Counting these two, Huayi Brothers has applied to the bank for a comprehensive credit line of 4.5 billion yuan in 2019. On January 8,2019, the company applied to Ping An Bank for a comprehensive credit line of 1.2 billion yuan, and Minsheng Bank for 700 million yuan, China Merchants Bank, Zhejiang Bank and CITIC Bank for 200 million yuan each.
In addition to borrowing from the bank, Huayi Brothers also borrows from its partners and real controllers. At the beginning of 2019, Huayi Brothers signed a strategic cooperation framework agreement with Ali Pictures, and Huayi Brothers borrowed 700 million yuan from Ali Pictures, while the two sides carried out film and television projects, artist development, derivatives development, marketing services and other areas of cooperation. In March 2019, the company borrowed 26 million yuan from Zhejiang Hengdian Film and Television property Rights Trading Center Co., Ltd. In April 2019, the company borrowed 100 million yuan from one of the actual controllers, Wang Zhongjun, without interest. According to public reports, Wang Zhongjun sold paintings to raise money for Huayi Brothers.
Wang Zhongjun and Wang Zhonglei brothers, the company's real controller, also used Huayi Brothers stock pledge to borrow money, as of December 24,2019, Wang Zhongjun and Wang Zhonglei respectively pledged% and% of the shares held, of which half a year of equity pledge financing amounted to 100 million yuan.
The purpose of applying for comprehensive bank credit and borrowing is to solve the financing problem. From Huayi Brothers'3rd Quarterly 2019, the company did raise a lot of money in 2019. In the first three quarters of 2019, the company received $100 million in cash to borrow, up more than 70 percent year-on-year, hitting an all-time high. During the same period, investment activities generated a net inflow of 600 million yuan in cash, but a net outflow of 200 million yuan in cash from operating activities and 4.5 billion yuan in debt repayment due.
Even with borrowings, Huayi Brothers had only $100 million left at the end of the third quarter of 2019\" cash and cash equivalents balance.\" At a nearly seven-year low since the end of the third quarter of 2012, it's only about a quarter from its peak at the end of the third quarter of 2016.
Huayi Brothers Holdings subsidiary dragged down overall profits in the first three quarters of 2019. Huayi's parent company lost only $100 million in the same period, while its consolidated statement (plus its holding subsidiary) lost $100 million. And huayi's full-year 2019 results \"could be a loss or a significant change from the same period last year\" should be warned and explained in the three-quarter report. Although the first three quarters have lost money, for this option, the company has chosen to \"not apply \". Such an operation, usually understood by the market as 2019 full-year net profit without loss is a big probability event.
According to the National Bureau of Statistics, gross gross box office revenue in the country increased by% year-on-year in 2018, and data from the 2019 China Film Market Data Insight Report, released by Cat Eye data in conjunction with Weibo films, revealed that the Chinese film market continued to grow momentum in 2019, with the national box office revenue rising by% year-on-year.
The above-mentioned Huayi Brothers and other companies, the bitterness is uneven. In addition to ray media's 2018 net profit growth, the other four all fell, ciwen media and huayi brothers both slipped into a loss position. However, in the first three quarters of 2019, ciwen media has turned losses, ray media net asset income after an annualized or even higher than 2018, only huayi brothers losses remain.
Huayi Brothers'revenue in the first three quarters of 2019 was nearly halved year-on-year, and Guan Hu's war juggernaut,\" Eight Hundred,\" is expected to be released on July 5,2019, and actually remains unreleased by the end of 2019, with its expected revenue providing a supplementary guarantee for Minsheng Bank's $700 million comprehensive credit.
With the return on net assets will be horizontal comparison of the above five companies, Huayi Brothers decline is the most obvious. In 2013, its net asset yield was the highest among five film and television companies. In 2018, Huayi Brothers was in the bottom two, and the first in the first three quarters of 2019.
Huayi Brothers went public in October 2009, and by 2017, the highest level of assets, total assets and net assets had doubled and doubled respectively from when they were first listed. Over the same period, the company's asset-liability ratio has more than tripled. At the same time as the increase in leverage, the company's return on total assets is not rising, but is getting worse. Total asset yields fell by nearly 60% in 2017 compared to 2013, and overall losses in 2018.
In 2015, Huayi Brothers bought a 70 percent stake in Zhejiang Dongyang Maila Media Co., which is 99 percent owned by Feng Xiaogang (hereinafter referred to as \"Dongyang Maila \"). Dongyang Meila's net assets at the time-10,000 yuan, based on the 2016 after-tax profit 15 times the valuation of the transfer price. Dongyang Meila promised 5 years profit, in the 3rd year, that is,2018, after tax profit only completed 49% of the promised value. In 2019, Dongyang Meila promised a net profit of $100 million, and the company's production of \"Only Yun Knows\" was its only film to be released in 2019, and the box office was not satisfactory, with cat-eye data showing it had a cumulative gross of $100 million as of January 6,2020, just 1\/9 of the 2017 box office of Fanghua.
A large number of premium acquisitions led to a significant increase in Huayi Brothers goodwill, which doubled in 2017 over 2013. The main cause of the company's losses in 2018 is the impairment of goodwill. In 2018, Huayi Brothers lost more than 1 billion yuan, of which goodwill impairment loss of 100 million yuan.
In June 2017, Huayi Brothers sold part of its stake in Guangzhou Yinhan Technology Co., Ltd. In the same year, the sale of Henan Jianye Huayi Brothers Cultural Tourism Industry Co., Ltd., part of the transfer of hero mutual entertainment technology Co., Ltd. In September 2019, the company and wholly-owned Sun Company transferred all shares of GDC.
Public funds sell to express their attitude towards the company. At the end of the second quarter of 2013,51 fund positions held Huayi Brothers shares, or 20 per cent of outstanding equity holdings. At the end of the third quarter of 2019, only two funds held shares in the company, or% of outstanding equity.
Huayi Brothers said it would gradually divest businesses and assets that are weakly linked to core businesses such as film and reality, in order to focus on quality resources to continuously consolidate and enhance the company's core competitiveness.