Why Xiao Lou, the actual controller of Century Partners, is anxious to withdraw?
Editor’s note: This article comes from WeChat public account “Chocolate entertainment investment” (ID: ylwanjia) , author : Blue Lotus.
There is a typical case 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 in 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, and the extra 50 yuan will become the acquirer. Goodwill.
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.
“Gambling expired in 2018. After many companies have betting against gambling, the team immediately withdrew. Beijing culture persisted for more than a year.Only withdrawn, it is already pretty good. “Said an investor on Snowball.
Stock chart of Beijing Culture
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 It is planned to transfer 15.16% of the shares to the investment and acquisition platform or designated third party led by Wenke Investment (an investment platform under the Beijing Wentou Group).
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 orders” at the lowest point, so that it is easier to make performance 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, 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 holdings in Beijing Culture 13 times Equity.
“Everyone is looking forward to the film section of Beijing culture, especially the” Fengshen “trilogy.” The analyst said: “This is the biggest opportunity for Beijing culture in the future.”