Film and entertainment companies make and sell entertainment products and services, including film and TV show making, distribution and displaying companies, music distributors and producers, entertainment theaters.
In 2016, Chinese companies produced a total of 944 films, including 772 story films, 49 animation films, 67 science educational films, 32 documentaries and 24 special type films. Story film production and gross film production increased by 12.54% and 6.31% over the year before, respectively.
Due to the impact of online films, China's box office has been declining. It ended 2016 at CNY 45.712 billion, expanding by 3.73% YOY. This included CNY 26.663 billion of local movie box office revenues, accounting for 58.33%. Box office and sales revenue of Chinese films in overseas markets topped CNY 3.825 billion, increasing by 38.08% YOY. There were 500 investment and funding cases in the culture and entertainment sector in 2016. The valuation of some companies surged and several "unicorns" emerged with more than USD 1 billion valuation.
The Chinese government issued a number of policies to regulate the development of the film and entertainment industry. For example, Film Industry Promotion Law was issued on November 7, 2016. Highlights of the law were reduced approval items and lowered entry barriers. It also prohibited film distributors and theaters from deceiving consumers through false trading, overstating sales revenue, etc. In addition, China's online film industry is faced with both opportunities and challenges. On one hand, the industry is in a favorable environment because the Chinese government encourages in-depth engagement in the film industry chain. Consumers' rising entertainment demand and the capital layout are also beneficial to the industry. On the other, weakened growth of the film market poses challenges to film box office.
Chinese people need high-quality local movies that reflect their own real life. At the same time, popular movies on the global market should also be introduced.
In this report, CRI analyzes 21 film and entertainment enterprises listed in A-share market in China.
The report is composed of two parts: the first part is enterprise profiles and the second part is the operation status of these enterprises in the recent decade (presently 2006 to 2016, we will update it to the latest as time goes by).
The operation status is demonstrated from the following perspectives: (1) financial indexes, such as earnings per share, book value per share (BPS), sales per share, net cash flow per share, return on net worth and debt to asset ratio; (2) indexes on the income statement, such as revenue, operating profit, net profit and EBIT; (3) indexes on the income statement, such as revenue, operating profit, net profit and EBIT; (4) indexes on the balance sheet, such as liquid asset, fixed asset, current liability, non-current liability, capital reserve and shareholders' equity.
(1) Financial Indexes
- Earnings per Share
- Book Value per Share (BPS)
- Sales per Share (SPS)
- Net Cash Flow per Share from Operations
- Net Cash Flow per Share (CNY)
- Return on Net Worth
- Net Profit Margin on Total Assets
- Return on Invested Capital (ROIC) (%)
- Gross Profit Margin on Sales (%)
- Net Profit Margin on Sales (%)
- EBIT Margin (%)
- EBITDA Margin (%)
- Debt to Asset Ratio (%)
- Total Asset Turnover (times)
- Cash/Operating Income Received from Sales of Goods or Services
- YOY Growth Rate of Operating Revenue (%)
- YOY Growth Rate of Operating Profit (%)
- YOY Growth Rate of Net Profit Attributable to Shareholders of Parent Company (%)
