Beijing Culture B: Hello, Li Huanying

As of 7:00 p.m. on February 19, the box office of "Hello, Li Huanying" by black horse has exceeded 3.4 billion yuan.

This also makes the Beijing culture of A-share listed company behind it attract much attention.

Two years ago, on February 5, 2019, also produced by Beijing culture, "wandering earth" was released. The box office of that day exceeded 1.4 billion, setting a record for the first day of the Spring Festival in mainland China.

"Hot money harvester" is back, and Beijing culture is no longer what it was.

Even though the trading limit on February 18, the first trading day after the Spring Festival holiday, continued to soar by 7.36% on February 19 to close at 6.17 yuan / share. Beijing culture still plummeted by more than 85% from its peak of 42.71 yuan / share five years ago.

After experiencing multiple negative effects, such as large shareholder reduction, top management infighting, case filing review, shareholder dispute, etc., Beijing culture again ushered in the "Zheng Shuang" event in the beginning of 2021, and its performance also suffered huge losses: on January 30, 2021, Beijing Culture released the performance forecast for 2020, and it is estimated that the loss in 2020 will reach 2.3 billion yuan.

"During the reporting period, due to the impact of the new crown pneumonia epidemic on the film and television industry, the company evaluated the inventory value according to the progress of the project, and based on the principle of prudence, planned to make provision for inventory falling price. Among them, the main projects include the ancient costume TV series invested and produced by the company. Due to the influence of the major actors' public opinion events, whether the play can be broadcast or not has great uncertainty. " This expression of Beijing Culture in the performance forecast may be regarded as the influence of Zheng Shuang storm.

According to the announcement, the latest work with the highest inventory balance of Beijing culture is the TV drama "the ghost of a beautiful girl" starring Zheng Shuang, with the inventory balance of nearly 360 million yuan at the end of 2019.

The story of pushing hands in Hello Li Huanying

On the evening of February 18, the Beijing Culture bulletin said that the film "Hello, Li Huanying" was released in mainland China for six days, with a cumulative box office revenue of about 2.725 billion yuan. The film has been entrusted to a third-party company for guaranteed distribution, with box office revenue of 1.5 billion yuan. As of 24:00 on February 17, the company's revenue from the box office of the film was about 60 million yuan - 65 million yuan.

"The company's revenue from the film will be calculated in accordance with the agreements signed between the company and other partners." Beijing culture points out.

The announcement has not yet pointed out the specific distribution party and guarantee terms, but according to the news previously spread, cat's eye entertainment and Hengteng network subsidiary Ruyi film and television jointly issued "Hello, Li Huanying".

From February 16 to February 19, cat's eye entertainment rose by 11.61%, while Hengteng network rose 32.82%.

"At present, the box office of" Hello, Li Huanying "is still rising. It should be said that it is good for Beijing culture and the bottom line. How each party benefits depends on how the agreement is agreed. " On February 19, an analyst focusing on the media industry told 21st century economic reporter.

As a means of capital operation, film minimum guarantee has been frequently used by distributors in recent years.

For the producer, if the box office does not reach the guaranteed number, the distributor needs to divide the account to the producer according to this figure, and the producer has no loss. However, if the minimum amount is exceeded, the split ratio will be reconfirmed. According to the previous agreement, the proportion will be more beneficial to the issuer.

This distribution mode is carried forward by song Ge, chairman of Beijing culture.

In 2014, Beijing Culture United China Film Co., Ltd. guaranteed 500 million yuan for Xinhua Lufang, and finally the box office of Xinhua Lufang was 1.1 billion yuan, and the mode of guaranteed distribution in China began to prevail.

After tasting the sweetness, Beijing Culture gambled 800 million yuan before the script of "war wolf 2" was completed, and once again started the guaranteed release. The film finally made a box office of 5.68 billion yuan, which set the highest box office record in the history of Chinese film. As a result, the market value of Beijing Culture soared by 5.5 billion yuan.

In recent years, Beijing culture has frequently seen the situation of soaring stock prices.

On February 18 and 19, with the counter attack of Hello Li Huanying at the box office, Beijing Culture rose again.

