Film and television entertainment companies sprint into the capital market, not looking at box office, but looking at performance
A detailed list of the highlights and pain points of Xinli Media, Happy Mahua, and China TV Entertainment's entry into A shares
original title: film and television entertainment company IPO is engaged in a fierce battle
with the rapid rise of domestic film and television culture companies in recent years, many enterprises have chosen to further expand through "marriage" with the capital market. At present, the A-share market already has listed companies in the film and television industry, including Huayi Brothers, Light Media, Huanrui Century, Ciwen Culture, Huatze Film and Television, and so on. at the same time, there are a large number of film and television entertainment companies are ready to rush the capital market.
according to incomplete statistics, film and television entertainment companies, including Xinli Media, Kaixin Mahua, and China Television Entertainment, have disclosed the initial Public offering prospectus (application draft). Among the companies planning to go public with IPO, what is their strength to sprint into the capital market? How do you view their business advantages? What is the potential risk point of the enterprise? In response to these topics of common concern to the market and fans, the Financial Investment Daily has launched the "Entertainment Capital Circle" column from now on to witness the stories of the combination of the entertainment industry and the capital circle with the broad masses of investors.
strong > Xinli Media: the film and television giant's sky-high popular style "Ruyi's Royal Love in the Palace" is about to hit / strong >
the number of shares to be issued in the public offering is 55 million shares to raise funds. The total amount of working capital investment in the film and TV drama business amounts to 2 billion representative worksTV series: Beijing love story, cliff, ups and downs, you are my brother, parents love, hot mom, one servant, two masters, tiger mother cat dad, little husband,
Movie: search, my morning shift girlfriend, hot pot hero, pancake man, Charlotte annoyance
net drama: remaining sins
in terms of main business Xinli Media is undoubtedly one of the most competitive enterprises among the film and television entertainment companies currently applying for IPO. The controlling shareholder and chairman of the company is Cao Huayi, a senior producer in the domestic film and television industry. his representative works include "Cliff", "Beijing Love Story", "Tiger Mom Cat Dad" and "Hot Mom". The company's shareholder list is also star-studded, with artists Zhang Jiaye (Zhang Xiaotong), Hu Jun, Song Jia and the Chinese version of "Fashion Devil" Su Mang all on the shareholder list. Chen Kaige, Haiqing (Huang Yi), Yu Zheng (Yu Zheng) and Li Guangjie hold shares in the company through Xinli Media's fourth largest shareholder, Xi Shi Investment.
judging from the financial data, Xinli Media performed well. From 2014 to 2016, the company achieved operating income of 655 million yuan, 656 million yuan and 745 million yuan respectively, and the net profits attributed to the owners of the parent company were 131 million yuan, 117 million yuan and 156 million yuan respectively. The gross profit margin in the last three years was 50.38%, 54.63% and 52.46% respectively, higher than the industry average.
up to now, Xinli Media has participated in the production of a number of domestic TV dramas and films. The reporter noticed that the pre-sale revenue of the TV series "Tiger Mom and Cat Dad" that the company participated in the production reached 207 million yuan, and the pre-sale revenue of "Razor Edge" broadcast this year was as high as 222 million yuan. As of the signing date of the company's prospectus, the online drama "remaining Crime" has accumulated more than 4.2 billion hits, making it one of the domestic pure online dramas with the highest hits in history. This shows the ability and achievements of Xinli Media to build a "boutique film and television content creation and operation platform".
in the next two years, Xinli Media plans to complete 9 films and 10 TV dramas (395episodes), with a total investment of about 2.535 billion yuan to achieve production capacity.
and this year, the TV series "Bai Luyuan" and "the first half of my Life", which Xinli Media participated in the production, have recently been a hit one after another. next, works such as "sky-high price dramas", "popular style bookings", TV series "Ruyi's Royal Love in the Palace" and Chen Kaige movie "Legend of the Cat", which are sold at a high price without broadcasting online biographies, will also take turns, which is thought to add "a fire" to Xinli Media, which is sprinting for IPO.
despite the obvious advantages of its main business, Xinli Media's own problems and potential risks have also been criticized. According to the data, the company's asset-liability ratio was 54.15% in 2014, 52.35% in 2015 and 62.03% in 2016, showing an increase year by year. Xinli Media's 62.03% asset-liability ratio is already much higher than that of companies in the same industry such as Warburg (10.22%), Huatze Film and Television (37.33%) and Huanrui (17.86%). The company's accounts receivable have exceeded 500 million yuan in the past three years, and the high amount of accounts receivable will increase the risk of shortage of funds. In addition, there are problems such as inter-industry competition and related party transactions with shareholders, which may also become uncertain factors hindering its listing.
strong > Happy mahua: there is a huge gap between the box office earnings of the first two films of Chinese drama / strong >
the number of shares to be publicly issued is 40 million shares to raise funds for drama, film projects and supplementary liquidity investments totaling 751 million representative works
Drama: Earl of Oolong Mountain, Clown Love Beauty, shy Iron fist, etc.
