Recently, Hong Kong-listed film and television entertainment companies - Huanrui Century, Mango Super Media, Huace Film and Television, and Baina Qiancheng and other companies have successively released 2022 annual results announcements. The TV series TV-insight has sorted out the performance and performance forecasts of the above four listed film and television companies. The following information is derived from publicly available sources and is for informational purposes only.
Huanrui Century
Create high-quality content and deepen IP operations
Huanrui achieved an operating income of 59,619.88 million yuan, an increase of 53.73% over the same period of the previous year. Among them, the sales revenue of film and television dramas increased by 69.73% over the same period of the previous year, and the number of episodes in which film and television dramas recognized revenue increased compared with the same period last year; The income of artist brokerage services decreased by 27.20% compared with the same period of the previous year; E-commerce revenue increased by 296.67% over the same period last year. During the reporting period, Huanrui Century's net profit was 7.6575 million yuan, and the net profit attributable to shareholders of the listed company was 17.9506 million yuan, which was a turnaround compared with the same period last year.
Huanrui Century actively explores the serialization of content in reality, soft science fiction, youth spy warfare, fairy tales, adventure and other themes, adheres to the boutique strategy, and strengthens cooperative relations with major platforms. As of the disclosure date of this report, the film and television dramas that have premiered on the platform include "Mountains, Rivers and Moonlight", "Agarwood Like Crumbs", "Agarwood Chonghua", "Barefoot Daxian", "Raptors Crossing the Ditch", "Our Day", etc., the films "Shuimen Bridge of Changjin Lake", "Bear Haunted: Return to Earth" and "Ten Years of One Pin Wen Ruyan" were released, and the variety show "Today You Look Good" was broadcast online on Tencent Video. As of the disclosure date of this report, Huanrui's film and television dramas that have obtained a distribution license or online filing number are "Mountains, Rivers and Moonlight", "Agarwood Like Crumbs", "Agarwood Chonghua", "Thousand Autumn Order", "Ten Years of One Pin Wen Ruyan", "Our Day", and the film and television dramas mainly in creation include "Lotus Tower" and "Thousand Fragrance Citation".
During the reporting period, Huanrui Century continued to deepen the layout of the artist agency industry and build an artist agency service management platform. The company strengthens the continuous optimization of the artist management service team; At the same time, it pays attention to the cultivation and improvement of artists' professional qualities and moral character. Continue to deepen the construction of artist service management platform, and continue to explore a professional and standardized management system for artist services. Huanrui Century has built an online platform for artist management services, standardized and integrated resources and service processes, and improved operational efficiency and business digitalization. As of the disclosure date of this report, Huanrui has more than 20 signed artists such as Ren Jialun, Cheng Yi, Zhang Yuxi, Liu Xueyi, and He Zhonghua.
Focusing on the production advantages, Huanrui Century actively builds its own IP system, forms a complete chain of serialized and diversified content creation, derivative product development, etc., and has the rights and interests of film and television dramas to adapt more than 40 scripts and novels such as "Ten States and Three Realms", "Star Hunting Division", "Qianxiang Yin", "Jiapupu Tiancheng", "Phoenix Heavenly Stop", "Tan Xian", "Like You", "Zhou Yu Biography", "Wangu Shura", "Qi Tian Most Holy Saint", "Mirror Flower Edge Legend", "Tianxiang" and "Viper Action". During the broadcast of "Agarwood Like Crumbs", the company independently and jointly developed blind boxes, figures, original clothing replicas, fragrances and other derivatives, and the same clothing replicas and digital collections were sold out in a short period of time. At the same time, the company and Shanghai Yuyuan Garden held offline linkage to open the "fairy world garden party" to restore the "agarwood world".
With the creation of a century-old IP as the core, Huanrui Century has steadily promoted related businesses around the construction of a production service management and artist service management platform. Focusing on its main business, the company will actively explore new technologies and new consumption empowerment industries, and continuously optimize asset quality and profitability. Huanrui Century is expected to be successively completed or broadcast from 2023 onwards, including "Lotus Tower", "South Wind Knows My Intention", "Thousand Autumn Order", "Ten Years of One Pin Wen Ruyan", "Deep Diving", etc., and the film and television dramas planned to start include "Qianxiang Yin" and so on.
