In the four years, he acquired the Great Wall Films of nearly 20 companies and personally starred in a drama called “The Film and Television Company Bubble”.
Editor’s Note: This article is from Investing in the network, author Yang Yan.
From the “first film and television stocks” to the market value of less than 2 billion, “Zhuji help” Dahao Zhao Ruiyong’s capital trick is not working?
As far as the film and television industry is concerned, successful companies have their own experiences. Most of the failed companies have the same dilemma.
Before the stock price of Tangde film and television fell, the market value of 40 billion yuan of India Media was wiped out.
Shareholders reduce their holdings, executives leave their jobs, market value evaporates, stock prices plummet, real people control pledges, investors turn off their lights… There is always a package for film and television companies.
However, in recent days, Great Wall Film and Television, because of the 100 million yuan loan dispute, the majority shareholder Great Wall Group shares were frozen by the court, still let the capital market investors stunned.
Be aware that as a listed company under the “Great Wall Department”, Great Wall Television has the aura of A-share “first film and television stock”, and the actual target of Zhao Ruiyong’s previous small target is “Shaw Brothers Movie”, “In Three The total market value reached 50 billion in the year and 100 billion in five years.”
Zhao Ruiyong is still a member of the 100 billion “Zhuji Gang”, and behind the support of Zhejiang Capital, how can it be difficult to live by one billion?
Where is the capital of the Great Wall Department?
In a word, this is actually a cash acquisition, and the acquisition has been cool, the financial mast is broken, and the repayment is a story that is not expected.
The Great Wall Film and Television was once the “selling coin” in the capital market.
After 2014, it was the hot sweet period of film and television projects and capital. The Great Wall film and television halfway, which was blocked in the queue outside the IPO gate, was the first film and television company listed on the main board by the back of Jiangsu Hongbao (002071.SZ). Just a few months later, under the blessing of “Zhuji Gang”, Great Wall Film and Television successfully won another listed company, Sichuan Shengda (000835.SZ), and renamed it Changcheng Anime. In 2015, the Great Wall Department held the “Traditional Chinese Medicine First” Tianmu Pharmaceutical Co., Ltd. with 500 million yuan.
In a few short years, under the dazzling asset mobilization and acquisition methods of the great film and television control person Zhao Ruiyong, the company has quickly created a “Great Wall Department” pattern with three A-share listed companies and one Hong Kong-listed company.
How to operate, two words, mergers and acquisitions! ! !
The following table briefly lists the acquisition process of the Great Wall Film and Television in recent years. It can be seen that the Great Wall ShadowThe speed of this “coin” is still very high. The strange thing is that it is clearly listed on the head of the film and television company. The target of the acquisition is the advertising company, travel agency and film and television city operating company.
It is worth noting that in order to allow high-density acquisitions to be “green light”, most of Great Wall’s film acquisitions have adopted cash transactions, which have improved their debt ratios while improving efficiency. From 2016 to 2018, the asset-liability ratio of Great Wall Film and Television was 66.18%, 75.7% and 82.4%, respectively, far higher than the industry average.
High-frequency mergers and acquisitions have made Great Wall Film and Television go to the market value of 100 billion yuan? Ha ha!
Although the performance has been reluctant to cross the mark on the numbers, the reaction of “indigestion” in the “M&A madness” Great Wall film and television has gradually emerged.
The announcement shows that in addition to the unsatisfactory performance, the core management of the two wholly-owned subsidiaries of Great Wall Film and Television, which are operating in the advertising business, all left in 2018. The related business can only be managed by the parent company Great Wall Film.
The management and core employees of Great Wall Film and Television are not familiar with the operation mode and profit model of the advertising marketing industry, resulting in no actual business income of the two subsidiaries in 2018.
Besides the executives’ departure, the current pledge rate of the “Great Wall Department” company held by Zhao Ruiyong is over 90%. In the case of a continuous decline in stock prices, the risk of a stockpile cannot be ignored.
In addition, the debt was overdue, the controlling shareholder’s shares were frozen on multiple occasions, the net profit in 2018 was huge, the bank account was frozen, and the subsidiary sold was not smooth. For Great Wall Film and Television, this 2019 is too ” South”.
The bubble of the film company’s listing
Not only is the acquisition of foreign affairs more than half the effort, but his own old bank is also going downhill.
Before listing, more than 90% of Great Wall’s film revenue came from the TV drama business. CCTV, Hunan Radio and Television, etc. are all major customers. The quality of TV dramas is closely related to the cost of single-set investment. The single-set investment cost of Great Wall Film and Television is in the upper-middle level in the industry.
An industry insider who has had many business contacts with Great Wall Film and Television told the Chinese education. Although the boss has been making money for the acquisition, the Great Wall film and television funds have been very tight, and the inside has been empty.
In its view, before the listing of Great Wall Film and Television, the core assets were actually Zhao Ruiyong himself. Almost all the money-making projects came from Zhao Ruiyong. Zhao is one of the representatives of Zhejiang Literature and Art and even the domestic literary circle.Level writer, writer. After coming out of the system, the resources are abundant.
However, after the listing, the main business of Great Wall Film and Television was uncompetitive. The former “China TV drama boss” film and television drama project basically stopped for several years, and now the propaganda is the old drama taken four or five years ago, investment Rarely, there is very little recycling, and it is a low-cost drama.
Screenshots from the market value app
At the end of 2015, Zhao Ruiyong resigned as the director and chairman of the board of directors of Great Wall Film and Television, and his son Zhao Feifan temporarily assumed the position of chairman.
Related people revealed that the management of Great Wall Film and Television is simple and rude, with the style of an obvious family business. Zhao Feifan only has a high school education and is completely an outsider in the film and television circle. At present, the chairman of Great Wall Television is Zhao Ruijun, the younger brother of Zhao Ruiyong, and Zhao Feifan is the vice chairman.
There is news that Zhao Ruiyong has withdrawn from the management of the Great Wall Film and Television, or related to the “Broadcasting and Bribery Case”. Interested partners can reply to the “Dayu Secrets” in the public account background to view the details.
From the constant explosion of Tang De, the Huayi who sells the paintings, the Indians who simply retired from the market, and the Great Wall Film and Television, which is now deeply mired in debt, why do investors who look at film and television media companies always have to be injured? “What?”
In the view of the above-mentioned industry, the valuation space of non-physical assets is too large. The market has problems with the valuation of film and television projects. The traditional accountants audit the company’s assets. They don’t have a correct understanding of the particularity of film and television products. Once they are used, the bubble can be blown up infinitely. Outside people.
When the backdoor was listed, the valuation of Great Wall Film and Television was as high as 2.291 billion yuan, and the value-added rate was as high as 381%. Under the overheated market conditions at that time, the high valuation of film and television media companies almost became the norm.
Since 2013, the concept of film and television culture has experienced the trilogy of being eagerly sought after by the market, crazy mergers and acquisitions, and the capital winter has fallen by 2018.
The process of film and television bubble bursting is also the process of market environment from fanaticism to calmness.
Between the heat and the cold, the painted skin was peeled off, and the inside was golden jade or cotton wool at a glance. The only earned pot is full, only the hand of capital flipped in it.