text ✎ After the release of Huayu
"Zhu Xian 1", the box office broke 100 million on the first day, and reputation followed one after another. Fans of the original work are torn back and forth between "bad movies" and "good movies" with fans of stars such as Xiao Zhan and Meng Meiqi, gambling on Douban, Maoyan and other scoring venues to form a bizarre "tie" with one star and five stars evenly divided.
has to say that the big IP of "Zhu Xian 1" has gained more attention than before after being blessed by traffic stars. The original fans stubbornly want to equate the image created by the film and television with "Hamlet in mind"; film critics are staring at the plot, acting skills, and production level. With much attention, the producer Fang Xinli Media was sent to the forefront. Who is
Xinli?
Whether it is "The First Half of My Life", "Remaining Sin", "White Deer Plain" or "Charlotte Troubles" or "The Richest Man in Xihong City", you can see it in these movies and TV series whose quality, ratings and box office are online. , Either as a producer or as a participant.
▵ The large poster of "The Richest Man in Xihong City"
In the industry, Xinli, established in 2007, is considered to be a film and television company with a high level of production. Compared with the film and television predecessors such as Huayi and Guangguang, Xinli can be regarded as a dark horse among the younger generations.
Unfortunately, after three unsuccessful impacts on the A-share listing, the second shareholder Guangguang sold its shares to Tencent, and then Xinli moved to China Reading Group to settle down, and carried no less than 500 million in 2018, 2019, and 2020. , 700 million, 900 million net profit betting agreement.
This is also the reason why "Zhu Xian 1" has monopolized the Mid-Autumn Festival box office with 360 million box office and number one in the box office for many days, but it is still speculated and suspected: Can "Zhu Xian 1" make Xinli come back against the wind?
01
A movie is difficult to determine the life and death of
from the data point of view is a bit hanging.
Not long ago, China Reading Group disclosed its semi-annual report, in which Xinli had revenue of 660 million yuan and net profit of less than 100 million. At present, "Zhu Xian 1" has a box office of 360 million, and Xinli can get around 100 million. The year 2019 is over halfway, and the 700 million goal seems to be far away.
In fact, Xinli's net profit last year was only 324 million yuan, failing to fulfill its performance promise.
Judging from the data of the past two years, Xinli's performance is indeed not satisfactory: "The project did not go online as scheduled" seems to be the main reason.
In 2018, the TV series "His Royal Highness Wolf" and "City of Desire" that were originally scheduled to be launched in the fourth quarter failed to meet the schedule. The self-funded "Ruyi's Royal Love in the Palace" not only failed to appear on the star TV series, but also collided with "Story of Yanxi Palace". Revenue fell short of expectations.
▵ September 7, 2018, Beijing, "Ruyi's Royal Love in the Palace" held a meetup
In 2019, to catch up with the limited period costume drama, Xinli plans to broadcast "His Royal Highness Wolf", "Celebrating the Rest of the Year", "Eight Dragons" and " Whether "The Deer and the Tripod" will be successfully broadcast is full of uncertainty. Although some insiders close to Xinli have revealed that "His Royal Highness Wolf" and "Celebrating Yu Nian" are already in line and "hopefully broadcast", the effect is still difficult to determine.
uses "there is nowhere to be done with all strength" to explain Xinli's unfaithful return. Although it is reasonable and reasonable, luck has always accounted for three points for winning or losing in the business field, and there is always no emotion at all. The
reading told the market: If Xinli cannot complete the gambling performance, according to our acquisition agreement, the acquisition consideration paid to Xinli will be deducted and adjusted based on the completion of the performance. For example, last year, Reading made a valuation adjustment to Xinli, reducing the payment consideration of about 850 million yuan.
It is understood that China Reading’s acquisition of Xinli totaled 15.5 billion yuan in cash and 10.4 billion yuan in stocks, including a profit-based remuneration mechanism based on financial performance to motivate Xinli’s management team and enable It is consistent with the company's long-term development." Reading explained to the market, "We believe that this structure will effectively control the potential risks to our shareholders, and it also gives us confidence in the value of the transaction based on strategic considerations."