"Hello, Li Huanying" box office obviously exceeded the previous expectations. From the perspective of A-share listed companies, Beijing culture has participated more, and the rising logic is similar to that after the release of wandering earth and I am not the God of medicine. "Chinatown detective 3" box office did not exceed expectations, so Wanda films fell. " The analysts said.

The sale of "Hello Li Huanying" has brought about a rise in the stock price of Beijing culture. From the perspective of performance and income, it is still a question mark whether Beijing culture, which has suffered huge losses for two consecutive years, can "turn over".

According to the 2017 annual report of Beijing culture, the total box office of "warwolf 2" was 5.68 billion yuan, bringing the company revenue of up to 300 million yuan. After deducting the guaranteed issuance cost of 140 million yuan, the actual income was about 160 million yuan.

According to the third quarter report of Beijing Culture in 2019, the final box office performance of wandering earth is as high as 4.655 billion yuan, and the company's revenue is 600-650 million yuan, and the actual income is only 240-280 million yuan.

According to the box office announcement of "my hometown and I" released by Beijing culture, as of October 8, 2020, the film has accumulated box office revenue of 1.871 billion yuan in eight days of release, and the company's revenue from the film is about 80-100 million yuan.

"Hot money pushing hand" side B

Beijing culture is well-known for its successive bets on blockbuster movies. However, from its performance, it has been losing money for years.

In 2019, Beijing Culture realized a net profit loss of 2.306 billion.

According to the performance forecast, Beijing culture is expected to lose as much as 2.3 billion yuan in 2020.

Continuous loss for two years means that Beijing culture will be St.

In addition, the cash flow of Beijing culture is also in short supply. According to the third quarter report of 2020, by the end of the third quarter of 2020, the balance of cash and cash equivalents on the company's account was only 63.77 million yuan, while the short-term debt was as high as 896 million yuan, which was 14 times of the former.

On January 25, Beijing Culture announced that the company failed to repay the bank loans on schedule due to capital difficulties recently, resulting in 500 million yuan overdue loans. The company will try its best to raise funds by selling assets and financing film projects, so as to ease the financial tension of the company.

Accompanied by the financial difficulties, there are also the corporate governance problems of Beijing culture.

On January 3, Beijing Culture issued three announcements successively, covering issues such as the company's receipt of the investigation notice from the CSRC due to the breach of trust, the company and relevant personnel receiving the warning letter from the Beijing Securities Regulatory Bureau, and reducing the shares of the company held by shareholders holding more than 5%. Beijing Culture notice said that the CSRC has filed an investigation into the company because of suspected illegal information disclosure. Beijing culture has also become the first listed company registered and investigated by the CSRC in 2021.

On April 29, 2020, on the same day that Beijing Culture released its annual report "performance changed face", Lou Xiaoxi, former vice chairman of Beijing culture and former legal representative and chairman of century partners, forwarded the real name of century partner's microblog to report Beijing culture's suspected financial fraud.

The contents of the report include "helping Xinghe culture to make financial fraud through capital extracorporeal circulation", "recovering profits through equity investment funds to deliver performance to listed companies", "misappropriating funds of listed companies to allow related parties to assist Ferris wheel to complete performance gambling"; Song Ge and Zhang Yunlong, senior executives of the company, are also reported as being suspected of disclosing important information in violation of regulations And said the report has been accepted by Beijing Securities Regulatory Bureau.

Beijing culture quickly responded that the report was slander and slander. Lou Xiaoxi had fled overseas for suspected embezzlement of funds. Beijing Chaoyang Public Security Bureau officially filed a case against Lou Xiaoxi on January 19, 2020.

More than half a year later, on January 4, 2021, Beijing Culture announced that the China Securities Regulatory Commission (CSRC) had filed an investigation into the company due to suspected illegal information disclosure, making it the first listed company to be investigated by the CSRC in the new year.

On the same day, the company also disclosed two regulatory warning letters. According to the warning letter, the annual report of Beijing Culture in 2018 added about 460 million yuan of operating revenue and 191 million yuan of net profit. In addition, Beijing culture has major problems in subsidiary management, prepayment and investment management and project management.

