Yu Dong: Bona's 100 self-owned cinemas will be listed on A shares within 3 years, and the box office is expected to be 4 billion yuan

"We don't play the financial report game and make movies down-to-earth." Yu Dong said: "In the future, Bona's three major businesses of production, distribution and screening will firmly account for more than 90% of its main business income."

Author: Gao Qingxiu

Source: Entertainment Capital (yulezibenlun)

After Bona announced the official completion of privatization, Yu Dong gave an exclusive interview with the media for the first time, revealing Bona's future plans:

1. In the future, Bona's three major businesses of production, distribution and screening must firmly account for more than 90% of its main business income;

2. Bona is planning a large-scale expansion of its theater business: cooperating with a number of real estate developers to increase it to 100 within 3 years, with a total number of screens exceeding 800, and an estimated revenue of 4 billion yuan;

3. Before the IPO, there will definitely be financing, but the scale will not be too large;

4. In 5 to 8 years, the box office output in the China market will triple that of the North American market, reaching a scale of 150 billion to 200 billion yuan.

The following is the original text:

"Who says the film business cannot be sustainable? Bona can."

Today's film and television industry is a crazed place for capital. However, Yu Dong, who has just returned from "gilded" from NASDAQ, has left us with the impression of returning to nature. "We don't play the financial report game and make movies down-to-earth." Yu Dong said: "In the future, Bona's three major businesses of production, distribution and screening will firmly account for more than 90% of its main business income."

Regarding the "IP craze" in China and the wave of "star capitalization", Yu Dong said clearly No-

"There was a writer who wanted to sell more than 30 novel IP packages, but I didn't agree. First of all, I don't think all of his IPs are suitable for making movies. Secondly, I can't become a company that only makes your IPs. I don't have that much energy."

"If you don't buy a star or director's company, what if they leave Bona?" Faced with questions, Yu Dong replied: "They have never been mine, and I don't want to use this method to make numbers games or report games."

He revealed in an interview that Bona is planning a large-scale expansion of its theater business: it has cooperated with a number of real estate developers to increase the number to 100 within three years, with a total number of screens exceeding 800; in addition, plans to enter Hollywood are already on the horizon.

Talking about distribution: At least one publication is issued every month on average. We must be the largest publisher

Reporter: What do you think of Bona's privatization?

Yu Dong: I always felt that this choice was the right one. Privatization is like a seed that has been growing, sprouting, and becoming more and more determined in my heart over the past few years.

Every time I see Bona's achievements and progress, which brings recognition in China's capital market, especially when I see many A-share film and television companies whose main business has declined, relying on other assets and even investment income to fill the main business and deviate from the core and leadership position of film and television copyright. When such a situation arises, I feel that I should come back to be a leading company in this industry.

Reporter: With purely film as its main business, will Bona's performance face some uncertainty?

Yu Dong: I insist on making film and television my main business. Who says movies cannot continue to be profitable? Some people think that movies are highly volatile and must rely on investment to make up for it. But I think that in today's 10-year period of rapid development, film must be the main business. Bona is a solid company with film as its main business. The main businesses of production, distribution and theater lines must firmly account for more than 90% of the revenue.

Bona has experienced experience in the U.S. capital market. As for the volatility, it is a problem that Bona solved when facing American investors.

In addition to film production, there are also distribution and theaters, which can bring us huge cash flow to hedge and balance the difference in earnings between our large and small schedules.

Reporter: What you just said about using issuance and theater lines to hedge the difference between big and small years?

Yu Dong: When our own movies are released, box office and distribution are definitely the driving force for the company's growth. But when you don't have films, distributing, screening and distributing other third-party films, including imported batches, still brings huge benefits to your theater.

When I first went public in the United States, many investors asked me, can you guarantee that you can release one of your own movies every month? Can you make so many movies? But I said, first of all, I am a distribution company. I can definitely release 12 movies in one year, so that I can produce an average of 1 movie per month.

Reporter: In the future, will Bona have different focuses on production and distribution?

Yu Dong: The logo of Hollywood MGM is very vivid. This lion's roar once, twice, and three roars are products in different fields. Taking this logo as an example, one roar means a film with a relatively small investment ratio or guaranteed release; two roars means a film with its own intellectual property rights, which means that subsequent development and future earnings are mine; three roars means a film that can bring both intellectual property rights and high box office. Over the years, Bona has been doing one thing, becoming the largest publisher.

Talking about production: Be more "two-roar" and "three-roar" film

reporters: In addition to distribution, will there be any new changes in Bona's production business after privatization?

Yu Dong: Bona's turning point in production was "Guild Wars". After this film, all the films we made by ourselves have made money. "Macau" has started from the first episode, and all three episodes are our own copyrights. So, I have this confidence. Some companies can't even reach 20% of their main film business revenue, and they still have the title of a film and television company, with a P/E ratio of more than 80 times. Nowadays, many film and television companies release dozens of films a year, but how many of them actually invest in and produce have copyright? Boehner will make more two-roar and three-roar movies in the future.

Entertainment Das Kapital: Last year, Light bought a large number of IP and studios. Will Bona do this?

