Yangtze River Business Daily reporter Shen Yourong
"The Prince of Beauty" He Jianfeng's film and television layout is now a failure.
In this year's May 1st file, He Jianfeng's Baina Qiancheng (300291. SZ) rushed to the theater with two films, but both films did not perform well at the box office. On May 5, its main investment "There is No Thing That Can't Be Solved by a Hot Pot" announced that it would be withdrawn and now switched to webcasting.
In his early years, after training in the Midea group system and earning the first pot of gold in his life, He Jianfeng chose to go it alone. Compared with his father He Xiangjian, who concentrates on industry, the "second generation" He Jianfeng is keen on investment.
He Jianfeng founded Infore Group, through continuous investment, covering environmental protection, culture, consumption, finance, science and technology and many other fields, in the United States outside the group to create a huge Infore empire, the formation of including Infore environment (000967. SZ).
Although He Jianfeng tried to escape from his father and the aura of Midea Group, behind the start and development of Infore Department, there is the shadow of Midea Group.
The film and television industry is the sector that He Jianfeng focuses on, but it is far from meeting expectations, and the crisis has appeared. Baina Qiancheng will deduct non-net profit losses in 2023, and it will also be a loss in the first quarter of this year.
The film was withdrawn, and Yang Mi couldn't save it
On May Day, which had just passed, He Jianfeng suffered a ruthless blow.
May Day is one of the prime periods of the film market, and it has always been fiercely competitive. This year, Bai Na Qiancheng, which He Jianfeng actually controlled, also grabbed this golden slot, but the result was to take advantage of the excitement and return disappointed.
On May 5, the movie "There is No Thing That Can't Be Solved by a Hot Pot" was officially announced: "Since its release, due to various environmental factors, the film has not met with more audiences...... After carefully studying the current situation, in order to meet the needs of more audiences, our 'hot pot' will be withdrawn on May 6. ”
This is the second time that "There is No Thing That Can't Be Solved by a Hot Pot" has been withdrawn. Before choosing to release on May Day, this movie was scheduled to be released on January 13.
Is it all an upset on May 1st? According to the "Sail Ahead, Continue to Move Forward - 2024 May Day Film Market Insight Report" released by the Lighthouse Research Institute, the May Day file in 2024 will end with a box office of 1.527 billion yuan, with an average daily box office of more than 300 million yuan, and the total number of screenings will break the May 1st record, and the number of moviegoers will be second only to 2021. The box office of the top five films all exceeded 100 million yuan, of which the box office of "Peacekeeping Anti-riot Team" and "Spending Money at the End of the Road" were 406 million yuan and 392 million yuan respectively, contributing more than half of the box office in total.
The comedy "There is No Thing That Can't Be Solved by a Hot Pot" starring Yang Mi, Yu Qian, and Tian Yu recorded a box office of only 40.17 million yuan, and the number of moviegoers of 1 million did not reach. The youth romance film "Journey Through the Moon" starring Zhang Zifeng and Hu Xianxu also hit the streets, with a box office of 36.91 million yuan.
In this year's May 1st file, Baina Qiancheng can be said to have worked hard to push two films into the theater in one go. It's just that it backfired, and the effect was greatly reduced.
"There is no thing that can't be solved by a hot pot" raised funds and invested 20 million yuan, and Baina Qiancheng mainly controls the film, and there are 15 producers. Losses seem inevitable.
Hundreds of thousands of times have also been beautiful. In 2012, the company (then known as Hualu Baina) landed on A-shares as the first film and television media group with a background of central enterprises, with an issue price of up to 45 yuan per share. Subsequently, film and television dramas such as "The Emperor of the Han Dynasty" and "The Beautiful Times of the Daughter-in-law" invested by the company became big hits. But since 2017, the company has gradually fallen behind.
He Jianfeng has a film and television dream, before he became the owner of Baina Qiancheng, he had a stake in Hairun Film and Television, and Sun Li, Liu Shishi, Zhao Liying and other stars were shareholders of this company. From 2010 to 2017, Hairun Film and Television failed to list on the main board of A-shares four times, and had no choice but to be listed on the New Third Board, but its performance has been losing money year after year and has been delisted from the New Third Board.
In 2018, Baina Qiancheng fell into a crisis, and He Jianfeng acted as a "white knight", spending 1.8 billion yuan to become the owner.
The withdrawal of the film seems to indicate He Jianfeng's film and television failure.
The "second generation" of the beauty of long-sleeved dancing
In the impression of the outside world, compared with He Xiangjian, the founder and actual controller of Midea Group, the specialty of the "second generation" He Jianfeng is long-sleeved and good at dancing.
For He Jianfeng's early experience, there is an almost identical version circulating in the market: after graduating from South China University of Technology, He Jianfeng once entered the Midea Group to work, starting from a grassroots lathe and fitter, and experienced in many positions.
In 1994, 27-year-old He Jianfeng set up a company in Shunde and started by producing rice cookers and induction cookers for Midea; In 1999, it acquired Eagle Group Huaying Fan Factory and established Shunde Jinke Electric Appliance Company; In 2002, Infore Holding Group was established, and its business covers fans, electric heaters, rice cookers, etc.
