Huayi Brothers all entertainment curtain will open

As the first film and television entertainment company in the capital market, Huayi Brothers (300027) has gathered under the spotlight of the capital market since listing, and has never had a listed company like Huayi to bring so many topics to the capital market and entertainment circle, the action of the star shareholder, the celebrity gossip, the movie box office,　　The artist's fate has become the important information that affects the stock price. China's film market into the golden period of development, Huayi can use this sail to get better results? Because the film and television cycle caused by the performance fluctuations how to resolve? Will huayi continue to be the industry leader when more film and entertainment companies are tempted to go public? How far is the company from the ideal of integrated entertainment group?　　With these questions, China Securities News reporter interviewed Huayi Brothers chairman Wang Zhongjun. New business smooth performance fluctuations troubled China Securities News: Huayi Brothers Interim results have been announced, Year-on-year decline in the first half, but is expected to increase by 50% in the first three quarters, the reason for the fluctuations in performance?　　How to deal with the volatility of performance in the future?　　Wang Zhongjun: August 19, the company announced a semi-annual report, operating income of 200 million yuan, net profit of 28.27 million yuan, is inferior to last year, but also in our expectation, our annual film schedule, production and distribution plan is such a state. The film industry itself has seasonal characteristics, summer stalls, national Day stalls, lunar year files and other films more concentrated screening period in the second half.　　In the case of Huayi, this year's planned blockbuster film and television dramas are scheduled in the third and fourth quarters, such as the Aftershock, Detective Dee, and the first half of Huayi is in the planning, drop layout, through into the music, mobile games, cinemas and other fields to expand the industrial chain. The "Aftershock", which has more than 600 million box-office sales so far, has exceeded the company's expectations, which is also the main reason for the expected three-quarter growth.　　The second half of Huayi also has a number of film and television works debut, will contribute to the performance improvement. For the performance of seasonal fluctuations, Huayi has been trying to overcome, our music, mobile games, cinemas and other new business expansion, is to provide a stable cash flow at the same time, so that the company's business comprehensive through and linkage, and gradually smooth performance of the seasonal fluctuations of the puzzle.　　However, these businesses are still in the incubation period, this year will not be a big contribution.　　The new and old linkage aimed at the whole Entertainment Group China Securities newspaper: Huayi's traditional business including films, TV dramas, artists brokers, known as the company's "troika", which constitute the main source of revenue, how the future in the guarantee of stable development of traditional business on the basis of greater growth space?　　Wang Zhongjun: Film and television, entertainer brokers as Huayi's old business, the current development is relatively stable, three of the business to the performance of the contribution of the basic accounting for One-third. China's movie box office is expected to reach tens of billions this year, compared with last year's 6.2 billion growth rate of 60%, the future development will be very impressive. For Huayi, the film business must at least keep pace with the growth of the industry. Huayi currently occupies about 10%-15% of the domestic film market and is ranked among the top two, our goal is to produce more excellent, high-quality works, to consolidate the brand of huayi, rather than just high yield. The domestic TV drama industry entry threshold Low, numerous enterprises, in recent years has been in the overall oversupply, the situation of high quality drama, but also to huayi brought greater integration leeway. Recently, the company has set up a new absorption of Shi Zhongshan Studio and Zhang Haidong Studio, in fact, belong to another form of integration.　　In the future, if there is a merger opportunity that conforms to HUAYI development strategy, will also continue to pay attention to. Huayi contracted artists at present 100 people, artists broker development is more stable, the future focus is on the training of new players at the same time the number of signed artists increased.　　People are more concerned about the mobility of artists, in fact, huayi artists to leave the rate is lower than the turnover rate of employees, and any individual artists will not affect the financial structure of the company. China Securities Daily: Huayi in the first half of this year to participate in online games, cinemas and other fields, the future of the company in the new business development plans?　　What are the goals of new business development in the future? Wang Zhongjun: Huayi's new business includes music, games, cinemas, and other new media partners, such as network video, and traditional business, compared to the proportion of small, for this year's income contribution will not be too big, after all, just started.　　