from the "loss backing" of Great Wall Film and Television to the many unfavorable factors of the listed film and television media companies in the market recently, it may be regarded as a rather calm stage for the film and television capital craze spawned by the tuyere in the whole market.
original title: promise to cover losses for employees, Great Wall Film and Television's Disney dream may have been dashed
recently, "loss capping" has become an absolute hot spot in the securities market. The literal meaning of "loss capping" is very simple, which is to call on employees to buy shares in their companies in accordance with the current market, and the company's executives or actual controllers will cover their employees' behavior in the future, but the prevalence of "loss capping" shows that for many listed companies, it should be recognized that liquidity or investment value is bearish. while the reporter is concerned that Zhao Ruiyong, the actual controller of Great Wall Film and Television, a listed company in the film and television media sector, also called on his employees to buy the company's shares in his own name, and conditionally covered for them to buy the company's shares. As an active film and television industry in recent years, Great Wall Film and Television has always had a strong influence in the industry with aggressive mergers and acquisitions, but its stock and market capitalization have not improved in recent years.
from the "loss cover" of Great Wall Film and Television, to the many unfavorable factors in the market of listed film and television media companies recently, perhaps it can be seen that the whole big market has entered a quite calm stage for the film and television capital craze driven by the tuyere. strong > backed by executive credit / strong > strong > "backing" or hidden risk / strong > has entered June, and a number of listed companies have disclosed announcements about the chairman's initiative for employees to increase their holdings of stocks and promise to do so. They are Kelu Electronics, an Jubao, Xinghui Precision, Paulette, Jinfu Technology, Camite Gas, Endeavour Technology and Great Wall Film and Television. on June 6th, Great Wall Movie and Television officially joined the popularity of "backing up". According to data, Zhao Ruiyong, the actual controller of Great Wall Film and Television, proposed that during the period from June 7, 2017 to June 13, 2017, employees of the company and its wholly-owned subsidiaries and holding subsidiaries bought Great Wall Film and Television shares through the secondary market and held them for more than 12 months. If the losses caused by increasing their holdings in Great Wall Film and Television shares are fully compensated by myself, the income will be owned by the employees. all say that pie cannot fall from the sky, but the proposal of the chairman of the board of directors of listed companies such as Great Wall Film and Television seems on the surface that the "pie" may fall from the "sky" because of the promise to cover losses. From a card point of view, the chairman of the board of directors of listed companies dare to promise, on the one hand, it shows that they have confidence in the future performance, prospects and stock prices of listed companies, on the other hand, it also shows that in the bad situation of the market, a foreign strategy to deal with the decline of stock prices. but in fact, most of this kind of" backing "is guaranteed by the personal credit of the actual controller of the listed company, which is full of unpredictable risks. Whether it can be realized also needs a question mark. In recent years, there are too many cases in which the controlling shareholders of listed companies fail to fulfill their promises. Therefore, although there is a commitment to increase holdings, there is a risk that the promise will not be fulfilled. In addition, because the controlling shareholders and actual controllers control the listed company, once the employees increase their holdings and suffer losses, it is also possible to boost the stock price by issuing benefits and other ways with the help of "market forces". Then the promisor does not have to pay any price, while the majority of medium and small investors in the market pay for it. Obviously, this is a "pocket bottom" to increase holdings hidden risks are not small.
