When the total box office of “send you a little red flower” (hereinafter referred to as “little red flower”) continued to rise, the stock price of Hengdian film and Television Co., Ltd. went out of a steep line, and even attracted the inquiry letter of Shanghai Stock Exchange. In early January, Hengdian film and television just completed the industrial and commercial registration of 100% equity transfer of Hengdian film, which is the producer of little red flower. < / P > < p > in fact, the stock price of Hengdian film and Television Co., Ltd. is not without the box office bonus of little red flower. On December 31, 2020, Hengdian film closed at 18.85 yuan / share, up 9.98%. On January 4, the share price rose to 19.98 yuan / share. But the gains were limited to two trading days. After January 4, Hengdian film and television entered a slump range, and in three consecutive trading days since January 5, the deviation value of the closing price fell by more than 20%. On January 12, Hengdian film closed at 15.00 yuan per share, down 2.41%. < p > < p > according to the data of the National Film Funding office, after winning 257 million box office on January 1, the box office of “little red flower” reached 10000 yuan per day. Although “little red flower” has been the box office champion for many days, it is still hovering within 50 million yuan. As of January 12 (20:45), the cumulative box office of “little red flower” was 1.076 billion yuan, still the highest on that day. < p > < p > “little red flower” tells the story of anti-cancer, directed by Han Yan, starred by Yi Qianxi and Liu haocun, and participated by Zhu Yuanyuan, Gao Yalin, Xia Yu and Yue Yunpeng, with a Douban score of 7.5. According to the lighthouse data, as of 20:45 on January 12, the film has won 388 million pieces. In view of the type of feature film, the production cost is not high, which is a project with quite good returns. < / P > < p > according to the previous announcement, Hengdian film and Television Co., Ltd. acquired 100% equity of Hengdian film and television production and 100% equity of Hengdian film and Television Co., Ltd. held by Hengdian holding in cash, with the purchase price of 20.5437 million yuan and 101.7 million yuan respectively, totaling 122 million yuan. Hengdian holding is the controlling shareholder of Hengdian film and television. < / P > < p > according to the asset appraisal report issued by Zoomlion international, the price is quite reasonable. As of August 31, 2020, Hengdian film has total assets of 389 million yuan, net assets of 92.9274 million yuan, and the final evaluation value is 101.7 million yuan, which is finally traded at this price. < / P > < p > but in terms of actual business, the expansion of Hengdian film is limited. Although its production projects in recent years include “Red Sea Action”, “me and my motherland”, “young you” and other popular films, they are co producers with limited share. < / P > < p > in addition, although Hengdian film is the first producer of little red flower, its main creative team has no public binding relationship with Hengdian film. Han Yan’s last work “go away! Tumor king, which won 510 million yuan at the box office in 2015, was first produced by Wanda. As the flow source of little red flower, Yiguan Qianxi is far away from Hengdian film and television. The appraisal report also shows that the book value of Hengdian film’s inventory is 27.671 million yuan, the provision for inventory depreciation is 9.9283 million yuan, and the net book value of inventory is 17.7427 million yuan, including raw materials and goods in stock. The raw materials are 5 scripts purchased by enterprises, four of which have been determined not to be shot, and the remaining one can only be shot after the script is modified; the stock goods are mainly 9 films released and 1 film not released. This means that the company’s film list is limited, forming a sharp contrast with traditional film giants such as Huayi Brothers, light and bona. < p > < p > the biggest advantage of Hengdian film and television lies in its cinema scale. According to the announcement on January 8, it has opened 369 direct operated cinemas with 2326 screens, with a total box office of 302 million yuan, a market share of 3.99%, and a total of 9.7011 million movie goers; it has 82 franchise cinemas with 473 screens, with a total box office of 47.7984 million yuan, and a total of 1.5629 million movie goers. < / P > < p > the channel advantage can become its bargaining weight in the head project, and Wanda film is making a similar layout. But even if the first mock exam is far bigger than the Hengdian film’s Wanda film, it is also struggling with this pattern. According to the third quarter report of 2020, Wanda’s film revenue was 1.241 billion yuan, a year-on-year decrease of 69.20%; its net loss was 449 million yuan, a year-on-year decrease of 247.01%. During the same period, Hengdian film and television had a revenue of 399 million yuan and a net loss of 368 million yuan. On January 12, Wanda film closed at 19.15 yuan, down 0.88%. < p > < p > Zeng Maojun, chairman of Wanda film, admitted to the 21st century business reporter last year that the peak of cinema construction alone has come. Wanda film will focus on managing output and content. “Now it is close to 15 billion (more than 600 cinemas, the largest in China). If we do it for another three or four years, it means that we will invest more than 20 billion in the cinema industry. Larger scale can only be achieved by managing output. Wanda’s core advantage lies in its management ability. Content and channel are the key points. We will pay more attention to the content in the near future. ” He said. < p > < p > the logic of Wanda film explains why Hengdian film and television is located upstream. However, it is precisely because Wanda, which has a larger volume, is still difficult. The market can not help but doubt where Hengdian, which is squeezed, can go. < / P > < p > take Huayi Brothers, the first A-share listed film company, as an example. On January 12, it closed at 3.93 yuan, with a total market value of 10.922 billion yuan. At its peak, its market value exceeded 80 billion yuan. At the moment, Huayi’s “warm embrace” is in the release period, and the box office has exceeded 694 million yuan, and the film’s share account has exceeded 250 million yuan. This is a medium and small cost comedy, and the profit should not be low. But there was limited boost to Huayi Brothers’ share price. On the same day, light was also at a low point in the annual cycle. < / P > < p > the whole market is short selling film companies, which has been relatively out of line with the current revenue. The problem is here. “The project-based revenue of film companies fluctuates too much, which is magnified by the changes in epidemic situation, policies and channels. Now the market, has been afraid to touch the film. The key is to find a way out of the long chain. ” The founder of a head film company told the 21st century business reporter. Another state-owned listed film company executives, also expressed helplessness, “no clue, we are waiting for the policy.” < / P > < p > back in Hengdian, when the first film companies were in a period of suffering, it was hard to say that they could go on with their film production business. And Hengdian film and television did not find the long chain story needed by the market. < / P > < p > in addition, the cinema business itself is becoming more and more difficult, and the signal of “surplus” is obvious. “The increment of cinema is to improve the service level, more like a community traffic center, but its imagination is limited.” Another cinema listed company executives said. A number of film directors also said that the operation of the cinema is difficult, and it is even more difficult to sell. < p > < p > under the pressure of the cinema market, Hengdian film and television chose to go to another red sea, the production end. Can the company find a way out under the double squeeze? For the moment, at least, there’s a lot of pressure. < / 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. 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