2021-10-17

How long can Huayi, who is “looking for money everywhere”, last?

By yqqlm yqqlm

Beijing, October 17 (reporter song Yusheng) although it has experienced losses for many years, the recent news that Wang Zhonglei, vice chairman and CEO of Huayi Brothers, plans to reduce the company’s shares has attracted the attention of many netizens

How long can Huayi, who is “looking for money everywhere”, last?

this news was made public by Huayi Brothers on the 12th

according to the announcement, Wang Zhonglei, who currently holds 4.68% of the company’s shares, plans to reduce his holdings of no more than 2% of the company’s total share capital by means of centralized bidding

the announcement also said that if the reduction plan is implemented to the maximum extent, the total shareholding ratio of Wang Zhongjun and Wang Zhonglei will be reduced to 23.05%, and they will still be the actual controllers of the company, which will not change the control of the company and have no impact on the sustainable operation of the company

after the news was made public, “Huayi Brothers had a huge loss of 6.2 billion in three years” and entered the hot search

How long can Huayi, who is “looking for money everywhere”, last?(1)

obviously, we all know that Huayi Brothers have not been doing well in recent years

when it was listed in 2009, Huayi Brothers was the first company engaged in film production in the A-share market and was called “the first film share in the A-share market” by the media. In the following years, Huayi Brothers have been firmly in the “top position of private film companies”

however, Huayi Brothers has suffered its first loss since its listing in 2018. This year, a series of disturbances caused by the film mobile phone 2 became a turning point in the fate of Huayi Brothers

by 2019, the net profit of the company’s operation in that year will be huge, about – 4 billion yuan</ P>

novel coronavirus pneumonia has been “hit hard” even though Wang Zhongjun told the media that he must turn around the deficit in 2020. This year, the company’s operating revenue decreased by 33.14% compared with 2019, which suffered a huge loss

on the one hand, the company “shrinks the front”. On the other hand, 800, which topped the general box office list of Chinese films in 2020, also reduces some pressure on the company

but even so, the gap is still large

Huayi Brothers’ 2020 annual report shows that the net profit attributable to shareholders of Listed Companies in that year increased by 73.65% over the same period of last year, but the amount is still negative, reaching -1.048 billion yuan

How long can Huayi, who is “looking for money everywhere”, last?(2)

and the management of the company does not hide these operating difficulties. Even, in order to cope with the shortage of funds of the company in recent years, Wang Zhongjun, founder and chairman of Huayi Brothers, once sold paintings, houses and pledged assets

this year, it’s Wang Zhonglei’s turn to reduce his holdings of the company’s shares

a recent online article briefly summarized the plight of Huayi Brothers in recent years – “Huayi Brothers are full of money”

in this case, Huayi, which disappeared from China’s annual box office list a few years ago, began to refocus its main business

Huayi Brothers reported in 2020 that the company “gradually withdrew from some investment projects with low integration with the main business and weak coordination with the company’s industrial chain, further improved the asset light operation mode, and the capital return can be used to supplement the company’s working capital, so as to better support the promotion of the company’s main business development strategy”

How long can Huayi, who is “looking for money everywhere”, last?(3)

in 2020, “800” topped the total box office of Chinese films in that year with a box office achievement of more than 3 billion. This year, the film “me and my parents” invested by Huayi Brothers, a wholly-owned subsidiary, also gained a good box office

however, Huayi Brothers are still not completely out of trouble

How long can Huayi, who is “looking for money everywhere”, last?(4)

screenshot of Huayi Brothers’ 2021 semi annual report

according to the financial report publicly released by the company, the net profit attributable to shareholders of Listed Companies in the first half of this year exceeded 100 million yuan, an increase of 145.75% over the same period of last year

however, the net profit attributable to shareholders of listed companies after deducting non recurring profits and losses in the first half of the year was still negative, reaching about – 227 million yuan, an increase of only 3.01% over the same period of the previous year

How long can Huayi, who is “looking for money everywhere”, last?(5)

screenshot of Huayi Brothers’ 2021 semi annual report

it is worth noting that according to the first half report released by Huayi Brothers in August this year, a considerable part of the company’s shares held by Wang Zhongjun and Wang Zhonglei are still pledged

in September this year, Shenzhen Stock Exchange issued an inquiry letter to Huayi Brothers, asking to explain whether the company has short-term or long-term debt repayment risk in combination with the company’s cash flow, especially the operating cash flow and debt maturity details

Huayi Brothers said in its reply that the company does not have loans that are about to expire and difficult to extend

however, just two days after the public reply to the inquiry letter of the Shenzhen Stock Exchange, another announcement issued by Huayi Brothers showed that the company planned to transfer about 15% of the equity of hero mutual entertainment, with a total transfer consideration of about 870 million yuan. After the completion of the transaction, Huayi Brothers’ shareholding in hero mutual entertainment decreased to 5.17%

it can be seen that the financial pressure of Huayi Brothers still exists

How long can Huayi, who is “looking for money everywhere”, last?(6)

poster of railway hero. The film side provided pictures

and the film “railway hero”, originally scheduled to be released on this year’s national day, has been postponed to November. Whether the film can alleviate Huayi’s current dilemma will be revealed in the coming months. (end)