Local State-Owned Assets Enter The Movie And TV Stocks: Shell, Market And Risk

But in recent years, film and television companies have been hunted from market hunters. Of course, state assets are doomed to be the most tangled redemption.

In May 26th, Tang De film announced that the controlling shareholder Wu Hongliang intends to transfer his 5% and 4.08% shares to Zhejiang Yitong (wholly owned subsidiary of Zhejiang radio and Television Group) and Dongyang Ju Wen, a subsidiary of the state owned assets supervision and Management Office of the Dongyang Municipal People's government. At the same time, Wu Hongliang entrusted 23.55% of the voting rights of the company to Zhejiang Yitong, and coordinated the third party shareholders to transfer 0.92% stake to Dongyang Ju Wen.

After the completion of the transaction, Zhejiang Yitong will have the voting rights of Tang De film 28.55%, and become the controlling shareholder of the company. Zhejiang radio and Television Group will become the real controller of the company.

In fact, this is only a remarriage of film and television in Tang Dynasty. According to the notice issued in May 6th, Tang De, who took over from Dongyang, was also a poly writer in Dongyang. According to the original plan, Dongyang poly Wen will become the largest shareholder of the film and television company.

This change shocked the market. On the evening of May 27th, Tang De film received the letter of concern from the exchange. The Shenzhen Stock Exchange asked for the reason and rationality of Wu Hongliang's two plan to change the control rights and adjust the control right plan in the short term.

But for Donald himself, being pursued by many parties is a good thing in itself, proving that he still has a premium. But it is embarrassing that capital is not necessarily on the industrial foundation of Tang De. "Zhejiang radio and television has been looking for a platform for listing, and has talked with many film and television companies. At present, the first tier satellite TV Hunan broadcasting, Jiangsu radio and television and Shanghai Wen Guang are listed on the platform (corresponding to mango hypermedia, happy blue ocean, Oriental Pearl), Zhejiang daily (newspaper group) has also been listed, for Zhejiang radio and television, there is a platform for listing, no matter from which aspects are very important. Tang De film and television registration place in Dongyang, local state-owned assets to save listed companies, is also common. Executives of film and television listed companies told the economic news reporters twenty-first Century.

On the other hand, what the market cares about is whether the local state-owned assets will enter into the trend of film and television stocks. After all, the current film and television industry is too short of money. Li Jinming, President of the China Enterprise Research Institute, who has a deep contact with the SASAC, has expressed his objection. "The film and television industry is not related to the economic lifeline. It is also a high-risk industry and can not be sustained." The current situation is that the cash flow of local state-owned assets is good, the film and television industry is at a low level, and the cost of entering the manufacturing industry is high and difficult. However, the platform for listing is indeed an important means of mixed reform of state-owned enterprises. He told the twenty-first Century economic news reporter.

In addition, can the standard state owned assets bring industrialization to the film industry? The film industry, which is still barbarous, has its own structural contradictions.

Will the film and television stocks of local state-owned assets enter into the trend? Vision China

The fundamentals of Tang De

Tang De film is not without scenery. Wu Hongliang, a real controller, has many experience in the system. He served as producer manager of the Beijing film studio, assistant director of the TV program production center of China Film Group, business director, executive vice president, and so on.

He has saved up a whole situation. At the early stage of the listing, Zhao Wei's brother Zhao Jian and Fan Bingbing were listed as the ten largest shareholders, and through the Wuxi Amex film and Television Culture Company (holding 51%), they had the exclusive right of Fan Bingbing in 10 years. Zhao Wei, Fengyi Zhang, director Huo Jianqi, screenwriter Sheng Heyu and so on are also shareholders of the company. Fan Bingbing and Zhao Wei's "bell clock" at the Shenzhen Stock Exchange became the front page content of entertainment news at that time, and the limelight was not two.

