Net profit increased by 7 times, game cash flow is stable and perfect, CEO integrity: will work hard to link cinema + e-sports

recently Perfect World released its 2016 results KuaiBao showed that the revenue of listed companies last year was 6.15 billion yuan, an increase of 26% over the same period last year, and the net profit belonging to shareholders of listed companies was 1.166 billion yuan, an increase of 767% over the same period last year.

the net profit of the original title has increased sevenfold, and the perfect president is incorruptible: capital can play, but you must first honestly do performance

A lot of bosses and reporters of film and television companies have seen it, but not many people can be described as "handsome". Perfect World Film and Television Chairman and CEO is absolutely incorruptible. As soon as he met, he greeted him with a smile, completely unable to see the tiredness and tiredness of going to bed at three o'clock in the morning and having held countless meetings.

the president of a listed company and head of a film and television company, who took office in September last year, has a gorgeous background in the past: he graduated from an American Ivy League school, an executive at Goldman Sachs, and a founding partner of Chunhua Capital Group. he helped many companies such as New Oriental complete the listing, was also a director of Boehner, Letv Film and other companies, and was also the trader of Perfect World's privatization.

for people to be incorruptible in middle age, joining Perfect World is a transformation opportunity that "if you don't grasp it, you will regret it for the rest of your life". Recently, Perfect World released the 2016 results KuaiBao showed that the revenue of listed companies last year was 6.15 billion yuan, an increase of 26% over the same period last year, and the net profit belonging to shareholders of listed companies was 1.166 billion yuan, an increase of 767% over the same period last year.

what kind of new atmosphere will the new leader bring to Perfect World, who has a large volume of business and a substantial increase in performance? After a polite exchange of pleasantries, honest and honest introduced in detail the reason why he came to Perfect World, the work he has done after taking office and the future layout of the company: the $500m film investment business signed with Universal Pictures, consolidating the dominant position of TV series, a larger cinema acquisition plan and cinema + e-sports linkage, the future annual output of 5-10 films.

how can this giant cruise ship, which has been driven by "movie and tourism" for many years, ride the ever-changing storms in the entertainment industry in recent years?

< strong > Games and TV dramas Cash flow stable Cinema + e-sports Linkage < / strong >

although he has repeatedly modestly claimed that he is the beneficiary and lucky person of the reform wave of the times, the incorruptible person sitting in front of us, apart from being much younger than expected, is exactly what the upper class elites should look like in people's inherent impression, low-key, steady, watertight to answer questions, and occasionally pop up some English words in fluent expression. This may be a language habit left behind by living in Hong Kong for many years.

during the interview, honest and honest talked about himself as an audience. He had watched "lurking" seven or eight times and shed tears every time he went to the emotional place. "as people of the 1970s, the brand of the times is still very deep, and we all have deep feelings of family and country." He couldn't help sighing.

what is interesting is that Perfect World, as a large-scale domestic game manufacturer and film and television production company, seems to habitually stay away from the spotlight.

in this way, TV dramas and online dramas on the market have frequently exposed the chaotic phenomenon of ratings flooding and click-through fraud, which is "out of touch" with Perfect World. In response, Integrity used the words "integrity", "compliance" and "social responsibility" to describe his impression of his new company and colleagues: "I have met a lot of new people every day since I came here. I think the concept of dividing people into groups is quite right."

Perfect World has developed from a simple game company to a comprehensive cultural and entertainment group with games, film and television, animation, comics, literature, media, education and other businesses in eight years.

of course, the game business is still one of its most stable sources of cash flow. According to the announcement, Perfect World's operating performance increased significantly in 2016 because the company launched new game products such as mobile games "Zhu Xian", "Heaven Sword and Dragon Sabre" and "The Legend of the Condor Heroes 3D" during the reporting period.

since 2008, Perfect World has entered the film and television field with a number of TV dramas such as "Beijing Youth", "A place for the aged", "Let's get married", "Divine Dog Xiao Qi" and "The Legend of the Condor Heroes". At the same time, it has been further expanded to invest in the production of variety shows such as "extreme Challenge", "Cross-border King of songs", "Cross-border Comedy King" and "yearning Life".

according to Lian, one of Perfect World's highlights in 2017 is the youth historical drama "thinking of Beauty" and the police film "extraordinary Mission" directed by Mak Zhaohui and Zhuang Wenqiang. Several hundreds of millions of IP TV drama projects will also be announced in the near future. We should account for at least 50% of all invested projects. Clean said that through the main investment control, you can ensure that almost every work is a boutique.

