interface news reporter | Hu Zhenming
interface news editor |
The film industry is recovering well, and China Film (600977.sh) is expected to achieve profitability in 2023.
After the market closed on January 26 (Friday), China Film released the "2023 Annual Performance Forecast" stating that after preliminary calculations, its net profit in 2023 is expected to turn a loss into a profit.
Specifically, China Film expects to achieve a net profit attributable to shareholders of listed companies of 200 million to 300 million yuan in 2023, turning losses into profits compared with the same period last year; The final net profit will be 80 million yuan to 120 million yuan.
Last year (2022), China Film’s net profit attributable to shareholders of listed companies was -215 million yuan; net profit attributable to shareholders of listed companies after deduction of non-profits was -384 million yuan, both of which were losses; basic earnings per share were - 0.115 yuan. Compared with 2022, the operating performance of Chinese films in 2023 has improved significantly.
China Film believes that the reason why it can achieve a turnaround from losses to profits in 2023 is mainly because the film market continues to recover and flourish in 2023, and its main film business has made steady progress, driving the full-year performance to profitability. The
announcement shows that the national movie box office in 2023 will be 54.915 billion yuan, a significant increase from 2022. In this year, Chinese Film produced and released 37 films, with a cumulative box office of 26.889 billion yuan, accounting for 58.45% of the total domestic film box office; led or participated in the release of 570 films, with a box office settlement of more than 41.397 billion yuan. , accounting for 82.93% of the country's total box office; China Film Base provides production services for 443 film and television works.
As of the end of 2023, China Film has a total of 127 operating theaters and 957 screens . Its controlled theater lines and controlled theaters cover a total of 22,400 screens and 2.8224 million seats across the country; 157 cinity cinemas have been opened domestically, and 157 cinity theaters have been opened overseas. 8 cinity theaters have been opened, and China Film Barco’s new machine market share reaches 74%.
However, although the main business has recovered and improved, the impairment provisions made by China Film in 2023 will have a certain impact on the performance of that year. After preliminary review, China Film expects to make impairment provisions in 2023 between 200 million yuan and 250 million yuan.
According to relevant regulations, at the end of 2023, China Film will accrue credit impairment losses based on the expected credit loss rate based on changes in the overall industry situation and customers' economic conditions; at the same time, due to the deterioration of credit status of some debtors, inability to pay payments and even becoming defaulters Due to abnormal circumstances such as the executor, China Film will make individual impairment provisions for receivables that cannot be recovered through collection and legal means.
Previously, China Film issued the "Announcement on Provision for Impairment in the First Three Quarters of 2023." China Film conducted a detailed inventory and inventory of various assets within the scope of the consolidated statements as of September 30, 2023. According to the test As a result, impairment provisions were made accordingly for assets with signs of impairment. In the first three quarters of 2023, China Films made a total of 84.2304 million yuan in impairment provisions, mainly 77.9304 million yuan in bad debt provisions and 6.3 million yuan in inventory depreciation provisions. This provision for asset impairment caused China Film's total consolidated profit to decrease by 84.2304 million yuan in the first three quarters of 2023.
finally showed in China Film's third quarterly report for 2023 that the credit impairment loss in the first three quarters was 77.9304 million yuan, and the asset impairment loss was 6.3 million yuan, with a total amount of 84.2304 million yuan, which is exactly the same as "About the first three quarters of 2023" Announcement on Provision for Impairment Provisions".
The third quarterly report of 2023 shows that China Film achieved operating income of 4.210 billion yuan in the first three quarters, a year-on-year increase of 88.65%; it achieved a net profit attributable to shareholders of listed companies of 471 million yuan, a year-on-year increase of 79104.10%. With the basis of the third quarterly report of 2023, it may be expected that Chinese films will turn losses into profits in the full-year operating performance of 2023.
Main financial data of China Film’s 2023 third quarter report. Image source: China Film Announcement
The main business of China Film mainly includes six major sectors.In the creative sector, Chinese films have led or participated in the production and marketing of films including " The Wandering Earth 2", " River Red ", "Bear Infested·Stand With Me "Bear Core"", " Life Is Not Familiar ", " Chang'an Three" Wanli ", " All-in-One ", etc.; at the same time, both the distribution and screening sectors will perform well in 2023.
In the technology sector, the "China Film Cinity LED Movie Screen Projection System" developed by China Film has passed DCI certification and the international standard IEC62471 Blu-ray test; through the service sector, China Film Base, a subsidiary of China Film, has provided production services for hundreds of film and television works, China Film Cloud The ticketing platform has more than 15 million registered users and access to more than 10,000 theaters; in the innovation sector, China Film is preparing to build a "China Science Fiction Movie Park" in Huairou District, Beijing, with a series of science fiction movie IPs as the core to create fantasy, adventure A sexual, experiential and interactive tourism and entertainment park.
China Film held a performance briefing for the third quarter of 2023 on the morning of December 26, 2023, which was conducted in the form of online text interaction.
Among them, an investor asked: "What imported films will be released next year?" The Chinese film's reply was: "The films currently scheduled to be released next year include "Argyle: The Secret Agent", "Dune 2" and "The Beekeeper" etc. There are also some classic IP films that are confirmed to be released overseas next year, and the domestic release time is to be determined."
investor asked: "2023 is the year when the digital economy explodes. Does the company have any plans for digitalization, such as the metaverse? , virtual reality, aigc and other technologies with existing businesses, or invest in related companies?" China Film replied: "The company attaches great importance to the development of new technologies and has plans in the field of R&D and application."
investors expressed their views on the recovery of the film industry The question of whether the weather will continue in 2024 was posed to Chinese Film. China Film believes that the recovery and development trend of the film industry remains unchanged.
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