Mango Supermedia
Strengthen operations and stabilize core business
Mango Super Media adheres to "long-termism" and "futurism", adheres to media value guidance and independent content innovation, strives to build a deep integration ecology of Mango, gives full play to the content supply advantages of media integration development, continuously improves the diversity, innovation and sustainability of the content ecology, and wins development advantages with content advantages. Mango TV has 24 variety show production teams, 25 film and television production teams, and 34 new mangmen project strategic studios, and is committed to building a talent and innovation highland for domestic long-form video content production.
In terms of variety shows, during the reporting period, Mango TV launched 77 variety shows of various kinds, including 4 comprehensive N-generation programs such as "Riding the Wind and Waves Season 3", "Detective Season 7", "Escape Room Season 4" and "Breaking Through Thorns Season 2", which were selected as the top 10 effective broadcasts of online variety shows in 2022 (Yunhe Data), of which "Riding the Wind and Waves Season 3" ranked first, and the position of variety show leaders was further consolidated. The innovative program "Hong Kong Music Season" commemorates the 25th anniversary of Hong Kong's return to the motherland, and has been praised as the "Greater Bay Area Cultural Integration Vane" and selected as the "State Administration of Radio, Film and Television Online Audiovisual Program Boutique Creation and Dissemination Project". The derivative variety show "Happy Departure" received both word-of-mouth and popularity, with a Douban score of 9.6 points, and the sequel "Happy Departure Season 2" also scored as high as 9.5 points.
In terms of film and television dramas, Mango TV has launched 163 film and television dramas such as key film and television dramas and "Da Mang Project" mini-dramas. 4 TV series "Song of Lushan Mountain", "The Bottom Line", "The Long River of the World" and "Twenty Not Confused 2" were selected into the "2022 Chinese TV Series Anthology" by the State Administration of Radio and Television, and "Jiangshan So Many Jiao" won the 33rd Chinese TV Drama "Feitian Award" Outstanding TV Series Award. Mango Monsoon has launched 5 Taiwan online dramas and 4 online dramas, "Zhang Weiguo's Summer", "A Year Without Work", "Disappearing Children" and other social reality topics from different dimensions, winning the crown of multi-network provincial satellite TV and gaining high market attention. The "Da Mang Project" launched a series of high-quality short dramas represented by "False Face" and "Niannian Ignorance", which achieved good broadcast results.
Mango's hypermedia advertising business is still under pressure. During the reporting period, the operating income was 3.994 billion yuan, a year-on-year decrease of 26.77%, and the year-on-year decline was narrower than that in the first half of the year. In the face of industry uncertainty, Mango TV upgraded its joint investment promotion mechanism from single-platform content marketing to a dual-platform, multi-circle, full-link three-dimensional marketing system, providing advertisers with higher value and more competitive comprehensive marketing solutions. At the same time, innovative marketing strategies, providing a package of special marketing plans, striving for exclusive budgets, and the cooperation amount of many key customers has increased against the trend; New advertising forms such as super shows and naked-eye 3D shows were launched, and 32 non-patch advertising brands were newly expanded in the second half of the year, achieving non-patch hard and wide revenue. The membership size reached a new high. At the end of 2022, the number of effective members reached 59.16 million, and the annual membership business revenue reached 3.915 billion yuan, a year-on-year increase of 6.15%. Mango TV has created a special content operation system for Mango, developed a series of key IPs, and launched member-customized variety shows such as "Happy Departure" and "Welcome to the Mushroom House"; Launched multiple theme seasons such as "cool season" and "selection season" to integrate marketing activities and a variety of IP limited cards such as yearning cards, escape cards, and world long river cards to meet the needs of different consumer groups; Strengthen channel coverage and recruitment, and create blockbuster membership products such as China Mobile's "Mango Card" and Huamang Integration Membership.