"Perfect World's profit predictability is quite high by creating high-quality TV dramas and pre-selling. The risk of the film is relatively high, and our strategy is to play it steadily. " Clean and honest told Xiao Yu that although there are several mature film projects on hand, and the directors and actors have all been decided, deciding on the investment of each film is a very complicated and painful process.

talking about many companies using financial means to increase the film investment income, he thought for a moment and replied, "I think we should consider it according to the situation of the film, such as crowdfunding, or the form of funds and financial products." at present, they are all in the discussion stage, and I don't really want to say that they are overused. If there is no good work, this is nonsense. "

in the past two years, film and game linkage has become a cross-border gimmick for film and television companies or game companies. in the view of honesty, an important direction of Perfect World's strategic layout is cinema + game linkage. Perfect World bought 100% stake in Jindian Cinema, Jindian Cinema and Jendan Culture for about 1.35 billion yuan in 2016, not only to expand the downstream channels of the film industry, but also to develop more overlap with the game business.

"Cinema integration will continue in 2017-2018." Honest revealed that in the future, Perfect World plans to further expand the scale of the cinema through self-construction and acquisition. "the three major e-sports games in the world, of which" CS:GO "and" DOTA2 "are all represented by Perfect World. Through live games, e-sports, and even the offline experience of VR in the future, we hope to create a new business model for cinemas, and there is still a lot of room for imagination. "

< strong > Perfect World's investment tends to have a synergistic effect in holding investment. < / strong >

in the conversation, the key word repeatedly mentioned by honest and honest is "internationalization".

an important layout of Perfect World in the film field in 2016 is his "marriage" with Universal Studios. According to the agreement, Perfect World contributed 500 million US dollars, together with a revolving bank loan. Participate in Universal Pictures in the next five years of the film project investment share of 25%, the number of no less than 50 films.

in recent years, there has been a continuous "honeymoon" between Chinese capital and the six big Hollywood companies. Boehner joined hands with TSG to invest in Foss, Shanghai Film and Huahua Media held hands with Paramount, and Wanda won equity investment in Sony films.

by contrast, Perfect World's order is the largest. In May 2015, he also participated in many communications between Perfect World and Universal Pictures as a source for the integrity of Chunhua Capital. "at that time, there was actually a lot of competition for global investment, and we were not the richest, but why we were chosen because of another characteristic of Perfect World: internationalization."

since establishing a wholly-owned subsidiary in the United States in 2008, Perfect World has successively acquired Runic Games, Cryptic Studios, Unknown Worlds Entertainment and other game manufacturers. The VR undersea sandboxie game "Subnautica" released in March 2016, the PC version has been selling well on Steam, with sales of more than $1m per month. In the first half of 2016, Perfect World's overseas market revenue reached 460 million yuan, accounting for about 22% of the total revenue.

"when I went to our game company in San Francisco last December, 90% of the team of more than 400 people were locals, and we made many popular games like PS and Xbox." Clean Trail introduces with interest, "in the Big Bang Theory, Shelton likes to play" Dungeons&Dragons "(" Dungeons and Dragons "No Winter Night series), which is a decades-old IP in the United States, and Star Trek OL is also developed by our team in North America."

and the package investment in Hollywood's top six films is not risky, even if it is not a steady profit from the point of view of honesty. He analyzed to the reporter: "2016 is a small year for Global. This year, there are many franchise projects. The more important movie is the Summer Mummy. Tom Cruise rejoined. In addition, there are also some that will not be released in China, such as'50 degrees Black', which is also very profitable internationally." We have done a lot of detailed work and big data analysis before the investment, and we should be able to recover costs through long-term income such as global sharing, copyright pre-sale, derivatives and so on, hoping to have a good performance return. "

many people think that the arrival of honesty may accelerate Perfect World's operation in investment and capital, but he says with a smile, "what I am most concerned about now is the development and production of the project. I spend a lot of time reading scripts and talking to directors about projects every day. Of course, when it comes to investment, compared with some competitors, we are not that big, but we have actually reached a certain critical mass (critical scale). We are confident enough to look at all the investment opportunities in the market, but we will be very cautious. "

