Cover news reporter Zhu Zhu
After more than 2 months, on August 4, Beijing Culture replied to the Shenzhen Stock Exchange's "2020 Annual Report Inquiry Letter", in which it responded to many questions such as performance "taking a big bath", "Ghost of a Woman" and "Yin and Yang Contract".
Among them, Beijing Culture denied that the company signed a capital increase agreement with the related parties of the cast and crew, but also said that due to Zheng Shuang's "sky-high film remuneration" incident, there was great uncertainty in the release of "Ghost of Qiannu", so the company made a provision for the inventory price decline of the drama during the reporting period, and the impact of the matter on the company's net profit in 2020 was about 260 million.
Losses for two consecutive years
However, there is no case of performance "taking a big bath"
Since 2019, Beijing Culture has fallen into a situation of continuous large losses, of which the net profit in 2019 was -2.319 billion yuan and the net profit in 2020 was -770 million yuan. Therefore, the Shenzhen Stock Exchange questioned Beijing Culture in the "2020 Annual Report Inquiry Letter", whether there has been a centralized recognition of costs or asset impairment in the past two years to achieve a "big bath"? Are there significant uncertainties about the ability to go concern?
On August 4, Beijing Culture responded in the announcement that the company's net profit in 2019 and 2020 was mainly due to the decline in the operating performance of the company's wholly-owned subsidiaries due to changes in industry policies and market environment, and the impact of the new coronavirus pneumonia epidemic, the film and television industry was greatly impacted, and during the reporting period, the company's original tourism business related assets were divested, and there was no tourism business revenue.
In addition, due to the influence of the main actor events of the TV series "Ghost of Qiannu" produced by Beijing Culture Investment, there is significant uncertainty about the future monetization of the drama. Based on the project's future development plan and the assessment of the estimated net realizable value, Beijing Culture recorded an impairment total of RMB445 million on inventories.
The troublesome performance of Beijing Culture in the first half of 2021 is also unsatisfactory, and its half-year performance forecast shows that it is expected to lose more than 36.5 million yuan, Beijing Culture explained: "Affected by the revenue recognition cycle of film projects, film and television works such as "Hello, Li Huanying" have not yet been included in the first half of the year's results."
Denial of the "Yin-Yang Contract"
There is great uncertainty about the release of Ghost of a Woman
Previously, the media reported that beijing culture's 2019 investment in the film and television drama "Qiannu Ghost" had a situation of paying large remuneration to the cast members through the "yin and yang contract", specifically signing an actor employment contract of 48 million yuan with the cast and crew, and signing a "yin contract" with the related parties of the cast and crew to increase the capital by 112 million yuan, and this starring actor was Zheng Shuang.
In this regard, Beijing Culture said that by examining the company's equity investment agreements in the past two years, the company did not sign a capital increase agreement with the related parties of the cast and crew, nor did it find that there was a situation in which the remuneration cost of "Qiannu Ghost" was "named as a capital increase, but it is actually a cost".
The announcement shows that in 2018, Beijing Culture and Tianjin Jiaxuan signed an agreement, stipulating that Tianjin Jiaxuan would be the undertaker of "Ghost of Qiannu" and be responsible for the production and completion of the play, and most of the remuneration contracts of the play were signed by Tianjin Jiaxuan and the cast. Beijing Culture said that "Ghost of Qiannu" was launched in April 2019 and completed in August of the same year, as of now, the drama has not yet been finally produced, and Tianjin Jiaxuan has not yet submitted a final settlement report to the company, so Beijing Culture cannot accurately calculate the total film remuneration, the credit remuneration, the single episode remuneration, and the proportion of the total cost of the film remuneration.
Due to the impact of the "Zheng Shuang incident", Beijing Culture said that there was great uncertainty in the release of the drama, so the company made a provision for the decline in the price of the inventory for the drama during the reporting period, and the impact of the matter on the company's net profit in 2020 was about 260 million yuan.
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