won the 4.655 billion box office "Wandering Earth" to save the performance of the new season of Beijing culture. According to its performance forecast recently released, the net profit attributable to shareholders of listed companies in the third quarter was 156 million yuan to 186 million yuan, an increase of 7589.04% to 9071.48% year-on-year, mainly due to the confirmation of the income of the "Wandering Earth" project.
At the same time, the Beijing culture, which has frequently exploded in recent years, has been transformed into film and television for 6 years, and has passed a simple announcement-planning to acquire Dongfang Shanshui to build a film cultural tourism project-announcing its return to the cultural tourism industry .
84 billion investment, return to cultural tourism?
The revenue confirmation of "Wandering Earth" gave Beijing Culture a beautiful turnaround in the third quarter of this year, which has almost become a routine drama for this film and television culture company called "explosive harvester". In 2017, "Wolf Warrior 2" and last summer's "I am not the God of Medicine", one hits a year, made Beijing culture, which entered the film and television industry at the end of 2013, ran out of a "dark horse" posture.
On the evening of October 14th, Beijing Culture released its performance forecast. It is estimated that the net profit for the first three quarters will be 100 million yuan to 130 million yuan, an increase of 116% to 181% year-on-year; the third quarter net profit attributable to shareholders of listed companies is 156 million yuan- 186 million yuan, a year-on-year increase of 7589.04%-9071.48%. During the reporting period, the company's performance achieved substantial growth over the same period of the previous year, mainly due to the recognition of revenue from projects such as the movie "Wandering Earth".
Previously, on August 7, Beijing Culture issued an announcement stating that according to the company’s preliminary accounting, the revenue from "Wandering Earth" was about 600 million-650 million yuan, and the revenue was about 240 million-280 million yuan ( The final settlement data is subject to the film box office sub-billing statement). In the first half of the year when the revenue of "Wandering Earth" has not yet been confirmed, Beijing Culture’s revenue was only 62.1 million, a year-on-year decrease of 79.5%, and the net profit loss attributable to the company was 55.6 million, a decrease of 225.7% from the same period last year.
This means that without the help of popular movies, Beijing Culture's performance will be disastrous. Although this year’s Spring Festival and summer vacations have constantly refreshed box office records, the film and television industry is facing a cold winter under the bustle. Judging from the performance forecasts announced by the current 16 film and television concept stocks, in addition to the pre-increased growth of Beijing Culture in the first three quarters, Hualu Culture has turned losses. 14 companies including Wanda Films, Huayi Brothers, Guangguang Media, and Tangde Film and Television are all in The state of loss or pre-decrease.
Beijing Culture also issued a "dream-catching" announcement on the evening of the 14th, planning to acquire Dongfang Shanshui for 840 million yuan to build a film cultural tourism project. It is not surprising that the film and television company's cross-border cultural tourism, Huayi Brothers, whose performance has not performed well, its offline live entertainment is still in full swing. However, judging from the history of Beijing’s culture, this regional tourism company that used to focus on the Mentougou scenic area began to cross-border film and television in 2013. In recent years, it has relied on "Wolf Warriors 2" and "I am not the God of Medicine". , "The Wandering Earth" and other films have become "explosive harvesters". At the same time, its tourism business has gradually declined and even divested. This time it chose to re-enter the cultural tourism as a movie town. What is its intention? How will Beijing culture, which has no experience in the real-life entertainment sector, start again?
Times Finance made several calls to the Beijing Cultural Office on the 16th, but none of the calls were answered. As of press time, relevant people have not been contacted for comment.
According to public information, Dongfang Shanshui was established in 2002 and its main business is Chinese cold meat. However, from the perspective of performance, in 2018 and the first 7 months of 2019, Dongfang Shanshui's operating income was 0, and its net profit was -1,043,500 and -3.1725 million, respectively. For such a catering company with zero revenue and a loss, Beijing Culture is not interested in its catering business, but the asset behind it-the state-owned land use rights of 187,200 square meters in Miyun District, Beijing. In addition, Dongfang Shanshui also has about 100 mu of leased land with a term of 30 years.
