Wang Zhongjun sells houses and Huang Wei falls from the building, but the movie theater does not come in the dark


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Wen / Xue Jing
Source / boxed rice Finance (ID: daxionfan)
“Don’t wait, it’s all gone! I also think about making a home theater. “If I don’t want to force the cinema to death, I should do something.” although the resumption of the cinema is still far away, 72% of the audience have expectations for the cinema.
On April 13, Huang Wei, vice president of Bona film group, sent the last message in the circle of friends, and then there was no update.
(picture from Internet)
On June 10, at about 1:00 a.m., @ w, Wen Wen Wen Wen posted a microblog saying that someone was jumping from the building. In the afternoon, the official account of Bona film group issued an obituary. Vice president Huang Wei died at the age of 52.
On June 11, the official wechat of the new Beijing Daily said that Huang Wei’s death was due to long-term insomnia and depression. And his departure, as director Jia Zhangke said in his microblog, “is the sadness of the industry.”
Since the epidemic, filmmakers seem to have got on the bus. Every news is a big turn for them. The same is true for Huayi brother Wang Zhongjun.
According to the financial report, Huayi Brothers is expected to make a loss of 142 million to 137 million yuan in the first quarter, down from a loss of 93.938 million yuan in the same period last year. In addition, it has been losing money for two years in a row and is facing a crisis of delisting.
Since June 5, Wang Zhongjun has become a hot topic in the film and television circles. He sold his two high-rise rooms a and B in Fuhui mansion in the middle half of Hong Kong for HK $220 million. Wang Zhongjun didn’t disclose the reason for the sale, but the film industry interpreted it as to supplement the company’s working capital.
What forced the movie and television industry to such a situation? In fact, the black swan had arrived before the outbreak.
American dream
Boehner used to be the wind vane of Chinese film industry.
Since the founding of Bona film in 1999, the company has been developing well: it has obtained the license of the first private distribution company; it has become the leader of domestic film investment and production; it has invested in the construction of multi hall cinema; it has established Bona advertising company and bona acting agency company, signed artists such as Yuan Quan and Gao Hu, invested in Fan Bingbing studio and established overseas distribution company. As of 2009, Bona film has built a complete industrial chain of film production, distribution and projection. In 2010, the box office of Chinese films exceeded 10 billion for the first time.
The success of the first decade made Yu Dong decide to land on NASDAQ.
In January 2009, Huang Wei became Vice President of Bona film group. In less than two years, he and the founder of Bona Film Co., Ltd. worked together in local time of the United States. On December 9, 2010 local time, he sent the company to NASDAQ, the United States, and became the first share of Chinese film and television listed in the United States. In addition to him and Yu Dong, Gong Li, Yuan Li, Shi Nansheng and others were present. When the opening bell rang in winter, all the people hugged each other and burst into tears.
Boehner’s dream of American stocks began at this time.
(picture from Internet)
However, what everyone didn’t expect was that the starting point was the high point. On the day of listing, the company was broken. It fell from $8.49 to $7.2 in half an hour. At the end of the day, it fell to $6.58 per share, down 22.59% compared with the issuing price. In winter, it lost 100 million yuan in one night.
In 2010, the film market in the United States has been almost saturated. According to the statistics of American Film Association, from 2010 to 2016, the box office revenue of North American films was 10.6 billion US dollars, 10.2 billion US dollars, 10.9 billion US dollars, 10.4 billion US dollars, 11.1 billion US dollars and 11.4 billion US dollars respectively. In five years, it only increased by about 7%. From 2010 to 2016, North America sold 1.34 billion, 1.28 billion, 1.69 billion, 1.34 billion, 1.27 billion, 1.32 billion and 1.32 billion movie tickets respectively. Only 2012 sold more than 2010.
The U.S. film market, which has no room for growth, has affected investors’ judgment on Boehner. Not only that, from 2010 to 2015, the entire U.S. stock market was in a period of shock adjustment, and failed to choose a good time and place for the film industry to go public in winter.
While Boehner’s share price is falling, Huayi Brothers, light media and other companies are all booming in the A-share market. In 2015, Bona film’s market value was only about 5 billion yuan, Huayi’s market value was over 79 billion yuan, and light media’s market value was over 61 billion yuan. Once the industry leader, the market value is less than one tenth of “houlang”.
Due to the rapid development of the domestic film market and the reason why the company’s valuation is too low, Yu Dong announced in June 2015 that bona film would choose privatization and return to the domestic A-share market.
On April 8, 2016, Bona Pictures Group officially announced the completion of the privatization transaction, and announced the delisting on NASDAQ. In five years of listing, Bona only raised 92.5 million US dollars, about 600 million yuan.
“You don’t have to come back to catch up with the soaring A-share capital market. You are not coming back at the right time. ” When Yu Dong decided to delist on Nasdaq, Shen NANPENG, an investor, advised him, but he still decided to delist.
