A number of film and television companies have released financial reports: they are still in the recovery stage

Recently, a number of film and television companies released their 2023 annual reports and 2024 first quarter financial reports, and the overall performance is improving, but the Chinese film market is still in the recovery stage.

From the perspective of the overall situation of the film and television industry, in the first quarter of 2024, the total box office of films in the country will be 16.356 billion yuan, a year-on-year increase of 3.14%, and the total number of moviegoers will be 364 million. Among them, the box office of domestic films was 15.044 billion yuan, accounting for 91.98% of the total box office of the country, and the box office of imported films was 1.312 billion yuan, accounting for 8.02% of the total box office of the country. As of the end of the reporting period, the total number of screens with countable box office in the country was 78,250.

Wanda Film: The net profit attributable to the parent company in 2023 will be 912 million yuan

On the evening of April 29, Wanda Film disclosed its annual report. Benefiting from the improvement of the business environment of the film industry in 2023, the company seized the opportunity of market recovery, continued to focus on its main business, and achieved operating income of 14.62 billion yuan in 2023, a year-on-year increase of 50.8%, and net profit attributable to shareholders of listed companies of 912 million yuan, achieving a gorgeous turnaround. As of the end of the reporting period, the company's total assets were 25.125 billion yuan, and the net assets attributable to shareholders of listed companies were 8.03 billion yuan.

In the first quarter of 2024, the revenue was about 3.821 billion yuan, an increase of 1.7% year-on-year, the net profit attributable to shareholders of the listed company was about 326 million yuan, an increase of 3.25% year-on-year, and the basic earnings per share was 0.1495 yuan, an increase of 3.25% year-on-year.

In 2023, China's film market ushered in a comprehensive recovery, with the overall performance exceeding industry expectations, with significant improvements on the supply side and the screening side compared with the same period last year, with strong performance in multiple schedules, with a national film box office of 54.915 billion yuan, a year-on-year increase of 83.4%, and the number of moviegoers reaching 1.299 billion, a year-on-year increase of 82.5%, and indicators such as single-screen output and attendance rate have improved.

With the spring breeze of the industry's recovery, during the reporting period, the box office of the company's domestic directly-operated theaters reached 7.56 billion yuan (excluding service fees), reaching 96.4% of the level in 2019, exceeding the industry average by 12.5 percentage points. The number of moviegoers exceeded 186 million, exceeding the industry average by 17.5 percentage points. The market share increased to 16.7%, and it has been the leader for 15 consecutive years.

Through refined management and innovative models, non-ticketing business also ushered in spring. Non-ticket revenue increased by more than 10% year-on-year in 2019.

Focusing on the company's film and television investment, production and distribution business segments, in 2023, its subsidiary Wanda Film and Television will seize the opportunity of industry recovery, and Wanda Film and Television will seize the opportunity of industry recovery, and "The Three Teams", which is mainly invested and controlled during the year, will be rated as the top ten Chinese films with the highest annual ratings on Douban, and "Cosmic Exploration Editorial Department" and "Looking for Her" will win the "Best Screenplay Award" and "Artistic Contribution Award" in the main competition units of the Golden Rooster Film Festival and Shanghai Film Festival respectively. Many films such as "The Wandering Earth 2", "All or Nothing", "Warm" and "Predecessor 4" participated in the investment have achieved a bumper harvest at the box office and word of mouth.

In December 2023, the company issued an announcement on the transfer of shares, and completed the change of control in April this year. As a senior producer, the new chairman, Ms. Chen Zhixi, has rich industry resources and keen market insight, and has invested in the production of many popular films such as "Thai Embarrassment", "Pancake Man", "Warm", "Keep You Safe" and "Hello, Li Huanying".

Affected by the release schedule of the main investment and main control films, the net profit of Chinese films fell by 40% in the first quarter

Chinese films' revenue and net profit both fell in the first quarter.

On April 29, China Film Co., Ltd. released its first-quarter financial report, which showed that China's film revenue was 1.026 billion yuan, a year-on-year decrease of 28.99%, the net profit attributable to the owners of the parent company was 96.9073 million yuan, a year-on-year decrease of 46.66%, and the basic earnings per share was 0.052 yuan, a year-on-year decrease of 46.39%.

China Film explained in the announcement that the decline in net profit was mainly due to the impact of the company's main investment and main control of the release schedule of the film. In the Spring Festival of 2023, the Chinese film "The Wandering Earth 2" will be released, and the related business income will be reflected in the reporting period of the first quarter of 2023, while there will be no main investment and main control film with a similar box office scale in the first quarter of 2024, resulting in a year-on-year decrease in operating income and net profit.

