“Eight Hundred” to save the market, Huayi saves self
Every reporter:Bi Yuanyuan
Many blockbusters are still on the sidelines,”Yaibai is unexpected It was announced that the files were set,”See you in the cinema on August 21.” Today (August 21st),”Yabai”, which has been screened for a week, was officially released.
At the cloud premiere of”Yabai”, the producer Wang Zhonglei appeared and counted Choked again. He said that he had waited 463 days for the premiere.
“If it was released last summer, the box office would start at 2 billion yuan.” Some theater practitioners sighed to the Daily Economic News reporter.
Like Yaobai, Huayi Brothers has experienced crises and challenges that have never been seen since it went public in these 463 days. The main investment and control movies for the whole year of 2019 are blank, and the performance has been negative for two consecutive years. In 2019, it lost 4 billion yuan, which is the total profit since the listing.
“Yai Bai” watch the crying tough guy
“Yai Bai” is like a life-saving straw floating on the water, how can the old film and television company Huayi Brothers If you can’t prove that you are an excellent film production company, it depends on whether you can hold on to it.
The screen lights up, the dragon mark appears, and the release license of”Eight Hundred” is followed by”No. 800″. This little egg is enough to smash previous rumors.
“Yabai” rescues the market
This is the first hot sale after the theater resumes work
“This is the first explosion after the movie theater resumes work. After the film is officially released, the film will be paid more than 55%.” After a few days of screening, Yin You, assistant to the marketing director of Pacific Film Corporation, bluntly told reporters. ,”Eight Bai” shoulders the hope and important task of”rescuing the market”. According to the Beacon Professional Edition, as of August 20, the box office of”Eight Hundred Hundred” has broken 200 million yuan, setting a record for the highest box office in the Chinese movie market.
Data shows that since August, especially after the opening of”Yaibai”, the box office data of”Yaibai” has been leading the way. As of 22:00 on the evening of August 20, the box office of”Eight Hundred” screens reached 234 million. Followed by the re-screening of”Harry Potter and the Sorcerer’s Stone” and”Interstellar”, which won 191 million and 116 million box office respectively. However, it is worth noting that”Eight Hundred” has only been screened for a week, and”Harry Potter and the Philosopher’s Stone” and”Interstellar” have been screened for 7 and 19 days respectively.
Everyone’s love and affection for”Yai Bai” also reflects to a certain extent their helplessness towards the uncertainty of the current recovery of the film and television industry. From this movie, the audience can see the kind of passivity, sorrow, and hope that they can finally see the moonlight.
Starting from the movie itself,”Eight Hundred” is qualified as a”commercial giant”. According to media reports,”Eight Hundred” costs 500 million yuan, and it is the first commercial film in Asia to be shot entirely with IMAX cameras. In the formal shooting, the photographer used more than 2,000 lights with different lenses to shoot, just to strive for the most perfect visual effect.
At that time, Suzhou Creek was brightly lit on one bank, singing and dancing, and four hundred warriors on one bank guarded the four-line warehouse with their lives. Picture source:Photo courtesy of Huayi Brothers
A lot of innovation.” Zhi Feina, an expert in the National Film Think Tank and editor of the Film and Television Research Institute of the China Academy of Art, recalled to the Daily Economic News reporter how she felt after watching”Yai Hundred”,”It is worthy of what we gave. Praise has also reached the highest level of China’s current film industrialization.”
On the evening of August 14th,”Eight Hundred” was screened and the word of mouth was released. As of August 20th,”Yaobai” Douban scored 7.9 points, which is worthy of recognition and regrets.
Director Guan Hu explained:Bai, the ancient army establishment. Ten people are nothing, and a hundred people are hundreds. The number”hundred” is capitalized mainly because of the”person” next to it. Therefore, the film focuses not on the number of”eight hundred”, but on every living”person” behind the incident.”It shows the cruelty and tragic of the war, but also through the contradictions and sublimation of human nature in the war, we can see the big from the small and see the faces of all beings.” An audience commented.