Yu Dong: This is all to participate in investment, expand small and reduce your own risks. But not many have copyrights. Besides, if you buy so many IPs, you will never be able to shoot them all in your life. There was a writer who had more than 30 novel IPs in his hands and wanted to sell them in a package, but I didn't agree. First of all, I don't think all of his IPs are suitable for making movies. Maybe I will buy one of your IPs, but if I spend so much money and take more than 30 of your IPs, I feel sorry for you because I can't become a company that only makes your IPs. I don't have so much energy.

Reporter: I have seen that Bona works with Hong Kong directors most often and also buys some batches. Have you ever thought about trying some other genres of themes?

Yu Dong: I think it is important for what director is suitable for some themes. I think there is a general shortage of excellent directors and professional producers in the industry nowadays, so my habit is to be familiar with it but not live it.

I think everyone understands the strengths of each director, the strengths and strengths of producers, and what kind of themes they can adapt to. This actually has a lot to do with your trust. If a film company launches more than 10 projects at the same time, you can't let one project turn the entire company into a firefighter to fight the fire.

Reporter: Will Boehner buy some celebrity shell companies?

Yu Dong: No. I don't want to use this method to play numbers games or report games. I prefer to create good products with these people, rather than limit myself to financial statements, data games, or in short, not to be clever in reporting technology.

Reporter: If you don't buy it, may the director and star leave Boehner?

Yu Dong: They were never mine. I just think that when this drama is suitable for these stars, I will go to him. Is it possible that when he rejects me, I will stop filming the drama? Lin Xinxin's "Taking Tiger Mountain with Wisdom" came out, but Lin Xinxin is not ours today. Selecting actors for a film is a professional matter, not a financial statements game.

Talking about theaters: There will be more than 100 theaters with self-owned assets in three years, with an expected revenue of 4 billion.

Reporter: You mentioned before that you were laying out theaters with Ali. What progress is it now?

Yu Dong: In the past six months, high-quality cinemas with box office output of at least 4 billion have been signed. Some of them are coordinated with a package of strategies from some large manufacturers. Coupled with the existing cinemas, there may be 100 cinemas in the next three years, with a total screen number of more than 800.

In the next five years, this will remain Bona's main business. Moreover, the cinemas we manage will be improved in terms of system, operation management, and various specialties. Next, not all projects will be accepted for the location of the theater. Most of the theaters in our Bona Department are in mature business districts.

Reporter: What do you think of Wanda Pictures 'tens of billions of financing? Will Bona make a similar large-scale financing before its IPO?

Yu Dong: There will definitely be financing, but the scale will not be too large. Because after privatization, the financing costs of various financial instruments are relatively low and there are more financing channels.

Reporter: How does Bona cooperate with real estate developers?

Yu Dong: More and more real estate developers are accepting all cinemas. Even Wanda is competing for non-Wanda cinemas. Everyone is a fair competition. In this competition, Bona must be among the top three film companies in terms of various dimensions such as quotation and brand advantages.

Reporter: Will you make a series of acquisitions next?

Yu Dong: I think this is inevitable, but it only focuses on Bona's upstream and downstream product acquisitions. The theater must have acquired it, right?

Talking about internationalization: Go to Los Angeles every three months, talk about each house.

Reporter: Last time you said that you would go to Los Angeles every three months in 2016, just like when you carried your bags to Hong Kong, talking about each house?

Yu Dong: It's starting right away. Bona's Los Angeles office is ready and will be officially opened in May.

Reporter: So what kind of strategy is the next step for internationalization?

Yu Dong: I think the most important thing in the film industry business is to integrate into producers and directors and communicate effectively with them. Everyone's ideas collide with each other and some new ideas emerge. Instead of chatting about movies at film festivals or various dinners, you can't talk about movies without follow-up.

Reporter: But Bona also has similar cooperation with TSG in buying films?

Yu Dong: This investment is based on our rational judgment. We invested in this film instead of buying all of your next 50 films at once. The six films we have released with TSG will definitely make money.

Reporter: If you invest overseas in the future, what kind of films do you want to invest in?

Yu Dong: I hope to make some co-productions. Boehner is now preparing the international version of "Eretapping", which may be filmed directly with the Sixth National Congress. Maizhuang once filmed three episodes of "Infernal Affairs" to form a China brand. After remaking it into the American version of "The Seamless", it also earned US$460 million in box office. Now the same director, police crime, Wall Street stock market insider, financial crime, these elements are in it. The original China story, coupled with the foundation of the previous three "Eretapping" films, I think it's time to shoot an international version.

Reporter: After cooperating with Hollywood's mature film market, how long do you think the rapid growth of China's film market can last?

Yu Dong: The number of domestic screens this year has reached 35,000, close to 39,000 in North America. If the number of screens in China continues to grow at 6000 per year, in another 5 to 8 years, the box office output of the China market will triple that of the North American market, reaching a scale of 150 billion to 200 billion.

Reporter: How did you calculate this data?

Yu Dong: The box office in North America is about US$10 billion, and the average number of movie viewers per year is 5.8. Now, our average number of movie viewers per year is 1. When we reach the average number of movie viewers per year, the number of screens we have is twice that of the United States, with 60,000 to 80,000. There is no increase in 39,000 in North America now. I think it is entirely possible to triple the North American box office market in the next 10 years.

Editor: yvonne