A Huge Loss Of 4 Billion A Year: Huayi Brothers Introduced The Luxury War To "Enrich The Blood".

At four a.m. on April 29th, 300027.SZ released 54 announcements in one breath, and in addition to the 2019 annual report, there was another battle plan for the battle.

The plan shows that Huayi Brothers intends to make a total of no more than 824 million shares in 2.78 yuan / share non-public offering, and the total amount of raised funds does not exceed 2 billion 290 million yuan, including nine companies including Ali pictures, Tencent and Yu Garden shares. After deducting the issuance cost, Huayi Brothers will be used to supplement liquidity and repay loans.

It was a sleepless night in the Huayi Brothers, although it was chill, but more often looked forward to the dawn. Affected by this news, in April 29th, Huayi Brothers opened soon after the word limit, and led to the rise of the entire media sector.

Behind the Huayi Brothers' luxury war, it is still a stormy television industry. As one of the most influential industries in the new crown pneumonia epidemic, A share media industry is in a dilemma. Increasing blood supply is a shortcut for enterprises to save themselves.

Luxury combat team

Huayi Brothers introduced the war throws into the stars, including the Alibaba pictures, Tencent, Sun Life Insurance, Xiangshan Dacheng world, the Yu Garden group of the listed companies of Fosun, the name of Hittite group, Xintai life insurance, three Li Jing Kong, Shandong Jing DA and other nine companies.

The above issue objects are subscribed to the shares issued in cash, which can be regarded as real gold and silver.

The participation of the "big guys" and Huayi Brothers are deeply rooted in the list of the top ten shareholders of the Huayi Brothers, Alibaba, Tencent and Fosun are all present.

Although Alibaba pictures appeared for the first time in the presence of Huayi Brothers' War shareholders, its affiliate Hangzhou Ali Venture Capital Co., Ltd. and its concerted action share 8.03% of the company's shares; Tencent holds 7.9% of Huayi Brothers; and the Yu Garden shares of Fosun department owns 2.54% of Huayi Brothers.

      Huayi Brothers said that after the issue was completed, Alibaba film industry mainly established cooperation in the content of film and television works, film distribution business, real entertainment, film project entertainment treasure and artiste brokers, and worked with Tencent in international and domestic projects, real entertainment, film and television interaction, art brokers, short video content and public welfare undertakings; and cooperation with Yu Garden shares in myopia. It has been launched in the fields of frequency content, real entertainment, artist endorsement, film and television works, business and film and television works creation.

Several other war throws also had a deep background. Shandong Jing Da is a wholly state-owned enterprise directly under the Jining national hi tech Zone. Xiangshan Dacheng world is a new army rising rapidly in the domestic cultural film and television industry; the Three Li Jing has rich experience and resources in cultural real estate development; the name Hertz group is a large enterprise group with diversified operation as its main body. In addition, the participation of Xintai life and sunshine life has brought the imagination of cooperation in other fields for this increase.

Wang Zhongjun, chairman of Huayi Brothers, said that many strategic partners still firmly believe in the new business mode of "video plus real" after fully understanding the development dilemma of Huayi Brothers in the past two years, and are willing to further open cooperation and cooperation with Huayi Brothers based on the recognition of the ability and achievements of the Huayi Brothers for 26 years. It is an important opportunity for the Huayi Brothers to be grateful and cherish.

Recently, not only Huayi Brothers, Wanda movies, jintin shares, contemporary Oriental and other public companies have also released refinancing plans, aiming to repay bank loans and supplement liquidity.

"The media industry has increased the number of cases in recent years, and more is the result of policy support, reflecting that the new regulation of refinancing will increase the popularity of the market after landing. In fact, not only the media industry, but also the various industry companies are issuing relevant plans. I think not only because of the epidemic, but the plan is also in the various business plans. " In April 29th, a media industry analyst told reporters on twenty-first Century economic report.

Self rescue under epidemic situation

Judging from the whereabouts of fixed increase funds, the financial difficulties of film and television companies are evident.

In the first quarter of this year, Huayi Brothers achieved a profit of 229 million yuan, down 61.4% from the same period last year, a loss of 143 million yuan, a decrease of 52.64% compared to the same period last year, and a balance of only 268 million yuan in monetary fund balance, while short-term loans amounted to 2 billion 75 million yuan.

Huayi Brothers said that all the theaters across the country were suspended from operation due to the outbreak of the epidemic, which had a great impact on the company's film and cinemas. Although the company had adjusted and increased the online business of dramas in a timely manner, the proportion of films and cinemas was relatively large, and half year revenue was expected to decline. At the same time, matching costs, operating costs and so on are expected to decline year by year.

"The impact of the epidemic is enormous, which means that the entire film industry has no source of income and the cash flow is basically broken. In fact, in the past two years, the financing of media enterprises is very difficult. Fixed increase is one of its few ways to obtain capital at lower cost. The increase in the number of fixed increases reflects the difficulties of the whole industry. " A film and television industry from Shanghai told reporters.

It is true that the epidemic is just another straw in the Huayi Brothers. In fact, the plight of the film industry has been highlighted since last year. Wang Zhongjun's description of the company's "development dilemma in recent two years" is frank.

According to the results released in the same period, Huayi Brothers achieved a profit of 2 billion 186 million yuan last year, down 43.8% from the same period last year, a loss of 3 billion 960 million yuan, a decrease of 262.32% compared to the same period last year, and a balance of monetary funds of only 554 million yuan. In 2018, Huayi Brothers still had 2 billion 641 million yuan of money in their accounts, and in 2017 it was as high as 4 billion 230 million yuan, and short-term loans increased from 190 million yuan at the end of 2018 to 2 billion 87 million yuan.

As a media company with content production as its core competitiveness, in 2019, the Huayi Brothers film industry's main investment project was almost blank, and the high hopes of "Yun Yun know" were unpopular, and the "eight hundred" that was expected to turn over was not shown.

In 2020, the hope of turning the film over the epidemic seemed to be even more remote.

"From the current situation, the resumption of cinema may be the last batch, even if the cinema can be open normally, whether the movie will be fixed is also a problem." The former film and television industry said, "for the Huayi Brothers, the main movie business, there is no movie showing, and the income is very tight. Unless there are some big movies on the Internet, they can be sold back to the video platform, or the TV drama business is relatively good.

"The film industry is likely to recover slowly from the second half of the year. What we need to do now is to sustain it." He said.