Guan Hu, Wang Zhonglei and the main creative team of”Yabai” appeared at the 2019 Shanghai International Film Festival. Image source:Film Yao’s official Weibo
But there are also people who have been engaged in the distribution industry for many years Point out the shortcomings of the film.”The characters on the other side of the Suzhou River did not seem to be effective. Even if they were deleted, they would be cut more’cumbersome’. In addition, on August 13, the hottest day of the Battle of Songhu in Shanghai, the soldiers in the movie wore thick yellows. Woolen uniforms are just one result, heatstroke!” In the eyes of this person,”Yu Bai” is grand and sophisticated, but the layout of the plot lacks”verification”. Another industry insider who watched the show commented:“It’s better if the main line is more prominent.”
Senior publisher Gao Jun said bluntly:“The market’s expectations for”Yaibai” Very high, movie theaters now need good films too much to drive the market. If the reputation is not particularly prominent, it may affect the subsequent attendance and box office of the film. Whether it is the market environment or the microclimate of the film industry,”Yaobai” is a wonderful It’s a good opportunity for the movie market to turn around.”
Wu Jing talked about his feelings about watching movies and said that he cried several times. Picture source:official image
“Buyout” issue provokes controversy
Cinema theaters with annual income of less than 3 million yuan are not eligible for” Yao”?
Before the movie theater resumed work, many practitioners raised their concerns:Who has the guts to take the lead and make the first blockbuster movie?
No one thought that it would be”Yai Bai”. At that time, the most speculated were the blockbuster films that were withdrawn from the Spring Festival. “I thought they would come out, but they didn’t. I’m still waiting and watching.” According to industry analysts,”(The film party) has a small nine in his heart. It’s all a game.”
” Huayi has a lot of courage to make this decision at this time, which reflects its responsibility.” Liu Jia, an expert in box office analysis of the film market, also affirmed in an interview with the Daily Economic News reporter,”I also know the timing and the market more clearly. , The market should expect it, and they have confidence in their own films.” Zhi Feina also used the”warrior” analogy of”Eight Hundred” ,”The film is about the warrior,”Eight Hundred” at this time Released, also a warrior”.
“Yabai” was released at this time and was regarded as a rescuer. Source:Photo courtesy of Huayi Brothers
The theater practitioners also generally spoke highly of”Yabai”. Even though movie theaters gradually opened as early as July 20, some theaters still did not resume work.”The preparatory work has not been completed, and no good films have been released.” The manager of a movie theater in Shandong told every reporter. On August 21, with the official release of”Yai Hundred”, the theater also decided to officially open its doors to welcome guests.
But what revolves around”Yai Bai” is not only the film, but also the rumored distribution model.
On August 11, Huayi’s distribution company sent the distribution standards to major theaters. It is understood that the criteria for the selection of theaters for this release are:box office of more than 10 million yuan (including 10 million yuan) in 2019, excluding service fees; newly opened, without complete annual box office data, because it is impossible to calculate, this time Within the scope of the screening; in the list, please remove those that do not open.
Picture source:”Yabai” release notice
The daily economic news reporter once asked the theater that Huayi has launched a new buyout screening with an annual income of 200 Cinemas under RMB 10,000 need to pay a fee of RMB 200,000 to show”Eight Hundred” in advance. “Huayi wants to recover cash flow, but is also afraid that small and medium-sized, individual private movie theaters or movie theaters that steal the box office will close and run after the film is released.” An industry insider analyzed.
There are also reports that, in addition to”buyout” screenings, some movie studios are eligible for”guaranteed release”. However, every reporter interviewed the theaters, leading theaters, etc., said:”I have not heard of it, and it has no effect on ourselves. We can all screen it normally.”