“If I were still in the U.S., I might be submerged on Wall Street. So I’m very lucky to decide to “return to a share.”
As Shen NANPENG predicted, Bona’s return time is not right. As soon as they came back, they reached the “thousand shares drop stop”, and the film and television industry was also affected. Not only that, in 2017, US stocks ushered in a golden year of growth. From the beginning of the year to December, the S & P 500 rose more than 20%, the Dow Jones index rose more than 25%, and the NASDAQ rose nearly 28%.
After delisting, Boehner still failed to choose a good time.
Huayi can’t be Disney
On October 30, 2009, Huayi Brothers went public. Different from Yu Dong, Wang Zhongjun and Wang Zhonglei chose to issue shares on the gem. The decision allowed Huayi Brothers to avoid the embarrassment of Bona film industry, and ushered in the first day of listing, up 212.8%.

Just after Huayi went public, Wang Zhongjun began to vigorously implement the strategy of “de Filmization”. For him, it’s not enough to make money by box office alone. What he wants to do is the diversified development of “Oriental Disney”.
The strategy of diversified development began in 2010. In June of that year, Huayi Brothers purchased 22% of the equity of zhangqu technology for 148 million yuan. Then in December, Huayi Brothers and giant network jointly established Beijing Huayi giant Information Technology Co., Ltd., in which Huayi Brothers held 51% and giant network 34%. Then Huayi giant obtained the operation right of online game “king of Kings 3” with the price of 25 million yuan.
However, Huayi did not taste the sweetness. According to the 2012 annual report, Huayi invested a total of 57.25 million yuan by the end of 2012, but Huayi giant lost 3.76 million yuan instead of making profits. As a result, Huayi sold its shares to giant network at a price of 57.25 million yuan, leaving the market in dismay.
But Wang Zhongjun did not give up to enter the game field. In 2013, he purchased 50.88% equity of Yinhan technology, a game company, for 672 million yuan. In 2015, he invested another 1.9 billion yuan to become the second largest shareholder of hero entertainment of the game company, and later participated in round a financing of Xianyu game.
At the same time, Wang Zhongjun started the second step of diversified development – building a movie town. In 2014, Huayi Brothers invested 5.5 billion yuan to establish the first film town in Haikou – “Guanlan Lake Huayi Feng Xiaogang film commune”. After that, the goal is to build 20 towns by the end of 2016.
According to Wang Zhongjun’s idea, “each town has at least three rounds of income, the first round is the brand trademark use fee, starting at 100 million yuan, 20 towns can sell 2 billion yuan just for” Huayi Brothers “.
However, both the game and the movie town can bring the expected benefits to Wang Zhongjun.
From 2014 to 2016, Huayi Brothers brand authorization and film town’s revenue was only RMB 234 million, RMB 56 million and RMB 256 million.
Moreover, the goal of building 20 towns by the end of 2016 has not been achieved. According to public information, Huayi film town has only signed six projects, and only four projects have been opened, namely Huayi Brothers Suzhou film world, Haikou Guanlan Lake Huayi Feng Xiaogang film commune, Huayi Brothers Changsha film town and Jianye Huayi brothers film town.
In the first three quarters of 2017, the revenue and net profit of zhangqu technology decreased by 5.56% and 29.54% respectively. In order to stop losses in time, Wang Zhongjun began to reduce his holding of zhangqu technology shares, leaving only 0.42% of the shares, with a total of 2.474 billion yuan cashed out.
The strategy of developing “Oriental Disneyland” brought hidden danger to the loss of Hua brothers. As the focus deviates from the main business, Huayi Brothers’ box office revenue in 2014 decreased from about 3 billion yuan in 2013 to 2 billion yuan, ranking behind light media, Bona film and LETV film. This is the first time it has won the title of ticket house champion since 2012 and 2013.
At the beginning of 2018, Huayi Brothers released 9 films in total: Fanghua, predecessor 3, the four kings of Di Renjie, stormy waves, find you, action team of fatso, Yunnan worm Valley, people in the Jianghu, nice to meet you, but there are only two hits: Fanghua and predecessor 3. In this year, Huayi Brothers lost 1.093 billion yuan in the whole year, the first loss since its listing.
“I invested too much in the past few years, so I have to review myself. ”
Wang Zhongjun’s dream of “Oriental Disneyland” has not come true yet, which ushered in the loss in 2018.
(picture from Internet)
A share is hard to return, Huayi is hard to save
Boehner’s return to A-share listing is not going well.
After leaving Nasdaq, in 2016, Yu Dong changed the business place of Bona film from Beijing to Urumqi, Xinjiang, only because the CSRC opened a green channel for Xinjiang enterprises to be listed in the first place, “that is, to report for review, to issue after review”.
