Culture has transformed from a machinery manufacturing company to a film and television culture company. In the first half of 2017, the revenue of Central and South China Culture increased by more than 50%, and the net profit nearly tripled.

completed five mergers and acquisitions in three years, with a cumulative amount of 3.248 billion yuan, and Central and South China Culture transformed from a machinery manufacturing company to a film and television culture company. In the first half of 2017, the revenue of Central and South China Culture increased by more than 50%, and the net profit nearly tripled.

Central and South China Culture, as one of the co-producers of the great cause of building the army, seems to be not only the "good news", but also an investor in Douban, which is jokingly known as the "source of pleasure"-"Xiechundao 2".

leaving the two blockbusters that are hot at the box office this year, according to the report, the revenue growth of Central and South China Culture mainly comes from the merger of three new M & A companies. However, the hidden worries in the post-M & An era are becoming more and more obvious: endogenous business losses and declining growth after M & A. After the successive completion of mergers and acquisitions, Central-South Culture not only needs to consider the sustained growth of three years' performance after the gambling period, but also needs to complete the integration and coordination of internal establishment, external mergers and acquisitions and external cooperative enterprises.

in addition to the report form, apart from the gorgeous identity of the investors in the popular style of "August 1st File", more than 30 producers or co-producers, so that many investors in the great cause of building the army only get a 0.5% share; the situation of more monks and less meat is also staged in the nearly 20 producers of "Xiuchun Dao 2".

the popular style can attract the eye, but it is definitely not the pursuit of evergreen companies. By the close of August 18, the total market value of Central and South China Culture was 11.982 billion yuan, which is still a long way from the dream of 30 billion market capitalization, and Central and South China culture has entered a critical moment of transformation in the "post-era".

< strong > transformational mergers and acquisitions < / strong >

August 15, Central South Culture released the first half of 2017 report: revenue and net profit have increased significantly. Specifically, Zhongnan Culture achieved an operating income of 636 million yuan in the first half of the year, an increase of 54.08% over the same period last year, while the net profit belonging to shareholders of listed companies was 133 million yuan, an increase of 191.2% over the same period last year.

the growth of cultural performance in Central and South China is related to the increase in the scope of consolidation.

according to the 2017 semi-annual report, the consolidation of Beijing Xinhua Vanguard Culture Media Co., Ltd., Shenzhen Vanguard Interactive Technology Co., Ltd. and Shanghai Aurora Network Technology Co., Ltd. was completed in the second half of 2016 and the first half of 2017, respectively. as a result, the net profit increased significantly compared with the same period last year, coupled with the withdrawal of foreign investment projects, the operating performance growth of the cultural sector constituted the main driver of the performance.

in fact, Zhongnan Culture, formerly known as "Zhongnan heavy Industry", was once a metal pipe fittings manufacturing company in Jiangyin City, Jiangsu Province, and entered the A-share market in July 2010. In March 2014, Central South Culture acquired Datang brilliance with 1 billion yuan, opening the way for M & A transformation. In the following year and a half, Central South Culture successively acquired Qianyi Zhicheng, Weishang Interactive, Xinhua Pioneer and Aurora Network, and successively laid out the planning and investment business of movies and TV series, mobile games, online text IP and online game developers, transforming from a manufacturing industry into a film and television culture company, with a cumulative amount of about 3.248 billion yuan.

successive mergers and acquisitions not only transform the company's main business from a traditional manufacturing industry with low gross margin and fierce competition to a cultural and entertainment industry with favorable policies to adapt to consumption upgrading, but also triple the net profit of Central and South China Culture.

Central and South China Culture made a net profit of more than 6000 million in 2014. Since 2015, it has doubled its net profit for two consecutive years, and achieved a net profit of 229 million yuan in 2016. The net profit in the first half of 2017 was 133 million yuan, and the net profit attributed to shareholders of listed companies from January to September 2017 is expected to be 199 million to 265 million, an increase of 50.00% to 100.00% over the same period last year.

but on the other hand, from the perspective of the cultural and entertainment industry, the business of film and television dramas and artist brokerage declined to varying degrees in the first half of 2017: revenue from film and television drama was 172 million yuan, down 0.89% from the same period last year; revenue from artist brokerage business was 8.3048 million yuan, down 34.10% from the same period last year. In addition, game promotion, copyright and web game revenue are all new items after the consolidated table.

in response to this, the reporter called the Central South Cultural Council Secret Office, and the staff said that Dong was on a business trip. As of press time, no reply has been received.

