On September 23, Caixin reported (Reporter Cui Ming) that the box office of the film market in the first half of the year decreased significantly year-on-year, leading to a decline in the performance of top listed film company china film co., ltd. At today's semi-annual earnings briefing of the company, how to deal with the downturn in the film market and the company's plan for new films in the second half of the year became a common concern for investors.

"The film market has always been fluctuating. Every time the market falls below expectations, it means there is a mismatch between us and the audience demand, which is a key moment for filmmakers to summarize the problems and seek change," said Fu Ruqing, Chairman and General Manager of china film co., ltd.

"Looking at the past two time slots, the main reason for the insufficient driving force of large cap films is the head films," Fu Ruqing said, whether domestic or imported films, the quantity and quality of supply need to be greatly improved. Audience demand is rapidly evolving, and differentiation and diversification on the exhibition side are imperative.

Currently, the performance of listed film companies still relies on box office sales. Once there is a lack of support from blockbuster films, the performance of many companies in the industry will decline. Fu Ruqing believes that the large investment in major film projects launched within a certain reporting period leads to significant financial fluctuations, which is an issue that china film co., ltd. as a listed company needs to research.

To this end, china film co., ltd. is also trying various measures to expand more sources of revenue, to hedge risks and balance returns through diversified investments. For example, in terms of creation, planning different projects of different volumes and genres, time considerations for staggered and tiered releases. Fu Ruqing stated that all film projects in the subsequent creative development will begin planning IP derivative product development early on to broaden the film value chain.

Regarding the future development of the film industry and market, Fu Ruqing said, "China Film Co., Ltd. is very confident." Caixin reporters learned that the company's main films "Volunteer Army: Battle of Life and Death" and "Only This Green" have been scheduled for release during the National Day period.

Among them, the film "Only This Green", adapted from the dance poetry with the same name, has received considerable attention due to its unique genre. Fu Ruqing stated that the film "Only This Green" is a highly challenging innovative attempt, and the company has not yet started the creation of similar projects, but is considering and selecting unique topics.

Fu Ruqin revealed that all 12 chapters of the movie "Only Green Blue" were filmed at China Film Co., Ltd. base, with a very large overall visual effects production volume, with the vast majority of the work independently undertaken by the China Film Co., Ltd. base visual effects department. However, due to relatively high fixed costs and other reasons, this part of the business has not yet become profitable.

The movie "Volunteer Army: Battle of Life and Death" is the second part of the "Volunteer Army" trilogy directed by Chen Kaige, regarded by institutions as a key reserve project of the company. The progress of another large-scale key film, "Legend of the Condor Heroes: Hero of Heroes", is also highly anticipated by institutions. Fu Ruqin stated at the earnings conference that "Legend of the Condor Heroes: Hero of Heroes" is currently in post-production and will be scheduled for release soon.

In addition, China Film Co., Ltd. expressed that Chinese audiences still have a very strong demand for high-quality imported films, with plans for 7 imported films including "Transformers: Origin" to be released by the end of the year.