The actual controller of Huayi Brothers Media Corporation(300027) (300027. SZ) has reduced his holdings again.
The once popular movie maker is no longer popular. The financial Associated Press reporter learned from an insider close to Huayi Brothers Media Corporation(300027) that the operating performance of Huayi Brothers Media Corporation(300027) in film and television, brokerage and other main businesses in recent years did not meet expectations, while the impact of the epidemic, the cold winter of film and television capital and the long project payment collection cycle exacerbated the plight of continuous loss of performance.
Huayi Brothers Media Corporation(300027) on February 21, it was announced that Wang Zhongjun, one of the actual controllers of the company, planned to reduce the company’s shares by means of centralized bidding transaction by no more than 55.49 million shares, that is, no more than 2% of the company’s total share capital. The reason for the reduction was personal capital needs. The funds obtained from the reduction were mainly used to repay the stock pledge financing, reduce the pledge risk and better ensure the stability of control.
It is worth noting that this is not the first recent reduction plan of Huayi Brothers Media Corporation(300027) actual controller.
According to the announcement of relevant companies, Wang Zhonglei reduced 27.58 million shares through centralized bidding from November 3, 2021 to January 7, 2022, accounting for 0.99% of the total share capital of the company. On December 28 and 29, 2021, Wang Zhongjun reduced 18.81 million shares through block trading, accounting for 0.67% of the total share capital of the company.
This means that under the continuous loss of performance, whether it is the actual controller of the company or the listed company, there are problems in capital liquidity. From 2018 to 2020, Huayi Brothers Media Corporation(300027) has suffered losses for three consecutive years, and the net profit attributable to the parent company was -1.169 billion yuan, – 3.978 billion yuan and -1.048 billion yuan respectively.
The deficit situation was alleviated in 2021. According to the 2021 performance forecast, the net profit attributable to the parent company in 2021 is expected to be 22.5209 million yuan to 33.7139 million yuan, which will turn loss into profit.
The announcement also disclosed that the performance turnaround was mainly due to its net non recurring profit and loss of 961 million yuan. Among them, non recurring gains and losses mainly include gains and losses from the disposal of long-term equity investment and financial assets, as well as gains and losses from changes in the fair value of financial assets caused by changes in share prices.
After the release of the performance forecast, Huayi Brothers Media Corporation(300027) received a letter of concern from the Shenzhen Stock Exchange, requesting a detailed explanation of the long-term equity investment and financial assets disposed in 2021. According to the Huayi Brothers Media Corporation(300027) reply letter, the company disposed of 6 long-term equity investments in 2021, including live entertainment company, Qiming Oriental, hero mutual entertainment, Huayi Tencent Entertainment, etc; The disposal of financial assets reached 5 items, including Tencent music, Maoyan entertainment, guru online, Tianci Zhiheng, Suishi media and other company stocks.
On the whole, although the frequent sale of assets has improved the cash flow of Huayi Brothers Media Corporation(300027) , the situation is still grim.
More seriously, as a content company, Huayi Brothers Media Corporation(300027) missed the most important schedule in the film market – the Spring Festival. This means that Huayi Brothers Media Corporation(300027) will face the situation of no harvest at the beginning of 2022.
In terms of content reserve, the third quarterly report of Huayi Brothers Media Corporation(300027) 2021 shows that the film 749 Bureau directed by Lu Chuan and the film Mermaid 2 directed by Stephen Chow invested and produced by Huayi Brothers Media Corporation(300027) have been finished and entered the post production stage. The release time has not been determined. Whether to improve the performance of Huayi Brothers Media Corporation(300027) still needs continuous attention.