Regarding the reason for the premium acquisition, Beijing Culture claimed in the announcement that it was to meet the company's business operations and the strategic development needs of the entire industry chain. Beijing Culture stated that after the completion of the transaction, it will build Miyun International Film Cultural Tourism Town there, mainly through the film IP of Beijing Culture, to create a cultural tourism town with film and television themed business district + hotel as the core, and supporting facilitiesPhoto studios, the city of the gods, multifunctional theaters, parent-child theme parks, star dining districts, theme hotels and other facilities. Lin Huanjie, Dean of the China Theme Park Research Institute, believes that it is not surprising that Beijing culture has returned to the cultural and tourism industry. “Many industries are transforming into cultural tourism. Real estate, transportation, and even container companies are transforming into cultural tourism. On the evening of the 16th, in an interview with Times Finance and Economics, Lin Huanjie said that during a period of relatively high economic downward pressure, tourism consumption with a "lipstick effect" can drive the growth of overall social consumption. In his opinion, the film and television industry is more Like a "one-off" investment, like setting off firecrackers, the excitement is over after a while, while cultural tourism projects can be done for at least 10 years, with a longer payback period, and longer economic and social benefits. Zou Yi, general manager of
Lingyi Consulting, pointed out in an interview with Times Finance and Economics on October 16 that Beijing culture returned to the cultural travel industry with content and movie IP, which was completely different from the traditional scenic spots it had previously operated. "It should be based on the model of Disney and Huayi Brothers."
has transformed into film and television, and has repeatedly bet on the explosion of
. "Beijing West Tourism", which was listed on the Shenzhen Stock Exchange in 1998, is the predecessor of Beijing culture, and it is also a company with a strong roots. travel agency. According to the prospectus, the main business of Jingxi Tourism at that time was tourism and hotels. It had the contracting management rights of Lingshan, Baihua Mountain, Miaofeng Mountain, Jietai Temple, Tanzhe Temple "Three Mountains and Two Temples", and Longquan Hotel. Hotel assets.
In 2013, with revenue declining year by year-from 2011 to 2013, Beijing Tourism (the stock abbreviation of Jingxi Tourism was changed from "Gjinglu" to "Beijing Tourism" in 2006) revenues were 17.63 million yuan. , 166.11 million yuan, 162.86 million yuan-Beijing Tourism decided to transform into the film and television industry, and gradually divestment of tourism and hotel businesses that are highly dependent on government orders. At that time, Beijing Tourism had made it clear that the company's overall small scale, coupled with the long process of cultivation and development of scenic spots, made the company's development slow. In December of that year, Beijing Tourism announced the acquisition of Beijing Ferris Wheel Culture Media Co., Ltd. for 150 million yuan, which kicked off the transformation of film and television.
In August 2014, after acquiring the Ferris wheel, Beijing Tourism announced that it planned to raise 3.3 billion yuan through a non-public offering to acquire three companies, namely Century Partners, a film and television production company, Zhejiang Xinghe, an artist agency, and Chen Guofu’s Lhasa Group Portrait. Two months later, Beijing Jingxi Scenery Tourism Development Co., Ltd. was renamed Beijing Jingxi Culture Tourism Co., Ltd., and the stock abbreviation was also changed to "Beijing Culture". So far, this regional tourism company with Mentougou scenic spot as the main part has completed the span and turn from tourism to film and television from content to name.
From the perspective of market performance, the three films "You at the same table" and "Heart Flower Road" launched by the Ferris Wheel in 2014 and the China-South Korea co-production "My New Savage Girlfriend" quickly made Beijing culture an upstart in the film and television industry. Among them, "You at the same table" received a box office of 456 million, and "Heart Flower Road" became the box office champion of Chinese films with 1.17 billion box office revenue. According to media reports at the time, these two films also brought Beijing culture. A performance improvement of around 100 million yuan came. The addition of
film and television business has rapidly increased Beijing Culture’s performance. Since 2014, Beijing Culture’s revenue and net profit have increased significantly. In 2013, its annual revenue was only 163 million yuan. In 2014, it increased to 421 million yuan. Since then, it has declined in 2015, reaching 927 million, 1.32 billion, and 1.21 billion yuan in 2016-1028. Net profit has also increased from more than 30 million yuan before to 326 million yuan in 2018. From the perspective of revenue ratio, in the 2014 annual report, film and television and brokerage businesses took the lead for the first time, with a contribution rate of 54.7%. After
tasted the sweetness of the film and television business, tourism seems to have become more insignificant. Since 2015, Beijing Culture has frequently sold tourism assets. The first property company to be transferred was Longquan Hotel's subordinate property company; the following year, Longquan Hotel was also sold; in June 2016, Lingshan Scenic Area was under the condition of the contractual operation period. , It was returned by Beijing Culture in advance. An analyst in the film and television industry, who did not want to be named, pointed out to Times Finance on October 16: "Beijing culture has succeeded quickly, due to its own team, and it is also a good time to catch up."
