Just after the New Year's Day, the 70,000 shareholders of Beijing Culture received a "big gift".
On the first trading day of the new year, Beijing Culture opened with a limit-down. The stock price is now at 5.3 yuan, with over 60,000 orders. The turnover was 23.565 million yuan, and the latest total market value was 3.78 billion yuan. For the whole year of 2020, Beijing Culture has fallen by more than 50%, and its share price has halved from the highest level of 12 yuan.
In the news, Beijing Culture issued an announcement yesterday saying that on December 31, 2020, the company received the "China Securities Regulatory Commission" Investigation Notice", because the company was suspected of breaking the law and breaking the law, according to the relevant provisions of the "Securities Law of the People's Republic of China", it was decided to file a case against the company for investigation.
At the same time, Beijing Culture disclosed the warning letter issued by the Beijing Securities Regulatory Bureau to the company and its executives Song Ge (the company's chairman and former president), Zhang Yunlong, and Chen Chen (then executives).
What happened to the once-famous filmmaker?
1 The film market is mixed.
During the New Year's Day, the Chinese film market has a good start to 2021. From January 1st to 3rd, the total box office in three days reached 1.3 billion yuan, setting a box office record for the same period. Among them, the national movie box office exceeded 600 million yuan on January 1, and the next day exceeded 400 million yuan.
Such excellent results, on the one hand, benefited from the well-controlled domestic epidemic situation, which enabled my country to thrive despite the sluggish global film market. On the other hand, it is the supply of excellent films on the market during the New Year's Day.
Specifically, "A Little Flower for You" was released at 6 pm on December 31, 2020, with a box office of 240 million yuan on the first day. As of this morning, the box office has reached 766 million yuan. Another new film, "Warm Hug" released on New Year's Day, also made 530 million yuan at the box office. The two films, starring Yi Yangqianxi and Shen Teng respectively, are the main force contributing to the total box office during the New Year's Day.
In addition, the 12-day release of "Bomb Handler 2" also broke through the 800 million mark at the box office. "Qing Ya Ji" and Pixar's word-of-mouth masterpiece "Spiritual Journey", the box office also came to 440 million and 170 million yuan respectively.
On the one hand, the film market is booming; "A Little Flower for You" and "A Warm Hug" lacked potential for subsequent outbreaks due to poor reputation; "Qing Ya Ji" also fell into controversy due to the re-fermentation of Guo Jingming's plagiarism scandal and the suspected plagiarism of some parts of the film itself, so the growth was sluggish .
And "The King of Bath", which was released for 25 days, has only just exceeded the 400 million yuan mark at the current box office. In addition, the film was questioned for plagiarizing the Korean comic "God of Bath" and for integrating the framework of many classic films. A few days ago, there was also news that the movie theater had stopped arranging the film.
The producer of "The King of Bath" is Beijing Culture. A few years ago, Beijing Culture rose rapidly in the film and television industry as a dark horse with its precise and unique investment vision.
Beginning with "Wolf Warrior 2", which aroused a national movie-watching craze in 2017, Beijing Culture has successively invested in the production of "I'm Not the God of Medicine", "Wandering Earth", "Me and My Motherland" and other popular movies. payment. Song Ge, chairman of Beijing Culture, became famous in the circle because of this, and even appeared in Wu Jing's "Wolf Warrior 2", showing off his acting skills.
Beijing culture, which is well-received and repressed, why has it been reduced to the embarrassing situation it is today?
2 The Fall of the Upstarts in the Film Industry
The predecessor of Beijing Culture was "Jingxi Tourism" which was listed on the main board of Shenzhen Stock Exchange in 1998. Renamed "Beijing Culture" and officially entered the film and television industry.
From 2013 to 2014, Beijing Culture invested 150 million yuan, 13.5100 million yuan and 750 million yuan to acquire Ferris Wheel Culture, Century Partners and Zhejiang Galaxy. As a result, Yan Geling, Zhang Li, Chen Daoming, Lu Yi, Guan Zhilin, Hu Jun, Zhang Fengyi, Tony Leung, Carina Lau, Zhou Dongyu and other well-known screenwriters, directors and actors are included in the bag.
From 2014 to 2016, the popularity of the film and television industry led to the rise of mergers and acquisitions in the circle, but after the madness, only chicken feathers were left. After the high fever in the film and television industry subsided, high-premium mergers and acquisitions became the hardest hit area for goodwill impairment. At the beginning of the year, Huace Film and Television suffered its first loss due to the impairment of goodwill, and Wanda Films planned to make provision for impairment of goodwill as high as about 4.5 billion to 5.5 billion yuan in total.
In mid-2015, Beijing Culture's stock price reached an all-time high of 43 yuan, but the total goodwill of nearly 1.6 billion yuan formed by these three acquisitions also laid the root of its future fall. In 2019, Beijing Culture’s annual loss exceeded 2.3 billion, the main reason being the impairment of goodwill.
Data source: IFinD
In 2018, Beijing Culture’s revenue and net profit were 1.2 billion Yuan and 330 million yuan, but the project income did not meet the recognition conditions stipulated in "Accounting Standards for Business Enterprises No. 14 - Revenue", resulting in an overstated revenue of about 460 million yuan and an overstated net profit of about 190 million yuan. Therefore, the Beijing Securities Regulatory Bureau recently issued a warning letter to the company and its executives Song Ge, Zhang Yunlong, and Chen Chen.
In addition, due to the epidemic this year, Beijing Culture lost 117 million yuan in net profit in the first three months, a year-on-year decrease of 192%.
In April this year, on the day of the release of Beijing Culture's 2019 financial report, Lou Xiaoxi, the former vice chairman of the company, revealed on Weibo that Song Ge, the current chairman of Beiwen, and Zhang Yunlong, director of the board of directors, were suspected of breaching trust and harming the interests of listed companies. The crime of fraudulent issuance of bonds, the crime of illegal disclosure and non-disclosure of important information, and the crime of position embezzlement.
Because of huge losses in performance, internal chaos, and declining stock prices, shareholders of Beijing Culture have reduced their holdings one after another. Data shows that in 2019, Beijing Culture was reduced by shareholders 114 times in a row, ranking first among A-share listed companies, twice as high as the second.
Yesterday's announcement showed that Huali Holdings once again reduced its holdings of 1.27% of the company's total share capital. Since the beginning of this year, Huali Holdings has reduced its shareholdings many times. From the largest controlling shareholder, who held 15.9% of the company's shares at the end of 2019, to only 5% at present.
Data source: IFinD
Looking to the future, Beijing Culture has signed a lot of money during the Spring Festival. The film "Hello, Li Huanying" under the guarantee agreement was released, and the reserve film also has "Fengshen Trilogy" which has entered post-production. Can Beijing Culture still bet on the next "Wolf Warrior 2" to save itself from fire and water?