Since the cinema resumed work for half a month, the film tycoons who have been dormant for half a year have become active again.

Huayi BrothersGetChina Merchants BankFinancing endorsement, the big production "eight hundred" has been booked for many times on August 21, becoming the first big film to be released after the cinema resumes work.Wanda movieAfter the meeting, more than 4 billion yuan will be raised to open cinemas and replenish working capital.

However, within a few days, the enthusiasm that had just been aroused by the film and television industry was returned to the cold reality by Wanda's semiannual report with a huge loss of 1.7 billion yuan.

For Wanda Film, the difficult environment is only the catalyst for huge losses, because the performance of the acquisition target is not up to expectations, leading to huge goodwill impairment and other reasons, the company has lost 4.7 billion yuan last year.

Launched in the first half of the year.Open up new channels, close inefficient stores, and open up to joinAnd other key self-rescue measures, not only to deal with the impact of the epidemic, but also based on the back-to-back battle under the pressure of the company's performance.

Open to join under pressure

The hardest thing about the market environment in the first half of 2020 is the film industry. Restaurants can open in March and April, and the tourism market has been reopened for a long time, and cinema chains across the country did not resume until late July.

The first six months of this yearThe total box office of the national film market is only 2.24 billion yuan.(including service charge), decreased by 92.8% compared with the same period last year, and the number of moviegoers was 60.058 million, a decrease of 92.6% compared with the same period last year.

In such a market environment, film companies can be forgiven for their declining performance.

Wanda Film (002739.SZ) disclosed its semi-annual report for 2020 on the evening of August 3rd. The company's operating income was 1.972 billion yuan, down 73.93% from the same period last year.Net profit from homing-1.567 billion yuan, down 398.81% from the same period last yearThe deduction of non-net profit fell by 438.51% to-1.706 billion yuan.

In the first half of the year, due to the closure of cinemas, the revenue of the company's three traditional businesses, namely, projection, advertising and sales, fell by about 80%; the film production, distribution and game business all dropped by about 15%; on the contrary, it accounted for the relatively small TV series business before. Business revenue increased by 455.30% to 520 million yuan, but the gross profit margin of this sector was as low as 1.75%, with little room for profit.

In the face of adversity, Wanda film launched a variety of strategies to save itself.

In the screening business, APP, a member of the company, launched member marketing activities such as "Home Cloud Welfare Card Voucher Gift package", "everything recovers in Spring" and "Love you Love" theme movie packages. In addition, during the closure period, expand Douyin marketing channels, incubate "Wanda Film Studio" and other ways to prepare for the resumption of business after the resumption of work.

In the business of selling goods, the company changed its sales from offline to online, added a number of new e-commerce sales platforms, introduced live streaming, and through Wechat, Alipay, takeout platform and other channels, for some sales and derivatives to promote online sales ordering, offline distribution door-to-door services to alleviate the pressure on inventory of goods.

That's not enough. During the period, Wanda Film closed 17 less profitable studios. As of June 30, 2020, the company has opened 651 cinemas with 5767 screens, including 598 domestic cinemas with 5313 screens and 53 overseas cinemas with 454 screens.

In June, Wanda Film finally bowed to the market.Formally open the franchise right to the outside world, external exportWandaBrand and management.

The business is besieged on all sides.

The reverse trend of the industry in the first half of the year is only the "catalyst" for Wanda's huge losses, and the company's biggest challenge is stillLack of profitability of their own business and sequelae of mergers and acquisitions.

In 2019, the company's operating income was 15.435 billion yuan, down 5.23% from the same period last year; its net profit was-4.719 billion yuan, down 324.87% from the same period last year.

The main reason for the sudden drop in performance was that the company set aside 5.909 billion yuan for asset impairment, of which 5.575 billion yuan was included for goodwill impairment. The three major business sectors of goodwill impairment are studio business, advertising business and Mtime.

