On December 11, Beijing Hualu Baina film and Television Co., Ltd. (hereinafter referred to as “Hualu Baina”), 300291. SZ) issued the notice on changing the implementation subject and use of part of the raised funds and using the surplus raised funds, which mainly includes changing the implementation subject of some film and television dramas; investing its own funds in new film and television projects; and reducing the production funds of variety shows to invest in film and television development. < / P > < p > however, just in September this year, the company just released the gem’s prospectus for issuing shares to specific targets. The total amount of funds raised by the gem to specific targets is no more than 400 million yuan, with a price of 3.94 yuan per share. The number of shares is no more than 101 million shares, accounting for 30% of the total share capital before the issuance. About 310 million yuan was used for “TV series and online drama production project”, and about 22.6 million yuan was used for “outdoor media resources procurement project”. Three months later, the use of funds will be adjusted, which to a certain extent has also caused investors’ concern about the development of the company’s projects. < / P > < p > in recent years, the company’s production capacity is not as good as in the past, stable production team is hard to find, and there are no more well-known works. However, the company has confidence in its future development, saying that the fund-raising is conducive to the long-term development of the company. < / P > < p > according to the announcement of the company’s raised funds, this transaction will not lead to the change of actual control right. Yingfeng group is the controlling shareholder of the company. After the completion of the transaction, the shareholding ratio of Yingfeng group increased from 17.61% to 26.71%, and the shares of he Jianfeng, the person acting in concert, changed from 5% to 4.45%, accounting for 31.16% of the total shares. He Jianfeng, the real controller, is a famous entrepreneur, the son of he Hengjian, the founder of Midea Group, and Yingfeng group is also a company controlled by he Jianfeng. At the same time, he Jianfeng also served as a director of Midea Group. This may indicate that the essence of this transaction is likely to be that the large shareholders with abundant funds spend money to save their own film and television sector. < / P > < p > in recent years, the situation of the film and television industry is not optimistic. Some people in the banana entertainment industry said that regulatory policies such as “Korean restriction” and “ancient restriction” have been introduced one after another, which not only purifies the market, but also makes it difficult for many completed works to appear. As the content gap of the video platform is gradually filled, the days when head companies such as Youku, Tencent and iqiyi purchase drama at high prices are gone One disaster after another, and the new covid-19 epidemic this year has stopped many of the cast groups. Many projects have been stranded and the film industry is even worse. < / P > < p > Warwick is no exception. According to the company’s third quarter report, in the first three quarters, the company’s revenue was 74 million yuan, a year-on-year decrease of 84.53%; the net profit attributable to the parent company was about 35.09 million yuan, a year-on-year decrease of 61.53%. In the first three quarters, the management expenses were about 54.03 million yuan, up 6.74% year-on-year, resulting in a gross profit margin of – 14.21%, down 158.38% year-on-year. < / P > < p > as for the reasons for the decline in revenue, the company said in the third quarterly report that “it was mainly caused by the delay of project progress in the reporting period and the decrease of drama revenue compared with the same period last year”. Thus, it can be seen that it is a harsh reality that the main business is difficult to boost the company’s efficiency, which makes the company to a large extent rely on financial returns to relieve the pressure. During the reporting period, the company’s investment income reached about 82.99 million yuan, an increase of 258.15% compared with 23.17 million yuan in the previous period. < / P > < p > in the context of the downturn in the industry, some film and television companies have sought the help of state-owned capital, such as Ciwen media and Tangde film and television, which are taken over by state-owned assets. Although this saved the company to a certain extent, it also caused the change of actual control. With the “support” of Yingfeng group, Hualu Baina has been able to continue its previous staff base and management mode, which is still lucky. < / P > < p > from 2017 to 2019, the total assets of Yingfeng group continue to rise. By the end of 2019, the total assets of Yingfeng group exceed 45 billion yuan, while the market value of Hualu Baina company is only about 4 billion yuan. It is not difficult for Yingfeng group to help each other once or twice, but in the long run, how to optimize the film and television production and boost the main business efficiency is the key to let the company “stand up”. < p > < p > Hualu Baina is an old brand enterprise in the industry. The company was founded in 2002, jointly built by Hualu group and Beijing Baina Culture Development Co., Ltd., with a registered capital of 10 million yuan. The company’s previous works, such as “Hanwu emperor” in 2005 and “the beautiful age of daughter-in-law” in 2009, have left a deep impression on a generation of audiences. However, in recent years, the company has produced few outstanding works. < / P > < p > the company listed 16 film and television projects in the semi annual report, of which only 6 projects were controlled by the company, “crazy hunting” was a mango TV customized play, and 8 projects were all participated in the investment. The investment mode of one “dawn descendant” was yet to be determined. Up to now, most of the projects that have been broadcasted are projects invested by companies, such as “black Lighthouse” and “qingqingzijin”, etc. the main projects are difficult to meet with the audience. For example, “secret love for orange and Huainan” was launched at the end of 2018 and has not yet been broadcast. The repercussions of the dramas that have been broadcast are mediocre. Take “black Lighthouse” as an example. On Mango TV platform, the show’s online broadcast volume reached 10 million, which dropped to about 19.08 million on the third day, and slightly exceeded 10 million in the next two days. Since then, the show has only been broadcast more than 10 million on weekends, and only one million in the rest of the time. The TV series “qingzijin” is the company’s revenue first project in