Panda Fireworks main business suffers heavy performance stress cross-border transfer

Wang Zhooming Beijing Report Core tip: However, a fireworks production companies to buy a film and television production company, such cross-border operation is not very rare before. The 21st Century Economics report the only fireworks company in the 600599,sh, "Panda Fireworks", is going further and further along the road of transformation. By the actual control person Zhao Weiping single-handedly created this national well-known fireworks brand, in 2009 before and after leaving the main industry, to real estate, hotels and other fields. December 4, 2013, Panda Fireworks announced that the company intends to plan major matters began to suspend business. Thereafter, the announcement confirmed that the suspension, Panda fireworks will be implemented restructuring, the acquisition of Dongyanghua ERA film company 60% stake. In addition to investing in Huahai, Panda Fireworks also commissioned a loan of 360 million yuan from an obscure media company. The air pollution is serious, the fireworks consumption is reduced sharply, CCDI the public funds to discharge the fireworks and firecrackers to stop directly. When heavy pressure hit, "fireworks" dispersed, "panda" where to go? To the film and television panda fireworks to be acquired in 2008, the company established the legal representative Wang Haibin shareholding 90%, another natural person Zhou holding 10% of the shares. In Chinese film and television production companies, Huahai Pictures is not the top, but also has a place. Since its inception, successively produced the "Red Dust", "Ink Fairy", "Secret Kill list", "the signals" and other TV dramas, independent production of the TV series has "offing", "Niang to get married" and so on, in all over the TV and the network also set off a number of TV ratings wave. However, a fireworks production company to buy a film and television production companies, such cross-border operation is not very rare before. February 18, the 21st century economic reporter tried to contact the Panda fireworks director of the secret office to consult the reorganization progress, but the telephone has not been connected. But the logic of the panda's investment in film and television may be seen in a commissioned loan. December 31, 2013, Panda Fireworks announced that a wholly-owned subsidiary Wanzai County Panda Fireworks Company will be the Guangdong Vision Media to provide 360 million yuan, the interest rate of monthly 1%. Creation Horizon was established in 2001, the end of October 2013 total assets of 18.12 million yuan, the January-October net profit of 1.659 million yuan. For such a small company loans 360 million yuan, the risk is conceivable, because only 1 years of interest on up to more than 43 million yuan, far beyond its total assets. "The loan is more like the nature of the investment, and the event horizon may carry out a larger business," said a video-industry insider. "The creation of the horizon to obtain this loan, and its behind the security party is not irrelevant." 360 million loans by the Guangzhou Kunlun Investment and Wang Yonghui guarantee. Kunlun Investment for fragrant Snow Pharmaceutical (300147) of the major shareholders, Wang Yonghui is the chairman of the fragrant Snow pharmaceutical. Wang Yonghui and Zhao Weiping's relationship is very unusual, Wang is the chairman of Guangzhou Federations, Zhao is vice president, two people often attend the forum, the meeting. The desire for panda fireworks to enter the film and television is evident from these two operations. But the film industry is different, and its risks are often beyond the imagination of outsiders. 2013, China's TV series production 15,000 episodes, 2000 episodes less than the peak 2012 years. Even so, there are only 8,000 episodes of TV dramas that can be aired, and a number of TV stations will scramble for the same popular TV series, but there are still a lot of TV dramas left unattended. Actors pay more and more high, broadcast and return risk, film and television is no longer can be closed focus on earning money in the industry. The decline in the number of TV dramas in the 2013 has shown that the industry is becoming more rational. Panda Fireworks Choose to enter at this point in time, the effect of investment, have to play a question mark. Performance stress But from another perspective, the transition may be the choice that panda fireworks have to make. From the performance of Panda fireworks in the last three years, 2011, 2012 and 2013 1-September, the company's net profit is 8.64 million yuan, 8.95 million yuan, 25.33 million yuan. The profit performance appears to be fair, actually can not be separated from Zhao Weiping's financial technology operation. August 2010, the panda fireworks capital of 62.66 million yuan to buy East letter fireworks 51% stake. After the completion of the acquisition, Panda Fireworks signed a contract with the East letter fireworks, asked the letter promised the minimum annual 7.65 million yuan to the panda after-tax profits. However, before the promise of the first year, the panda fireworks will be sold to the original shareholders in 2011. 62.66 million Yuan as a 2011 investment income, the actual transfer from 2010 to 2011 years. The sudden increase in profits in 2013 was the result of the transfer of 5% per cent of Hunan Liuyang Rural Commercial Bank in June. Liuyang 10% of the equity is the panda fireworks in 2010 at a price of 85 million yuan acquisition, 2013 of which 5% were transferred to 50.716 million yuan. This shows that the performance of Panda fireworks in the main business is not much improved, but through the left hand for the right way, manipulating the company's cash, income, profits and so on, to maintain the profitability of the company's statements. In fact, the fireworks business of panda fireworks is facing a crisis. With the increasingly serious air pollution, the fireworks industry is facing unprecedented difficulties. There is no hope for the way out. Even worse, in November 2013, CCDI issued the "on the New Year's Day during the spring Festival is prohibited public funds to buy fireworks and firecrackers, such as the notice", a large number of fireworks official consumption was curbed. County and township level is the main fireworks official consumption, many areas play a "lively atmosphere of the festival" under the guise of the annual fireworks and firecrackers concentrated discharge activities. Some of the mainland county government will specially meet to set up public funds to discharge, the organs of the Organization of funds to participate. More is the public institutions, state-owned enterprises and so on to seek the first color put "open cannon." Nanning has done a survey, the government departments, large state-owned enterprises and institutions of fireworks procurement accounted for 70% of the total market. At the end of 2012, "eight provisions" after the introduction of public funds consumption momentum has been curbed, the end of 2013 CCDI of public money consumption of fireworks and firecrackers stopped, further led to the decline in sales of fireworks. Under the double blow, panda fireworks seem only to transform this "Huashan oneRoad ", but whether it chooses the film and television industry is a smooth path, still need time to prove.