A-Share Listed Film and Entertainment Companies - Profiles and Financial Data
Film and entertainment companies make and sell entertainment products and services, including film and TV show making, distribution and displaying companies, music distributors and producers, entertainment theaters.
In 2016, Chinese companies produced a total of 944 films, including 772 story films, 49 animation films, 67 science educational films, 32 documentaries and 24 special type films. Story film production and gross film production increased by 12.54% and 6.31% over the year before, respectively.
Due to the impact of online films, China's box office has been declining. It ended 2016 at CNY 45.712 billion, expanding by 3.73% YOY. This included CNY 26.663 billion of local movie box office revenues, accounting for 58.33%. Box office and sales revenue of Chinese films in overseas markets topped CNY 3.825 billion, increasing by 38.08% YOY. There were 500 investment and funding cases in the culture and entertainment sector in 2016. The valuation of some companies surged and several "unicorns" emerged with more than USD 1 billion valuation.
The Chinese government issued a number of policies to regulate the development of the film and entertainment industry. For example, Film Industry Promotion Law was issued on November 7, 2016. Highlights of the law were reduced approval items and lowered entry barriers. It also prohibited film distributors and theaters from deceiving consumers through false trading, overstating sales revenue, etc. In addition, China's online film industry is faced with both opportunities and challenges. On one hand, the industry is in a favorable environment because the Chinese government encourages in-depth engagement in the film industry chain. Consumers' rising entertainment demand and the capital layout are also beneficial to the industry. On the other, weakened growth of the film market poses challenges to film box office.
Chinese people need high-quality local movies that reflect their own real life. At the same time, popular movies on the global market should also be introduced.
In this report, CRI analyzes 21 film and entertainment enterprises listed in A-share market in China.
The report is composed of two parts: the first part is enterprise profiles and the second part is the operation status of these enterprises in the recent decade (presently 2006 to 2016, we will update it to the latest as time goes by).
The operation status is demonstrated from the following perspectives: (1) financial indexes, such as earnings per share, book value per share (BPS), sales per share, net cash flow per share, return on net worth and debt to asset ratio; (2) indexes on the income statement, such as revenue, operating profit, net profit and EBIT; (3) indexes on the income statement, such as revenue, operating profit, net profit and EBIT; (4) indexes on the balance sheet, such as liquid asset, fixed asset, current liability, non-current liability, capital reserve and shareholders' equity.
(1) Financial Indexes