the semi annual report. It is also broadcast on Mango platform, with the broadcast volume less than 20 million, and only a few hundred thousand in some days. < / P > < p > the feedback from the audience was also unsatisfactory. Douban platform showed that the score of “black” was 6.8 points, that of “green” was 5.9 points, and that of “where are you dear” was 5.5 points. Compared with the company’s past history, the score of Hanwu emperor and before dawn is more than 9, and the score of daughter-in-law is more than 8. < / P > < p > in addition to the decrease in the number of broadcasts and the decline in scores, relevant policy changes have also made the company’s projects suffer setbacks. In early 2019, Youku’s TV series “East Palace” was jointly produced by Hualu Baina, Youku, Tangde film and television, and Huashi entertainment. Relevant announcements show that the company’s investment cost of 200 million yuan, single integrated cost of 36.4 billion yuan. At present, the score of Douban is 7.7, and it has a good reputation. However, it will be taken off the shelves soon after it goes online, and it will be put on the shelves again at the end of the year, and the content has been obviously deleted. Although Youku’s official claim is that it was taken off the shelves because of “content optimization”, some people in the industry suspect that the play either ran into the “ancient restriction order” or needed to adjust its content because it involved ethnic topics. < / P > < p > generally speaking, the production team of a film and television company is an important factor affecting its film and television production level and ability. However, from the change of capital use mentioned by Warsaw in the announcement, it seems that the company lacks a stable production team, which also aggravates the uncertainty of R & D projects. < / P > < p > the announcement shows that the company has changed the main body of the TV series “brilliant you” and the two films “after holding hands” and “floating life like a dream”. Previously, the main body of the TV series “brilliant you” was Kashgar Hualu Baina film and Television Culture Co., Ltd., and then Dongyang wanna Guangjing. According to tianyancha, wanna Guangjing was just established on December 1 this year with a registered capital of only 1 million yuan. At present, the company is still in existence. The project of “brilliant you” is expected to invest about 67.19 million yuan. Guo pan, the manager of the company, is a senior manager of four enterprises. Except for Zhenjiang Guangjing film and Television Culture Co., Ltd., the other three are in existence. Dongyang wanna Guangjing is 100% owned by Shanghai chengzuo film and Television Co., Ltd., and Shanghai chengzuo is under the command of Hualu Baina. < / P > < p > the investment of the remaining two films is relatively small, both of which are about 19.66 million yuan, and the implementation subject after the change is Oriental beauty pictures Co., Ltd. The company is also not long established. According to tianyancha, the company was established on August 20 this year with a registered capital of 5 million yuan. Zhang Huan, the company’s chairman, is a senior executive in 11 companies, all of which are in existence. To some extent, it may increase the risk of the parent company by giving the expensive film and television projects to the young team. < / P > < p > in addition, due to the poor performance of its variety business team, the company also reduced its variety business and transferred 100 million yuan of funds for variety projects to film and television. In July this year, Hualu Baina divested its former company, Guangdong blue fire. In 2014, the company spent 2.5 billion yuan to acquire blue fire, which opened up territory for its parent company in the field of variety arts. Where to go, Dad, if you are the one and other well-known variety shows are marketed by blue fire. In order to further tap the commercial value of variety show, the blue fire team also participated in the launch of the big movie of the same name “where’s daddy going?”. After the completion of the three-year performance commitment, blue fire’s revenue dropped sharply, which dragged down the parent company’s net profit loss of more than 3.4 billion yuan in 2018. < / P > < p > however, the company has some confidence in its own production capacity. “The company has won more than 300 awards, including five one project awards, flying sky awards, Golden Eagle awards, Magnolia awards and so on. The film and television works cover many countries and regions and are widely loved by the audience,” the company’s secretary told investor.com. The company’s recent works have been widely praised by the audience, with good ratings and word-of-mouth data. ” < / P > < p > at the same time, the company is optimistic about the effect of the fund-raising. The Secretary said: “the company’s non-public offering is conducive to improving the company’s industry competitiveness, enhancing the company’s capital strength, and improving the company’s profitability in the medium and long term. In recent years, the film and television industry as a whole is in the period of de production and adjustment, and the company’s capital strength is enhanced, which is conducive to the company to actively play its own advantages and accelerate the business expansion and strategic layout of the industry in the trough period. ” < / P > < p > if the company successfully goes through the difficult period of de capacity and de inventory of the whole industry, with years of accumulated strength, it may still be able to occupy a favorable position in the film and television field in the future. < / P > < p > the actual operating level of the company has a real response in the capital market. Since the beginning of this year, the company’s stock price has fluctuated around 5 yuan / share and 6 yuan / share, except that it exceeded 7 yuan / share at the beginning of September. As of December 24, the company’s stock price was 4.76 yuan / share. From the historical high price of 56 yuan / share in 2015, there is only less than 1 / 10 left. Even so, the company’s P / E ratio is still as high as 85 times. < / P > < p > Disclaimer: the purpose of this article reprinted by CNFC is to convey more information, and it does not represent the opinions and positions of CNFC. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk. < p > < p > Chinanet is a state key news website under the leadership of the Information Office of the State Council and the management of China foreign language publishing and Distribution Bureau. Through 11 versions in 10 languages, the website publishes information 24 hours a day. It is an important window for China to carry out international communication and information exchange.