Huayi Film and Television Entertainment's revenue in the first half of the year exceeded 1 billion yuan and will enter a strategic harvest period

Entering the second half of the year, Huayi Brothers will gradually enter a strategic harvest period with the continuous release of major film and television works and the steady advancement and coordination of various investment projects.

On August 24, Huayi Brothers released its 2016 semi-annual performance report. During the reporting period, the company achieved operating income of 1.468 billion yuan, an increase of 13.54% compared with the same period last year. The first half of 2016 was a critical period for Huayi Brothers 'platform-based strategic layout. It carried out a series of important investment arrangements, including establishing an animation company, establishing a distribution company, strengthening theater construction, expanding overseas layout, and introducing secondary IP. etc. Entering the second half of the year, Huayi Brothers will gradually enter a strategic harvest period with the continuous release of major film and television works and the steady advancement and coordination of various investment projects.

Revenue continued to grow. The operating income of the three major sectors

was 1.078 billion yuan, an increase of 38.63% compared with the same period last year. The film and television works released during the reporting period included "The Quest for the Dragon","Lao Pao 'er","New York New York","Spiritual Puppet Contract","Running Love", etc. Among them,"The Quest for the Dragon" and "Lao Pao' er" both achieved a win-win situation at the box office and reputation. The main revenue from TV dramas include "Five Rats in Tokyo","I Love Zhang Baoli","Falling in Love with Zhang Baoli","Enfei is Back","Three Babies","Undercover", etc.; The operating income of the brand licensing and real-life entertainment segment was 112 million yuan, an increase of 236.08% compared with the same period last year. During the reporting period, project development progressed smoothly, and revenue increased compared with the same period last year; The Internet entertainment sector has an operating income of 299 million yuan, and its business has developed well. During the reporting period, the games "Time and Space Hunter","Devil and Devil", and "Heroes of the Dragon" have achieved high income. New product research and development is also actively underway, and new media business development is stable.

The announcement shows that the main film and television drama projects of Huayi Brothers in 2016,"Rock Tibetan Mastiff","Lu Yao Zhi Ma Li","The Death of Romantics","I am Not Pan Jinlian", etc. are expected to be released in the second half of 2016; In addition, the company participated in "Warcraft" released on June 18, 2016. Due to its participation in global accounting, it took a long time to recognize revenue and did not generate revenue in the first half of the year.

Adhering to content as the king and building diversified supply.

In the first half of the year, Huayi Brothers formally proposed the "strong core"(strengthening the content core) strategy in order to further consolidate its content production advantages and established it as the primary strategy at this stage. Subsequently, a series of layout actions to expand the source of content have enriched Huayi Brothers 'diversified IP reserves and stimulated more possibilities for its "comic and video games" linkage; on the other hand, it also provided rich ammunition for Huayi Brothers to attempt the full-form and complete development of mature IP.

In the second half of this year, in addition to the release of Chinese-language masterpieces such as "I am Not Pan Jinlian" and "The Death of Romantic" produced by Huayi Brothers, Huayi Haohan has also successively launched a number of film and television dramas and variety shows, including: The IP giant "Fantasy City" launched on Hunan Satellite TV on July 24, the second season of the variety show "I'm Going to School" launched on Zhejiang Satellite TV on June 26, and "Date!" jointly produced by Huayi Haohan and Tencent Video. Big Star ", etc.; the TV series" Long Time No See ", run by gold medal screenwriter Wang Wanping and co-starred by Zheng Kai, Yang Zishan, Zhang Guoli and Jiang Shan, also started in July and is expected to complete filming in the second half of the year. At the same time, in addition to continuing to participate in the variety show "Smiling", Mela Pictures, directed by Feng Xiaogang, will also announce its film projects in the second half of the year.

In the field of big online movies and online dramas, Huayi Brothers is also setting and refreshing its own records. At the end of 2015,"Mountain Cannon Into the City 1" jointly created by Huayi Brothers and Qi Entertainment Pictures became the first major online movie with a box office exceeding 10 million, and broke 12 market records; in March 2016, the second work in the series Once again set its own record and became the first phenomenal online movie with a box office exceeding 20 million; In addition, the first and second films of the "Super Eunuch" series of online movies jointly launched by the two parties in the first half of 2016 also achieved excellent results with a cumulative view of nearly 200 million.