In terms of artist brokerage business, the establishment of an interactive mechanism between content production and artist training, variety shows, film and television dramas and other content products give priority to the selection of contracted artists, to achieve two-way empowerment of platform and artist cooperation, during the reporting period, the company's artists appeared in many film and television dramas such as "Song of Lushan Mountain", "The Bottom Line" and "Ice Rain and Fire". In terms of music copyright business, with Tianyu Media as the sole distributor of music works on the dual platform, Tianyu Media seeks business increments by creating individual albums of key signed artists, increasing copyright authorization, expanding cooperation platforms, and increasing music product planning. At the same time, relying on the resources of high-quality variety shows, film and television dramas on dual platforms, we continue to expand the scale of variety music, film and television music copyrights, and as of the end of the reporting period, Mango Super Media has more than 2,000 record music and film and television variety music copyrighted.
Huace Film and Television
Help the output of high-quality content and create an all-round territory
During the reporting period, Huace achieved a total operating income of 2.475 billion yuan, a decrease of 34.99% over the same period of the previous year; The net profit attributable to shareholders of the listed company was 403 million yuan, an increase of 0.58% over the same period of the previous year; The net profit attributable to shareholders of the listed company after deducting non-recurring profits and losses was 301 million yuan, an increase of 19.88% over the same period of the previous year; Net cash flow from operating activities was $290 million. Among them, the gross profit margin of the company's TV series sales and movie sales increased by 8.33% and 8.36% respectively over the same period last year, and the gross profit margin growth came from the promotion of high-quality content and appropriate cost reduction and fee control measures. The cycle of film and television drama projects from revenue recognition to fixed broadcast has been shortened, and the project turnover rate has increased significantly.
The TV drama project innovated the theme, deepened the concept, and strengthened the quality, achieving the premiere of 10 TV series with 331 episodes, 5 with 196 episodes in start-ups, and 11 with 356 episodes in evidence collection.
In terms of film, we continue to create industrial film benchmark works. The film project "Ten Thousand Miles Home" under the company's main investment and control was filmed, post-produced, forged evidence and released in just a few months, with a cumulative box office revenue of 1.593 billion yuan, won the National Day box office champion, and was nominated for three times at the 16th Asian Film Awards; "Anti-Corruption Storm 5" won the box office and overall number of crime films in mainland film history; The literary film "If One Day I Will Leave You" was shortlisted for the main competition of the Temple of Heaven Award at the Beijing Film Festival and the main competition of the Far East Film Festival in Udine; The films "The Wandering Earth 2" and "Bear Haunted, Accompany Me "Bear Core", which participated in the Spring Festival in 2023, won the runner-up and third place at the Spring Festival box office, with a cumulative box office of more than 5.611 billion yuan.
In terms of IP operation, the performance of technology copyright subsidiaries has continued to grow, and it has created a complete copyright operation management platform: it has 574 IP in production, including 33 movies, 34 online movies, and 248 TV series, with a total of about 30,000 hours of copyright. In terms of copyright management, an asset management system that can confirm the sustainable sale of rights has been established, including IP database, film and television copyright library, game & music copyright database and other derivative product databases, and a copyright search system covering many labels has been established. In terms of copyright operation, an intelligent operation system such as copyright expiration warning, excavation and sunken copyright, full copyright development and operation, copyright protection and rights protection has been formed. In the future, we will further graft the technological empowerment of partners and give full play to the value of film and television data assets.
In terms of international business, Huace further improved its film and television copyright marketing capabilities, represented the overseas distribution of Mango TV dramas, and expanded its international new media operation business, with the number of fans on the Youtube platform exceeding 15 million, the number of fans on the three major SNS platforms (Facebook, Twitter, Instagram) exceeding 17 million, and achieving a share income of more than 4 million US dollars.
The animation business is gradually creating six IP series through cooperation and development at home and abroad, including "Challenge the Great Devil", "Express Special Agent", "Monster Remote Control", "Little Dinosaur Coconai", "Little Mouse Redick" and "Yipin Sesame Fox", Huace said that it will continue to strengthen cooperation with the world's top animation companies, continue to introduce overseas high-quality IP resources, and lay the foundation for further expanding the derivatives market.