In 2004, He Jianfeng sold most of his assets to Midea Group and obtained about 70 million yuan. The first pot of gold came from the Midea Group, and he used this original accumulation to start the construction journey of Infore system.
He Jianfeng's ambition is not in electrical appliances, his eyes jumped out of the electrical circle, and he did not take the path of his parents step by step, but chose to take a "shortcut".
Testing the waters for the first time, He Jianfeng's trading partner is still Midea Group. In 2006, Midea Group and Zhongshan Jiayu Investment Co., Ltd. transferred part of the equity of ST Shangfeng to He Jianfeng, and He Jianfeng obtained its controlling stake and renamed the company Infore Environment.
Since then, He Jianfeng's acquisition has been out of control, and he has invested in the well-known E Fund Company, and is tied for the largest shareholder with a shareholding ratio of 22.65%. Yingfeng Holdings is also one of the initiators of Guangdong Mintou, a joint investment platform for private enterprises in Guangdong Province.
Infore Fund covers 16 funds, including environment, culture, consumption, advanced manufacturing, materials and other fields, and the investment types involve angels, VC, growth period, PE, mergers and acquisitions, PIPE and other types and formats. Infore capital has assets under management of nearly 20 billion yuan, and is one of the earliest securities private equity fund management institutions in China to establish and issue sunshine private equity products, and holds the No. 9 asset management license issued by the Hong Kong Securities and Futures Commission.
In 2018, He Jianfeng spent 1.8 billion yuan to become the actual controller of the second A-share company.
In 2023, He Jianfeng did a big thing that shocked the market, that is, he spent 10.3 billion yuan to acquire 29.42% of the equity of home furnishing giant Gujia Home Furnishing and became its actual controller. This transaction created the largest equity acquisition in China's home furnishing industry.
So far, the number of listed companies under Infore has increased to 3.
After 30 years, through frequent acquisitions, He Jianfeng has built an Infore empire covering environmental protection, film and television culture, finance and other fields, with total assets of about 60 billion yuan.
It is difficult to realize the dream of film and television
Frequent large-scale acquisitions, at present, He Jianfeng has almost no defeats, but the failure of Baina Qiancheng has created an exception.
After becoming the owner, He Jianfeng continued to increase the layout of mergers and acquisitions in the film and television industry.
According to public information, Infore Fund invested in Shenzhen Mutual Entertainment Network Technology Co., Ltd., the parent company of Weifan APP.
Weifan APP has mastered the latest itinerary of more than 5,000 stars in China, Japan and South Korea, which can be said to be a necessary artifact for star chasing.
Infore investment has also invested in a company called Pointing Holdings. The cinema advertising business of Zhidian Holdings covers more than 3,000 cinemas across the country, and the number of cinemas that exclusively cooperates with Zhidian Holdings is close to 2,000, and its annual box office once accounted for more than 70% of all cinemas in the country.
Entering the master, it is the cold winter of film and television, and the industry has fallen to the freezing point, it should be said that He Jianfeng chose a good time, which can be called the bottom.
However, the performance was a bit disappointing. From 2019 to 2021, the company's operating income was 611 million yuan, 284 million yuan, and 803 million yuan respectively, with year-on-year changes of -2.87%, -53.57%, and 182.76%; The net profit attributable to shareholders of the parent company (hereinafter referred to as "net profit") was 114 million yuan, 112 million yuan and 66 million yuan respectively, with a year-on-year change of 103.33%, -1.31% and -40.94%.
In the past three years, the company's net profit after deducting non-recurring gains and losses (hereinafter referred to as "deducting non-net profit") was 43 million yuan, 47 million yuan and 38 million yuan respectively, all of which were at a low level.
In 2022, the company will achieve operating income of 469 million yuan, a year-on-year decrease of 41.59%; net profit was 21 million yuan, down 68.64% year-on-year; The net profit after deduction was -50 million yuan, the first loss after He Jianfeng became the owner (excluding 2018).
In 2023, Baina Qiancheng's operating income will further decline to 432 million yuan, a year-on-year decrease of 7.93%; Net profit and non-net profit were lost by 186 million yuan and 218 million yuan respectively, and non-net profit was lost again.
In 2023, companies in the same industry, China Film, Shanghai Film, and Guangguang Media, will all turn losses into profits, with net profits of 263 million yuan, 127 million yuan, and 418 million yuan respectively.
As of May 10 this year, the market value of Baina Qiancheng was 4.747 billion yuan, and He Jianfeng and Infore Group held a total of 31.10% of the shares of Baina Qiancheng, corresponding to a market value of 1.483 billion yuan.
Regardless of the cost of capital, He Jianfeng and Infore Group hold the above shares, which cost at least 2 billion yuan. In other words, He Jianfeng lost about 600 million yuan. Since 2018, Baina Qiancheng has not paid cash dividends.
In the first quarter of this year, the net profit realized by Baina Qiancheng was 3.524 million yuan, but the non-net profit was still a loss of 7.5698 million yuan.
With the withdrawal of the May 1st film, the business performance of Baina Qiancheng in the second quarter may still be unsatisfactory.
The layout of the film and television industry has been tested again, and He Jianfeng's film and television dream may not be able to come true by relying on hundreds of thousands of dollars.
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