Cao Haitao, a well-known cultural and technological investor, said that the film and TV drama business is generally a project system, which is cyclical and cannot be confirmed by semi-annual income alone. At present, the growth of the artist brokerage business as a whole is limited. Huayi Brothers' artist brokerage business is also stagnant, so it is difficult to rely on the project system and the management of actors.

< strong > Hidden worries appear < / strong >

in February this year, a transfer plan of Central South Culture said that the production and operation of manufacturing business was carried out by Jiangyin Zhongnan heavy Industry Co., Ltd., a wholly-owned subsidiary, by straightening out the company's business structure, so as to transform into an investment-controlled enterprise. In the future, the company will focus on capital operation and cultural media industry.

since 2016, the cultural and entertainment income of Central and South China Culture has exceeded that of machinery manufacturing for the first time, accounting for 58.88% of the total revenue, and the proportion of cultural and entertainment revenue has further increased. In the first half of 2017, the revenue of the cultural and entertainment industry accounted for 67.34%, of which the revenue of the machinery manufacturing industry was 208 million yuan, down 7.7% from the same period last year.

the endogenous business of entertainment in Central and South China culture is still in a state of loss.

the reporter saw from the semi-annual report that at present, the income of the cultural sector mainly comes from the five companies that acquired and merged, while Jiangyin Zhongnan Cultural Industry Equity Investment Management Co., Ltd., Jiangyin Zhongnan Cultural Industry Equity Investment Partnership (limited partnership) have yet to achieve revenue, and the self-established Zhongnan Film Industry, Zhongnan Red Film and Television, and Zhongnan Music are all in a state of loss.

Cao Haitao told reporters that Central South Culture is different from many domestic film and television companies such as Huayi and Huatze. The actual controller is not CEO, while CEO is a professional manager. Similar to the situation in Hollywood in the United States, it often takes a two-year incubation period, and it is difficult to judge whether it has a good growth or not.

fundamentally, talents are regarded as the core competitiveness of the film and television culture industry, which is more urgent than many internal and external challenges. As a cross-border M & An enterprise, the challenge of talent is particularly obvious.

according to reports, Chen Shaozhong, chairman and former general manager of Central South Culture, resigned as general manager at the end of 2016 for personal reasons, and Hong Tao was appointed general manager of the company. Hong Tao, a former general manager of Happy Blue Ocean and director of the film and television channel of Jiangsu Radio and Television Station, is considered to be an important figure in promoting the listing of Happy Blue Ocean growth Enterprise Board, leading the planning of works such as "Let bullets fly", "Fire Phoenix of Special Forces" and so on.

in addition, the cultural layout of Central and South China pays a lot of money to tap talents. Chang Jihong, a senior agent, Liu Chun, former Chinese director of Phoenix Satellite TV and editor-in-chief of Sohu, is the chief cultural officer, responsible for the strategic implementation of the cultural media sector.

according to the financial report, South-Central Culture may still face the risk of asset integration falling short of expectations. With the increase in the number of subsidiaries and the expansion of business areas, the company's operation and management capabilities, coordination and integration capabilities will face certain tests. If the relevant resources can not be effectively integrated, it may lead to less than expected operating performance. "mergers and acquisitions do have the problem of integration and three-year growth at the end of the gambling period." Cao Haitao told reporters that on the one hand, it requires a professional management team, industry management ability and industry experience. In addition, mergers and acquisitions for the sake of mergers and acquisitions, but also in line with the future trend, really do a good job in the ecological layout.

"you must find your own position and characteristics, otherwise mergers and acquisitions will not last long." In Cao Haitao's view, the problem for film and television companies is to do everything, but can't remember anything. It is difficult for a company to blossom everywhere, forming its own style and positioning is the core. Can learn from Beijing culture, but also take a lot of detours, and now form the characteristics of film distribution + investment.

Edit: xiongwei