However, the special feature of”Yaibai” Issuance can be understood as a special attempt under special circumstances. Yin You analyzed:”Breakouts, special periods, but unsustainable. The next National Day files will be blockbuster movies, such as”Jiang Ziya”,”My Hometown and Me”,”Win the Championship”, etc. If this happens in other films, Maybe our national theaters will resist it, and it would be nice if we don’t exclude the remaining ones.“
Zhi Feina affirmed this innovative release model. In previous interviews, she once shared a point of view:This epidemic is a very important opportunity for the survival of the fittest.”A theater has been in business for more than a year, and the box office is less than 2 million yuan. There are only three cases. The first is that it may be a diversified theater, and the box office is only a small part of the income; the second is poor management; the most The more serious one is the third kind of concealment. The latter two studios with annual income of less than 2 to 3 million yuan should be eliminated. Most of their equipment is relatively simple, and”Yao Bai” is the first IMAX photography in China Movies, these theaters cannot fully present the visual effects of high-tech format movies such as”Yaobai”.”
25 film and television stocks rose after”Yaibai” was set.
On August 2, when”Yaibai” was announced, the entire film and television industry was boiling, as if cheering. A major event in the industry.
Picture source:”Yaibai” fixed file poster
After the opening of the market on August 3, Huayi Brothers stock price rose at a daily limit of 5.25 yuan per share. Driven by this news, the media sector also ushered in a general rise. As of the close of the 3rd, Guangguang Media, Beijing Culture, Simei Media, Caesars Culture and other stocks had their daily limit, Tangde Film and Television, Hengdian Film and Television rose more than 6%.
“”Yabai” is very good from the point of view of the screening effect. As the first large-scale domestic film released after the resumption of work in the studio,”Yaibai” has boosted the overall film industry. With strong results, and with the word-of-mouth spread,”Yaibai” box office is relatively optimistic.” Tianfeng Securities analyst Zhang Shuang said in an interview with reporters.
“Yaibai” brought confidence to the industry. After a large-scale screening and a good box office, blockbuster films such as”Winner” and”Jiang Ziya” were also re-scheduled for the Spring Festival. “It is also a courageous approach by the film crew. At that time, the situation may be clearer.” Liu Jia affirmed.
After experiencing the trauma of the epidemic, the film and television industry is slowly coming out of the trough.
Of the 25 film and television stocks, more than half of the stock prices have risen in a positive direction since the beginning of the year. Among them, the share price of Tangde Film and Television rose 56.4%, and the share prices of Huayi Brothers and Guangguang Media also rose more than 31%.
Year-to-date gains in film and television stocks
After the announcement of”Yaibai”, the film and television stocks are more like riding the east wind. As of August 19, 25 listed film and television companies have been positive and their share prices have risen. Among them, the share price of Huayi Brothers has risen by 27.67%since the beginning of the month. Hengdian Film and Television, Huace Film and Television, Beijing Culture, Light Media, Wanda Film and other companies have all increased by more than 10%.
From the beginning of August to August 19, film and television stocks rose.
On August 20, the day before the official release of”Eight Hundred”, Huayi Brothers once again rose at a daily limit of 6.27 yuan each The stock closed with a total market value of 17.5 billion.
Image source:Wind Financial Terminal
Last year,”Nezha” had a box office of more than 5 billion, ranking second in the box office list of mainland film history. As a result, Guangguang Media, the producer behind it, went out of the trough. From the point of”Nezha” to before the outbreak of the epidemic this year, Guangguang’s stock price soared 90%, and good content and business models proved to be sustainable.
Zhang Shuang believes:”Since August,”Yai Bai” has been fixed. Huayi, as the main producer, has a clear positive drive to the stock price. At the same time,”Yai Bai” and subsequent”Jiang Ziya” etc. The successive filings have brought positive signals to the film industry. The film industry is expected to continue to improve marginally. Therefore, the overall film sector has relatively good returns in the past two weeks.”
Gao Jun also agreed,”To some extent, it has driven the current weakness in the film industry, but a piece of”Eight Hundred” is not enough. “The market must continue to have good films, hit the market, and pull the market. Everyone has been holding back for almost a year. The possibility of retaliatory consumption exists, but this premise is to produce particularly powerful films.”
