Shanghai Film Capital Increase and China Film World collude with Microfilm and Huayi to distribute business

According to Shanghai Film's announcement on the evening of September 19, the company plans to invest in China Film World (Tianjin) Film Distribution Co., Ltd. The reporter noticed that China Film World was not long after its establishment, and its shareholders include film industry leaders such as Microfilm Times and Huayi. These big shots have been more or less involved in the film distribution business before and set up distribution companies together. They seem ambitious about the distribution market, a weak link in the domestic film industry.

Original title: Shanghai Film Capital Increase China Film World colluded with Microfilm and Huayi to distribute business

Shanghai Film made a small investment, which made Huayi Brothers, Microfilm Times and other film and television giants join forces to expand their film distribution business into public view.

According to Shanghai Film's announcement on the evening of September 19, the company plans to invest in China Film World (Tianjin) Film Distribution Co., Ltd.(hereinafter referred to as China Film World). The reporter noticed that China Film World was not long after its establishment, and its shareholders include film industry leaders such as Microfilm Times and Huayi. These big shots have been more or less involved in the film distribution business before and set up distribution companies together. They seem ambitious about the distribution market, a weak link in the domestic film industry.

Shanghai Film shares millions of yuan

According to the Shanghai Film Announcement, its board of directors reviewed and approved a proposal, agreeing that the company should invest in 12% of China Film World's equity in the form of equity transfer, with an investment amount of no more than 6 million yuan. The final transfer price will be based on the assessed and filed amount.

According to industrial and commercial data, Huaying World was established on June 1 this year with a registered capital of 50 million yuan. The company's residence is located on Wensan Road, National Animation Park, Tianjin Ecological City. The company is mainly engaged in film distribution, ticket sales agencies, hosting exhibitions and display activities, literary and artistic creation, film and television planning and other businesses. Estimated based on registered capital, 12% of Huaying World's equity is exactly equal to 6 million yuan in capital contribution, which seems to indicate that Shanghai Film may be a "fair transfer of equity" this time.

The reporter noticed that China Film World was established not long ago and is not very famous in the industry, but the company's shareholder list is dazzling.

As of now, the company's shareholders include Beijing Brothers Dingli Enterprise Management Consulting Center (Limited Partnership)(hereinafter referred to as Brothers Dingli), Beijing Microfilm Times Technology Co., Ltd.(hereinafter referred to as Microfilm Times) and Huayi Brothers (Beijing) Film Distribution Co., Ltd.(hereinafter referred to as Huayi Publishing).

In the era of lithography, investors who have purchased movie tickets through the WeChat port will surely be familiar with it. Data shows that in May 2014, Lin Ning established the Microfilm Era and began to independently operate the "micro-ticket" business. The one most familiar to most people is WeChat movie tickets, or according to the lithography era, it is called the "WeChat entrance to movie ticket business."

Huayi Publishing was established in April this year and is the controlling grandson of Huayi Brothers. Huayi Brothers Film, a wholly-owned subsidiary of Huayi Brothers, holds 80% of the company's equity.

The industrial and commercial information does not disclose the shareholding ratio of Huaying World's shareholders. However, according to Huayi Brothers '2016 semi-annual report, Huayi Publishing holds a 60% stake in Huayin Tianxia, which seems to show that Huayi Brothers has a dominant position in the company.

Hua Ying World is at the helm by Ye Ning.

Judging from the management composition of Hua Ying World, Ye Ning, the current CEO of Huayi Brothers Pictures, is undoubtedly the helmsman of the company. Ye Ning currently serves as chairman and manager of China Film World.

According to public information, Ye Ning joined Wanda Group in 2002, became the general manager of Wanda Theater Line in 2008, served as the vice president of Wanda Cultural Group in 2013, and served as the chairman of Wuzhou Film Distribution Co., Ltd. in 2014. It is reported that during Ye Ning's tenure, Wanda Theater's total box office ranked first in a row. However, Ye Ning completed the transformation of her professional identity in February this year, from vice president of Wanda Culture Group to CEO of Huayi Brothers Films.

At the end of February, Huayi Brothers issued an announcement appointing Ye Ning as CEO of Huayi Brothers Pictures, with overall responsibility for film and cinema-related businesses. At the same time, Ye Ning was appointed as the position of deputy general manager and candidates for company directors were nominated.

Ye Ning also indirectly invested in China Film World this time. One of the shareholders of Huaying World is a division of brothers, and its shareholders include Ye Ning.

Strengthening film distribution capabilities The

reporter noticed that Shanghai Films, Huayi Brothers, and Microfilm Times had previously had their own distribution businesses.

Data shows that Huayi Brothers had previously obtained a film distribution business license. In 2015, the company also established Huayi Brothers Sales Network (Tianjin) Film Distribution Co., Ltd. Microfilm Era obtained the film distribution license in September 2015 and participated in the release of "Return of the Great Sage" and "Get lost!" Well-known films such as Tumor King.

Since there is already relevant business, why do Huayi Brothers and other big shots group together to establish China Film World? In this regard, Huayi Brothers stated in its 2016 semi-annual report that this shows the company's determination to continuously strengthen its film distribution capabilities. With the further improvement of the company's distribution system, the overall performance of the company's film business is expected to improve simultaneously.

It is reported that compared with film production and screening, distribution is still a relatively weak link in my country's film industry chain. In 2015, my country produced a total of 686 feature films with public release licenses, but only 320 films were released. In addition to reasons such as production level, film attributes and insufficient theater terminals, the weak distribution links in the industrial chain also restricted the number of films released to a certain extent.

Some industry insiders said that in the mature film industry market, distribution plays an increasingly important role. Drawing on overseas experience, all major American film groups are engaged in film distribution business directly or through their subordinate departments or subsidiaries, and their professional and global film distribution strength has become one of the important factors in their dominant position in the industry. Further, the distribution company develops derivative products through professional operations, effectively extends the film industry cycle with the multi-level distribution structure and maximizes the value of the film.

The reporter checked the information and found that although Shanghai films have a place in the domestic professional film distribution market, the company still mainly focuses on screening business. In 2015, revenue from film distribution business accounted for only 14.92% of the company's revenue. From 2013 to 2015, the company released a total of 71 domestic films, of which only 27 were independently released. Huayi Brothers 'current business is mainly production and production, and also serves as distribution. The company mainly distributes its own films. The lithography era is only a novice in the field of distribution. Therefore, it seems to be a good choice for the three to stick together.

In fact, 100 million yuan of the funds raised from Shanghai Film's launch is the working capital planned to supplement the company's film distribution business to improve and consolidate the company's professional film distribution market position.

Editor: yvette