Huayi Brothers publicly responded: Feng Xiaogang's performance commitment for this year has been completed

on November 24, Gao Hui, the secretary of Huayi Brothers, told reporters exclusively that Feng Xiaogang's salary for filming the film "I am not Pan Jinlian" has been included in Dongyang Mella's revenue. "in addition, Director Feng has a lot of endorsement income, which is actually enough."

original title: Huayi Brothers said that Feng Xiaogang's performance pledge this year has been fulfilled

"Feng Xiaogang's promised Dongyang Meila 2016 performance has been completed. The sum of last year's and this year's net profits is included in this year's performance commitments. Nearly 50 million yuan last year, plus more than 30 million yuan in the first half of this year, has reached more than 80 million yuan. " On November 24, Gao Hui, the chief executive of Huayi Brothers, told reporters exclusively that Feng Xiaogang's salary for making the film "I am not Pan Jinlian" had been included in Dongyang Meila's revenue. "in addition, Director Feng has a lot of endorsement income, which is actually enough."

on November 24th, China Securities Journal published the article "deconstruction of IP Capital betting contract of Huayi Brothers Star", which reported the story of Feng Xiaogang's gambling contract with the capital side behind the hustle and bustle of public opinion, and put forward that "Feng Xiaogang, as a shareholder of Dongyang Meila, is facing greater performance pressure."

< strong > combined net profit for two years < / strong >

according to the announcement, Huayi Brothers acquired 70% of Dongyang Meila for 1.05 billion yuan, and the performance commitment made by the old shareholders is five years from the date of completion of Dongyang Meila's equity transfer to December 31, 2020. Among them, 2016 is the date from the completion of the equity transfer of the target to December 31, 2016. Huayi Brothers acquired its stake in Dongyang Meila on December 9, 2015. Therefore, the first year of the commitment period should be from 9 December 2015 to 31 December 2016.

according to Gao Hui, Dongyang Meila realized a net profit of 46.0267 million yuan in 2015 and 35.356 million yuan in the first half of 2016, with a cumulative net profit of 81.3827 million yuan included in the 2016 performance commitment.

with regard to the way in which the two-year net profit can be fulfilled, Wu Xin, a financial professional, told the China Securities News: "the betting agreement between listed companies and the target companies of mergers and acquisitions is usually no matter which year the net profit is. However, in the case of consensus between the two parties to the transaction, the net profit of the previous year can also be included in the current performance commitment. "

in the process of capitalization of Huayi Brothers star IP, Dongyang Haohan, another star company it invested in, also adopted this approach in the first year of the performance commitment period.

according to the agreement, Dongyang Haohan Star shareholders have a performance commitment period of 5 years, with a commitment period from 2015 to 2019. It is promised to complete the audited after-tax net profit of not less than 90 million yuan in 2015, an increase of 15% over the previous year since 2016.

Dongyang Haohan made a net profit of 51.1182 million yuan in 2015. Huayi Brothers said in its 2015 annual report that the board of directors determined that Dongyang had fulfilled its net profit commitment in 2015. Including 41.1557 million yuan of net profit completed during the establishment of the company (this part of the net profit is included in the capital reserve according to accounting standards), and 51.1182 million yuan of net profit completed after the establishment of the company, totaling 92.2739 million yuan.

< strong > there are basically no expenses < / strong >

it is worth noting that according to Huayi Brothers' 2015 annual report, Dongyang Mella achieved revenue of 63.3774 million yuan and operating profit of 61.369 million yuan in 2015, while Dongyang Haohan achieved revenue of 69.3858 million yuan and operating profit of 68.1576 million yuan in 2015. Dongyang Meila, Dongyang vast revenue and net profit gap between only 2.0084 million yuan, 1.2282 million yuan.

with regard to the small gap between operating income and operating profit, Gao Hui said: "this company itself is a light asset company, basically the source of profit comes from Feng Xiaogang himself, basically no expenses (expenses). Director fees and endorsement fees have no cost."

Feng Xiaogang promised that the net profit of Dongyang Meila in 2016 will be no less than 100 million yuan, with an annual increase of 15% over the net profit target promised in the previous year from 2017 to December 31, 2020. Based on a 15 per cent increase in net profit, Dongyang Meila needs to make a net profit of 115 million yuan in 2017. Gao Hui said: "because last year is not a complete fiscal year, so [this year] there will be a call to do the situation, next year will certainly be completed [performance commitments]."

Public data show that before Huayi Brothers holding, Dongyang Meila's shareholding structure was as follows: Feng Xiaogang held 99% of the equity and Lu Guoqiang held 1% of the equity.

Edit: nancy