Based on this, the impact of Xinli's performance on the reading of articles is minimal, but from the perspective of capital, the impact of the performance of under-performance on Xinli's executives should not be underestimated. Liu Xiao, an analyst in the media industry of
, told the market circles that if Xinli fails to complete the gambling performance, it will face impairment of goodwill and loss of recourse, and the money shareholders can cash out will naturally decrease.
Putting aside the shareholders' own profits and losses, for Xinli, the gains and losses of several works are unlikely to have the effect of headwind.
"ShadowRegarding the industry as a game of capital," Internet analyst Ge Jia told the market that the film and television industry is different from manufacturing and fast-moving consumer goods. It is mainly supported by capital. As long as you have money, you can shoot and show that you can get a return. "In addition, in addition to the company's own investment, there are also many external investments. In other words, risks and benefits coexist.
"So the success of one or two works may not make the company rich, but the failure of one or two works may not necessarily bring fatal consequences. "According to the data, "Zhu Xian 1" was produced by Xinli Media, but also companies such as China Film, Shanghai Tao Piao Piao, and Iqiyi Pictures.
▵ September 10, 2019, Beijing, the movie "Zhu Xian" was released Insiders who will be close to Xinli told the city circles that Xinli’s high-level attitude towards this is that the film and television company is in the industry cycle, but "the general film and television industry will be much better in the second half of the year than in the first half." Factors such as output may promote better performance.
02
A congenial marriage
Compared with predecessors in the film and television industry such as Guangguang and Huayi, Xinli, established in 2007, is a younger generation, but it can also be called a "rising star."
Xinli made a good start in TV series production. Past works such as "Blood Mist", "Secret Train", "You Are My Brother", etc. swept the ratings of major TV stations; participated in the movie "The Hawthorn Tree Love" in 2010 ", began to enter the film industry. Since then,
produced and participated in "33 Days of Broken Love", "Search", "101 Proposals" and other films, both online at the box office. Xinli's film business has moved to the fast lane, and revenue in 2015 It surpassed the TV drama business for the first time on the previous year.
is in the domestic industry, and Xinli is talked about by its operations.
has signed a film and television drama performance cooperation agreement to bind the screenwriter and director with itself, and is quite good in casting Vision: For example, the screenwriters include Shen Jie (the screenwriter of "Bai Lu Yuan"), Liu Lianzi (the screenwriter of "Zhen Huan Biography"), etc.; the directors include Liu Jin (the director of "Bai Lu Yuan", "One Servant and Two Masters") and the famous director Chen Kaige. At the same time, A group of actors with acting skills such as Zhang Jiayi, Haiqing, Li Guangjie and Song Jia are all Xinli’s shareholders. With such a team as backing, Xinli produced "Dulala's Marriage Chase" and "Charlotte" in 2015. Troubles, "Pancake Man", and "Taoist Down the Mountain" 4 movies; in 2017, "The Legend of Wukong", "The Shameful Iron Fist" and "The Legend of the Demon Cat" were released one after another.
Xinli entered a stage of rapid development, 2014-2016, new Li achieved revenues of 655 million yuan, 656 million yuan, and 745 million yuan respectively. This may be related to the unique vision of Chairman Cao Huayi. Beijing Upstream Film Co., Ltd. CEO Lu Jinzhu called him "a person who has a sense of content."
However, Xinli is also unable to escape the common problems of the film and television industry. What is hidden under its good performance is its increasing asset-liability ratio year by year. Data shows that from 2014 to 2016, Xinli's asset-liability ratio was 54.15%, 52.35%, and 62.03%, respectively. Much higher than its peers.
Faced with Gaoqi’s debt ratio, it is very urgent for Xinli to go public. Unfortunately, it is not easy: Xinli’s three impacts on A-share IPOs ended in failure. Analysis by industry insiders, Xinli The reasons for the failure are complex and diverse, involving related-party transactions and competition in the industry, excessive asset-liability ratios, or under-estimation.
Aside from outside speculation, Xinli's biggest concern at this time is how to get big Funds. Compared with the past, the total amount of funds to be raised for the initial issuance of the prospectus submitted by Xinli in June 2017 increased from 920 million yuan to 2 billion yuan, and the company's demand for funds is imminent.
sells itself to Tencent becomes a matter of course. "The effect of Xinli's separate listing and selling to a listed company is actually not much different." Ge Jia said, "especially when it was later sold to Wenwen with cash plus stock consideration, Xinli got better than it alone. It may be even more to be listed on the A-share market."