Even after deducting the impact of asset impairment, the company's return net profit is only 1.141 billion yuan, down 45.73% from the same period last year, nearly halving.

A few years ago, Wanda Cinema, which has become the largest cinema company in China, changed its name to Wanda Movie, and is preparing to inject Wanda's film-related assets-Wanda Film and Television for film production and distribution, Movie Community time Network, Eslite, a new media for TV series, and mutual love and interaction in the game industry, into listed companies.

Finally, it took many years, the plan has been adjusted several times, and the merger and acquisition has been completed. Wanda's film business has set foot in the film and television industry [investment-production-distribution-promotion-ticket selling-projection-derivative] the whole industry chain, forming the most perfect closed loop in the industry.

However, in the year of restructuring, the company suffered huge losses due to substandard performance of M & An assets, and there was an uproar in public opinion.

After the 2019 report was disclosed, Wanda Film was asked by the exchange why the game business, film and television business did not meet expectations or even failed to fulfill performance commitments, but did not mention goodwill impairment. In other words, even if the company loses nearly 5 billion, the performance is still watery.

At the end of July, Wanda Film plans to raise no more than 4.35 billion yuan in non-public offerings, mainly for construction projects of 162cinemas and supplementary liquidity.

There is nothing wrong with the strategy of going against the trend and grabbing market share. Other top players in the industryJin Yi Film and Television、Hengdian Film and Television、Shanghai film、Blue sea of happinessOh, that's what they're doing.

How to improve business efficiency and profitability and digest market expectationsIt has become the main problem of Wanda film.

Although cinema line business continues to expand, but single screen revenue and single studio income continue to decline; film and television investment business is already risky, and in recent years it has been squeezed by Internet entertainment giants; game business has suffered a decline in the pro-cycle of the industry. TV series business does not make money, the main film surrounding Mtime has become one of the main drag …...

Although cinemas have resumed business, it will take some time for the market to return to normal. I am afraid it will not be easy within this year.

The difficult solution of Wanda

As a matter of fact, the difficulty of Wanda movies is one of the difficulties of Wanda Group.

Wanda has narrowly passed several times since the liquidity crisis broke out in 2017, but its goal of resolving debt pressures and returning to normal operations has not yet been fully landed.

Had it not been for the tight capital chain of Wanda Group and could not have given blood transfusion for Wanda film, Wanda's only A-share listed company would not have been so nervous, and I am afraid that the young master would not have been repeatedly included in the list of executors.

In the early years, Wanda went smoothly and gradually expanded its business from commercial real estate to film, sports, cultural travel and other fields. Its business spread all over the world. Wanda became a capital giant, and Wang Jianlin became the richest man.

At the moment of life and death, Wanda had to break his arm to survive. Except for packing the travel and hotel 3 years ago toFinancial innovation和R & FSince the beginning of this year, the World Ironman, Baby King and Chicago real estate businesses have been transferred one after another.Withdraw 7 billion yuan in cash.

Wanda movies suffered huge losses, VANDA HOTEL Development (00169.HK) lost money.NASDAQListedWanda sportsIn 2019, both revenue and net profit fell, and commercial business was hard hit by the epidemic. In times of crisis, Wanda is readyPick up the real estate business that you "don't like" in previous years as a "lifesaver".

At the end of 2019, Wanda Real Estate became independent from Wanda Business Management. In April this year, Wanda Real Estate, which had not taken homestead for many years, sold a pure residential plot in Yancheng, Jiangsu Province, and confirmed the cultural and tourism project in Changchun Shadow Capital and Han'an Lake in Neijiang, Sichuan. Recently, Wanda Real Estate has twice spent 2 billion yuan on land in preparation for the construction of Wanda Square and supporting housing in Lingang.

According to data disclosed by Carey, Wanda property sold 21.87 billion yuan in the first half of the year, meeting only 27% of its annual sales target of 80 billion yuan.