Investigation On Huayi Brothers Film Town: Nanjing Company Has Written Off, And The Remaining Five Towns Have Little Achievement

Seven kilometers south of Fangshan, Nanjing, is a place called Huayi Brothers (Nanjing) film town. However, it seems that the film town has nothing to do with Huayi Brothers (300027. SZ).

"Huayi Brothers quit in April this year, and they didn't have much equity." on September 22, a person from Nanjing Jiangning state owned Assets Management Group Co., Ltd. (hereinafter referred to as Jiangning state owned assets group) told the 21st century economic reporter that the plan was to rename the film town "shangqinhuai happy Oriental movie Park", "Huayi Brothers film town has not been operating well since its opening, and it has not been well run. The company was cancelled at the end of August this year."

During a field visit to Huayi Brothers (Nanjing) film town on September 21, the 21st century economic reporter found that there were still various traces of Huayi Brothers. From the public number registered in the park to the logo of the park gate, and even the garbage classification billboards in the park, they all wrote "Nanjing Huayi film town".

Since the start of brand licensing and live entertainment in 2017, Huayi Brothers has successively signed several film towns across the country, but the good and bad are mixed, and their contribution to the company's performance is very limited. As Huayi Brothers transferred 15% of its holding subsidiary Huayi Brothers (Tianjin) live entertainment Co., Ltd. (hereinafter referred to as Tianjin real entertainment company) to Tibet Jingyuan Enterprise Management Co., Ltd. (hereinafter referred to as Tibet Jingyuan) in August this year, how much more contribution can the film town make to Huayi Brothers' performance?

Movie town with few people

Back to more than four years ago, perhaps you can have a glimpse of Huayi Brothers' film town being started all over the country.

In March 2017, Tianjin live entertainment company, a holding subsidiary of Huayi Brothers, and Nanjing shangqinhuai construction and Development Co., Ltd. (hereinafter referred to as Nanjing shangqinhuai construction) jointly established Nanjing Huayi film Town Cultural Industry Development Co., Ltd. (hereinafter referred to as Nanjing Huayi film town company). Among them, Tianjin real scene entertainment company has subscribed an investment of 10 million yuan and holds 1% of the company's shares.

The reporter of 21st century economic report noted that as of December 31, 2020, Tianjin real scene entertainment company's cash contribution to Nanjing Huayi film town company was only 500000 yuan, and the investment needed to be paid was 9.5 million yuan.

However, when the project was started, Huayi Brothers (Nanjing) film town could be said to have "unlimited scenery".

On the morning of June 28, 2017, the commencement ceremony of Huayi Brothers (Nanjing) film town project was held in the planning area of shangqinhuai Wetland Park in Jiangning District, Nanjing city. At that time, relevant leaders of Nanjing city and Jiangning District of Nanjing City, Wang Zhongjun, chairman of Huayi Brothers, director Feng Xiaogang and actor Zhang Guoli participated in the activity.

According to the plan, "Huayi Brothers (Nanjing) film town" is a municipal key service industry project in Nanjing. It plans to build six theme areas, including "Qianlong's going to the south of the Yangtze River" in the style of the late Ming Dynasty and the early Qing Dynasty, "Huapi block" with the style of Five Dynasties and Ten Kingdoms of Tang Dynasty, Fangshan gudu and jiangningfu street.

Huayi Brothers' 2017 annual report shows that Huayi Brothers Nanjing Film town is expected to open in 2018.

However, the reporter of 21st century economic report learned during a field visit to Huayi Brothers (Nanjing) film town that the film town began its trial operation in September 2020, and only the first phase of Xingying square was completed, and the supporting infrastructure of the scenic spot was not perfect.

September 21 is the Mid Autumn Festival holiday, but few people come to visit Huayi Brothers (Nanjing) film Town, almost to the point of "few people".

The above-mentioned Jiangning state-owned assets group told the 21st century economic report that the film town has been operating poorly since its opening. "The main reason is that the traffic is not convenient. Tourists can only drive there by themselves, but they don't charge tickets.".

At the entrance, visitors only need to register through the public number of Huayi film town in Nanjing for free, but each scene inside needs to pay.

The 21st century economic reporter saw less than 100 tourists in the park, and almost no one paid attention to the buildings in the park. Only a few people took photos in a place where pigeons were fed.

A foreign tourist admitted that he was "very disappointed" and "it was all fake scenes built".

Nanjing company has been cancelled

According to the annual report of Huayi Brothers in 2020, the "brand authorized income" brought by Huayi Brothers, which is the only Nanjing Film town company disclosed by Huayi Brothers, is 13393900 yuan.

The above-mentioned Jiangning state-owned assets group told the 21st century economic report that Nanjing Huayi film town company has been cancelled.