On July 20, the cinema was allowed to resume work, and it has been exactly one month so far. The daily box office rose from 4.22 million yuan to nearly 75 million yuan. In the effective prevention and control of the epidemic, the attendance rate has also increased from 30%to 50%. The recovery of Chinese films far exceeds that of any country in the world.
“Consumption potential and consumer demand are better than overseas, they have always existed and been fully brewed. If there is no impact from the epidemic,”Yai Bai” should explode.” Liu Jia believes that”the film industry is going further After the recovery, I think the epidemic prevention situation should be more clear, to open up higher attendance and keep up with”Yao Bai”, and then”Mulan” and”Jiang Ziya” hope to be able to take over rhythmically. The volume of the film is not enough.“
“The National Day file is very important. If the National Day file can be restored to a relatively good level, the film market is expected to gradually return to normal if the epidemic does not repeat. Rhythm.” Zhang Shuang also said.
If”Yabai” can become popular, it will help Huayi find a new direction
Huayi Brothers was pushed to the forefront of the storm. It originated from Cui Yongyuan’s report on the”Yin-Yang Contract” in 2018. Fang Huayi Brothers, the producer of”Mobile Phone 2,” was naturally implicated, and the stock price fell sharply. After this, the Huayi Brothers seemed to have entered a Mercury retrograde, and there was no good news going around.
The performance is more intuitive. In 2018, Huayi Brothers experienced its first loss since its listing, with a loss of up to 1.093 billion yuan; the 2019 annual report shows that the net profit attributable to shareholders of listed companies was -3.960 billion yuan, a year-on-year decrease of 262.32%.
After two consecutive years of losses, the pressure of Huayi Brothers in 2020 is self-evident:it must be profitable, otherwise it will face ST risks.
Wang Zhonglei, vice chairman and general manager of Huayi Brothers, sent an open letter to all employees in 2019. The letter mentioned that 2019 was the most difficult year for Huayi Brothers since its founding. The main investment and control of movies was blank. As a media company with production content as its core competitiveness, such mistakes were fatal.
Photo source:Wang Zhonglei, vice chairman and general manager of Huayi Brothers. Photo source:Every Jing data map
Whether Huayi Brothers chairman Wang Zhongjun is interviewed by every Jing reporter, On other occasions, they have repeatedly stated that the most important goal of 2020 is to focus on the new business model of “film + real scene”, reshape the development of Huayi, and solve the problem of the liquidity of Huayi Brothers. The assets of the industry as a whole strive for the best profit for the company.
Huayi Brothers is currently mainly engaged in the two main business segments of film and television entertainment and live entertainment.
Huayi Brothers Movie World (Suzhou) Photo source:Huayi Brothers official website
Since 2011, Huayi Brothers has begun to deploy live entertainment, and it is currently in Haikou, Suzhou, The layout of multiple projects has been completed in Changsha and other places. On August 12, Huayi Brothers signed a strategic cooperation framework agreement with Wuhan Municipal People’s Government and Zall Group. The”Zall Huayi Brothers Movie Town” project landed in Hongshan District, Wuhan.
Huayi Brothers stated in the financial report:Because of the high return on investment of commercial blockbusters, large market influence, mature operation mode, and high success rate in the domestic market, Huayi Brothers has become the company’s first choice for film business.
Previously, in the opinion of an industry analyst, Huayi has long been bound to the”blockbuster”.”Making blockbusters can only be used for real-life entertainment. Comedy, romantic films, and real-life entertainment are not available. The ancient costume magic films that have been explored before, real-life entertainment are not successful. In short, in order to graft real-life entertainment, Huayi must make big productions. Films, or period dramas that set up scenes. If”Yabai” becomes popular, it may help Huayi find a new direction.“
So,”Yabai” is in the hands of Huayi Brothers An ace of the game. The success of”Yabai” is related to the performance of Huayi Brothers in 2020, and may also affect the direction of Huayi Brothers’ live entertainment sector.
