Sports only earned 900,000 yuan last year, Hualu Baina and 370 million yuan raised funds to invest in film and television dramas

Hualu Baina plans to invest the unused 370 million yuan raised funds under the sports event operation project category into TV series and variety column projects.

Original title: Hualu Baina raised 370 million yuan to invest in film, television, drama, sports events, large output, small

investment in the sports industry, or is it better to invest in movies? Hualu Baina gave his opinion, shifting from favoring sports to favoring the film and television industry.

In June 2015, Hualu Baina established Hualu Sports to strongly deploy the sports industry. Subsequently, the company disclosed a fixed increase plan and planned to raise hundreds of millions of yuan for Hualu Sports to operate sports events. This project was highly praised by the company, which said at the time that implementing the project could seize market opportunities in the sports media industry. Since then, Hualu Sports quickly attacked and intervened in the operation of multiple events. However, the investment of more than 100 million yuan in such businesses only resulted in less than one million yuan in revenue. Under this circumstance, Hualu Baina also backed out.

Hualu Baina, a film and television drama producer

, announced on the evening of June 14 that the company's board of directors and board of supervisors reviewed and approved the "Proposal on Changing the Use of Some Raised Funds." According to the content of the proposal, the listed company stated that it plans to invest the unused 370 million yuan raised funds under the sports event operation project category into TV series and variety program projects. At the same time, comprehensively considering the development trend of the variety column industry and the market performance of the company's previous variety projects, the company plans to invest the funds originally planned to be invested in "Back to Nature" and "Goddess New Clothes" in 2017 to invest in variety projects with expected benefits.

The reporter noticed that on the surface, Hualu Baina had made adjustments to two fundraising projects, but in fact, the second change was actually only an adjustment to the content of the sub-project of the variety show production project. What has really been hit by the "earth-shaking" impact is the "sports event operation project".

Looking back at history, Hualu Baina disclosed its non-public offering plan in 2015. The company plans to raise no more than 2.199 billion yuan to invest in four projects: film and television drama content production, variety show production, sports event operation, and centralized procurement of media resources. Among them, the company plans to use 500 million yuan to raise funds to invest in sports event operations. The operating entity of the project is Hualu Sports, a subsidiary of Hualu Baina, with a total investment of 800 million yuan. The content is the purchase and investment of commercial rights in sports events. The implementation time is from October 2015 to November 2018.

According to the actual fundraising situation, the final planned fundraising amount for the Hualu Baina sports event operation project is 493 million yuan. As of now, the company has invested 123 million yuan, and the remaining 370 million yuan has not been invested. According to the changes in fund-raising use, all of the 370 million yuan will be used to make films, films, dramas, etc., which undoubtedly means that sports event operation projects will "exist in name only."

Sports only earned 900,000 yuan last year

. Interestingly, in the original fixed increase plan, Hualu Baina once made it clear that the sports industry is ushering in a golden period of development and the sports industry will be the fastest-growing branch of the cultural media industry. Through the implementation of this fundraising project, the company will have more abundant sports resources and rely on the company's advanced operating experience in film, television and variety shows to share the dividends of the rapid development of the sports industry. At the same time, the listed company also stated with confidence that the company has a complete media and entertainment industry chain foundation, strong commercial customer resources, high-quality video media resources, rich entertainment industry operating experience, and a good institutional and mechanism background., fully ensuring the feasibility of the project.

At the same time, Hualu, the main body of sports event operation projects, has frequent sports actions. It has promoted Beijing Satellite TV to broadcast La Liga, signed Red Bull to become the official partner of the Super League, won the right to operate the European Basketball Champions League in China for 15 years, and signed a memorandum to support the development of China's youth football industry, established a strategic cooperative relationship with Zhangjiakou to jointly deploy the ice and snow industry. It has become an important new force in China's sports industry.

Now, there are still about one and a half years away from the project implementation deadline. Why does Hualu Baina want to "give up halfway"?

In the announcement, in response to the reasons for the adjustment of fundraising purposes, Hualu Baina devoted its main energy to explaining the wonderful "money scene" of the film and television industry. Regarding the termination of continued investment in sports event operation projects, the company only mentioned it with the sentence "considering the implementation cycle and project benefit level of sports event operation fundraising projects, in order to improve the efficiency of the use of raised funds." However, this sentence is enough to point out the core reason why sports event operations have fallen out of favor, which is "poor efficiency."

According to Hualu Baina's 2016 annual report, despite a cumulative investment of 123 million yuan in sports event operation projects, the realized benefits during the reporting period were only 905,000 yuan. It lags far behind the effect level of several other fixed-value investment projects. For example, the benefits of film and television drama content production projects are 73.4489 million yuan, the benefits of variety show production projects are 223 million yuan, and the centralized procurement of media resources also have benefits of 17.7613 million yuan.

Editor: jessica