Leading the symbiotic era and capturing the "ecological dividend"

Wang Zhonglei, Vice Chairman and CEO of Huayi Brothers, recently said at an industry forum: As the comprehensive entertainment group with the most complete domestic industrial chain, Huayi Brothers is striving to build a "big entertainment ecosystem" to promote the symbiosis, circulation and value-added of various forms of entertainment content inside and outside the ecosystem, and obtain the "ecological dividend" that maximizes IP value.

As the largest derivative business in Huayi Brothers ecosystem, the brand licensing and real-life entertainment sector is currently accelerating: according to the semi-annual report, the Huayi Studios project in Suzhou has entered a substantive stage, and the Studios project and Banyan Tree The hotel project is in the process of development and construction and is expected to be completed and opened in 2017; the Huayi Artists Village project has been completed and started for sale; projects in Henan and Changsha, Hunan have started construction; In the first half of 2016, 2 new projects with cooperation intentions were signed.

It is reported that Yinhan Games has invited famous screenwriters to write the script of "Time and Space Hunter" and has begun preparations for filming; and the IP giant "Fantasy City" mobile game developed by Yinhan Games has also been launched during the summer with the TV series of the same name.

"Heroes Mutual Entertainment", the mobile e-sports leader invested by Huayi Brothers, achieved a burst of performance growth in the first half of the year. According to its semi-annual report, operating income reached 377 million yuan, a year-on-year increase of 4728.94%; net profit attributable to shareholders of listed companies It was 225 million yuan, a year-on-year increase of 3111.21%. As its second largest shareholder, Huayi Brothers, in addition to the return on investment, has the right to adapt any e-sports game product developed or operated by Hero Mutual Entertainment into movies, TV series, online series or other stage art works under the same conditions. Priority authorization or transfer to Huayi Brothers.

In the VR field, Storm Mirror and St. Witt, which Huayi Brothers participated in, experienced good business development in the first half of the year, basically covering the implementation needs of VR technology in the personal application market and large-scale scenario applications. It is reported that St. Witt's offline experience hall has opened in Beijing at the end of July this year, and is developing a large-scale VR experience project customized for Huayi Brothers Live Entertainment.

While international expansion is accelerating the reconstruction of the "Huayi Model"

in the domestic layout, Huayi Brothers is also actively expanding its ecological territory. At the beginning of this year, the Hong Kong-listed company "China No. 9 Health" invested by Huayi Brothers was officially renamed "Huayi Tencent Entertainment." This is an international platform for Huayi Brothers to integrate international entertainment resources and connect with overseas capital operations, and has begun to play its role: In March this year, Huayi Brothers invested in South Korean HB Company that produced "You from the Stars", which was operated through Huayi Tencent Entertainment. Prior to this, Huayi Brothers also invested in SIM, a South Korean listed entertainment company that has strong brokerage business.

The cooperation between Huayi Brothers and STX has also yielded many excellent works this year, achieving a counterattack at the box office of small and medium-cost films. The thriller movie "The Puppet Contract" was released one after another in China and the United States at the beginning of the year and won praise from film critics, earning nearly US$38 million in the global box office;"Jones 'Free Country", which hit major theaters in North America on June 24, has also gained good box office results and reputation in North America, and currently box office revenue in North America has exceeded US$20 million; On July 29,"Bad Mom" co-produced by Huayi Brothers and STX lit up the North American summer season. The box office exceeded US$23.4 million in the first weekend. Currently, the global box office has exceeded US$100 million, and the film's cost is about US$20 million. On December 21 this year, the sci-fi giant "Beyond the World" jointly produced by the two parties will also be available to North American audiences.

The first global animated film "Rock Tibetan Mastiff" co-developed by Huayi Brothers was released in China on July 8 and received good reputation. Currently, the film has been scheduled to be released in North America on February 24, 2017. Lionsgate Pictures will be responsible for overseas distribution. At the same time, it has made a promise to show it on at least 2000 screens in North America, which is expected to create a new overseas box office record for China films in recent years. Next,"finishing touch animation" will also become an important content port for Huayi Brothers to export "China Stories" overseas.

Wang Zhonglei, vice chairman and CEO of Huayi Brothers, said: "Our cooperation with overseas companies is not based on pure investment, but more based on capital and professional talents. For example, we are looking for people with global creative capabilities in the United States, create a content company together, and then connect with global channels, because having good content is the key to successful export." Some commentators believe that Huayi Brothers, as a pioneer in innovation in the domestic entertainment industry, will provide useful lessons for the industry.

Editor: yvonne