He said frankly that for the acquisition of high P / E ratio, Huayi association has been carrying on for a period of time, and the industry pioneers are all like this.
In recent years, Huayi Brothers has acquired and invested in film and television, game and cinema companies, developed IP derivative licensing, set up live entertainment Town, and made rapid progress in the strategy of eliminating single film, with a market value of more than 70 billion yuan in 2015. However, due to the suspension of star capitalization in 2016, the industry has encountered a storm of tax investigation, and then to the new epidemic in early 2020. Huayi Brothers has been faced with such questions as over reliance on the IP of Feng Xiaogangs works, high proportion of equity pledge, tight cash flow and lack of master works. The market value of Huayi Brothers has also dropped to about 13.7 billion yuan.