Author:Yao Mu

Source: GPLP Rhino Finance (ID:gplpcn)

August 3rd,Wanda Film (002739.SZ)According to the semi-annual report for 2020, the revenue was 1.972 billion yuan, down 73.93% from the same period last year; the net loss was 1.567 billion yuan, while the net profit for the same period in 2019 was 524 million yuan, and the net profit decreased by 398.81% compared with the same period last year.

Picture Source: Wanda Film semi-annual report

In response, Wanda Film said that since January 23, 2020, more than 600 domestic studios and overseas studios have closed down one after another, resulting in the film originally scheduled for release in the first half of the year failed to release as scheduled, resulting in a large loss in operating performance.

Wanda Film subsidiaryWandaChinatown Examiner 3, which is controlled by the chief investor of the film, was originally scheduled for release during the Spring Festival, but early pre-sales showed that the film was expected to earn a high box office, but failed to be released as scheduled.

In the first half of 2020, Wanda films grossed a total of 580 million yuan, down 88.3 percent from the same period last year, with 12.008 million moviegoers, 88.9 percent less than the same period last year. Of which, 250 million yuan at the domestic box office, 7.45 million at the cinema, 330 million at the overseas box office, and 4.558 million at the cinema.

In addition, in order to reduce the overall operating costs during the closure period, Wanda Film continued to evaluate and start the closure process for some of the less profitable studios, shutting down a total of 17 domestic studios in the first half of 2020.

It is worth noting that despite the serious decline in cinema business, Wanda Film's TV series production and distribution and related business performed well in the first half of 2020, and its subsidiary Eslite, a subsidiary of Eslite, once became a hit drama.

According to the semi-annual report, revenue from cinema, advertising, commodity and catering sales, film production and distribution and related businesses all declined to varying degrees, while the revenue of the TV series business reached 520 million yuan in the current period, an increase of 455.3% over the same period last year.

Picture Source: Wanda Film semi-annual report

However, because the gross profit margin of the TV series business has fallen sharply to 1.75%, it can not boost the overall profitability of Wanda Film.

At present, even if domestic cinemas have resumed business since July 20, 2020, the box office of Wanda Film still needs some time to return to normal.

According to the notice of cinema resumption, cinemas should meet the following requirements: the attendance rate should not exceed 30%; the daily film arrangement time should be halved; the time for a single film should not exceed two hours; in principle, the sale of drinks and snacks should be prohibited, and food in the cinema should be prohibited in principle.

Therefore, it will take time for cinemas to return to normal levels.

For Wanda movies, it's another matter if you can't afford to wait. At present, the biggest magic weapon that Wanda movies can bet on is "Chinatown investigation 3", but the repeated delay in its release consumes not only the enthusiasm of the audience, but also the patience of the management.

The first loss after the listing of Wanda Film in 2019, and the second half of 2020 will be very important to Wanda Film. In the face of the unknown second half of the year, can Wanda movies avoid being labelled "st"? GPLP Rhino Finance will continue to follow.