At the peak of 2016, the biggest selling point of the film was Fan Bingbing. The most successful project was the legendary Wu Mei Niang, whose main performance was the "win the world" starring in the movie, selling 7 million 500 thousand / set of Internet copyright price.

But more profound than scenery is risk. Ba Qing biography failed to be broadcast on schedule.

In addition, since 2018, with the tightening of regulatory policies, the film and television industry has entered a period of deep adjustment, and the prices of upstream and downstream industries have gradually returned to rationality. Due to the impact of film and television production cycle, the production of TV drama items released in the past two years by Tang Tak film has been invested in a high cost of production at the time of production. When publishing, the selling price of teleplay copyright has plummeted, resulting in mismatch between income and cost. This not only increases the difficulty of issuing TV drama projects, slows down the progress of the publication, but also leads to the decrease of gross profit margin of the project.

According to the financial report, in 2018 and 2019, Tang Tak film lost 927 million yuan and 107 million yuan respectively, and at the same time, because its IPO only raised 418 million yuan in net capital, the financing was not successful. As a result, the asset liability ratio rose sharply and the cash flow pressure.

As of December 31, 2019, the debt ratio of Tang Tak film was 94.04%, and its net assets amounted to 136 million yuan. As of March 31, 2020, the balance of money in the accounts of Tang De film was 25 million 715 thousand and 600 yuan. In addition, the proportion of pledge held by Wu Hongliang is 99.82%, accounting for 36.25% of the total share capital of the company. It is hard to say that there is no risk of liquidation.

This node is the most dangerous moment for both Donald TV and Wu Hongliang himself. Wu Hongliang did not work hard and replied to the Shenzhen Stock Exchange enquiry letter. Tang Tak said that in October 2019, Wu Hongliang and his close relatives signed a mortgage contract with a total amount of nearly 33 million yuan with the Bank of China sub branch of Dongyang.

But Wu Hongliang's efforts, compared with Tang's cash pressure, seem inadequate. Another reporter has learned that the possibility of the recent broadcast of Ba Qing biography is very small, which means that the cash flow problem of Tang Tak film and television is very limited, and the introduction of new investors will be the best way to break the situation.

When it comes to the introduction of investors, the real value of Tang De film becomes a topic that can not be separated from each other, which has a detailed dispute in the industry. Another head of film and television company executives confessed to the twenty-first Century economic report reporters that the film failed to rely heavily on a single star, but the fundamentals remain, and is still a rare giant in the industry. The listed company executives think that the key to this node is IP, but he has not heard that Donald has a very large IP. According to the aforementioned executives' view, with the complete control of the Tencent's reading, all film and television companies will be very dangerous.

In this case, Tang De initiative and passivity have attracted the attention of state assets. Dongyang treasures the few local listed companies, and Zhejiang radio and television is in urgent need of the platform for listing. "Zhejiang radio and TV and Tang De film and television have first contact with the lower reaches of the river, and more channels for broadcasting. They also have considerable help in the main business of Tang De". The listed company has high pipeline.

Investment bankers also said that the current policy is relatively relaxed, the possibility of approval is very large. The capital market also responded quickly. In May 26th, the stock price of Tang Tak film opened sharply and hit the limit. As of the end of the day, Tang De TV reported 5.03 yuan, or 8.17%.

Choice of state assets

Another problem that the market is concerned about is the fact that after the state-owned assets entered into the film and television companies, what is the result?

Ciwen media gave samples. Last year, in order to solve the problem of equity pledge, Zhong Wen, founder of Chung Wen and his concerted operation, transferred the 15.05% stake in the total share capital of the listed company to 13 yuan / share and the total sum of 929 million yuan to the investment of Hua Zhang. Hua Zhang is a wholly owned subsidiary of Jiangxi publishing group of Jiangxi province. Since then, the real controller of Ciwen media has become the Jiangxi provincial government, and has been transformed from a private listed company into a state-owned mixed ownership listed company. Ma Zhongjun and his wife retained 9.74% of the shareholding and changed from the largest shareholder to the second largest shareholder.