he gave an example: "there was a time when Korean companies were very popular. Everyone was looking at the situation in Korea, and we were watching it, and there were one or two companies that were very optimistic." But we didn't want to invest in exchange for cooperation, so we didn't invest. As a result, there was a restriction on Han after that. This is not to say that we are smart or predictable, now our team will actively look at the project, but there is no plan to spend how much this year, it has to be decided according to a good project. "

for some large companies to VC wide net model of investment companies, seize the track, incorruptible also has its own view: "as a private equity fund, it is good to invest in small stocks to earn several times to exit; for a strategic company, first of all, your money has many uses, if only because it is a company in the same industry, you occupy a small stock, in fact, it is difficult to have strategic coordination or control of the company."

therefore, Perfect World's investment strategy is to hold as much as he can. At this point, honest and honest took off the ring finger and rubbed it. After tossing and turning, he stressed: "even if you participate in the form of a perfect fund, you still hope that it will have a synergistic effect with games, film and television, and the team will have a DNA that can be integrated."

"listed companies are particularly afraid of investing in a company, and the company is still yours at the end of the three-year bet period, but the core team has already left to cash out the new company. How many such (examples) have been produced in the game industry? take your real money to do your performance and leave after three years. "

from the reporter's point of view, this is also the case, and even many game companies have repeatedly exposed themselves to brushing water with the money raised by financing. Incorruptible also sighs that today China's capital game has changed somewhat. "Capital can be played, but capital can not be played empty. It is very important to do business honestly and honestly."

< strong > the future movie will produce 5-10 movies a year, and the linkage will be more optimistic about the costume fantasy drama < / strong >

the business strategy of Perfect World's film and TV series entering the incorruptible era will be consistent. "the market rules and trends should grasp and follow the principle of adhering to the" fine works ", but they should also have some predictability and transmit some positive energy." The most typical example is that after launching many military dramas, Perfect World's next "Deep Sea Sword" directed by Zhao Baogang is a tribute to the 90th anniversary of the founding of the army. "I don't think this is the main theme, but a tribute to the cutest people of our time." Honest and honest.

the field of online drama, which is relatively slow, is also expected to make a push this year. Clean revealed, "recently watching several teams are post-85, 90, their main direction is to do online dramas, there will also be NetTV dabbling," and does not rule out the possibility of investing in a platform company dominated by NetTV dramas in the future.

as for films, the expectation of incorruptibility is to start to make efforts this year, and the output of 5-10 films a year will be reached in the next few years. At present, Perfect World has set up a studio dedicated to incubating screenplays, and there is also an internal professional team to play the role of "screenplay doctor" in preparation for good IP project development.

in the face of too many overrated production teams in the market, Clean believes that he should not be too eager for quick success and quick profit. He is more inclined to tap "potential stocks", that is, to choose young, potential production teams, or to incubate talent from within the company: "in fact, we don't deliberately chase the hottest studios that have been perfectly established in recent years. They all have the potential to explode. They are all doing their own things, and there are areas that I am very good at. I like to produce things that have their own signature."

Movie Game Linkage is a business that Perfect World has been working on step by step, and even specially set up a Movie Game Linkage Department, from the earliest "Swordsman" to "Bourne 5" and "Zhu Xian". Now it has launched mobile games such as "The Legend of the Condor Heroes" and "Journey to the West". Although it has been tried continuously, from the point of view of integrity, the linkage should really realize the two-way connection from content to fans. There is still a lot of room to explore.

before, reporters also found that Warcraft, which was once expected to cost as much as $160 million, grossed only $37 million at the box office in the United States, which shows that video game interaction is not easy.

at present, Perfect World is in no hurry to film and television his games. Clean and honest said that he is more optimistic about the movie-game linkage of the TV series IP, especially the ancient costume fantasy. "there is a high degree of overlap between people who read novels and those who play games." He said, "but we still have to judge whether IP itself is good enough."

this delicate sense of control has loomed in our conversation many times, and the philosophy and management of the head of a listed company has gradually come alive with two hours of talking and laughing. As incorruptible said, Perfect World is not the first to eat crabs in games or film and television, but they have become one of the few pan-entertainment groups in the industry.

Edit: nancy