The article is from WeChat public account: Chocolate Entertainment (ID: ylwanjia) , author: Blue Lotus, Word problems from: the movie “wandering the Earth”
On February 13th, there were more than 14,000 new confirmed cases of New Coronavirus in Wuhan. The reason behind this is that Hubei changed to a new leadership team. The former mayor of Shanghai should be ordered to serve as the secretary of the Hubei Provincial Party Committee.
Some financial people commented this: 1. This is an off-balance sheet transfer, and the new president takes office, and generally NPLs are exposed; 2. Goodwill is impaired and lightly loaded, and future performance can be expected.
There is a typical case like this recently- Beijing Culture’s 2019 third quarter report shows a net profit of 117 million, but it is expected to lose 2.4 billion for the whole year.
Sudden losses of listed companies have been called “performance thunder.” This situation may be a huge crisis in the management of listed companies, but it may also be a financial trick.
Finance personnel said that there is a possibility of “financial bathing” in the explosion of listed company performance, especially listed companies with high goodwill, indicating that the quality of previous mergers and acquisitions and reorganization assets was poor and there was a minefield.
But Beijing culture may not be as simple as a “financial bath.”
“Precise Thunderstorm” in the Year of Wandering Earth
In the current Chinese film and television industry, Beijing Culture is considered to be one of the companies with the most explosive movies in the bet, from “Heart Flower Road” to “I am not a medicine god”, “War Wolf 2” and “Unknown Men” to “Wandering Earth”, investment vision is quite accurate.
The timing of the goodwill impairment is just right.
The so-called goodwill refers to the assumption that a company’s net assets are only 100 yuan, but because it is very competitive, the acquirer is willing to buy it for 150 yuan, so the extra 50 yuan will be Goodwill to become an acquirer.
Why the timing of Beijing Culture’s goodwill impairment is exquisite?
First, the impairment of goodwill is mainly the goodwill of 834 million yuan and 641 million yuan formed by Century Partners and Xinghe Culture acquired 5 years ago.
The two companies just ended their betting with Beijing culture in 2018.
During the betting period, the two companies overfill each year. But after the bet was over, the performance of the two companies changed dramatically. Among them, Xinghe Culture’s net profit in the first half of 2019 was 2.23 million, a decline of 80% year-on-year, and Century Partners’ net profit in the first half of 2019 was a loss of 7.06 million.
“In 2018, the betting period expired. Many companies immediately withdrew after the betting period expired. Beijing Culture persisted for more than a year before it was withdrawn, which is not bad.” Xue An investor on the ball said.
Beijing Culture Stock Price Chart
The more typical case is that the acquisition of Ao Fei Entertainment is deceptive. At that time, Aofei Entertainment acquired the comic platform with an enchantment for a consideration of 900 million yuan, which formed a relatively good reputation. After the expiry of the gambling period, there was a demon core team leaving, and Aofei had a goodwill impairment of 900 million yuan in 2018, of which more than 400 million came from demonism.
Of course, the performance of Century Partners and Xinghe Culture has also fallen, and there are also factors in the downturn of the film and television industry. From 2018, there are fewer companies that can make money in the film and television industry chain, and poor performance is inevitable.
However, the most important reason for choosing to conduct a large amount of goodwill impairment at this point in time may be the change in equity behind Beijing Culture-Beijing Culture ’s announcement on February 11 states that Huali Holdings, the largest shareholder It is planned to transfer 15.16% of the shares to Wenke Investment (Investment platform under Beijing Wentou Group) The investment M & A platform or the designated Three parties.
Seeing here, you should think of the parable at the beginning of the article.
In general, before new shareholders enter, it is best to fully expose the company’s previous risks and “take the order” at the lowest point, so that it is easier to make results and boost the stock price in the future. Moreover, this new shareholder may be the largest shareholder of Beijing Culture in the future.
The subtlety of the “Thunderstorm” timing is also reflected in the fact that many shareholders and executives of Beijing Culture have reduced their holdings many times in 2019.