However, after next year, after the cultivation of the future will be supporting the company's performance.　　The company's goal is that in the next 3 years, the new business can contribute one-third of the performance, coupled with the steady development of traditional business, to ensure the growth of the company. Huayi in the layout of new business, not just blind expansion, but will fully consider the new business with the existing business linkage, is doing multiplication rather than simple addition. Take "Aftershock" as an example, the film has been created from a year ago, its singer Shangwen synchronized the theme song, mobile games will be online in September, and Beijing, Chongqing film Meeting is also held in their own cinemas.　　Each business linkage will be able to produce better results. The company recently and 酷6网 in the field of network video cooperation.　　As a content provider, Huayi also catches up with the development opportunity of "triple net Integration", which is equivalent to adding a digital distribution channel without increasing the cost, and the rising trend of network video copyright is very obvious. In cinemas, there are 2 cinemas that have been built and run and plans to open 3 more cinemas this year.　　Huayi Cinema is positioned in the high-end, but this does not mean high fares, but to provide better service with the viewing environment. The future companies also have plans like Disney, consider the construction of film and television bases, theme parks, but there is no precise timetable.　　The company's goal is to the integrated Entertainment Media Group's goal to develop a comprehensive layout.　　Equity incentive timing China Securities newspaper: As the first share of entertainment, Huayi in the two-tier market is also placed high expectations, the company's current stock price absolute valuation is not low, how the company look?　　Wang Zhongjun: Huayi's IPO since the end of October 2009, investors have been paying more attention to the company is both encouraging, is expected, but also pressure. Listed toHuayi Brothers provides a very good capital platform, so that with the company's business development, brand image to form a positive interaction, the company's ascension is self-evident.　　However, the company will not too much consider the issue of stock prices, valuation, but will focus on business, the fundamentals can be done to give investors better returns. We have been calling on the public to give the gem more time and space to grow, not too harsh, and now the company is often blamed for some of its own problems, such as stock price fluctuations.　　A company listed less than a year, of course, can not be called a great enterprise, but Huayi has this dream, every day in the effort. China Securities Daily: There will be a large number of restricted stocks in the second half of the ban, including some artists holdings, whether there is a reduction of pressure?　　Is there any incentive for the artists and managers who have no shares in the future? Wang Zhongjun: October 30 This year, the company's first restricted shares will be lifted.　　But as the actual control of the two of our brothers have promised not to transfer the shares within 3 years from the listing, other directors also pledged to the annual transfer of the proportion of the term. In fact, the lifting is any company to face, whether it is a star shareholder or management, the company is regarded as ordinary investors, its overweight or reduction are their personal configuration, the company will not interfere with can not be expected.　　The only thing that can be done is to run the business well and make the return on investment more attractive.　　Equity incentives, the company is also learning, discussion and consideration, but the technology of equity incentive is more complex, for the company, the choice of incentives, incentive range, the impact on performance needs to be carefully considered, will be more mature when the time to deal with.　　China Securities News: The company's performance is actually facing some uncertainty, such as the fate of artists, film and television works of success, whether to maintain the status of industry dominance, etc., how to eliminate these uncertainties?　　Wang Zhongjun: Huayi mainly relies on brands, platforms and culture to retain artists rather than contracts, and the steady artist relationship in recent years has also shown that Huayi's brand is valued by all. At present, the success rate of Huayi film and television works is more and more high, this is the professional advantages of large companies, good film and television works must rely on a good mechanism, from evaluation, producer, to input to the production and distribution we have a set of mechanisms to ensure good works.　　Scale, large company team value and other advantages will be fully played. At the same time, Huayi has enough experience in film and television, also has a more reasonable division of labor, different professional style with the team of filmmakers, the company's management is simple and smooth. At present, many film and television entertainment companies are copying or imitating Huayi's studio model, including the director, producer studio, Big broker system, etc., which shows that Huayi's innovation is successful.