Poor performance selling assets! 4percent of the shares of selling network are sold by Huayi Brothers

category:Finance
 Poor performance selling assets! 4percent of the shares of selling network are sold by Huayi Brothers


The third quarterly report of Huayi Brothers shows that the business income and net profit of Huayi Brothers have both declined. From the beginning of the year to the end of the reporting period, Huayi Brothers achieved a business income of 1.617 billion yuan, a year-on-year decrease of 49.22%, and the net profit attributable to shareholders of listed companies was - 652 million yuan, a year-on-year decrease of 298.56%, and the net profit attributable to non profits was - 520 million yuan, a year-on-year decrease of 292.50%.

The loan is still yinlei of Huayi Brothers. During the reporting period, the short-term loan of Huayi Brothers increased significantly. At the beginning of the period, the short-term loan balance of Huayi Brothers was 192 million yuan. At the end of the period, the short-term loan balance of Huayi Brothers was 2.039 billion yuan, an increase of 960.68% over the beginning of the reporting period. As of September 30, 2019, Huayi Brothers monetary capital balance is only RMB 1.409 billion, and the data at the beginning of the year is RMB 2.641 billion. As of September 30, 2019, the balance of monetary capital of Huayi Brothers is less than the balance of short-term borrowings.

The third quarter report shows that, in view of the companys asset light film and television production mode and the long production cycle, the company may still face the situation that the cash flow of operating activities is negative in a certain period of time and the financing activities are required to provide funds in the process of expanding production and operation, although the company can still obtain loans through absorbing investment smoothly under the existing business scale Fund raising activities supplement the cash gap of the companys operating activities. However, if the funds cannot be successfully raised in place or need to pay high financing costs, the companys production plan or profitability will be affected, let alone further expand its business scale and improve its profitability.

During the reporting period, the net cash flow from Huayi Brothers financing activities was 1417.4364 million yuan, a decrease of 45.83% compared with the same period of last year, mainly due to the companys repayment of the principal and interest of medium-term notes and borrowings.

The companys own hematopoiesis capacity is insufficient, and selling assets has become Huayi Brothers choice

On the evening of September 3, Huayi Brothers announced that Huayi Brothers and its wholly-owned subsidiary Huayi international investment reached an agreement with glena holdings. Huayi international investment plans to transfer its 243812000 shares of GDC company, accounting for 90.5% of the total issued shares of GDC company, to glena holdings. The equity transfer price that the company should obtain under this transaction is US $55 million, which is converted into RMB 389.862 million. The funds from share transfer can be used to supplement the companys working capital, etc.

On January 1, Huayi Brothers mutual Entertainment (Tianjin) Investment Co., Ltd., a wholly-owned subsidiary of Huayi Brothers (hereinafter referred to as Huayi mutual entertainment), reached an agreement with Chen Yingkui. Huayi mutual entertainment plans to transfer 4% of its shares in Shenzhen Huayu Information Technology Co., Ltd. (hereinafter referred to as selling network) to Chen Yingkui at a transfer price of 9.04 million yuan. After the completion of this transaction, Huayi mutual entertainment holds 47% of the shares of selling network, and selling network will no longer be included in the scope of the companys consolidated statements.

In June 2014, Huayi interactive entertainment set a price of 266 million yuan to acquire 51% of the stock rights of the selling network by means of acquisition of equity and capital increase. According to the announcement, the blockbuster network is the leading film o2o platform in China. At present, it cooperates with more than 700 star movie cities in more than 80 cities to provide rich viewing services such as online booking for Internet users and group customers.

In 2015, the net profit of the seller network was 46.1833 million yuan, in 2016, 59.366 million yuan, in 2017, 65.1923 million yuan, and in 2018, 10.10109 million yuan. As of the 2018 annual report, the book balance of goodwill of the website is RMB 232 million. The accountant who has worked for many years told the Beijing news that the selling network has changed from a holding subsidiary company to a participating subsidiary company, which is no longer included in Huayi Brothers consolidated statements, and is included in the long-term equity investment or available for sale financial assets. It affects profits through investment income, but no longer affects Huayi Brothers business income and other related subjects, which is equivalent to divestiture of loss assets, Beautify the consolidated report. Source: Beijing News Author: Zhang Yanqi editor in charge: Wang Xiaowu, NF

In 2015, the net profit of the seller network was 46.1833 million yuan, in 2016, 59.366 million yuan, in 2017, 65.1923 million yuan, and in 2018, 10.10109 million yuan. As of the 2018 annual report, the book balance of goodwill of the website is RMB 232 million.

The accountant who has worked for many years told the Beijing news that the selling network has changed from a holding subsidiary company to a participating subsidiary company, which is no longer included in Huayi Brothers consolidated statements, and is included in the long-term equity investment or available for sale financial assets. It affects profits through investment income, but no longer affects Huayi Brothers business income and other related subjects, which is equivalent to divestiture of loss assets, Beautify the consolidated report.