Ke Jiuming of Ruyi Pictures is a director, can Fuxing pick up the film and television script?

Viewpoint Network Fuxing shares have been exploring the second growth curve and the people who can catch this line.

On July 24, Zhang Jing, director of Fuxing Co., Ltd., resigned, and the board of directors decided to add a non-independent director, and nominated Ke Jiuming as a candidate upon the recommendation of the controlling shareholder Fuxing Group.

As far as the main business of Fuxing Co., Ltd. is concerned, Ke Jiuming can be regarded as an outsider, but he plays a pivotal role in the film and television industry, and is the founder of Beijing Ruyi Xinxin Film Investment Co., Ltd. and the executive director of New Vision Innovation Investment Management (Beijing) Co., Ltd.

Ke Jiuming's younger brother, Ke Liming, is the CEO and chairman of China Ruyi Holdings Co., Ltd., and replaced Wang Jianlin as the actual controller of Wanda Films at the end of last year. His leading investment and producer of films include "Hello, Li Huanying", "Send You a Little Red Flower", "Sewing Machine Band", "To Our Dying Youth", etc., TV series include "Langya Bang", "The Legend of Miyue", "No War in Peking", etc., and there are a large number of successful commercial cases on the screen and TV.

With the change of seats on the board of directors, Fuxing may hope to create a new script for itself through the Ke brothers.

Seek to cross borders

At the very least, Fuxing needs to find a better story in the capital markets to boost its declining market capitalization.

On July 24, the share price of Fuxing shares fell for five consecutive trading days, and finally closed at a price of 2 yuan, reaching the lowest point since 2009, with a total market value of 3.19 billion yuan.

On the same day, Fuxing shares had 313 million restricted shares lifted, which was the company's private placement of shares, accounting for 19.64% of the company's total share capital, and the market value of the lifting was close to 700 million yuan. After the lifting of the ban, the company's remaining restricted shares are 19,755,600 shares.

On December 28 last year, Fuxing Co., Ltd. issued a report on the issuance of shares to specific objects, showing that the issue price was determined to be 3.64 yuan per share, and the total amount of funds raised was 814 million yuan. If calculated at the closing price of 2.22 yuan the day before the lifting of the ban, the loss of investment institutions is close to 40%.

When real estate equity financing is released, Fuxing shares strive to be the first person to eat crabs, and is the first real estate company to start private placement fundraising after the launch of the "third arrow", but now it seems that this crab has indigestion.

From the perspective of performance, Fuxing's total operating income in the first quarter was 1.085 billion yuan, a year-on-year decrease of 21.39%; the net profit attributable to the parent company was 54.3806 million yuan, a year-on-year increase of 30.42%; The non-net profit was 75.4704 million yuan, a year-on-year increase of 86.31%.

Since the beginning of 2021, Fuxing has stopped acquiring land in the open market and focused on digesting the old reform, while the growth rate of metal products is relatively limited. In 2023, the company's main business will be 4.338 billion yuan, a year-on-year decrease of 69.09%, accounting for 78.76% of operating income; The revenue of metal products was 1.064 billion yuan, a year-on-year increase of 5.64%, accounting for 19.32% of the operating income.

In 2022 and 2023, Fuxing shares will record "other" revenue accounting for 0.99% and 1.06% of the total respectively.

For example, last year, Fuxing Co., Ltd. signed strategic cooperation agreements with Sinochem Energy Carbon Asset Operation Co., Ltd. and China Forest Farm Association to explore carbon asset management, forestry ecological project development and other businesses.

At the beginning of this year, Fuxing Co., Ltd. announced that it planned to transfer Fuxing Fitch. East Lake City, Fuxing Fitch. The first phase of the 200,000-square-meter "commercial office building" project in core areas such as Hongqiao City will carry out long-term rental housing business.

Not long ago, on July 5, Fuxing Co., Ltd. announced that it intends to jointly establish Fuxing New Quality Productivity Transformation Fund with Ronghan Gongjin, which invests in industries such as biomedical, artificial intelligence, new energy, new materials and other industries that meet the needs of Fuxing Co., Ltd. for industrial upgrading and transformation, with a scale of 2 billion yuan, and Fuxing Co., Ltd. subscribed no more than 60%.

As for the film and television industry, it is an area that Fuxing has tested the water many years ago, and it has also paved the way for cooperation with the Ke brothers.

Dream showbiz

Fuxing's cross-border film and television industry started in 2017, this year Fuxing Co., Ltd. set up 17 subsidiaries, of which 2 subsidiaries are involved in film and television production, one is a wholly-owned subsidiary Fuxing Culture, and the other is Fuxing Film and Television Culture Co., Ltd., a 51% subsidiary of Fuxing Culture Holdings.

It is worth mentioning that the other two shareholders of Fuxing Film and Television are Beijing Ruyi Xinxin Film Investment Co., Ltd., which holds 25% of the shares, and Hubei Zhiyin Animation Co., Ltd., which holds 24% of the shares.

Ruyi Pictures is 50.9% owned by Yongxin County Ivy League Cultural Service Center (Limited Partnership), Ke Liming directly holds 0.1% of the shares, and Yongxin County Ivy League Cultural Service Center is 51% and 49% owned by Ke Jiuming and Ke Liming brothers respectively.

From 2017 to 2018, Fuxing Culture has invested in 4 film and television works, including "Ma Ge is a City", "Long Look", "Fan Sister Romance", and "One-armed Admiral He Bingyan", with a total investment of 62 million yuan, but these works have generally failed to be recognized by the market, and Fuxing has also suspended film and television investment.

Taking the first film "Ma Ge is a City" that Fuxing participated in after entering the film and television industry as an example, the film was released nationwide on June 14, 2019, although it has a strong lineup of Bai Baihe, Zeng Zhiwei, Carina Lau starring, and Li Shaohong director and Yan Geling participated in the screenplay. However, after the release, the Douban score was only 5.8 points, which refreshed the lowest score for the film adapted from Yan Geling's novel, and the box office did not exceed 30 million yuan in 4 days of release, and the box office was only 49.842 million yuan in 20 days of release, and the daily box office was less than 200,000 yuan, which was neither popular nor popular.

In addition, the Douban score of "Fan Sister Romance", which was originally scheduled for 2018 but delayed to be released in 2021, is only 3 points, and the cumulative box office is only 2.397 million yuan.

At present, Fuxing Culture has only recovered an investment of 13.0329 million yuan in the play "Changxiangshou", and "One-armed General He Bingyan" with an investment of 26.5 million yuan has not yet been released.

In addition, these film and television works are invested by the wholly-owned subsidiary Fuxing Culture, rather than Fuxing Film and Television, which is invested by Ruyi Pictures and Bosom Friend Animation, Fuxing shares said in June last year in response to the exchange's inquiry letter on the company's fixed increase that Fuxing Film and Television has not yet carried out actual operations.

After the board of directors of Fuxing shares ushered in Ke Jiuming, it may accelerate the layout of the film and television business.