Huace Film and Television said that in 2023, the company will strengthen its head strategy, adhere to creative leadership, achieve "content upgrade", and build the world's most popular Chinese-language film and television content company with "focus, ingenuity, adherence and struggle". At the same time, the company fully embraces AI technology, finds value growth points in the integration of technology and content, focuses on "text + AI" applications, and lays out in the field of "video + AI" in advance.
Hundreds of percent
Grasp the strategy of cost reduction and efficiency increase, and deploy the overall situation of increase control and risk reduction
The annual operating income of Bainaqiancheng in 2022 decreased by 41.59% compared with the same period of the previous year, and the net profit decreased by 68.64% from the same period of the previous year, and the decline in the company's operating income and net profit during the reporting period was mainly due to the tightening of the procurement budget of downstream platform customers, the complex external environment caused the slow recovery of the domestic film box office market, and the adjustment of some of the company's film screening plans. There have been no major adverse changes in the main business and core competitiveness, and there are no major risks in the ability to continue operations.
In terms of drama business, Baina Qiancheng takes boutique dramas and series as the core of creation. In terms of projects, through strengthening pre-sales, customized management, master control and refined production and other measures, we can control project risks and improve project profitability; In terms of business team, the company has increased the upgrading and transformation of the drama team to be young, typed, industrialized and serialized, and continuously enriched product types and improved product quality on the basis of stabilizing the production capacity of dramas. During the reporting period, a number of high-quality drama projects in Bainer Reserve have steadily advanced, and "Orphan Mars", "There are old and young", "Incomparable Beauty" and "How Big Things" (formerly known as "Just Love You Naughty") have been collected for evidence and are ready to be broadcast; "Criminal Investigation Scene", "Memory Tracking" and "Praying for the Present Dynasty" have completed filming and entered the post-production stage; The contemporary drama "South to North" has started filming; "Iron and Blood", "Snow Labyrinth" (formerly known as "First Shot"), "Burning Snow", "Little Couple", "Cheetah Commando", "Unchecked Boy" and other dramas will start in 2023.
In terms of film business, the film "Sniper" was released, and according to Maoyan Professional Edition data, the cumulative box office reached 608 million yuan, and the Douban score of 7.7 ranked first in the 2022 Spring Festival file; The theatrical films "Dunhuang Heroes", "Great Expectations", "Twinkle and Twinkle", "Old Rivers and Lakes", "No Thing That Cannot Be Solved by a Hotpot" and the online movie "Operation Hummingbird" have completed filming and entered the post-production stage. The theatrical films "No Lying Flat Club" and "Journey Through the Moon" have started shooting. "Space Spring Festival", "Demining Unit", "Full-band Blocking Interference", "There is a Commissary by the Cloud", "Hot Search", historical film "No Door in the Sand Sea" and many other projects are actively under preparation.
In terms of animation business, it mainly includes animation film and television, live-action film and television with animation themes, animation IP development and operation business, etc. During the reporting period, Bainer completed the script incubation of "Lion Boy 2" and began content production. Animated film projects such as "Sword Casting Boy" and "Day by Day Boy" are also steadily advancing. At the same time, the first season of the original children's music animation short series "Guanfu Cat", jointly developed with Guanfu Museum, has been completed and is expected to be launched on the Douyin platform in the third quarter of 2023.
Including the online part of IP operation (virtual humans, virtual anchors, digital collections, digital collections, etc.) and the offline part of IP operation (cultural tourism, derivative consumer goods, etc.). As an innovative IP industry chain operator, innovative business will become the most important part of the territory, multi-level film and television expression format will empower IP, and continue to operate IP through online (virtual humans, virtual anchors, digital collections, digital collections, etc.) and offline (cultural tourism, derivative consumer goods) multi-path operation, while realizing IP-derived commercial value while feeding back content.
For the multi-format film and television business, which is mainly engaged in by the development and iteration of generative AI, the automation and multi-modal content generation brought by the development and iteration of generative AI can deeply empower the content industry (especially the animation film industry), continuously bring about changes in the content production mode, improve production efficiency, reduce production costs, and bring better visual effects to the audience, thereby achieving higher commercial value.