Huayi Brothers plans to raise no more than 1.029 billion yuan in additional capital.
html On the evening of August 9, Huayi Brothers Media Co., Ltd. (Huayi Brothers, 300027) released a feasibility analysis report on the use of funds raised by issuing stocks to specific objects in 2024. It plans to issue stocks to specific objects to raise no more than approximately 1.029 billion yuan. , after deducting distribution expenses, all expenses are planned to be used for film and television drama projects and supplement working capital.Specifically, Huayi Brothers plans to spend about 720 million yuan on film and television drama projects, and 309 million yuan will be used to supplement working capital to enhance the company's financial strength.
In terms of the necessity of raising funds to supplement working capital, the announcement stated that at the end of 2021, the end of 2022, the end of 2023 and the end of March 2024, the company's asset-liability ratios were 63.75%, 71.94%, 79.06% and 79.79% respectively, high The average consolidated asset-liability ratio of listed companies in the same industry in Shanghai and Shenzhen. From 2021 to 2023, and from January to March 2024, the company's financial expenses will be approximately 225 million yuan, 176 million yuan, 133 million yuan, and 21.7165 million yuan respectively.
Huayi Brothers believes that the funds raised through this issuance of stocks to specific objects will be used to repay loans and supplement working capital, which can effectively reduce the company's asset-liability ratio and reduce the company's financial expenses, which will help improve the company's capital structure and enhance financial stability. nature and prevent financial risks. At the same time, equity financing can alleviate the company's pressure on debt financing to meet its funding needs, help control the scale of interest-bearing debt, and thereby improve the company's operating performance.
Regarding the necessity of using the funds raised for film and television drama projects, Huayi Brothers said that firstly, it is to actively respond to national industrial policies and seize development opportunities; secondly, it is conducive to meeting the company's rapid development capital needs and enhancing market competitiveness; thirdly, It is to focus on the company's main business and further consolidate the company's market position in the film and television industry.
Huayi Brothers said that judging from the development trends of the global film and television industry, financial strength has become the core factor that determines the market position of film and television companies. Since film and television drama investment and production projects have characteristics such as large initial investment, many uncertain factors, and long payment recovery cycles, the scale expansion of the film and television investment and production business is highly dependent on working capital. The scale of working capital directly determines the company's film and television production. drama production capacity.
Huayi Brothers believes that the implementation of the fundraising project will help Huayi Brothers focus on its main business, further hire high-quality creative teams, shoot more refined, highly restored or grand-themed works, and hire high-level post-production teams We have received greater resource support in other aspects, tapped high-quality film and television resource reserves, complied with the development direction of the industry, and created high-quality leading dramas that meet the needs of the times and market needs, further stabilizing the company's market position in the film and television industry.
In terms of project feasibility, Huayi Brothers summarized five points: first, the company has a complete operating system; second, it has a complete film and television business industry chain and business model; third, it has experienced professionals; fourth, it has rich Experience in the production and distribution of film and television works; fifth, having high-quality partners.
In the announcement, Huayi Brothers also updated relevant information including film and television project plans, saying that it has participated in and incubated many film projects, including "749 Bureau" directed by Lu Chuan, "Mermaid 2" directed by Stephen Chow, and "Mermaid 2" directed by Chen Kaige. Directed by Zhu Yilong, Zhang Zifeng, and Xin Baiqing, the movie "Volunteers: Heroes Attack 2" has entered the post-production stage. "Dongji Island" directed by Guan Hu and starring Zhu Yilong and Wu Lei has started production in June. "Special" "Gift", "People on the Internet", "Parallel Missions", "Young Rockets", "Breakup List", "Unexpected Farewell", "Sunflower", "Catch the Spy", "Super Mario", "Little Soldier Zhang Ga" , "One Dragon", "Crazy Wedding Dress" and other film projects are also stepping up preparations to start production.
In terms of drama business, it has prepared and participated in the investment of many TV series, online series and online movies, mainly including "The Treasure List of the Antique Bureau", "Spring Comes to Pillow the Galaxy", "The Sentence", "The Eagle", " "The Lost Child" (original name: "Sea Anemone"), etc., "That Year the Snow Was Burning in Hong Kong", "Two Heroes: Gangsters", "Five Immortals", etc. are in the early preparation stage. The short play "Hongtian God" produced in cooperation with China Literature Group has started production in May 2024.
Huayi Brothers stated that in order to ensure the smooth progress of the investment project with raised funds and protect the interests of all shareholders of the company, before the funds raised in this issuance are in place, the company will first invest with self-raised funds according to the actual needs of the project progress, and after raising After the funds are in place, they will be replaced in accordance with the procedures stipulated in relevant laws and regulations. If the actual net amount of funds raised by this issuance of stocks to specific objects is lower than the amount of funds to be invested above, the shortfall will be settled by the company's own funds.
On the same day, Huayi Brothers also issued an announcement regarding the termination of the previous issuance of shares to specific objects, withdrawal of application documents and re-application. The announcement showed that Huayi Brothers released a plan for the previous scheduled issuance as early as April 28, 2020. It was adjusted several times in the following years. Huayi Brothers stated that the termination of the previous issuance of shares to specific objects, the withdrawal of application documents and re-application were based on comprehensive consideration of many factors such as current changes in capital market policies, company development plans and market financing environment, and full communication and prudent analysis with relevant parties. decisions made later.
Huayi Brothers was founded in 1994 by brothers Wang Zhongjun and Wang Zhonglei, and was the first to land on the GEM in 2009. In June 2015, Huayi Brothers' stock price reached as high as 32.13 yuan, with a total market value of 79 billion yuan, second only to and Wanda Movie (002739.sz) in market value in the film and television media sector. Since 2018, Huayi Brothers' performance has been under significant pressure, its net profit has been in the red for a long time, and the company's assets have also been declining year by year.
According to Huayi Brothers’ 2023 annual report, Huayi Brothers’ current assets are 1.265 billion yuan, current liabilities are 2.253 billion yuan, and the current ratio is 0.56 times. Huayi Brothers continued to report losses in the first quarter of 2024, with revenue of 95.215 million yuan, a year-on-year decrease of 59.20%; the net loss attributable to shareholders of listed companies was 18.56 million yuan, a year-on-year increase of 76.76%; the basic loss per share was 0.0067 yuan. Huayi Brothers stated that the decrease in revenue in the first quarter was mainly due to the decrease in revenue from film and television drama projects during the reporting period.
Last month, Huayi Brothers announced that it planned to sell a 70% stake in Dongyang Mera to Alibaba Pictures for 350 million yuan to repay the loan. Huayi Brothers acquired 70% of the equity of Dongyang Meila for 1.05 billion yuan around 2015.
In May this year, the Zhejiang Securities Regulatory Bureau’s official website issued a decision on issuing a warning letter to Wang Zhongjun. After investigation, Wang Zhongjun sold 328,700 shares of the company's stocks within 30 days before the company disclosed the "2023 Semi-Annual Report", with a transaction amount of 999,248 yuan. It was decided to take supervisory and administrative measures to issue a warning letter to Wang Zhongjun and record it in the securities and futures market. Integrity File.
According to Dazhivip, as of the close, Huayi Brothers fell 1.69% to 1.74 yuan per share, with a total market value of 4.828 billion yuan.
