Summary of the week
One stone caused a thousand waves. Cui Yongyuan, the former host of China Central Television, revealed that the Chinese entertainment industry signed a yin and yang contract, and several microblogs that film and television practitioners used to evade taxes not only caused public outcry, but also triggered the supervision department to intervene.Stocks, especially Huayi Brothers, Tang De Film and Television and other Fan Bingbing concept stocks related to the insinuated Chinese artist Fan Bingbing, their stock prices fell by the limit.
On the whole, the A-share film and television sector closed on Monday, and its market value evaporated by more than 10 billion yuan (RMB, the same below, S$2.1 billion).The stock price of Huayi Brothers, which bears the brunt of the incident, continued to drop after the daily limit on June 4, losing 2.3 billion yuan in market value.
The celebrity's firing this time undoubtedly hurt the stars, but it was the investors of Ashy who were hurt even more.Not only did retail investors suffer, but even institutional investors were shot while lying down.
According to a Securities Daily report on June 5, at the end of the first quarter, 21 and five public offering fund products held heavy positions in Huayi Brothers and Tangde Film and Television respectively, with a total of 22,691,400 shares and 6,358,300 shares respectively.According to the calculation of the number of holdings, after Huayi Brothers and Tang De Film and Television both dropped their limits on Monday, the 26 funds that chose to hold these two stocks heavily lost 44 million yuan in one day.
Although the lower limit of Huayi Brothers and Tang De Film and Television is not a normal lower limit, it is due to the yin and yang contract, but it is difficult for investors to claim compensation.
Analysis: Film and television stocks are highly risky and highly professional, and it is difficult for retail investors to distinguish good from bad
Will the incident deter investors from Chinese film and entertainment stocks?According to Chinese media reports, some analysts believe that from the stage of domestic economic and social development, the social demand for film and television consumption is constantly growing and upgrading, and this industry is worthy of long-term investment.The involvement of administrative agencies in the investigation is obviously bad for the companies involved in the short term, but it is beneficial to the long-term development of the industry. After all, film and television companies cannot rely on tax evasion to make profits.
However, some analysts pointed out that for ordinary investors, film and television itself is a high-risk industry. If there is no high discrimination ability and in-depth understanding, it is worth not paying attention to this sector.
First of all, for film and television companies, the biggest cost is the actors.The price of an actor is fixed, but the box office of a movie is uncertain; on the other hand, even if a movie has a good box office, it does not necessarily mean that the production company is profitable.This industry is very professional and risky, and it is difficult for ordinary investors to distinguish good from bad.
In addition, the free cash flow of many film and television companies in the Chinese market has been negative for many years, which shows that there are considerable uncertainties in this sector.
Take Huayi Brothers Media Co., Ltd. as an example. It was established in 2004 and successfully landed on the Growth Enterprise Market in 2009. It became the first listed company in the film and television industry in China at that time..The highest stock price ever exceeded 80 yuan per share.
However, with the passage of time, Huayi Brothers' business situation has been deteriorating, and its industry ranking has been declining steadily. The aura of the first private film and television stock has disappeared. Now the stock price is only about 7 yuan, and it is about to enter the ranks of junk stocks.
The purpose of some companies going public is to allow shareholders and executives to cash out
Pi Haizhou, an independent financial writer and Internet big V who supported Cui Yongyuan in this incident, wrote an analysis last year on the phenomenon of the year-on-year decline in the performance of Huawei Brothers.Well done, what its shareholders and executives want to do most is how to cash out their stocks from the stock market, and many company executives even resigned in order to cash out.
He said: On the issue of cashing out, Huayi Brothers' major shareholders, directors, and celebrities who hold shares are all exceptions. They also realized their dreams of wealth because of cashing out. The money they got from the stock marketWealth is something they can't earn from filming and TV for a lifetime.It was the listing of Huayi Brothers that made their dream of wealth come true.
At that time, Pi Haizhou mentioned that it was also based on the wealth effect brought about by the listing, so the shareholders of Huayi Brothers, including directors and stars, also learned how to operate and play with capital.
He said: It is precisely because Huayi Brothers and its shareholders, editors, directors, and stars have all gone to play capital, so what we see is that shareholders related to Huayi Brothers, editors, directors, and stars have become rich one by one.But these people after getting rich, although their wallets are bulging, but there are fewer and fewer good films to be produced.Under such circumstances, can Huayi Brothers' performance not fail?
Huayi acquired debt and shell companies at sky-high prices
An analysis published by Toutiao yesterday mentioned this issue again, and listed it as the reason why Huayi Brothers' performance was not as good as the previous year.According to the analysis, at the end of 2015, only two months after the establishment of Dongyang Latin America Media Co., Ltd., the well-known director Feng Xiaogang held 99% of the shares, it was acquired by Huayi Brothers for 70% of the shares. The purchase price was as high as 1.05 billion yuan.Net assets are still negative 5,500 yuan.
In November 2015, Huayi Brothers announced the acquisition of Zhejiang Changsheng Film and Television, the company of well-known artist Zhang Guoli, at a price of 252 million yuan. Zhejiang Changsheng Film and Television was established less than half a year ago, and its net assets were less than 10 million yuan.
In October 2015, Huayi Brothers acquired Zhejiang Dongyang Haohan Film and Television for 756 million yuan. This company had just been established for a day at the time, and it was just a shell company without any assets. Its shareholders were Fan Bingbing’s boyfriend Li Chen,Zheng Kai, Du Chun and many other stars.
In any case, the negative impact of this turmoil on Huayi Brothers is obvious.A-share investors are also deeply depressed. It was originally just a pure stock market investment, but Cui Yongyuan posted a Weibo, which brought the limit down.
No wonder some netizens apologized to Fan Bingbing after the media reported that Cui Yongyuan broke the news, saying that after the signing of the yin-yang contract he referred to was someone else, they also shouted the next day: Xiao Cui apologized to the stars last night, Feng Yunjun felt that it is necessary to apologize to the shareholders tonight.
This incident also reflects a fact that investors in the Chinese stock market must face: with the rapid development of social networks and self-media, big V's remarks and self-media reports have had a real impact on the stock prices of listed companies.
Some netizens said with emotion that not only after witnessing the lessons one by one, all kinds of listed companies will be more cautious in choosing endorsements and co-stars in the future. In order to speculate in stocks, stockholders must pay attention to financial and economic news.Pay attention to entertainment news and celebrity gossip.
The so-called wisdom grows through experience. After this disaster, investors will invest in related stocks in the future. How careful will they be?
