Cultural Investment Holdings 'net profit in the first half of the year was 241 million yuan, and its cinema business revenue exceeded 50%

This listed company, which is controlled by the Beijing Culture and Resources Office and has many stars such as Jackie Chan, Feng Xiaogang, Huang Xiaoming, and Li Bingbing, achieved operating income of 853 million yuan during the reporting period, and net profit attributable to shareholders of the listed company was 241 million yuan. After deducting non-profit, the net profit is 240 million yuan.

On the afternoon of August 19, Cultural Investment Holdings, which had just held a reorganization and name change ceremony in April this year, released its 2016 semi-annual report. This listed company, which is controlled by Beijing Cultural Resources Office and has many stars such as Jackie Chan, Feng Xiaogang, Huang Xiaoming, and Li Bingbing, achieved operating income during the reporting period of 853 million yuan, net profit attributable to shareholders of the listed company was 241 million yuan, and net profit after deducting non-profit was 240 million yuan.

1. More than half of its revenue comes from the cinema business. In terms of box office growth

, the revenue of Cultural Investment Holdings comes from its wholly-owned subsidiary Yaolai Film and Television. In the first half of 2016, Yaolai Studios opened 7 new studios and added 49 screens, making it a total of 39 studios with 310 screens. During the reporting period, the company's cinema film screening and related derivative businesses achieved revenue of 469 million yuan, accounting for 54.96% of total revenue. Among them, total box office revenue (including tax) was 337 million yuan, a year-on-year increase of 14%.

According to the "2016 National Film Box Office Semi-annual Report" earlier released by the Office of the National Film Industry Development Special Fund Management Committee, the cumulative box office of mainland theaters in China in the first half of 2016 was 24.582 billion yuan, a year-on-year increase of 21.41%. Compared with the average growth level of industry theaters, the growth rate of Cultural Investment Holdings has slowed down.

The semi-annual report pointed out that Yaolai Studios advocates using low ticket prices to drive movie-goers and improving overall efficiency through sales revenue, advertising revenue, etc. In the first half of 2016, the average ticket price of Yaolai Studios was 33 yuan, slightly lower than the industry average, while the average attendance rate was 20.45%, significantly higher than the industry average attendance rate. During the reporting period, Yaolai Studios 'advertising revenue accounted for 20%, and the growth trend was obvious. It will become a major growth point for studios' revenue in the future.

2. Deeply bundling Jackie Chan's industrial chain The

deep bundling of Yao Lai Studios and Jackie Chan can not only use its name, portrait and brand image commercially in the studio operation projects, but also use Jackie Chan's films as the entry point to lay out other upstream aspects of the industrial chain. In the link, more than four high-budget commercial blockbusters will be produced and distributed every year.

During the reporting period, the company invested in films including "Escape from the Jedi","Kung Fu Yoga","Railway Flying Tiger","I am Not Pan Jinlian" and "Ordinary People"(formerly "The Dragon Shocks the World"), and became the exclusive global distributor of "I am Not Pan Jinlian". Among them,"Escape from the Jedi" was released in July, and as of the release date of the report, it had achieved box office 880 million yuan. All other films have entered the post-production stage."I am Not Pan Jinlian" directed by Feng Xiaogang and starred by Fan Bingbing is scheduled to be released in September this year, and "Railway Flying Tiger" starring Jackie Chan is scheduled to be released in December this year.

In addition, relying on Jackie Chan's reputation and resources in the international film market, Yaolai Films and Television also has certain advantages in expanding its international business. At the Beijing International Film Festival in late April this year, Cultural Investment Holdings announced that through Yolai Films, it will jointly establish the "Allegory" film production company with Hollywood directors Fraren Hank Done Ersmark and Sam Remy, and will produce 8 to 10 films with a budget of US$30 million to US$80 million in the next five years. Rusmark won the Academy Award for Best Foreign Language Film for "The Tresping Storm", and Remy directed the "Spider-Man" trilogy.

3. Strengthen mobile game research and development to promote movie-game linkage During the

reporting period, the company's online game business achieved revenue of 185 million yuan, accounting for 21.7% of total revenue. Among them, the wholly-owned subsidiary Duwan Network is mainly engaged in page game development and platform operation business. In the first half of this year, Duwan Network successively signed the development rights of popular IPs such as Beautiful Jiangshan and Ghost Blows Out the Lantern, and also launched new games such as "Battle Song of Blood","Arise to the Sand City","Legend of Tianmen", and "Heroic Domination". Launched one after another. Among them,"Battle Song" was launched in March this year and cooperated with the 360 platform. As of the end of June, the total sales volume reached 55 million yuan.

As the focus of the game market shifts from end games/page games to mobile games, WIC Holdings has also increased its investment in mobile games and has established multiple R & D teams. At the same time, in order to obtain more game distribution channel resources, we integrate film and television and game resources to achieve video-game linkage.

In February this year, Duwan Network became the second largest shareholder of South Korea's KOSDAQ listed company AIMHIGHGLOBAL. In the future, the two parties will carry out in-depth cooperation in the introduction of games and film and television IP, film and animation production and distribution, and overseas distribution of games.

In June this year, Duwan Network acquired a 70% stake in Beijing Ziyou Xinghe Technology Co., Ltd. for a consideration of 190 million yuan. Free Galaxy's game publishing business advantages are concentrated on Tencent games and WeChat platforms, and is good at the release of movie-game linked game products. The well-known movie-game linked game IPs that have been released and reserved include "Flower Thousand Bones","Shushan War","Legend of Mi Yue","Fantasy City", etc.

Editor: yvonne