After the orderly resumption of business in its more than 300 cinemas, Wanda Film spread the good news again.
On the evening of July 27th, Wanda Film (002739) issued an announcement that the China Securities Regulatory Commission examined the company's application for non-public offering of shares today. According to the results of the examination, the company's application for non-public offering of shares was approved, becoming the first one-off refinancing project for film and television listed companies so far this year.
A researcher who has followed the media industry for a long time believes that since the cinema was closed on January 24, the film industry chain has become one of the industries most affected by the epidemic. At present, the industry has just moved from the "dark moment" of the epidemic period to the turning point of gradual resumption of business. The approval of the non-public offering plan of Wanda Film is of positive significance to the future development of the company and the recovery of the film and television industry.
According to the previously announced plan, Wanda Film plans to raise no more than 4.35 billion yuan for the construction projects of 162cinemas and supplementary capital liquidity, so as to further increase Wanda's urban coverage and market share. Consolidate its leading position in the cinema industry, at the same time, optimize the company's asset and liability structure, and enhance the company's anti-risk ability and financial stability. To ensure long-term sustainable and healthy development. In the post-epidemic era, the counter-trend expansion of Wanda Film will start the process of cinema industry integration.
Counter-trend expansion and steady increase into the accumulation of strength in the post-epidemic era
Under the influence of the epidemic, the film industry shut down for half a year, plunging the industry into a "dark moment". Downstream cinema companies mainly engaged in film screenings have even become "hardest hit", and the revenue end has basically been reduced to "zero." therefore, whether it is state-funded Chinese films, Shanghai films, and Blue Ocean of Happiness, or private leaders Wanda Film, Hengdian Film and Jinyi Film and Television, they all suffered huge losses in the first half of the year. According to Tianyan survey data, as of June, 6940 cinema enterprises nationwide had been cancelled or revoked.
Although seriously affected by the epidemic, the head companies of the major cinema lines are still firmly optimistic about the necessity of cinema expansion. Hengdian Film and Television, Happy Blue Ocean and Jinyi Film and Television respectively made it clear in their annual reports that 60, 27 and 25 cinemas will be opened in 2020, the pace of expansion is the same as the number of new cinemas last year, and has not been reduced due to the fierce competition in the cinema industry or the impact of the epidemic.
With regard to the significance of the approval of this non-public offering to Wanda films, the aforementioned media industry researchers believe that in recent years, the number of cinemas and screens has maintained rapid growth, and competition in the cinema line industry is still fierce. Under the catalysis of this epidemic, some small and medium-sized cinemas will withdraw from the market due to increased pressure on operation and cash flow, and the market concentration of companies with sufficient cash flow or stronger financing capacity will be obvious. And Wanda film at this point if it can get the blessing of non-public offering, it is expected to seize the first opportunity in this round of industry cleaning, speed up to improve its own market share, and achieve the effect of the strong.
While building its own cinema, Wanda Film continues to explore new business models, opening up the "franchise franchise" and the strategic model of "both importance and importance" in June this year. At the same time, Wanda Film will export five major systems to it, including BI system (Business Analysis system), and "management system" to join cinemas. This "hotel operation and management mode" is a light asset operation mode. Wanda Film, like Hilton, InterContinental, Marriott and other hotel giants, joins in the way of franchise. export the company's most core competitive advantage brand and operation management, and further expand the company's market territory.
The cinema recovery is faster than expected when the recovery is in progress.
At present, the biggest uncertainty in front of the cinema industry has been eliminated. Since cinemas across the country resumed work in an orderly manner on July 20, more than 300 cinemas under Wanda Film have gradually resumed business, and nearly 5000 cinemas across the country have officially resumed business. After a shutdown of more than 100 days, it took less than six days for cinemas across the country to resume work, surpassing the box office results of the day before they closed. As of July 26, the cumulative national box office reached 109 million yuan in the first week after returning to work, and the industry recovered much faster than expected, according to Maoyan Professional Edition.
After more than 100 days of "hardship", with the recovery of the cinema industry, the industry has seen the "spring". Relying on the superior resources in hand, with the help of this non-public distribution, Wanda film may enter a higher-quality and high-speed development stage in the post-epidemic era.