The cold winter is coming, and the spring breeze is coming.
After the cold winter of film and television in 2019 and the impact of the epidemic in 2020, 2021 is a key year for the remaining film and television companies to think about how to move towards high-quality industrial development. On this occasion, the film industry white paper 2021 strong film road produced by the daily economic news and the big data center of Wanda film and Television Group also arrived for the fifth consecutive year. Witnessed by industry experts and scholars such as Zhang Pimin, chairman of the China Film Co.Ltd(600977) foundation, Ren Zhonglun, vice chairman of the China Film Co.Ltd(600977) Association, and Yin Xiangjin, general manager of Wanda film, the road to strong film 2021 was grandly released at the 34th China Film Co.Ltd(600977) Golden Rooster Award on December 28.
Different from the past, this year’s 2021 strong film road not only bases itself on the film and television industry, but also expands its attention to all cultural and media companies, comprehensively reviews the investment and financing status of film and television cultural companies, and interprets the important role of capital in the development of cultural industry.
On November 15, the birth of the Beijing stock exchange also opened a new window for investment and financing for cultural enterprises. Liu Shaojian, party secretary and director of Beijing state owned cultural assets management center, said at the 2021 China culture and finance summit that we should make good use of the platform of Beijing stock exchange to promote high-quality cultural enterprises to become stronger, better and bigger, and give full play to the leveraging role of financial funds to create a good environment for the development of cultural enterprises.
Among the first 81 enterprises listed on the Beijing stock exchange, 71 were directly transferred from the selected layer of the original new third board, and 10 were from the innovation layer of the original new third board. It can be seen that as the upstream market of the new third board, the North stock exchange has formed a progressive market structure of “foundation layer – innovation layer – North Stock Exchange”.
The new third board was once an important way for cultural small and medium-sized enterprises to go to the capital market and seek financing. As early as 2015, a large number of cultural enterprises gathered to land on the new third board. However, the capital liquidity of the new third board is weak, and the listing of enterprises also needs to increase a series of operating costs such as financial audit and information disclosure. The attraction of the new third board, which is difficult to realize the beautiful vision of low-cost financing, to cultural enterprises gradually decreases. Until 2018, a large number of enterprises chose to directly leave the new third board or go to a larger capital market.
The arrival of the Beijing stock exchange has injected new vitality into the capital market. From the perspective of investor threshold, the Beijing stock exchange makes it clear that the securities assets of individual investors only need to meet 500000 yuan. Compared with the previous access threshold of 1 million in the selected layer of the new third board, the investor threshold of the Beijing stock exchange is lower, which is conducive to more funds entering the market and strengthening capital flow. In terms of company listing standards, the Beijing stock exchange directly shifted the entry conditions of the selected layer of the original new third board, required the enterprise to have an estimated market value of no less than 200 million yuan, and established corresponding standards in terms of revenue, net profit and R & D investment according to the models of different companies.
“The cultural industry is an emerging industry. Cultural enterprises have a prominent characteristic of neglecting assets. Traditional financial services are difficult to meet this need. Objectively, it also leads to the dilemma of difficult and expensive financing for some cultural enterprises, especially small and micro start-ups.” Liu Shaojian said that at present, the policy of China’s science and technology industry is relatively systematic and the financial knowledge system is relatively complete, but the cultural industry is not perfect in this regard. We need to learn from the mature experience of the science and technology industry to speed up the improvement of the cultural and financial system.
67 cultural enterprises meet the minimum standards for listing on the Beijing stock exchange
The opening of the Beijing stock exchange has opened a new window for the investment and financing of the cultural industry. However, at present, among the 81 companies in the Beijing stock exchange, there are only two cultural media companies, namely digital people (835670. BJ) and golden age (834021. BJ), both of which were selected companies before.
Among them, liujinnian is the first selected layer company of the new third board. It has mastered a number of patented technologies in terms of TV channel services. There is a figure of liujinnian behind cctv-16 (CCTV Olympic Channel), which was officially launched earlier.
Although there are only two cultural media companies in the Beijing stock exchange, there are 93 large cultural companies in the downstream innovation layer, of which 63 have a market value of more than 200 million yuan, meeting the minimum standard for applying for listing on the Beijing stock exchange.
Huaqiang Fangte is a large cultural company with the highest market value in the innovation layer. The company owns the “Fangte” theme park brand and breeds the “bear haunting” IP. In addition, the hero entertainment of well-known game manufacturers and the unlimited freedom of ” China Film Co.Ltd(600977) marketing first stock” also deserve attention.
