The film industry gets another big red envelope, film and television listed companies will benefit

Yesterday, the Ministry of Finance and the State Administration of Press, Publication, Radio, Film and Television issued the "Measures for the Administration of the Collection and Use of Special Funds for the Development of the National Film Industry", stipulating that commercial film projection units that have gone through industrial and commercial registration should pay special funds for films at 5% of their film box office revenue. Analysts said that the special funds paid for films in 2015 will reach 2 billion yuan.

The reporter learned that yesterday, the Ministry of Finance and the State Administration of Press, Publication, Radio, Film and Television issued the "Measures for the Administration of the Collection and Use of Special Funds for the Development of the National Film Industry", stipulating that commercial film projection units that have gone through industrial and commercial registration should pay 5% of their film box office revenue. Special funds. Analysts said that the special funds paid for films in 2015 will reach 2 billion yuan. Through special funds to focus on supporting the development of the film industry and implementing tax, financial and other support measures for the film industry, it will further promote the rapid development of China's film industry.

"The" Measures "aim to standardize the collection, use and management of special funds for the development of the national film industry and support the development of the film industry." The relevant person in charge of the Ministry of Finance stated that commercial film projection units that have registered for industry and commerce should pay special film funds at 5% of their film box office revenue. Special funds for films are paid to the central and provincial treasury respectively at a ratio of 4:6. No unit or individual may arbitrarily reduce or defer the collection of special funds for films, and may not change the collection objects, scope and standards of special funds for films.

The "Measures" clarify that commercial film screening units include cinemas, studios, theaters, auditoriums, open clubs that are open to sell movie tickets, as well as special forms of cinemas such as ring screens, dome screens, water curtains, dynamic, three-dimensional, and ultra-large screens.

According to EBOT data, as of September 7, a total of 256 new films were released in 2015, with a total box office of 30.027 billion yuan, an increase of 46.78% over the same period last year, exceeding the box office of China's movies in 2014. Among them, the box office ratio of domestic films to imported films is about 6:4, and the box office of domestic films exceeds 18 billion yuan.

Analysts predict that box office revenue this year is expected to exceed a high of 40 billion yuan. In this way, the special funds paid for films throughout the year will reach 2 billion yuan.

The "Measures" clarify that the scope of use of special film funds includes funding for the construction of cinemas and equipment renewal and renovation, funding the construction and development of key production bases, rewarding the production, distribution and screening of excellent domestic films, and the construction and maintenance of the national film ticketing comprehensive information management system. Other expenditures approved by the Ministry of Finance or provincial financial departments for the development of the film industry.

Analysts said that in recent years, many film industry policies have clearly identified special funding arrangements to focus on increasing support for the film industry, which will be beneficial to the development of related film industry stocks in the medium and long term.

On September 1, the executive meeting of the State Council passed the "Film Industry Promotion Law of the People's Republic of China (Draft)." The draft aims to strengthen supervision and management by lowering market access barriers, adopting fiscal, taxation, finance, land use and other support measures, and standardizing market order. It will undoubtedly continue to accelerate the development of the film industry.

Industrial Securities believes that the film industry continues to maintain high growth, coupled with the intensive release of films from A-share listed companies in the second half of the year, and it is optimistic about production and distribution leaders with high-quality production capabilities and IP reserves in the long run. In addition, the continued growth of the domestic film market will drive steady growth in theater revenue.

A-share film and television companies Huayi Brothers, Enlight Media, Huace Film and Television, Huawei Shares, Tangde Film and Television, New Culture, Wanda Cinema Line, etc. are expected to benefit from special funds 'financial support for the film industry.

Editor: vian