Zebra consumption

How much is the living space of the pure cinema line?

FollowingWanda Movie,Hengdian Film and Televisionafter that,Jinyi Film and TelevisionAlso handed over a bleak annual report. In 2018, revenue and net profit decreased by 8.24% and 25.29% respectively. The non-net profit of direct deduction was 40%, and the operating cash flow plummeted by 60%.

The collective loss of the three major cinema companies in the film and television industry may be seen as a sign of the overall hardship of the industry. With the reorganization of Wanda Movies, the film investment business will be merged, and the single-link players in the film and television industry are almost only Hengdian and Jinyi.

What happened to the cinema companies? The direct reason is that the growth rate of the screen is much higher than the growth rate of the box office, and the vicious competition; the industry reason is that the ticket compensation is reduced and the regulation is tightened; the fundamental reason is that the operating cost rises, the bargaining space decreases, and the profit space is continuously compressed.

In the context of the industry's pursuit of the entire industry chain, in addition to the veteran giant Zhongying, Wanda, content Fanghuayi, Bona, light distribution channels, channel vendors such as cat eyes began to counter upstream content production, so pure cinema companies in the market The right to speak will only become weaker and weaker. In the future, it is most likely to become a part of the giant industry chain.

Rapid decline in performance

April 12,Jinyi Film and Television released 2018 annual report: operating income was 2.010 billion yuan, down 8.24% year-on-year; net profit was 158 million yuan, down 25.29% year-on-year; deducting non-net profit was 104 million yuan, down 39.33% year-on-year.

In 2018, the company's operating cash flow was 167 million yuan, down 59.39% year-on-year.. Operating cash flow has fallen from 600 million yuan in 2015, and “cash cows” have been misnamed.

As one of the earliest private companies in China to enter the film screening business, Jin Yi Film and Television was founded in 2004 by Guangzhou Jiayu.real estateJoint venture with Guangzhou Performance Company. After the completion of the share reform in 2010, Jinyi Film and Television shocked several times and finally successfully listed A shares in October 2017.

However, since the listing, Jinyi Film and Television (002905.SZ) has lost its performance.

Of course, the performance of listed companies in the same industry is not much better.

The direct cause of the overall decline in the performance of the cinema is that the growth rate of the Chinese screen is much higher than the box office growth rate. It is inevitable that the performance of the head company will be affected.

In 2018, the country added 9303 new screens, with a total number of screens reaching 6,079. In 2018, the number of screens increased by 18.32. In 2018, the total number of national movie boxes was 60.976 billion yuan (including service fees), an increase of 9.06%.

In 2018, Jinyi Film and Television established 22 new direct studios; by the end of 2018, the company had 390 theaters in operation and 2,403 screens; among them, 165 directly operated theaters and 1167 screens.

In 2018, the company completed 2.773 billion yuan at the box office, down 1.61% year-on-year, and still ranked seventh in the national cinema.

In 2018, Hengdian Film and Television opened 52 new cinemas, a record high. Although Wanda movies slowed down the new opening speed, the screen also increased by hundreds of blocks - the excessive growth of the number of screens has laid a risk hazard for the industry. According to the plan, the total number of screens in the country will reach 80,000 in 2020.

In addition to the overall slowdown in the movie box office, the operating environment of the film and television industry has also greatly affected the industry's performance expectations.

For example, in the Spring Festival and National Day, the major producers jointly proposed that the fare should be no less than 19.9 yuan, and the single-piece ticket should not exceed 500,000. In addition, since last year, the movie ticket can be "returned and changed".

Both sales and advertising business fell

Jinyi Film disclosed in its annual report that its single studio output was 8,924,700 yuan, single screen output was 1.31 million yuan, and single seat output was 0.8 million yuan, which was 65.01%, 41.51%, and 11.11% higher than the national level, respectively.

However, it is an indisputable fact that the company's operating indicators have been declining in recent years.

In 2017, the company's single studio output was 110.52 million yuan, the single screen output was 1,649,400 yuan, and the single seat output was 10,100,000 yuan, which fell across the board.

Similar to Jinyi's film and television situation, the operating efficiency of the entire industry is declining. The data shows that the single screen output of Wanda Film in 2014 was 2.6 million yuan, and it has been decreasing year by year. In 2017, it was only 1.61 million yuan. The zebra consumption calculation found that the single screen output of Hengdian Film and Television in 2018 was about 1.1 million yuan. In 2017, it was reduced by about 100,000 yuan.

With the continuous construction of the cinema line and the continued slowdown in the growth of the box office, it is expected that the inefficient operation of the entire industry will become the norm.

The state of not making money in the movie screening business will further deteriorate. Then, what is the profit of the cinema company? Previously, Wanda Movie (002739.SZ) relied on popcorn to make money, and Jinyi Film's advertising business did a good job.

But now, Jinyi Film's sales and advertising business both fell, becoming the hardest hit by the company's performance decline.

In 2018, the company's sales business achieved operating income of 160 million yuan, down 14.64% year-on-year, and advertising business was 190 million yuan, down 36.39% year-on-year. The gross profit margin of the sales and advertising business was 53.06% and 99.48%, respectively, which was the main source of profit for the company.

The screening business continued to make no money, and the performance of sales and advertising business fell sharply. How does Jinyi Television save itself?

The film industry wants to be the whole industry chain

In the film industry-production closed loop of [production-distribution- cinema-cinema-audience], the number of players in a single link has become less and less.

Zhongying (600977.SH) and Wanda are the top all-industry chain players in the industry, representatives of state-owned and private enterprises.

In the top ten cinemas, Zhongying accounted for three; in 2018, the top 25 films in the box office, more than 10 were dominated by China Film; the strength of China Film in the film circle, no one can compare, even the heads of other film companies, most of them Also from China Film.

Wanda Movies is the first multi-billion-scale enterprise in the film and television industry. Now Wanda Movies is injecting Wanda movies, and it is even more powerful.

The original content producers have been distributing channels in the downstream distribution in recent years.Huayi Brothers(300027.SZ) launched the Huayi Theatre Line, in order to promote the cinema business, Bona even sacrificed short-term corporate fundamentals.Light media(300251.SZ) In the past few years, I took the cat's eye express train.

Not only that, the increasingly strong channel vendors have begun to grab a cake of content. The independently developed Cat Eye (01896.HK) has not only become the largest ticket distribution platform, but has also been strongly deployed on the content side in recent years, becoming the largest domestic film master publisher.

Can't keep up with the rhythm, can only fall behind, for example, the previous contentHualu Baina(300291.SZ).

The cinema company still has a place in the ecology because it firmly controls the 2C first line. However, as the industry is getting more and more concentrated, everyone knows that the living space will only get smaller and smaller.

The listed companies in the cinema have already felt the crisis, and they have laid out the upstream and involved in film and television investment and distribution.

However, at least for now, it is difficult to become one of its competitiveness. Hengdian Film and Television, Jinyi Film and Television are similar. Every year, the film distribution business generates operating income of tens of millions. As for the profit situation, it is impossible to know.Shanghai movie(601595.SH) At the beginning of the year, due to the cast of "Wandering Earth" anger, a sense of existence, and finally found that everyone is a special case.

Therefore, what the theater companies can do is to accelerate the embrace of the giants.