is from the Beijing culture, film and television sector. In terms of configuration, it is indeed "luxury". Ferris WheelThe founder of Huayi is Song Ge, the former general manager of Wanda Films and Television, while Zhejiang Galaxy is currently one of the largest brokerage companies in China. It was created by Wang Jinghua, who once served as the general manager of Huayi Brothers Brokerage Company, focusing on TV dramas and web dramas. The partner of the century is a film and television production company controlled by former Huayi executive Lou Xiaoxi. The spring breeze of the film and television industry has been in full swing since 2014. In June of that year, seven major ministries including the Ministry of Finance, the Development and Reform Commission, and the State Administration of Taxation jointly issued the "Notice on Several Economic Policies to Support the Development of Films" to implement taxation on the film industry. Nine policies including preferential treatment and financial support. In 2015, China’s film and television market grew by leaps and bounds - the total box office of national movies reached 44.069 billion yuan, a year-on-year increase of 48.7%; the number of new screens in cinemas nationwide was 8,035, and the total number of screens reached 31,627; the number of city theaters was 1.26 billion, a year-on-year increase of 51.08% .
Under this background, the primary and secondary markets are showing a thriving scene. Internet companies such as Ali, Tencent, Baidu, and Meituan have stepped into the film and television industry, while A-shares ushered in a wave of listings of film and television companies, including Wanda Cinemas (now "Wanda Films"), Tangde Films, Chinese Films, Shanghai Films, and Xingfu Many film and television stocks of Blue Ocean, Hengdian Film and Television, and Jinyi Film and Television have successively landed in the capital market.
"All film and television companies want to go offline"
When the time came to 2018, the announcement of major annual film events such as chaos, yin and yang contracts, tax turmoil, and the end of ticket reimbursement caused the film and television industry to experience a turning point in its development. Winter. "Half of the film and television stock markets have fallen in value, and the market value of 8 film and television companies has been cut in half." Yu Dong, chairman of Bona Pictures, said frankly that 2018 is a cold winter for the film capital market. This year,
has created the Beijing culture of hit movies, and it is hard to escape the shadow of the industry as a whole. Revenue and net profit have both declined compared to 2017. Times Finance checked the annual report data and found that in 2017, the revenue of Beijing's culture, film and television and brokerage business was 1.232 billion yuan, and the net profit was 562 million yuan. In 2018, the two figures were 1.12 billion yuan and 538 million yuan respectively.
At the same time, due to excessive reliance on the purpose of explosive funds, the performance of film and television stocks including Beijing Culture in the capital market is like riding a roller coaster. For example, in the hot screening of "Wolf Warrior 2" in 2017, the stock price of Beijing Culture continued to rise at the limit, and the stock price rose close to 70% in a week, but after "Wolf Warrior 2", the stock price went all the way. When "I'm not the God of Medicine" was stimulated again in 2018, Beijing Culture's share price experienced a new wave of rise, but while the box office continued to refresh, the share price began to decline again.
In addition, considering the impact of the 4-6 month splitting cycle of the movie box office, the performance of film and television stocks is also cyclical. Beijing Culture’s performance in the first half of the year is usually not satisfactory. The revenues of the first half of 2016-2019 were respectively. At 156 million, 167 million, 304 million and 62 million, the contribution to annual revenue hardly exceeds a quarter.
In the eyes of the above-mentioned film and television industry analysts, the instability of the performance of film and television stocks, the dependence on explosive funds and the uncertainty of the policy environment have all intensified the industry's motivation for change.
Zou Yi also believes that "going from online to offline" is the collective demand of the film and television industry. "This is what all film companies in China want to do. Everyone wants to go offline, hoping to smooth out the high volatility of the film industry. If the tourism industry can make a successful work, it can be realized in 5 to 10 years. The stable cash flow of the company balances the high volatility of film and television investment." From the performance of Beijing Culture in the first half of the year, in the absence of "Wandering Earth" revenue, it is also supported by the declining tourism and hotel services. Most of the country. Times Finance's semi-annual report found that in the first half of this year, Beijing Culture's original main business tourist attractions and hotel business achieved revenue of 41,844,500 yuan, a contribution rate of 67.37%, a profit of 37.977 million yuan, and a profit ratio of 80.30%.