Song Ge, Zhang Yunlong and Chen Chen, as the chairman and general manager, financial director and Secretary of the board of directors, are responsible for the above violations.

Song Ge and others are the key figures in the fraud of Beijing culture's performance in 2020. Song Ge resigned as the president of Beijing Culture on the evening of December 24, 2020, and remains the chairman of the company.

Dilemma of Governance: deep contradiction

At present, Beijing culture has neither controlling shareholder nor actual controller.

As of December 31, 2020, the major shareholders of Beijing culture holding more than 5% of shares are Fude Life Insurance Co., Ltd. (hereinafter referred to as "Fude life insurance"), Qingdao West Coast holding Development Co., Ltd. (hereinafter referred to as "Qingdao West Coast") under the state owned Assets Supervision and Administration Commission of Qingdao (hereinafter referred to as "Qingdao West Coast"), and Tibet jinbaozang culture media Co., Ltd., which holds 37.855 million shares, respectively Ltd. and China Huali Holding Group Co., Ltd. (hereinafter referred to as "Huali Holdings") with a shareholding of 5%.

Lou Xiaoxi, the legal representative and sole shareholder of Tibet Jinbao, reported Beijing culture last year, and Lou Xiaoxi, executive partner of Xinjiang Jiameng, is also Lou Xiaoxi.

In 2020, Tibet Jinbao has sold its Beijing culture shares through the secondary market for six times. Now, the shareholding ratio is 5.29%, and the number of shares held is 37.855 million. Xinjiang Jiameng now holds 4.31% of the shares.

Huali holding was the largest shareholder of Beijing culture. In the fourth quarter of 2020, Huali holdings continued to reduce its holdings continuously, with the current shareholding ratio of 5%, and the number of shares held was 35.795 million, which was frozen by the court.

Qingdao west coast, ranked second, is a state-owned legal person. It entered the market in the second and third quarters of last year, but has not been reduced since then. Now, its shareholding ratio is 10.87%.

The resolution of the first extraordinary general meeting of shareholders in 2021 shows that there are differences between the shareholders and the management of Beijing culture.

Beijing culture's proposal to appoint a new audit institution was "opposed" by 84.1729% of the shareholders with voting rights attending the meeting. On February 1, the Shenzhen Stock Exchange issued a letter of concern asking whether the company's largest shareholder, Fude life insurance, and Qingdao west coast, the second largest shareholder, voted against the above proposal.

The exposure of many disturbances, such as the infighting among senior executives, the filing of investigation by the CSRC, overdue loan of 500 million yuan, and shareholder disputes, all reveal the complex situation in which Beijing culture has been pushed by the explosion of funds.

"The recent market may be more flexible capital participation, in view of the current corporate governance situation, public offering should not do long-term heavy position allocation." The analysts also said.

Around 2015, when the concept of A-share film and television was hot, Beijing culture once became an institutional heavy stock. From the first quarter to the third quarter of 2015, seven of the top ten shareholders of Beijing culture were all institutions, and in the 2015 annual report, the institutions occupied eight seats, among which the third and fourth largest shareholders were social security funds.

In the latest financial report of the third quarter of 2020, there is only one fund left among the top ten shareholders of Beijing culture, namely, TEDA Manulife value optimized growth industry hybrid securities investment fund.

With the infighting of senior executives and the loss of staff, the "troika" of films, TV dramas and brokerage business formed by the merger and acquisition of Beijing culture, only the film sector is left to support the company's performance.

Today, the biggest performance imagination of this sector lies in the preparation of the trilogy of gods.

Its inventory balance as of the end of 2019 is 98.2 million yuan.

During the Spring Festival season, five films, assassinating novelist, hello Li Huanying, order of serving God, new gods list: Rebirth of Nezha, and bear haunting wild land, all of them had the new version of "Fengshen: the first one", and the first film has been announced to be on a summer program.

"This may be one of the reasons for the recent rise in the share price of Beijing culture." The media analyst said.