strong > / strong > strong > Capital boosts film and television tuyere or enters a cooling-off period / strong > as an A-share listed company, Great Wall Film and Television has received a lot of attention in recent years for its frequent mergers and acquisitions, especially its mergers and acquisitions not only focus on the film and television section, but also large-scale cross-border mergers and acquisitions. In less than three years after listing, Great Wall Film and Television spent a total of 1.996 billion yuan, acquired a total of seven film and television advertising companies, and claimed to have completed the layout of "full content, whole industry chain". from 324 million yuan in 2014 to 840 million yuan in Shanghai Sheng Meng and Zhejiang Light, to 840 million yuan in 2015 to Oriental Longhui, Zhuji Great Wall Film and Television, macro advertising, 381 million yuan to acquire 51% stake in Shanghai Jiuming and Zhejiang China Film, and then to spend 451 million yuan in early 2016 to continue to acquire shares in the company. Great Wall Animation, its holding company, is also buying all the way. At the end of 2014, Great Wall Animation paid cash for stakes in seven companies, including Hunan Hongmeng Cartoon, Hangzhou Oriental National Dragon, Hangzhou Great Wall Animation and Game Co., Ltd., and Beijing Xinyu Brothers Network Technology Co., Ltd., at a transaction price of 1.016 billion yuan. Great Wall Animation announced in June 2016 that it plans to acquire two animation chain companies, Lingjing Technology and Mini World, by issuing shares and paying cash, with a total transaction consideration of 708 million yuan. However, the merger was terminated without the approval of the CSRC. at the same time, buying along the way did not improve the performance and profitability of Great Wall Film and Television. According to media disclosure, of the three listed companies owned by the Great Wall system, only Great Wall Film and Television is profitable. While Great Wall Animation lost 83.4734 million yuan in 2016, profit fell 553.99% compared with the same period last year, and Tianmu Pharmaceutical performance hovered on the edge of profit and loss for many years. at the same time, Great Wall Film and Television's own performance is not eye-catching. When Great Wall Film and Television completed its backdoor listing in 2014, it made a commitment to achieve net profits of no less than 207 million yuan in 2014, 230 million yuan in 2015 and 260 million yuan in 2016, according to the financial report. However, judging from the actual performance, the net profit of Great Wall Film and Television from 2014 to 2016 was 200 million yuan, 232 million yuan and 256 million yuan respectively. In the first quarter of this year, the net profit of Great Wall Film and Television was only 12.3309 million yuan, down 24.88 percent from the same period last year. strong > buy 9 travel agencies to be "China Disney" / strong > strong > the ambition of Great Wall Film and Television may be on paper / strong > just before this backstory, Great Wall Film and Television has just acquired nine travel agencies. At the end of May, Great Wall Film and Television announced that it planned to buy 51% of each of nine travel agencies, including Nanjing Phoenix Holiday Travel Co., Ltd., in cash. The total transfer price of equity in this transaction is 216 million yuan. with regard to the impact of this transaction on the company, Great Wall Film and Television said in the announcement that on the one hand, it can increase the company's net profit by more than 30 million yuan; on the other hand, it can send more than 200000 tourists to Zhuji Film and Television City, thereby enhancing the influence, popularity and profitability of the film city. it is understood that Zhuji Film City is a film and television base acquired by Great Wall Film and Television in May 2015. Zhuji Film and Television has made a profit in 2016, according to the Great Wall Film and Television 2016 annual report, but the annual report did not disclose the exact amount of profit. In addition to Zhuji Film and Television City, the Great Wall Group has also carried out the construction of various theme bases in various places, including Chuzhou, Shijiazhuang, Lanzhou, Zibo and Dunhuang, to create six major cultural tourism creative industrial parks, according to statistics, the total statistical quota exceeds 10 billion.
it can be seen that through a series of layouts, Great Wall Group has invested heavily in the field of live entertainment, but in view of the increasingly fierce competition due to the increasing number of domestic film and television bases, the acquisition of a number of domestic travel agencies should also pave the way for the future development of the business. Great Wall Film and Television wants to become a member of "China Disney"-- but domestic companies with IP, including Wanda, Huayi Brothers, and Alfie, lack enough highlights in film, television and live communication, not to mention the fact that Great Wall Film and Television is not unique in terms of competitiveness in the film and television layout. the reporter interviewed senior figures in the industry for this. He believes that the advantage of film and television companies in doing "live entertainment" is that they can develop IP through film and television works, but domestic film and television companies, including Great Wall Film and Television, not only lack the real big IP, but also lack the experience of fully operating IP to form a whole industry chain. Specific to the Great Wall Film and Television, its film and TV drama production ability is relatively weak in the industry, although there are still works to achieve income every year, but few popular style works or well-known film and television works come out. Therefore, I am not optimistic about the "Disney" dream of Great Wall Film and Television. back to the point, as a listed company, it is not worth showing off to call on employees to increase their holdings in the way that senior executives personally promise to "cover their losses". In recent years, although the film and television media sector has become the "tip of the wind", no matter the senior executives' holdings reduction, cash out, stock price stagnation, etc., have not turned the attention into the excellent performance of the stock market. For ordinary investors, the shares of film and television listed companies are not very attractive. So you still need to work hard, gimmicks are gimmicks after all, performance is the real strength. Edit: jessica