According to public data, the cumulative total box office of "The Wandering Earth 2" is 4.029 billion, ranking tenth in the box office list of Chinese film history. In 2024, the box office dark horse "Hot and Hot" will have a total box office of 3.46 billion. The filing unit of "Hot and Hot" is Xinli Media Co., Ltd., which is also the producer of "Hot and Hot". Judging from the release notice of "Hot and Hot", the film involves as many as 30 producers, co-productions, distributions, and joint distributions, including Chinese films.

During the reporting period, a total of 6 films were produced or put on the market by Chinese films, with a cumulative box office of 11.337 billion yuan, accounting for 75.36% of the total box office of domestic films in the same period. Among them, 4 films produced by Chinese films, including "Hot and Hot", "Flying Life 2", "Bear Infested: Reversing Time and Space", and "Article 20", have entered the top ten domestic films at the box office this year.

In the distribution sector, during the reporting period, Chinese films led or participated in the distribution of a total of 176 domestic films, with a cumulative box office of 11.751 billion yuan, accounting for 89.95% of the total box office of domestic films in the same period, and 28 imported films were released, with a cumulative box office of 1.052 billion yuan, accounting for 60.01% of the total box office of imported films in the same period.

In the screening sector, during the reporting period, China Film opened 1 newly held theater and added 6 screens. As of the end of the reporting period, China Film had a total of 128 operating holding theaters with 964 screens.

In addition, in the science and technology sector, as of the end of the reporting period, 168 CINITY cinemas had been opened in China, and 276 CINITY films had been screened, and in the service sector, China Film Base provided production services for a total of 132 film and television works.

At the same time as the release of the financial report, China Film also issued an announcement on the acquisition of equity and related party transactions, the announcement shows that in order to expand the rural film and campus film markets and give full play to industrial synergies, China Film intends to acquire 100% of the shares of China Film Innovation held by China Film Group (China Film Group Corporation, the controlling shareholder and actual controller of China Film) with its own fund agreement, and the transaction price is determined to be 68.2296 million yuan based on the asset evaluation results.

Bona Films: Multi-format simultaneous development of films, theaters, and dramas blossom in many aspects

On the evening of April 29, Bona Film released its 2023 annual report and 2024 first quarter report. In 2023, Bona Film will achieve an operating income of 160,805.47 million yuan. In the first quarter of 2024, Bona Film achieved an operating income of 439.9198 million yuan, and a net profit attributable to the parent company of 5.552 million yuan, a year-on-year increase of 105.13%. Huber&Ranner achieved a good start to the new year, and the net profit attributable to the parent company turned around year-on-year.

In 2023, Bona Film will release 2 films with a total box office of 1.031 billion yuan, namely "No Name" and "Breaking Point", and 8 participating films, with a total box office of 5.864 billion yuan. In the face of the fact that the performance of the main investment and main control films was not as expected, Bona Film adjusted the progress of the reserve film projects in a timely manner, retained the theme projects that it was good at, suspended the projects that did not meet the market demand, and actively explored new themes and new types of projects, so as to ensure the continuity of the schedule with echelon production.

In the 2024 film project business plan, the highly anticipated blockbuster IP sequel "Operation Jiaolong" has completed the filming part in the mainland and will continue filming in Hong Kong, China, and the film "Legend" starring Mr. Jackie Chan and using AI technology will be released in 2024.

Benefiting from the booming movie-going boom, Bona Film's cinema business achieved substantial growth, with revenue increasing by 86.79% over the same period last year. In 2023, Bona Films' cinema business will achieve a total box office of 1.047 billion yuan, a recovery of 108% compared with the box office in 2019, and the number of moviegoers will be 24.29 million, a recovery of 95% compared with the number of moviegoers in 2019. In 2023, Bona Film will rank 7th in the national film projection in terms of housing revenue, and the average single-cinema output finance will rank high.

The drama business is expected to contribute to the increase in performance in 2024. The filming and post-production of the blockbuster drama "Shangganling" have been completed, and it is expected to be broadcast in 2024. In addition, the upcoming dramas in 2024 include "The Tide of the River" and "The Hunting Hour", of which "The Tide of the River" tells the inspirational story of a group of young people who are actively seeking entrepreneurship in the context of the new era in the context of the new era, and is scheduled to be broadcast in 2024.

Shanghai Film will turn around its losses in 2023

On April 27, Shanghai Film disclosed its 2023 annual report and 2024 first quarter report. According to the data, in 2023, Shanghai Film will achieve an operating income of 795 million yuan, a year-on-year increase of 85.07%, and a net profit attributable to the owners of the parent company of 127 million yuan, compared with a net loss of 328 million yuan in the same period last year, turning losses into profits. In the first quarter of 2024, Shanghai Film achieved an operating income of 210 million yuan, a year-on-year increase of 18.26%, and a net profit attributable to the owners of the parent company of 46.1126 million yuan, a year-on-year increase of 28.18%.

