Every reporter: Ding Zhouyang Every editor: Zhang Haini
"Wanda Mall has opened, and Jackie Chan Cinema has been reactivated. I still miss it a lot. I basically watched all the previous movies here..." On Dianping, some netizens commented on Beijing Sparkle Roll Jackie Chan Cinemas Wukesong Store (hereinafter referred to as Sparkle Roll Wukesong Store) "checks in and evaluates" like this.
Once upon a time, Sparkle Roll Wukesong Store ranked first in the country’s box office for several consecutive years and was one of the proud core assets of Cultural Investment Holdings (600715.sh, stock price 1.82 yuan, market value 3.376 billion yuan). "Daily Economic News" reporter learned from Cultural Investment Holdings that Sparkle Wukesong Store still belongs to Cultural Investment Holdings. The store was suspended at the end of 2020 and reopened in September 2023.
After reopening, Sparkle Roll Wukesong store has gradually recovered, and it was the monthly box office champion of national theaters in January this year. If the Cultural Investment Holdings behind Sparkle Roll Wukesong wants to recover, it will need more efforts.
Image source: Maoyan Professional Edition client
Recently, Cultural Investment Holdings announced that the company had not repaid its 3 million yuan debt due, and the creditor Beijing New Film Alliance Pictures Co., Ltd. (hereinafter referred to as Beijing New Film Alliance) The court applied for reorganization of Cultural Investment Holdings.
is bound to the movie star Jackie Chan (Cultural Investment Holdings once signed a management contract with Jackie Chan. In 2016, a senior executive of Cultural Investment Holdings told the reporter of "Daily Economic News": "Mr. Jackie Chan is a long-term contract artist with Sparkle Lai, and Sparkle Lai does it for him." Business arrangements. The company’s business relationship with Mr. Jackie Chan is very clear."), joining hands with Huayi Brothers, Cultural Investment Holdings was once a popular film and television listed company in the film market. Its main film "Kung Fu Yoga" was the box office champion during the Spring Festival in 2017, and Sparkle Roll Wukesong Cinemas has been the country's box office champion for many years. It was particularly sad when creditors filed for bankruptcy and reorganization of Cultural Investment Holdings due to a debt of 3 million yuan.
The 3 million yuan was not the only thing that "stumped" Cultural Investment Holdings. Cultural Investment Holdings told a reporter from the "Daily Economic News" that the company has suffered continuous losses (for many years), project repayments have not met expectations, and the risk of default has increased. "The debts have matured one after another, forming a large existing liability." He also said that the reorganization process is different from the bankruptcy liquidation process. Reorganization is to save the company. "The company's current main business still has the ability to continue to operate. If reorganization Success will help enhance and improve the company's profitability."
Picture source: Screenshot of the official website of Cultural Investment Group
"The Front without Smoke" was not released as scheduled
Cultural Investment Holdings announced that the Beijing New Film Alliance Company cannot pay off its due debts to the applicant and obviously lacks the ability to pay off the debt, but it still has important capabilities. On the grounds of reorganization value and possibility of reorganization, the company applied to Beijing No. 1 Intermediate Court to reorganize the company and applied to initiate pre-reorganization of the company.
This debt originated from the joint investment in TV series by Beijing New Film Alliance and Cultural Investment Holdings and its subsidiaries in May 2021. According to the contract, Beijing New Film Alliance invested 6.5 million yuan to participate in the TV series "No Gunsmoke" produced by Cultural Investment Holdings. "Front" and enjoy the right to recovery of investment funds and investment income. However, Cultural Investment Holdings still has a remaining investment of 3 million yuan in Beijing New Film Alliance, as well as corresponding investment income and liquidated damages that have not yet been repaid when due.
public information shows that "The Front Without Gunsmoke" is adapted from the novel of the same name by the famous writer Ma Shitu. It is a spy war drama starring Du Chun, Ying Er and others. In March 2021, Du Chun's fan group posted photos of the drama's filming crew on Weibo.
Picture source: Weibo screenshot
In December 2020, the filming of "The Front Without Gunsmoke" started in Hengdian. At that time, it was said that the drama was planned to be completed in 2021 to commemorate the 100th anniversary of the founding of the Party. The 2023 semi-annual report of Cultural Investment Holdings disclosed that "The Front Without Gunsmoke" is controlled by Cultural Investment Holdings and is expected to be released in 2023. As of now, there is no news about the release of this drama. On February 21, Cultural Investment Holdings responded in an interview with a reporter from the "Daily Economic News": ""The Front Without Gunsmoke" is still in the later stages of adjustment."