On May 3, 2017, Bona film officially entered the IPO guidance period. On September 22, the IPO prospectus was submitted to the CSRC and was officially accepted on September 30.
In order to return to the A-share market, Bona film has made a good plan of queuing for three years. But during its queuing period, the film industry bubble burst and the regulation of film and television stocks became stricter. According to the data of China Securities Regulatory Commission, 105 A-shares were listed in 2018, among which the pass rate of film and television companies was zero. For this reason, iqiyi, cat’s eye and other enterprises choose the overseas market, but Bona has become the only film and television company still queuing up.
In March 2019, Bona film received the IPO feedback document issued by the CSRC, at this time, the company has ranked 10th. However, its cooperative Ruihua accounting firm was put on file by the CSRC for investigation of * ST Kangde financial fraud case and Fu Ren pharmaceutical cash “evaporation” case, and the IPO of Bona film was suspended by pressing the pause key, which was announced by the CSRC on March 14 to be in the “suspended review” state.
Bona pictures, which has been in line for nearly two years, is now applying again.
Since landing on Nasdaq, Boehner has wasted ten years, and it has lost its once dominant position in the industry. According to the statistics of China film distribution and projection Association, as of 2019, there are 47 cinemas in China, with a total of 12000 cinemas. In the past decade, Wanda cinema has been dominating the leading position. According to the financial report of 2019, by the end of that year, Wanda’s market share has reached 13.3%, and the number of direct cinema has reached 656. The number of cinemas in China is only 80, accounting for less than 2%.
At the beginning of 2020, the epidemic hit suddenly, and bona film industry was deeply affected. According to Yu Dong, CEO of Bona pictures, one of Bona’s main theme gift films, ice snow Changjin lake, was stopped because of the epidemic. 1800 crew members were detained in Dandong, 200 in the desert, with a loss of more than 150 million.
As early as 2015, Huayi Brothers, whose market value has exceeded ten times that of Bona film, is not so good.

In April 29, 2020, in order to carry on this winter, Huayi Brothers issued a notice of fixed increase. The total amount of the 2.78 yuan / share non-public offering was no more than 862 billion 300 million shares, and the total amount of funds raised was not more than 2 billion 290 million yuan. The target audience was Ali pictures, Tencent computer, Sun Life Insurance, Xiangshan Da Cheng Xia Xia, Yu Garden shares, name Hertz group, Xintai life insurance, three Li Jing Kong and Shandong Jing Da 9 companies. All the issuing objects subscribe for the shares issued this time in cash.
However, 2.29 billion yuan does not make up for Huayi’s 5 billion loss in the past two years.
Therefore, on June 5, Wang Zhongjun’s house selling news was immediately interpreted as to supplement the company’s working capital.
“For the sake of life and the safety of the company, I can sell anything.”
It is not the first time for Wang Zhongjun and Huayi Brothers to “sell assets” to make up the deficit.
(picture from Internet)
In 2018, half of Jiade’s night performance was painted by Wang Zhongjun. In July 2019, Huayi Brothers got RMB 40 million by mortgage of film equipment. In August, Wang Zhongjun confessed at the 15th summer summit of Yabuli China Entrepreneurs Forum that he was selling paintings in exchange for funds to solve the problem of corporate liquidity. In September, Huayi Brothers and its wholly-owned subsidiary Huayi international invested 55 million US dollars (about 390 million yuan) to transfer all its shares in GDC company, and mentioned in the announcement that the funds will be used to supplement the company’s working capital. On December 31, 2019, Huayi Brothers transferred 4% of the shares of “selling network” to Chen Yingkui, CEO of selling network, with the transfer price of 9.04 million yuan.
Huayi seems to have been using the method of “robbing the east wall to replace the west wall” to help itself, but two years later, the loss has not been covered.
Since January 27, theaters across the country have been closed. At the beginning of March, the cinemas were ready to resume work. However, on March 27, the state film Administration issued an urgent notice: all cinemas will not resume business temporarily, and those that have resumed business will be closed immediately. On May 8, the State Council announced that closed entertainment and leisure places such as cinemas can be opened in the form of reservation and flow restriction, but because there is no film source, the resumption date has to be postponed again. On June 5, the state film Administration issued a circular saying that the opening of cinemas nationwide must follow a unified schedule.
The time for the cinema to return to work has been delayed again and again.
More than 40% of the nearly 200 theaters surveyed are at risk of going out of business, according to the survey report on the living conditions of cinemas by the China Film Association. Since 2020, 6686 film and television companies have been cancelled, which takes the first place in all the cancellation industries.
This “cold winter” has killed many cinemas. Boehner and Huayi were also hit hard. The movie theater ushered in the dark time, but the black swan was just the last straw to kill them.
reference material:
The beginning and end of Huayi Brothers’ Crisis
“Back to a share, Bona film is not so easy”
(statement: This article only represents the author’s point of view, not Sina’s point of view.)