Shanghai Film said in its annual report that the recovery of performance is mainly due to the increase in theater operating income in 2023, thanks to the recovery of the market and the outstanding performance of the film box office. In 2023, Shanghai Film's film projection business will achieve operating income of 550 million yuan, a year-on-year increase of 109.91%. At the same time, the business also boosted the operating income of advertising and sales, which increased by 40.41% and 84.79% year-on-year respectively, reaching 38.127 million yuan and 70.4292 million yuan.

Shanghai Film also plans to develop investment business. In the annual report, Shanghai Film said that the New Vision Fund that the company participated in the establishment of the Fund Industry Association has completed the filing of the Asset Management Association in June 2023. "Leverage capital leverage in the form of funds, invest in the company's main business industry chain, accelerate the company's digital transformation process, and help the implementation of large IP development business. ”

Huace Film and Television's non-net profit deducted in the first quarter fell by nearly 99%

On April 24, Huace Film and Television disclosed its results, and the company's revenue and net profit in 2023 and the first quarter of 2024 both "declined". In the first quarter of 2024, the operating income of Huace Film and Television was about 177 million yuan, a year-on-year decrease of 81.69%, and the net profit attributable to shareholders of listed companies was about 30.0138 million yuan, a year-on-year decrease of 79.58%, and a year-on-year decrease of 98.80% after deducting non-profits. Regarding the decline in revenue, the company said that it was mainly due to the decrease in the sales scale of TV dramas in the current period compared with the same period last year.

For the whole year of 2023, the operating income of Huace Film and Television will be about 2.267 billion yuan, a year-on-year decrease of 8.39%, the net profit attributable to shareholders of listed companies will be about 382 million yuan, a year-on-year decrease of 5.08%, and a cash dividend of 0.41 yuan (tax included) will be distributed for every 10 shares.

Huace Film & Television is a comprehensive film and television media group with TV dramas and film content as its core business, covering animation, copyright operation, international new media, short dramas, operator business (video CRBT, etc.), artist brokerage and other ecological businesses.

From the perspective of TV series, the top five works in 2023 "To a Windy Place", "Chenghuan Ji", "Please Fall in Love with Me Like This", "Spring Warm Sun" and "All the Way to the Sun" have an income of about 1.255 billion yuan, accounting for more than half of the main business income. In the annual report, Huace Film and Television said that "To a Windy Place", which will premiere in 2023, has become a phenomenal work throughout the year, with a bumper harvest of popularity and word-of-mouth, and has realized the in-depth linkage of film, culture, and tourism.

At present, the company has a total of 8 drama projects in post-production, review or preparation, 4 drama projects that are planned to be launched in the second quarter, and 1.981 billion yuan of pre-sale contracts will be completed in 2023, with a cumulative pre-sale of 3.798 billion yuan.

In terms of film business, there are 4 main control film projects that will be launched in 2023, and 6 film projects that are expected to be released in 2024. S-level projects such as "Assassination of Novelists 2" and "Wild Times" will be launched in 2024, of which "Wild Times" has been launched in the first quarter, and "Assassination of Novelists 2" has been completed. In addition, in January 2024, the company officially established the animation business group.

Previously, on April 21, 11 listed companies in the A-share film and television theater sector disclosed their 2023 annual reports, and the data showed that 5 companies, including China Film and Guangguang Media, achieved a turnaround last year, while Zhongnan Culture and Zhewen Films' net profit increased year-on-year last year, and only Beijing Culture, Zhongguang Tianxue and Ciwen Media's net profit declined year-on-year last year.

Judging from the first quarterly report, in addition to Beijing Culture, several other listed companies increased their net profit year-on-year, of which Guangguang Media's net profit in the first quarter increased by 248% year-on-year.

According to the analysis of Everbright Securities Research Report, the mainland film market is still in the recovery stage, and more high-quality films are expected to be finalized after the release of the stock film list.

During the Beijing Film Festival, Yu Dong, chairman of Bona Films, bluntly said that the box office recovery in 2023 is largely due to the fact that the released films are released in a concentrated manner after the backlog, and the lack of film shooting has appeared, which will directly affect the output in 2024;

At present, the lack of blockbusters in several major schedules in the first half of the year has appeared, and the summer files and National Day files in the second half of the year may also release some backlog films, and by 2025, the film shortage will begin to be officially displayed.