Huayi Brothers Q1 net profit of 262 million yuan is fully deployed to "content supply"

In the Internet entertainment sector, the new media business is developing steadily, and the research and development of new products in the game business is actively underway. Yinhan Company has increased its R & D and production efforts and plans to launch a number of mobile games such as "Fantasy City".

On April 21, Huayi Brothers released its first-quarter 2016 financial report. The company achieved operating income of 766.7219 million yuan, an increase of 21.89% compared with the same period last year. Among them, net profit attributable to shareholders of listed companies was 262 million yuan, an increase of 7.36% compared with the same period last year.

According to the financial report, during the reporting period, Huayi Brothers 'performance growth came from the contributions of three major sectors: the film, television and entertainment sector achieved good results. The film "Lao Pao 'er" released during the reporting period achieved good box office results; the TV series that generated revenue mainly included "Five Rats in Tokyo"; the artist brokerage and related service business developed steadily; the theater business developed well, with 2 new theaters opened during the reporting period, revenue increased year-on-year; Dongyang Haohao and Meila Media's business was progressing steadily, and income from participating variety shows contributed to net profit; The online ticketing business and digital movie projection equipment sales business developed steadily, with revenue increasing year-on-year; the development of business projects in the brand licensing and real-life entertainment sector progressed smoothly, with revenue increasing compared with the same period last year; in the Internet entertainment sector, the new media business developed steadily, and the game business new product research and development is actively underway. Yinhan Company has increased its R & D and production efforts and plans to launch multiple mobile games such as "Fantasy City".

Some analysts pointed out that Huayi Brothers achieved a net profit of nearly 1 billion yuan in 2015, and the company raised its transfer plan for 2015, demonstrating its sincerity in returning investors and confidence in future development. At the beginning of 2016, Huayi Brothers has been making major moves, and a series of measures have focused on content supply. Its strategic intention to vigorously strengthen the film business is very clear, and the results of these layouts will begin to appear in the near future.

Integrate diversified resources and continue to strengthen the film business

On February 29, Huayi Brothers issued an announcement stating that they will appoint Ye Ning as CEO of Huayi Brothers Pictures, fully responsible for the management and operation of the company's film and cinema-related businesses, and help Huayi Brothers 'films The content advantages smoothly run through the entire industrial chain; On March 14, Huayi Brothers issued an announcement announcing the investment and establishment of a wholly-owned subsidiary Huayi Brothers Dianjing Animation Co., Ltd., which is committed to developing and producing world-class animation and special effects films, and further improving Huayi Brothers 'original IP production front; Immediately afterwards, Huayi Brothers successively announced that they would invest in SIM, a South Korean listed entertainment company known for its brokerage business, and HB, a South Korean company known for its film and television production. After the investment is completed, Huayi Brothers will not only open up the industrial chain from "star training" to "film and television production" in South Korea, and will have the ability to integrate high-quality resources of the Korean entertainment market. At the same time, they will also receive more direct content supply. For example, priority should be given to obtaining cooperation rights and use rights for popular IPs such as "You from the Stars".

Huayi Brothers 'fifth season Plan H release in March has also attracted much attention. It not only includes Feng Xiaogang's new film "I am Not Pan Jinlian" and Jackie Chan's film "Kung Fu Yoga" and other major Chinese-language productions, but also the world-renowned magic IP giant "Warcraft" and other Hollywood blockbusters will also be released in 2016. In March this year, Huayi Haohan, which focuses on the concept of "star-driven IP", held a 2016 strategic conference and announced that it will launch this year, including the IP giant "Fantasy City", the variety show "Running Brothers","Ace versus Ace","I'm Going to School 2","Date! Huayi Haohan, who was questioned by many parties in the market when they were acquired, also used this to hand over a beautiful answer to the market.

Improving the mobile game chain, the mutual entertainment sector is expected to explode

. In the first quarter of 2016, Huayi Brothers 'layout in the field of Internet games has also achieved new results: Hero Mutual Entertainment, a mobile e-sports company in which Huayi Brothers holds a 20% stake, showed a blowout growth in the first quarter. According to the first-quarter financial report released by Hero Mutual Entertainment, its operating income during the reporting period was 183 million yuan, an increase of 3969.90% over the same period last year. Net profit attributable to shareholders of the company was 131 million yuan, an increase of 142,112.53% over the same period last year.

As the earliest entertainment company in China to invest in the game industry, Huayi's layout in the field of Internet games has become a model for the industry. Previous investments in Zhangqu and Yinhan not only enabled Huayi to obtain generous returns, but also provided Huayi with more possibilities for resource integration in the field of Internet entertainment. Completing the subscription for Hero Mutual Entertainment means that Huayi Brothers has truly opened up a complete chain from game production, game distribution to e-sports events, making its Internet game layout more complete, and also creating a greater space for Huayi Brothers to further enrich its content reserves. According to the relevant announcement, the right to adapt any e-sports game product developed or operated by Hero Mutual Entertainment into movies, TV series, online series or other stage art works will be first authorized or transferred to Huayi Brothers under the same conditions.

Wang Zhonglei, vice chairman and CEO of Huayi Brothers, said: In the field of investment and mergers, Huayi Brothers has always valued the most about whether new businesses can produce chemical reactions with existing businesses and have room for linkage. The conclusion of the investment allows us to at least have the platform and capabilities for linkage first. Once both parties fully work in and understand each other, good ideas or suitable projects emerge, we can immediately open up business linkage and maximize the efficiency of the company's platform resources. and maximize revenue.

According to the announcement, Huayi Brothers Holding Company Yinhan Technology will also launch a number of new mobile games in 2016. Among them, its exclusive RPG magic online game "Fantasy City" is expected to be available at the same time as Huayi Haohan's magic drama of the same name. This means that Following the strategic investment logic of "industrial synergy and linkage", Huayi Brothers already has the system and ability to link IP between film, television and games; At the same time, with Huayi Brothers Group as a platform, the combined linkage of more of its sub-businesses is expected to start one after another, and the synergy generated is worth looking forward to.

Editor: yvonne