Can the film and television industry usher in a reversal in 2021?
Editor’s note: This article is from the WeChat public account “Wenyu Business Observation” (ID: wenyushangyeguancha), by Duckweed.
The sky is rolling, and the film and television industry is getting worse every year.
At the end of January, with the release of the 2020 performance forecasts of major film and television companies, the film and television companies that have been more affected by the epidemic collectively handed in an amazing report card: Wanda Films’ pre-loss 61.5-69.5 100 million yuan, Wentou Holdings’ pre-loss of 3 to 3.5 billion yuan, Huayi Brothers has suffered losses for three consecutive years……
In the 14 film and television companies in the entertainment business observation and statistics, 12 of them are losing money. Only Guangguang Media and Huace Film and Television are barely profitable. Both the number of losses and the amount of losses have set historical records. If this number is added up, the maximum loss will exceed 15 billion yuan.
The impact of the epidemic on losses is understandable. For example, cinema companies such as China Film, Shanghai Film, Jinyi Film and Television, and Hengdian Film and Television have not opened for half a year. After opening, they face current limitation problems and losses are inevitable. This is similar to the reason why aviation and tourism companies lose money.
However, more companies took advantage of the epidemic to take the initiative to reduce their goodwill and offset the rotten assets acquired in the past few years. This is why Wanda Films has a loss of more than 6 billion yuan, which is beyond imagination. The impairment of goodwill was caught off guard.
Interestingly, although various companies are losing money, the film and television stocks generally opened higher on February 1st, and Wanda Films is directly rushing to the daily limit. Although there is a good blessing for the short-term Spring Festival, but in the long run The outside world believes that after the operation in 2020, film and television stocks have begun to usher in a real bottom rebound, and at least there will be no large-scale goodwill impairment risk in 2021.
After the entire sector loses 15 billion yuan, can it really lose a future?
Wanda’s loss exceeded 6 billion and set a record, Wentou Holdings lost 30 and its stock price has 2 daily limit
In the list of 12 losses, Wanda Films and Wentou Holdings stood out with a loss level of 6 billion yuan and 3 billion yuan respectively. The loss amount is far ahead of other companies and contributed 60% of the loss of the entire sector.
Wanda Film’s 2020 net profit loss is between 6.15-6.95 billion yuan.The amount is far greater than the 4.729 billion yuan of loss in 2019. If the values of the two years are added up, it will definitely exceed 10 billion, which is one-fifth of the 50 billion yuan in the closing market value on February 1.
Part of Wanda Film’s loss is due to the loss of theaters caused by the epidemic, and more of it is the impairment of the goodwill of Wanda Films, Eslite Media and Hu Ai Interactive acquired in the previous two years. They correspond to movies, TV dramas and game companies all fail to meet expectations in 2020, resulting in a goodwill impairment of up to 4 to 4.5 billion yuan.
At present, Wanda Films puts all its hopes on “Chinatown Detective 3” directed by Chen Sicheng. This film controlled by Wanda Films’ subsidiary Wanda Films becomes the number one seed player for the Spring Festival in 2021, and the number of people who want to watch it on the whole network will exceed 10 million. If the epidemic is stable and controllable, this year’s Spring Festival file is likely to become the home of “Detective Chinatown 3” and help Wanda Film stand up in 2021.
Although Wanda Films lost more than 6 billion yuan to a record, it was even more shocking than the loss of 3 to 3.5 billion yuan in net profit of Shanghai Investment Holdings, because after two consecutive daily limits, Wen Investment Holdings’ The market value is still less than 5 billion yuan, which means that the loss is more than three-fifths of the market value.
The loss of Wentou Holdings is mainly due to impairment of goodwill, with an amount of between 1.7 and 2.2 billion yuan, of which Yaolai Studios’ goodwill is impaired by 1.0-12 billion yuan; game companies all play online goodwill impairment by 4.5 The rare loss ratio of RMB-550 million also attracted inquiries from the Shanghai Stock Exchange, questioning the rationality of the company’s goodwill impairment, but as of February 1, Wentou Holdings still did not give a specific answer.
Interestingly, Wanda Films and Wentou Holdings, which have the highest losses, saw their stock prices rise the most on February 1. Wanda Films closed at 23.25 yuan/share, an increase of 8.39%; Wentou Holdings closed at 2.61 yuan/share , Increase