Movie: Charlotte's annoyance, Donkey Deshui
Happy mahua recently transferred from the new third board to IPO has attracted a lot of market attention. As a comedy company and a brand company specializing in performance, film and television and derivative business and artist brokerage business, Happy Mahua is known as "the first share of Chinese drama" and has always been well-known in the domestic comedy field. However, the company was able to make a name for itself nationwide thanks to the 2015 comedy film Charlotte annoyance, a drama adaptation.
in 2015, Charlotte annoyance, the first happy mahua film starring Shen Teng, Ma Li and Yin Zheng, stood out as a dark horse at the box office that year, earning 1.44 billion yuan at the box office, ranking seventh in the total box office ranking of domestic films. In 2016, Happy Mahua made continuous efforts to complete the black humor film "Donkey gets Water," which grossed 170 million yuan at the box office and won Douban as the highest-rated Chinese-language film in 2016.
Happy mahua used to be mainly engaged in performance and brokerage business, but this profit-making way of realizing value transformation through film and television business has undoubtedly benefited it. The company's net profit jumped from 39.1626 million yuan in 2014 to 130.86332 million yuan and 71.875 million yuan in 2015 and 2016. And the substantial growth in performance has undoubtedly laid the foundation for the company to attack the capital market.
in addition to the film business that brings continuous surprises, the performance business is considered to be an important basis for the survival and growth of Happy Mahua. From 2014 to 2016, performances and derivatives business accounted for 100%, 48.2% and 90.21% of the main revenue of Kaixin Mahua, respectively. In recent years, the number of performances of the company has continued to grow, and the company has achieved 1628 performances in 2016, which has formed a large scale of performances and is in a leading position in the industry.
in 2017, Happy Mahua plans to release a film "Iron fist of shyness" adapted from the company's classic repertoire and the company's executive producer, and a film involved in the co-production of "Outstanding Master". The company said in the prospectus that in the future, through the unique business model of "drama + film + artist agency", it will continue to train comedy talents, continue to create and enrich comedy works, and continue to expand the scale of domestic performances.
it is worth mentioning that although the current Happy Mahua films perform well at the box office and word of mouth, the risk of performance fluctuations caused by the huge box office gap between films should not be underestimated. For example, the box office of "Donkey gets Water" in 2016 is a far cry from that of "Charlotte annoyance" in 2015, which directly led to a significant decline in the net profit of Happy Mahua in 2016 compared with 2015. Therefore, some analysts pointed out that whether the film and television sector business is sufficient to support the company's revenue development may need to play a question mark for the time being.
strong >
strong > / strong > The third kind of love, Liu Nong CafeChina Television Entertainment is considered to be the leading film and television production company in China. In recent years, it has become a cutting-edge representative of the industry by virtue of the film "to our lost Youth" and the TV series "the ordinary World".
strong > the movie company IPO is not only fighting at the box office / strong >
from the perspective of Xinli Media, Happy Mahua and Chinese TV Entertainment, the three IPO companies have their own advantages and disadvantages. For example, Xinli Media has advantages in terms of output, quality and popularity of film and television works, but the company is also plagued by peer competition among shareholders and related party transactions. It has entered the IPO three times and has a long way to go public. With the halo of "the first share of Chinese Modern Drama" in Happy Mahua's head, moving from the new third board to IPO also demonstrates the company's ambition to enter the capital market, but although the former "Charlotte annoyance" stood out as a dark horse, the box office miracle repeat is after all a small probability event, without high box office earnings, how to solve the problem of Happy Mahua's declining performance in recent years? China TV Entertainment wants to adhere to the strategic line of high-quality products, but the "deeds" of investing in films that lead to a loss of hundreds of millions of dollars in net profit for the whole year will undoubtedly leave a mark of failure in its history of development. how to guarantee investors that the same losses will not occur again in the future?
more importantly, recently, regulators have stepped up their efforts to list and increase supervision over film and television companies. In the process of the listing of film and television companies one after another, there is no lack of cases in which IPO has been rejected by companies such as Energy Film and time Film. The listing journey of film and television entertainment companies should not be taken lightly.
of course, the macro-economic recovery and the great development of the domestic cultural industry are also positive factors for the industry. In short, no one can tell whether to win or lose until the dust of entering the A-share market is finally settled.
Edit: mary