At present, the cash flow of Huayi Brothers is not optimistic among film and television companies. As of the most recent consolidated statement, Huayi Brothers’ monetary capital was 270 million yuan, ranking the middle and lower reaches of listed film and television companies. Companies that have the initiative began to use early collection of accounts as a bargaining chip. For example, Huace Television’s cash flow is as high as 1.9 billion yuan.
The Huayi Brothers, who are tight on funds, keep moving. In the early stage of”Eight Hundred”, Huayi Brothers announced that the company signed a strategic cooperation agreement with China Merchants Bank Beijing Branch, which will obtain a credit line of up to 1.5 billion yuan from China Merchants Bank.
Image source:screenshots of Huayi Brothers announcement
According to the announcement, this credit line will be mainly used for the development of various film and television projects of Huayi Brothers, as well as with major film and television projects. The company conducts a cooperative film list. Wang Zhonglei mentioned in the signing ceremony that there are more than 30 film and television works in the cooperation film list, and the time plan covers up to 2023.
On April 29, Huayi Brothers also disclosed a plan for non-public issuance of A shares:it intends to issue 8 companies including Alibaba Pictures, Tencent Computer, Sunshine Life, Yuyuan Stock, etc. Investors, non-public offering of 2.78 yuan per share in total does not exceed 823 million shares, and the total amount of funds raised does not exceed 2.29 billion yuan to supplement cash flow and repay debt.
Image source:Screenshot of Huayi Brothers’ announcement
But it is worth noting that the pledge rate of Huayi Brothers’ controlling shareholders has a risk of liquidation, which is the same as Tangde Film’s It exceeds 99.8%.
“Yabai” is like a gorgeous adventure of Huayi Brothers, and it will soon usher in a formal test in the cheers of everyone. According to the research report of Tianfeng Securities, Huayi Brothers is expected to return to the parent net profit of 107 million, 464 million, and 600 million yuan in 2020-2022, and it is expected to turn losses into profits in 2020.
Reporter’s Notes:Both”Eight Hundreds” and Huayi chose to be warriors
There are very few movies like”Eight Hundreds” that have been carefully watched by the entire industry Pampering her, she didn’t even dare to look forward too loudly. Sometimes we are confused, whether we want to watch”Eight Hundreds” or do we want to use”Eight Hundreds” to prove that China’s once the oldest and most powerful Huayi Brothers can rekindle their fighting spirit and dominate the market.
The Suzhou River in”Eight Hundreds”, one bank is brightly lit, singing and dancing, and four hundred heroes guard the four-line warehouse with their lives, in exchange for the people’s hope for victory
This split and huge contrast are also like Huayi’s today. Under the prestigious reputation, the performance of Huayi Brothers over the past two years is indeed not satisfactory. The performance is not up to standard, the work is not profitable, the real-life entertainment model has not been adopted… It is clear that some of the people in the industry who know movies best, how can they suddenly leave the market, are Huayi old men?
The significance of”Eight Bai” to Huayi is far more important than we thought. After 10 years from preparation to release, Huayi will not do such a thankless thing without ingenuity, feelings and persistence. Some interviewees also told reporters that if it was just for the box office, Guan Hu finished filming”Old Paoer” and then filmed”Little Paoer”.
We all know that the film industry is slowly recovering, but the truth is that only the release of the headline movie can really stimulate the audience to return to the theater. To make the first blockbuster movie that returned after the epidemic, no matter how you say it, you took huge risks. However, Huayi took the lead in handing over its most cherished”Eight Hundred”. With good results, we can see that”Jiang Ziya” and”Win the Championship” have returned one after another.
As the protagonist in the film:be a warrior. Perhaps it is the fate of”Eight Hundred” and Huayi.
Typesetting:Dong Xingsheng Ma Yuan
Daily Economic News