According to qixinbao data, Nanjing Huayi film town company has been cancelled on August 27, 2021, and Huayi Brothers' withdrawal time is April 19, 2021. Qin Kaiyu, vice president of Huayi Brothers, who once served as the director of Huayi film town company in Nanjing, also resigned on May 31, 2019.

On September 23, according to the office phone number of Gao Hui, Secretary of the board of directors disclosed in Huayi Brothers' semiannual report of 2021, a lady who answered the phone asked the reporter to make two other calls, but the two calls were never answered.

Subsequently, the reporter of 21st century economic report sent an interview email to Dong Secretary Gao Hui of Huayi Brothers, but as of the time of publication, he had not received his reply.

According to the 2021 half yearly report of Huayi Brothers, 1% of the equity of Nanjing Huayi film town company, which invested 500000 yuan, has been "disposed of".

However, on September 21, on the spot, the 21st century economic reporter saw that "Huayi Brothers (Nanjing) film town" was still printed at the gate of the film Town, and some tourists who came in admiration also came for the "fame" of "Huayi Brothers film town".

A staff member at the entrance told the 21st century economic report that they only know that this is Huayi Brothers film Town, others are not very clear.

However, the 21st century economic reporter learned in an interview that Nanjing Jiangning District government once wanted to rename the film town "shangqinhuai happy Oriental movie Park", but today it is still called "Nanjing Huayi film town".

Nanjing Huayi film town's public number is currently operated by Nanjing Accor Wendu cultural and Tourism Industry Development Co., Ltd. (hereinafter referred to as Nanjing Yagao cultural and tourism company). The 40% shareholder of this company is Nanjing Yongchang Wendu cultural and Tourism Industry Development Co., Ltd. (hereinafter referred to as Nanjing Yongchang cultural and Tourism company).

Through equity penetration, it can be found that Huayi Brothers owns 10.50% of Huayi Brothers (Beijing) Cultural Consulting Co., Ltd., while Dongfang Wendu (Beijing) Cultural Tourism Industry Development Co., Ltd. holds the equity of Nanjing Yongchang cultural tourism company, which also means Huayi Brothers indirectly holds the minority equity of Nanjing Yagao culture and tourism company through multi-layer relationship.

What about the rest of the town

"Nanjing Huayi film town" is obviously a failed live entertainment project for Huayi Brothers.

The reason why Huayi Brothers love "real entertainment business" is that Huayi Brothers registered and established Tianjin real entertainment company in Tianjin on July 11, 2011, with a registered capital of 30 million yuan and a shareholding ratio of 100%. In August 2011, Huayi Brothers announced that it would use 110 million yuan of over raised funds to make additional investment in Tianjin live entertainment company in the form of capital increase to invest in and operate the cultural tourism industry.

After the completion of the capital increase, the registered capital of Tianjin live entertainment company increased from 30 million yuan to 140 million yuan, which is the beginning of Huayi Brothers' layout of live entertainment.

According to the 2017 annual report of Huayi Brothers, by the end of the reporting period, there were 18 signed projects, among which many projects were under construction and started construction successively, including Huayi Brothers film world (Suzhou), Huayi Brothers Changsha film Town, Huayi Brothers Nanjing Film town and Jianye Huayi Brothers film town (Zhengzhou) which are expected to open in 2018.

As of June 30, 2021, Huayi Brothers (Jinan) film town was opened on June 26, 2021, and the five cities linkage was realized in Haikou, Changsha, Suzhou, Zhengzhou and Jinan. Wuhan Zhuoer Huayi Brothers film town project and Qinhuangdao cultural tourism project are in orderly progress.

It can be seen that there are at least five film towns of Huayi Brothers, namely Huayi Brothers film world (Suzhou), Huayi FengXiaogang film commune of Guanlan Lake in Haikou, Huayi Brothers (Changsha) film Town, Jianye Huayi Brothers film town and Huayi Brothers (Jinan) film town.

According to Huayi Brothers' 2021 semi annual report, its "brand licensing and live entertainment business revenue is 52.95 million yuan". For Huayi Brothers, whose business income reached 579 million yuan in the first half of the year, the performance contribution of live entertainment is less than one tenth. It is conceivable how much these film towns can add to the company's net profit.

In the first half of 2021, Tianjin live entertainment company continued to make losses, with a net profit of -46.7968 million yuan.

According to qixinbao data, the number of people who paid social security in Tianjin live entertainment company from 2016 to 2018 were 24, 27 and 52 respectively, but it dropped to 33 in 2019 and 2 in 2020.

On the evening of August 13, 2021, Huayi Brothers announced that it planned to transfer 15% of the equity of Tianjin real scene entertainment company to Tibet Jingyuan, with the transfer price of 225 million yuan. After the completion of the transaction, Huayi Brothers holds 39% equity of Tianjin live entertainment company, so the company will no longer be included in Huayi Brothers' consolidated statements.

After the "defeat" of Nanjing Film Town, are the remaining five film towns "chicken ribs" for Huayi Brothers?