But moving from online to offline is not an easy business.
pioneers such as the long-established film studio Changying Group. Its movie theme park project in Haikou is more like a vassal of a real estate developer. At the end of 2017, the 10-year "Changying Universal 100 Fantasy Park" opened with more than 6000 Among the acres of the project, only about 1,000 acres are parks. From the actual experience of tourists, movie elements are almost hard to find, just an ordinary amusement park.
is more prestigiousPioneers such as Huayi Brothers. In 2011, Huayi Brothers proposed the "Real Scene Entertainment" strategy. In the same year, Huayi Brothers (Tianjin) Real Scene Entertainment Co., Ltd. was established, mainly using film and television shooting real scene venues, organizing cultural entertainment activities, cultural and artistic exchanges Planning and so on. In 2012, Huayi Brothers joined hands with Mission Hills and Feng Xiaogang to establish the "Mission Hills Huayi Feng Xiaogang Film Commune", which focuses on film IP and local culture. Mission Hills Huayi Feng Xiaogang Film Commune opened in 2014, and the Huayi Brothers Movie World and Changsha Film Town projects in Suzhou opened in 2018. In September this year, Huayi also officially opened its film town in Zhengzhou Jianye.
However, judging from the data disclosed in the Huayi Brothers financial report, the revenue and profit margins brought by the reality entertainment business are declining rapidly. Between 2014 and 2017, the profit margin of the Huayi reality entertainment segment was as high as 100%. In 2018 and the first half of 2019, Real Scene Entertainment's profit plummeted, from 250 million to 100 million, and only 15 million in the first half of this year, and the profit margin fell to 30 or 40%, which is equivalent to the film and television sector.
Currently, the operating conditions of several live entertainment projects that Huayi Brothers has opened are not very optimistic. In 2018, Feng Xiaogang Film Commune had revenue of 257 million yuan, but its net profit was only 1.11 million yuan; the revenue in the first half of this year was 73.45 million yuan and the net loss was 69.63 million yuan. Huayi Suzhou Film Town opened in 2018, with revenue of 189 million yuan and a net loss of 134 million yuan; in the first half of this year, the revenue was 130 million yuan and a net loss of 72.59 million yuan. The latest performance forecast of
shows that in the first three quarters, Huayi Brothers is expected to have a net profit loss of 646 million to 651 million yuan. Regarding the reason for the decline in revenue from the live entertainment business during the reporting period, Huayi Brothers blamed the shift in business focus from project development to deep operation. progression stage.
Lin Huanjie pointed out that Huayi Brothers’ real-life entertainment sector cannot be said to be successful. Beijing’s culture needs to be cautious if it wants to be a cultural tourism. And interaction, to give a simple example, in a cultural tourism project, a most basic movement line design will stump many companies.”
Zou Yi believes that live entertainment currently does not have much industrial foundation. "China's film industry has just begun to revive, and it has been nearly 10 years since the box office revenue is relatively good. The foundation is still very weak. Cultural tourism is an investment of heavy assets, and each project is billions. Filmmakers want to enter the cultural tourism. In the early days, I didn’t have much experience. There is a certain gap in the transition from film to cultural tourism, which is a process of continuous exploration and trial and error.”
However, he also emphasized to Times Finance that there are currently some better IPs in the hands of Beijing Culture. , Such as the previous "Wandering Earth", and the current production of "The Trilogy of Conferred Gods", "Science fiction or mythological stories, with a strong sense of scenes, are more suitable for tourism, such as Avatar and Harry Potter. Like the film, the essence of tourism is to create a distinctive lifestyle and experience of the scene. This is its advantage."
For the cultural tourism of Beijing culture, how determined is it? Go offline? Different from the excitement and heartbeat brought by hit movies, cultural tourism, an asset-heavy, long-cycle, and slow-moving industry, tests patience and endurance. “If IP can’t fall to the ground, it’s rubbish, and real entertainment projects need time. Careful consideration should be given to the polishing, research and planning, market, tourist psychology, future trends, etc. You watch Orlando Disney’s Avatar World, it took 7 years from Cameron’s movie to landing, but those queued for a few hours The team went in to experience tourists for more than 6 minutes, no one thought it was not worth it." Lin Huanjie said.