The investment in China is going against the tide, and it is known that it will solve the crucial cash flow problem of Ciwen. "In 2020, the company is expected to have more than 2 billion yuan of capital investment, in addition to its own funds, before the bank also has credit lines. After joining the new controlling shareholder, it can also directly cut the credit line from the Jiangxi publishing group, and now has a 300 million quota. In addition, because the capital investment of film and television projects is carried out in stages according to the progress of the project, it is not a one-time investment. According to the company's financial status, the funds can meet the next year's project production. At the beginning of the investor relations campaign in early December 2019, Ciwen management revealed.

But the actual progress seems to be limited. A consolidated cash flow statement released by the quarterly report showed that the cash inflow of Ciwen's fund-raising activities was 91 million 843 thousand and 900 yuan, which was 150 million yuan last year, down compared with the same period last year. The balance of cash and cash equivalents at the end of the year was 252 million yuan, which was 434 million yuan in the same period last year, a sharp decline compared with the same period last year.

Hua also brought management of state assets. At the end of last year, Wu Weidong, deputy general manager of Jiangxi publishing group, general manager of Hua Zhang investment and chairman of Ciwen, expressed the importance of management standards to reporters in twenty-first Century, but he also stressed that he would not interfere with the specific operation of Ciwen and would not interfere with content creation. "As chairman of the board, I mainly manage strategy and layout Ciwen will come down in the future. Ma chief (Ma Zhongjun) is responsible for creating and giving full play to his strengths. We (Hua Zhang investment) are strategic investors. He said.

But the non-standard film and television industry is confronted with the contradiction of demanding state capital. "Like a lot of big IP purchases, the demand for decisions is very fast, and the pace of state assets is probably not right. In addition, the drama group itself has changed greatly, and many costs can not be fixed. If the requirements are completely fixed, it will be difficult to land in real terms. State assets will also have restrictions on remuneration. For the top creators, it can be changed completely, and the film and television industry is very dependent on the head resources. This is a challenge to the core strengths of Ciwen. " The core person who had deep contact with Ciwen said. But he also does not deny that the film and television industry needs industrialization and standardization, and state assets are important driving forces.

In addition, there are other problems in the marketing of state-owned assets. Otherwise, the state-run shadow investment listed companies reported to the economic news reporters in twenty-first Century that, for institutional reasons, a radish and a pit at high level is a blow to the middle level initiative. "Promotion can only wait, then whether to wait or not, is a direct choice." He said. "The channel is relatively good. For the content producers who want freedom, Overcontrol is a nightmare." Many executives, including the film and TV drama industry, all lamented the twenty-first Century economic report.

The reason behind the strong interference of state assets is that it is a real controller. This leads to the pressure of state assets management on the loss of state assets and has to be managed. Is it not a better way to pursue real control?

It seems difficult at the moment. Take Hua Zhang as an example, behind Jiangxi's "Yingshan red action". Its main objective is to strive to reach more than 120 listed companies in Jiangxi by 2020. The number of listed companies has doubled on the basis of the end of 2017. The total amount of direct financing of listed companies has exceeded 250 billion yuan, and the securitization rate is close to the national average level. M & A is an important move.

With the support of the provincial government, the wagan's action to see the market was achieved. "We've seen a lot of homes, and finally we have chosen a basically solid Ciwen media." Wu Weidong road.

In this regard, Li Jin bluntly said, "the purpose of mixed reform is to improve efficiency, and the ownership structure is only a form, not putting the cart before the horse. Especially in the fully market-oriented industry. " He said.

It is worth mentioning that, according to the twenty-first Century economic report reporter, at present, another listed film and television company is looking for state assets to receive the offer. This time, it explicitly requests the two shareholder status of state assets.

"As long as demand is still in the long run, the film and television industry is still promising." Many industry executives said.