(2) Summary of Income Statement
- Gross Revenue (CNY, million)
- Total Operating Costs (CNY, million)
- Revenue (CNY, million)
- Operating Profit (CNY, million)
- Total Profit (CNY, million)
- Net Profit (CNY, million)
- Net Profit Attributable to Shareholders of Parent Company (CNY, million)
- Non-recurring Items (CNY, million)
- Net Profit Deducting Non-recurring Items (CNY, million)
- R&D Costs (CNY, million)
- Earnings Before Interest and Tax (EBIT) (CNY, million)
- Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (CNY, million)
(3) Summary of Balance Sheet
- Liquid Asset (CNY, million)
- Fixed Asset (CNY, million)
- Long-term Equity Investment
- Total Assets (CNY, million)
- Liquid Liability (CNY, million)
- Non-current Liability (CNY, million)
- Total Liability (CNY, million)
- Capital Reserve (CNY, million)
- Surplus Reserve (CNY, million)
- Undistributed Profit (CNY, million)
- Shareholders' Equity (CNY, million)
- Equity Attributable to Shareholders of Parent Company (CNY, million)
(4) Summary of Cash Flow Statement
- Cash Received from Sales of Goods and Services (CNY, million)
- Cash Flow from Operations (CNY, million)
- Cash Paid to Purchase Fixed Assets, Intangible Assets and Other Long-term Assets (CNY, million)
- Cash Paid for Investments (CNY, million)
- Cash Flow from Investments (CNY, million)
- Cash Received from Investors (CNY, million)
- Cash Received from Borrowings (CNY, million)
- Cash Flow from Financing (CNY, million)
- Net Increase of Cash and Cash Equivalents (CNY, million)
- Cash and Cash Equivalents, End of Period (CNY, million)
- Depreciation and Amortization (CNY, million)
Companies in the report:
1 Lead Eastern Investment Co., Ltd. (000673.SZ)
2 H&R Century Union Corporation (000892.SZ)
3 Great Wall Movie And Television Co., Ltd. (002071.SZ)
4 Oriental Times Media Corporation (002175.SZ)
5 Ciwen Media Co., Ltd. (002343.SZ)
6 Huawei Culture Co., Ltd. (002502.SZ)
7 Perfect World Co., Ltd. (002624.SZ)
8 Wanda Cinema Line Co., Ltd. (002739.SZ)
9 Huayi Brothers Media Corporation (300027.SZ)
10 Zhejiang Huace Film and TV Co., Ltd. (300133.SZ)
11 Beijing Enlight Media Co., Ltd. (300251.SZ)
12 Beijing Hualubaina Film & TV Co., Ltd. (300291.SZ)
13 Shanghai New Culture Media Group Co., Ltd. (300336.SZ)
14 Zhejiang Talent Television & Film Co., Ltd. (300426.SZ)
15 Omnijoi Media Corporation (300528.SZ)
16 China Television Media, Ltd. (600088.SH)
17 Wuhan DDMC Culture Co., Ltd. (600136.SH)
18 Zhejiang People Culture Co., Ltd. (600576.SH)
19 Cultural Investment Holdings Co., Ltd. (600715.SH)
20 China Film Co., Ltd. (600977.SH)
21 Shanghai Film Co., Ltd. (601595.SH)
1 Lead Eastern Investment Co., Ltd. (000673.SZ)
2 H&R Century Union Corporation (000892.SZ)
3 Great Wall Movie And Television Co., Ltd. (002071.SZ)
4 Oriental Times Media Corporation (002175.SZ)
5 Ciwen Media Co., Ltd. (002343.SZ)
6 Huawei Culture Co., Ltd. (002502.SZ)
7 Perfect World Co., Ltd. (002624.SZ)
8 Wanda Cinema Line Co., Ltd. (002739.SZ)
9 Huayi Brothers Media Corporation (300027.SZ)
10 Zhejiang Huace Film and TV Co., Ltd. (300133.SZ)
11 Beijing Enlight Media Co., Ltd. (300251.SZ)
12 Beijing Hualubaina Film & TV Co., Ltd. (300291.SZ)
13 Shanghai New Culture Media Group Co., Ltd. (300336.SZ)
14 Zhejiang Talent Television & Film Co., Ltd. (300426.SZ)
15 Omnijoi Media Corporation (300528.SZ)
16 China Television Media, Ltd. (600088.SH)
17 Wuhan DDMC Culture Co., Ltd. (600136.SH)
18 Zhejiang People Culture Co., Ltd. (600576.SH)
19 Cultural Investment Holdings Co., Ltd. (600715.SH)
20 China Film Co., Ltd. (600977.SH)
21 Shanghai Film Co., Ltd. (601595.SH)