Before the release of “Wandering Earth” in early 2019, Beijing Culture’s stock price once hit a 2019 high, and subsequently, several shareholders reduced their holdings. According to Wind data, in 2019, among the listed companies that have suffered the largest number of consecutive reductions by shareholders, Beijing Culture topped the list 114 times, twice as much as the second.
Tibet Jiuda, its fourth largest shareholder, has reduced its holdings in Beijing Culture 14 times in 2019; another major shareholder of Beijing Culture, Shihezi Wuji Equity Investment Partnership (Limited partnership) also reduced its stake in Beijing Culture 13 times.
Meanwhile, China Huali Holding Group Co., Ltd., the major shareholder, and Tibet Jinbaozang Culture Media Co., Ltd., a legal entity of Lou Xiaoxi, have experienced passive reductions.
As far as Beijing culture is concerned, 1.6 billion goodwill will be depreciated and amortized in any case. In 2019, there will be an explosion effect of “Wandering Earth”. Goodwill amortization has become a feasible shortcut.
In this way, it will not consume a large amount of cash for profit distribution, and the change in amortization pressure on goodwill in 2020 will be small, which will be more conducive to the subsequent capital operation of Beijing Culture.
The next trilogy of Fengshen is the masterpiece of Beijing culture.
Why did Lou Xiaoxi, the actual controller of Century Partners, quit?
The projects for accumulating bad debts this time are mainly film and television projects of Century Partners, mainly TV series.
Before analyzing these projects, it is necessary to first understand the partner next company and the company’s founder Lou Xiaoxi in the next century.
Lou Xiaoxi is also a gangster-level figure in the film and television industry. Just look at the original team of Century Partners. Bian Xiaojun, a well-known film and television planner, classic TV series such as “Iron Tooth Bronze Ji Xiaolan”, “Prime Minister Liu Luoguo”, “Past Addiction”, “Yi Tian Tu Long Ji”, “Mother Yi Tian Xia” and other classic TV seriesAs a result, the director refused to sign the film, and he has already bounced the ticket many times.
In addition, according to the information on the TV drama “The Ghost Story of a Ghost Girl” starring Zheng Shuang, the data was later renamed “Only Asking for Love in this Life”, which began shooting in April 2019, and was killed in August 2019. According to Douban’s information, it will be broadcast in April 2020, but there is no indication of the broadcast platform.
This TV series brought 358 million revenues to the company in 2018, becoming the highest-income project in 2018. Based on 60 episodes, the drama’s single episode revenue is nearly 6 million. But an investor on Snowball called Beijing Culture, and the other party replied that the show was not released, and 350 million was the proceeds from the transfer of investment shares, not the proceeds from the pre-sale that were issued.
In 2017, in addition to the income brought to Beijing by “Wolf Warfare 2”, it also includes 4 TV series, 84.91 million yuan in “Di Renjie Autumn Official Academy” and 67.92 million yuan in “Strange Investigation”. , 62.26 million yuan for “Young Detective Song Ci” and 63.32 million yuan for “Puzzle”
But among the top 5 clients of Beijing Culture, Halo Times Film & Television Culture Co., Ltd. contributed 84.91 million yuan, Tairan Zhonghe Film Industry Co., Ltd. contributed 67.92 million yuan, and Zhejiang Yongkang Shunxin Film and Television Culture Co., Ltd. contributed 62.26 million Yuan, Beijing Fangming Taihe Film and Television Cultural Development Co., Ltd. contributed 61.32 million yuan, which is exactly the same as the income of the above four film and television works.
Unlike the average film and television company’s income from TV stations and video sites, Beijing Culture’s income comes from peers.
Some people in the industry have said that the entertainment capital theory matrix number pepper pepper entertainment investment (ylwanjia) said that in the TV drama industry, if a project has not yet won Issuing a license, but the co-investors in it need to “make a profit” in advance, they may choose to negotiate with the master or the issuer of the project, or even other companies in the industry, to