In fact, the 15.5 billion gambling price seemed a bit inflated by the capital market at the time. The day after the acquisition of Xinli, China Reading’s share price fell 17%.
Despite this, the reading has not wavered because of this, which is related to its layout in IP film and television. The reading side told the city circles that a key part of reading long-term strategy is to fully release the monetization potential of its content library.
used to have small-scale participation in joint investment and joint production in reading articles, but "our ambition has always been to gain greater control over the IP adaptation process., And obtain greater benefits from the currently fast-growing and very attractive downstream media market."
Cultivating the ability to adapt the content of TV series, web series and movies has naturally become the only way to release the value potential of the reading content library. In Reading It seems that the addition of Xinli will help Wenwen to fully control the IP adaptation process to promote the all-round development of film, television, online drama, online game animation and strengthen the participation of writers and users.
03
cooperation is a protracted battle
Li’s performance in the past two years is difficult to praise against.
thinks that this may be related to Xinli’s transition from urban drama to filming ancient costume fantasy drama. After all, from the perspective of Xinli’s history, this is a city that has had a lot of success in urban dramas. Experienced company: "The First Half of My Life", "Cliff", "Tiger Mom Cat Dad"... Many popular film and television dramas, Xinli always produces one or two every year.
▵ "My First Half Life" stills
but this It seems that Ge Jia’s view is not very tenable. In Ge Jia’s view, although costume drama and urban drama are two very subdivided fields, I have never heard of a film and television production company that can only rely on one type of film and television. The drama is alive.
Lu Jinzhu told the city circles that there are many factors that affect the success of IP-adapted films. “The Chinese film market has a lot of uncertainty. You can’t just look at the IP and the actors, but also look at the type and schedule of the works. For example, is there any competition in the film and television dramas released in the same period.”
"Zhu Xian 1" does not mean that Xinli is not suitable for filming in ancient costume fantasy dramas. In addition, reaping the young audience market and multi-field development is also a "good thing" for Xinli. .
"One or two films and TV series may not have a big impact on Xinli, but the key lies in sustainability. "Ge Jia said, the next point that Xinli should focus on is how to ensure that the production of film and television dramas can be recycled and continued. So next, both the management of Xinli by the reading and the operation of Xinli are particularly important. "
Lu Jinzhu added that although Reading and Xinli belong to the same cultural industry, one is in the field of digital publishing and network literature, and the other is in the field of film and television production. During the integration process, there will definitely be symptoms of inadequacy, and it will take time to get in.
葛A added that reading articles have IP, distribution teams, and appealing in the film and television market. For Xinli, there are more options for copyright libraries. "But the key to the company’s development is to respect the laws of the market and don’t just let it shoot you. Home (reading text) IP. "If
only focuses on big IP, it is easy to be "injured" without considering the market and its own capabilities.
"It is best if Xinli can operate independently." "Ge Jia suggested, "In this process, you should be open to all rivers, don't interfere too much. Although your home (reading) IP has many IPs, not all of them are suitable for Xinli shooting. Give Xinli time to slowly integrate with reading. According to insiders close to Xinli, as of now, Xinli and Reading are in separate offices. "In fact, Tencent gives me the feeling that it is very open to the companies below it." "He said that Tencent used to do the same with reading, and now it is the same with Xinli. The
reading revealed to the city circles that Xinli is still the existing management team that continues to be responsible for the production of TV dramas, web dramas and movies. And have the right to select original content, including materials from platforms other than reading. In addition, in addition to selecting the head IP and participating in the development of adaptations, Xinli can also dig out content suitable for authorized adaptations in the middle waist works.
▵ China Reading Group's Hong Kong-listed
reading attitude has been shown, and it will not abandon Xinli because Xinli’s performance in the past two years is unsatisfactory. It may be just a coincidence that there are more Xinli costume IP movies and TV dramas at present, but it is necessary to bear reading. To build China’s Marvel’s ambitions, Xinli now has to be more cautious in IP selection, and a little more durable in IP adaptation and production. Both reading and Xinli still have a long way to go.