Image source: Cultural Investment Holdings 2023 Semi-annual Report
In addition , the movie "Overlord" controlled by Cultural Investment Holdings was originally planned to be released in 2023, but there has been no update news yet.
Image source: Cultural Investment Holdings 2023 Semi-annual Report
3 million yuan is just the tip of the iceberg
3 million yuan is only a small part of Cultural Investment Holdings’ financial crisis. From 2020 to 2022, Cultural Investment Holdings’ cumulative losses reached 5.454 billion yuan.
The 2023 performance pre-loss announcement shows that the net profit attributable to the parent company is expected to be -1.82 billion to -1.52 billion yuan, and the net assets attributable to the parent company in 2023 are expected to be -1.05 billion to -880 million yuan.
Cultural Investment Holdings reminds that if the company’s audited net assets attributable to shareholders of listed companies at the end of 2023 are negative, the company’s stocks will be subject to a delisting risk warning after the release of the 2023 annual report.
Resolving accumulated debt is also a top priority for Cultural Investment Holdings. As of December 14, 2023, Cultural Investment Holdings had interest-bearing liabilities of 2.023 billion yuan, including 1.072 billion yuan in borrowings from shareholders and 951 million yuan in external debt. In order to reduce debt pressure, on February 22, Cultural Investment Holdings transferred approximately 1.025 billion yuan of accounts receivable from the Yeshan Tourism Resort Planning and Construction Service Office to its major shareholder, Beijing Cultural and Creative Fund, to offset debts of 1.025 billion yuan.
Image source: Regulatory Work Letter Reply Announcement
In terms of external debt, the debt of 600 million yuan owed by Cultural Investment Holdings to Oriental Hongyuan in 2023 has expired, with an annual interest rate of 9%. There will be 280 million yuan in maturing debt in 2024. At the end of December last year, Cultural Investment Holdings signed a debt extension agreement with Oriental Hongyuan.
"Affected by the upstream and downstream industries, the company's project repayments fell short of expectations, the company's default risk increased, and successive debts matured, forming a large existing liability." Regarding the sharp increase in debt, Cultural Investment Holdings said: "The company has gradually Dozens of theaters with poor operating efficiency were closed to reduce the pressure of losses." Can the restructuring of
help Cultural Investment Holdings to avert danger? Shen Meng, executive director of
Chanson Capital, told the "Daily Economic News" reporter that reorganization procedures and bankruptcy liquidation procedures are two processing methods stipulated in the Enterprise Bankruptcy Law.
"Bankruptcy liquidation is when the liquidation administrator liquidates the company's assets, sells the net assets, and repays creditor debts according to priority. If there is any surplus, it is distributed to shareholders; if there is no surplus, the value of the company's equity returns to zero. "Shen Meng said that bankruptcy and reorganization retains the main body of the company, not directly "closing down", but targeting companies that are in trouble but still have salvage value and development prospects.
Shen Meng analyzed that reorganization plans usually convert debt into equity or introduce reorganization investors. Once the court and the China Securities Regulatory Commission approve a listed company's reorganization plan and the listed company enters the reorganization process, the company's other creditors cannot apply to the court for bankruptcy liquidation, which buys the company time and space to get back on track.
For example, in 2023, *st Zhengbang introduced twins group, a peer company, as a restructuring investor; *st Meishang's intended investor is Shenzhen High-tech Investment Group Co., Ltd., which is a Shenzhen State-owned Assets Supervision and Administration Commission holding company.
Cultural Investment Holdings also told the "Daily Economic News" reporter that the company's current main business still has the ability to continue operating, and the company still has competitiveness and commercial value in the market. "If the reorganization is successful, the company's debt burden and financial Costs will be significantly reduced, which will help enhance and improve ongoing operations and profitability."
"White Paper on the Bankruptcy and Reorganization of China's Listed Companies (2022) and Case Study Report on the Bankruptcy and Reorganization of China's Listed Companies from 2018 to 2021" shows that since 2018, the number of bankruptcies and reorganizations of listed companies in my country has increased significantly, and the bankruptcy and reorganization of listed companies is undergoing It tends to be normalized and market-oriented, and has become one of the important ways to solve the problems of distressed listed companies.
However, restructuring is not a "cure-all". The above-mentioned report shows that “although some listed companies have temporarily solved their debt crisis through bankruptcy and reorganization procedures, they have not been able to truly restore ongoing operations and profitability after the completion of the judicial procedures. Such shell-type reorganizations cannot really improve the quality of listed companies. , becoming a zombie enterprise floating in the capital market."
Daily Economic News
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