What kind of business philosophy is Beijing's cultural transformation film and television net profit soaring 20 times?

since the transformation in 2013, Beijing's cultural performance has continued to grow. in the eyes of industry insiders, whether it is mergers and acquisitions of companies or investment in film and television projects, Beijing culture has always been so lucky. So, behind the "good luck" of every purchase, what kind of business book does Beijing culture read?

original title: the net profit of transformed film and television soared 20 times. How far can Beijing culture "rely on luck"?

after the transformation of film and television culture from a tourism company, Beijing culture's performance soared by "buying". Beijing Jingxi Culture and Tourism Co., Ltd. (hereinafter referred to as "Beijing Culture") released its 2016 performance forecast on December 21. The company's net profit in 2016 is expected to be 520 million-530 million yuan, an increase of 2349.99% over the same period last year. Since the transformation in 2013, Beijing's cultural performance has continued to grow. in the eyes of industry insiders, whether it is mergers and acquisitions or investment in film and television projects, Beijing culture has always been so lucky. So, behind the "good luck" of every purchase, what kind of business book does Beijing culture read?

< strong > during the three years of transformation, Beijing Culture acquired a 100% stake in Beijing Ferris Wheel Culture Media Company (hereinafter referred to as "Ferris wheel") with 150 million yuan in 2013, and officially entered the film and television culture industry. In April 2014, Beijing Culture completed the acquisition of Emmy cinema project. In August of the same year, the company also bought Beijing Century partner Culture Media Co., Ltd. (hereinafter referred to as "Century partner") for 1.35 billion yuan, Zhejiang Xinghe Culture Brokerage Co., Ltd. (hereinafter referred to as "Zhejiang Xinghe") for 750 million yuan, and Lhasa Group Image Culture Media Co., Ltd. for 420 million yuan. And add 300 million yuan to Amy (Beijing) Cinema Investment Co., Ltd., a wholly-owned subsidiary. In July 2016, Beijing Culture plans to invest 10 million yuan to establish Beijing Big Bowl Entertainment Culture Media Co., Ltd. (hereinafter referred to as "Big Bowl Entertainment") with Jia Ling, Zhang Guanghui and Sun Jibin.

with continuous acquisitions, the business structure of Beijing Culture, Film and Television has initially emerged. According to public data, Century Partners is mainly engaged in the production, distribution and derivative business of TV dramas and films, and has now formed a production scale with an annual output of more than 100 episodes of TV dramas; Zhejiang Xinghe is mainly engaged in entertainer brokerage and related service business, with more than 50 contracted artists, directors and screenwriters; and Big Bowl Entertainment gathers comedy stars, giving Beijing culture a certain advantage in the development of comedy IP.

< strong > the film and television business gives a strong boost to the company's performance < / strong >

2011-2013, the operating income of Beijing Culture is 176.3 million yuan, 166.11 million yuan and 162.86 million yuan respectively. Compared with the declining revenue year by year, the development of film and television business has given a strong boost to the performance of Beijing Culture. In 2014, Beijing Culture's annual revenue was about 421 million yuan, an increase of 158.31 percent over the same period last year, thanks to the investment and distribution of the Ferris wheel at the box office of "my deskmate" and "Love in Love." In the first half of 2016, the total revenue of Beijing Culture was 156 million yuan, an increase of 80.35% over the same period last year, and the net profit was 10.1881 million yuan, an increase of 203.07% over the same period last year, of which the revenue of the film, television and economic sectors was 78.2352 million yuan, accounting for 50.15%. The increase in performance is mainly due to the company's acquisition of Century partner and Zhejiang Xinghe Film and Television Culture Company on March 31, 2016, with an increase of 55 million yuan in revenue. The Ferris wheel adds 14.85 million yuan to the company.

"M & An is a shortcut for the transformation of many companies, and Beijing Culture is also through a series of mergers and acquisitions." from the original tourism business gradually transformed into a full-chain cultural group covering films, TV dramas, artist agents, new media and tourism cultural real estate. " Liu Deliang, founder of Xinyuan Wenzhi, said that in the general environment of the film and television industry this year, Beijing Culture was able to achieve a big explosion in performance, thanks to the development of M & A companies in line with acquisition expectations. However, the temporary growth does not represent a long-term trend. The stability of the core team, the completion of business integration and the persistence of content output will all have an impact on the development of the company. The next performance trend of Beijing Culture remains to be seen.

< strong > perfecting the core content to avoid investment risk < / strong >

in fact, the road to large-scale mergers and acquisitions of Beijing Culture is not always smooth. In August this year, Beijing Culture, which had been suspended for nearly three months, announced that Beijing Culture had terminated its acquisition of a 100% stake in Beijing Polymeric Film Union Culture and Media Co., Ltd. (hereinafter referred to as "Polymeric Film Union") because of a big difference between profits and asset valuation. According to public data, in the first half of 2016, the operating income of the film union was 40.9745 million yuan, the net profit was-4.0812 million yuan, the total assets decreased from 305 million yuan at the end of 2015 to 202 million yuan, the net assets decreased from 102 million yuan to 9858.33 million yuan, and the total liabilities were 104 million yuan.

in Liu Deliang's view, there is a lot of uncertainty in the development of the film and television culture industry itself. similarly, mergers and acquisitions of such companies are bound to be risky, while Beijing Culture focuses on developing film and television business. the original tourism business is constantly being marginalized. under such circumstances, Beijing Culture needs to establish its own content development system as soon as possible in order to better deal with market risks. Although at present, most of the box office of Beijing cultural investment films are in line with expectations, and the companies that have acquired them have basically fulfilled their performance promises, these are all speculative to a certain extent. Beijing culture wants to form a stable business system. It needs to be supported by core content, and the output of a certain number of works may be the focus of the next development of Beijing culture.

Edit: yvette