Over the past six years, the additional issuance of media shares has raised more than 200 billion yuan
According to the white paper on the road to strong film in 2021, from 2016 to 2021, the number of additional issuance financing of A-share media shares was 34, 34, 12, 7, 13 and 6, and the total capital raised was 51.4 billion yuan, 39.1 billion yuan, 36.7 billion yuan, 58.4 billion yuan, 18.8 billion yuan and 5.57 billion yuan respectively. During the six-year period, a total of 106 additional issuance financing were completed, with a total financing scale of more than 200 billion yuan.
From 2016 to 2021, A-share media stocks completed 106 additional financing, with a total financing scale of more than 2000 yuan.
In terms of quantity alone, the peak of additional issuance financing still occurred from 2016 to 2017, with a total of 68 additional issuance financing in the past two years: however, in terms of financing scale, the year with the largest additional issuance financing scale was 2019. Although there were only seven, the financing scale reached 58.4 billion yuan. This is mainly because media stocks such as Zhejiang Century Huatong Group Co.Ltd(002602) , Wanda Film Holding Co.Ltd(002739) , Mango Excellent Media Co.Ltd(300413) and contemporary Mingcheng completed large-scale financing in that year.
Cash reserves are seriously polarized, with a maximum of more than 10 billion and a minimum of less than 1 million
During the epidemic period, the adequacy of cash reserves has a great impact on film and television companies. For example, Wanda Film Holding Co.Ltd(002739) , Beijing Enlight Media Co.Ltd(300251) has abundant cash reserves, so it is relatively calm; Companies with poor cash reserves will be slowly cleared out of the industry, leaving the head companies in the industry.
By the end of 2020, the cash reserves of 173 media listed companies were seriously polarized. The most abundant balance of cash reserves and cash equivalents at the end of China South Publishing & Media Group Co.Ltd(601098) is more than 11.4 billion yuan, and the cash reserves of Chinese Universe Publishing And Media Group Co.Ltd(600373) , Oriental Pearl Group Co.Ltd(600637) , Beijing Gehua Catv Network Co.Ltd(600037) and Jiangsu Phoenix Publishing & Media Corporation Limited(601928) are also more than 6 billion yuan.
Four of the five media companies with the lowest cash reserves have been st, and the most scarce Great Wall International Acg Co.Ltd(000835) cash reserve is only 560000 yuan by the end of 2020.
In 2020, unlisted film and television enterprises raised 256 angel rounds, which were most favored by capital
Listed companies are working hard, and non listed companies are also booming.
In the whole year of 2020, unlisted film and television companies completed 256 financing. Among them, the most frequent round occurred in the angel round, a total of 60, accounting for 23.4%; There were 54 equity investments and 33 strategic investments, accounting for 21% and 12.9% respectively.
In terms of financing amount, large amount financing mainly occurs in the middle and late stages of financing rounds, such as round C, post IPO, equity transfer and so on.
Tencent and other established cultural Internet giants continue to build a cultural and entertainment ecology
For Internet giants, film investment is only a part of the deep integration of the Internet and the film industry. After experiencing the “competition for talents and resources” in 2018, seizing high-quality film production teams and talents to invest and acquire film companies is also one of the main ways for Internet giants to layout film tracks.
Over the past five years, bat (Baidu, Alibaba, Tencent) has invested 246 in the field of entertainment media. Tencent has invested 178 in this field, accounting for more than 70%. Entertainment has always been an important part of Tencent’s ecology. Controlling the upstream and downstream of the industrial chain by investment, acquisition and acquisition, reducing competition and obtaining profits has always been the path for enterprises to increase income.
Some new players, such as Beijing, have increased the layout of cultural industries with foreign investment
Old players spend money to build ecology, and new players also enter the game to grab the market.
From 2019 to October 2021, four new companies, B station, Kwai Matt, byte beating and fast hand, were involved in the foreign investment in entertainment and media fields to varying degrees.
The disclosed information shows that the largest single investment comes from the investment of Ireader Technology Co.Ltd(603533) with RMB 1.1 billion in November 2020, and obtained 11.23% equity of the latter. In addition, station B invested HK $513 million in Huanxi media, holding about 9.9% of the shares of the latter, which once attracted market attention.
(Daily Economic News)
