Wanda films fixed increase plan has been approved, and 162 cinemas have been expanded by more than 3 billion yuan

 Wanda films fixed increase plan has been approved, and 162 cinemas have been expanded by more than 3 billion yuan

On April 21, 2020, Wanda film released a fixed increase plan, with the total amount of funds to be raised no more than 4.35 billion yuan (including the number of shares), the number of shares to be issued not more than 624 million shares (including the number of shares), and the objects of issuance were no more than 35 specific investors.

Wanda film said that after deducting the issuance costs, the net amount of raised funds will be used for the new cinema project, with a total investment of 3.145 billion yuan, and the planned investment of 3.045 billion yuan will be used to supplement the companys working capital and repay loans.

It can be said that under the influence of this years epidemic situation, the film and television industry can be described as worse, and Wanda film has chosen the road of expansion against the trend.

It has been disclosed that the new cinema projects include Beijing, Shanghai, Guangzhou and other cities. It is planned to build 162 new cinemas from 2020 to 2022, with a total investment of 3.145 billion yuan.

Although the new film company is still in the process of raising funds, it has not yet been completed. On the evening of July 20, Wanda film released a reply report, which revealed that as of July 20, 52 new cinemas were under construction, and 110 were not yet under construction. The implementation sites of the new cinemas have been determined, and the lease agreement or intent agreement has been signed. The current progress status matches the construction plan.

Deficit in advance exceeded 1.5 billion in the first half of the year

From the operating performance, Wanda films net profit in 2019 ushered in the first loss in nearly five years. On the evening of April 21, Wanda film released its financial report in 2019, which showed that in 2019, Wanda film realized an operating revenue of 15.435 billion yuan, a slight decrease of 5.23% compared with the previous year; the net profit attributable to the parent was - 4.7 billion yuan, a year-on-year decrease of 324.87%, resulting in a loss of more than 4 billion yuan in 2019 due to the provision of asset impairment.

In 2020, affected by the epidemic situation, the film industry is almost frozen, and Wanda film can not be alone. On April 29, Wanda film released its first quarter report, showing a loss of 600 million yuan in the first quarter, compared with a profit of 426 million yuan in the same period last year.

On July 15, Wanda film released a performance forecast showing that it expected a net profit loss of 1.5-1.6 billion yuan in the first half of the year, and a profit of 524 million yuan in the same period of last year.

Novel coronavirus pneumonia has been seriously affected by the new coronavirus pneumonia since the first half of 2020, according to Wanda film. More than 600 domestic studios affiliated to the company have been closed since January 23, 2020, and overseas studios have been closed since the end of March 2020.

At the same time, Wanda films main investment and control of Chinatown detective 3 and other films failed to be released as scheduled, and the shooting progress of some films and TV plays was delayed, and the operating income of listed companies decreased significantly compared with the same period last year. Nevertheless, Wanda film still needs to pay more rigid costs such as employee compensation, cinema rent, financial expenses, etc., which results in a large loss of operating performance of listed companies during the forecast period.

However, Wanda film firmly optimistic about the recovery prospects of the film and television industry. Wanda film said that with the gradual improvement of the epidemic situation in China and the adjustment of prevention and control measures, the audiences demand for watching films and the production and operation of the company will gradually recover, and the prosperity of the industry will gradually increase.

The good news is that on July 16, the state film Administration issued a notice stipulating that under the premise of effective implementation of various prevention and control measures for cinemas, low-risk areas can resume business orderly on July 20, and the pace of returning to work in the film industry is speeding up.