Wanda Hospital line radical expansion of capital thirst: three or four-line Cinema losses serious

is expected to become a a-share of the first share of the Wanda Hospital line is facing a lot of tests. October 16, the SFC announced the Wanda Cinema Line Co., Ltd. (hereinafter called Wanda Hospital Line) prospectus, the company intends to sell shares of less than 60 million units, planned to be listed in Shenzhen Stock Exchange. This means that at the beginning of July, the "Stop Audit" of the Wanda Hospital Line a A-share listing road restart. Industry insiders believe that this prospectus exposes the Wang family to the Wanda Hospital line of Absolute holding, the bright report card behind is the Wanda Courtyard Line and the brothers company Wanda Commercial Real estate's frequent correlation transaction, the three or four line city's Wanda Cinema loss serious and the increasingly white-hot market competition, is not too optimistic to the Wanda Hospital line future development. Jianlin family Absolute Holding according to the calculation, the Wang family total control of Wanda Hospital line 71.4% of the equity, achieved the Wanda Hospital line of absolute holding. The prospectus shows that the controlling shareholder of the Wanda Hospital Line is the investment of Wanda and holds a 68% stake in the Wanda Hospital line. Jianlin through Dalian Hexing Investment Co., Ltd., Wanda Group and the cultural industry group Indirect holding Wanda Investment, the actual control of the Wanda Hospital line. and Jianlin son constructed now holds Wanda Hospital line 5 million shares, accounting for 1% of his total share capital, Jianlin brothers Wang Jianzhong, Wang Jianke, Wang Jianchun and Wang Jianquan respectively hold the 0.6% stake of the Wanda Hospital line. Wang's four brothers and son constructed five people, accounting for the issuance of the total capital of the hospital line of 3.4%, plus Jianlin control of the 68% equity, Wang's family holding up to 71.4%, achieved the Wanda Hospital line of absolute holding. If the Wanda is listed, the Jianlin family will be among the billionaires. If the issue of a shares issued by the ceiling to calculate, Wanda Hospital line per share price should be around 33.33 yuan. After the completion of the distribution, the market value of the Wanda Hospital line is about $18.7 billion. According to this calculation, the Jianlin family will have 13.352 billion yuan assets. Wang's four brothers will be nearly billion, and constructed assets will reach 167 million yuan. In addition, Wanda Hospital line of the second largest shareholder Sun Xi double only accounted for 4.2%, while the third largest shareholder Bo Rui-Da (Tianjin) Equity Investment Partnership Enterprise shareholding 4%, did not exceed the total share capital before the issuance of 5%. The prospectus shows that, upon completion of this release, Wanda investment in the total number of shares of the Wanda Hospital will be reduced to 58.49% (in order to issue new shares of 30 million shares, Wanda Investment in the public transfer of 30 million shares), Jianlin is still the actual control of the Wanda Hospital line, once the Wanda Hospital line successfully listed, The wangs still cling to the word. In this connection, the prospectus also suggests that when the interests of the actual controller and the controlling shareholder are not in full agreement with the interests of the other shareholders, the actual controller and the controlling shareholder may use their controlling position to control or exert significant influence on the company's major matters. This reporter also found in the prospectus, Wanda Group in 2004, the establishment of Wanda Cinema Line company, the subsequent years experienced a number of expansion of the share of capital, and Wang family members of the shares in 2010 years. December 6, 2010, Wanda Investment will be its 5 million shares of the Wanda Hospital transfer to Beijing Zhaode Investment hasLimited to the company, the transfer of 5 million shares to constructed, Jianlin will be the 150 million shares of its holdings to China-controlled growth (Tianjin) Equity Investment Fund Partnership Enterprises, such as 11 corporate shareholders and Sun Xiti 14 natural shareholders. Remarkably, at that time Jianlin to Wang Jianzhong, Wang Jianke, Wang Jianchun, Wang Jianquan transfer shares and controlling shareholder Wanda Investment in the constructed transfer shares of the total price is 1 yuan. In other words, Wang's four brothers and Jianlin son spent a total of 5 yuan to obtain the Wanda Hospital line 3.4% of the equity. And Jianlin, Wanda Investment for the Bo Rui Yuan (Tianjin) Equity Investment Partnership Enterprises, such as the transfer of shares of the price of 12 yuan/share and 15 yuan/share. Liu Shaohui, an equity architect at the Beijing seven or eight Point Venture Capital Co., said that in addition to listed companies and the state-owned assets, our laws have no strict restrictions on the price of the transfer of shares in the company. In general, the price of an equity transfer may be negotiated between the parties, as long as it is not for unlawful purposes, such as tax evasion. Over-reliance on Wanda commercial real estate risk since the opening of the first Warner Wanda International Cinema in 2004, now occupying 14% of China's box-office share, Wanda has become the largest hospital line in China and even in Asia. However, behind the brilliant report card is the Wanda Hospital line and brother company Wanda Commercial real estate linked to the tangled transaction. It is difficult to imagine, lost the supply of Wanda commercial real estate, Wanda Hospital line can still scenery. The prospectus shows that as of June 30, 2014, 89 of the 150 cinemas opened by Wanda had rented the properties of Wanda commercial real estate and accounted for 67.48% of the theater's operating area. In recent years, Wanda's hospital has become more and more dependent on Wanda commercial property. Data show that in 2011-2013 and 2014 1-June, the total number of rental charges payable to Wanda commercial property amounted to 56.71%, 66.59%, 67.6% and 68.64% of the same transactions. During the same period, the total number of cinemas affiliated to Wanda's commercial real estate rental area accounted for more than 60% of cinema operating area. Whether the rental costs or the area of the ratio, are climbing year in a state. In this connection, the Wanda Hospital line said that from July 1, 2012 onwards, the rental level of the associated property would be adjusted from 10% to 11%, and the relevant cinema rents would be adjusted every ten years by reference to the level of the unrelated cinema rents. According to the data, many cinemas in China's first-tier cities have already reached about 20% of cinemas ' box-office receipts, and some are even more than 25%. Co-ordinate International co-founder Huanglichong to Enterprise Observation newspaper reporter said, in Wanda Hospital line of the cost, the biggest cost is rent, rent a job loss, rent down to make money. Large-scale transactions with Wanda commercial real estate make the profit of the Wanda line not to be cross-referenced, "even if the prospectus explains, in fact, the linked transactions are not really fair, which is the reason for restricting the related transactions of listed companies." "Analysys International analyst Huang to our correspondent, Wanda Hospital Line once listed, rents are a thorny issue. In addition, if the loss of the supply of Wanda commercial real estate, not only to consider the issue of rising rents, the better with the conditions of the construction of cinemas will be the Wanda Hospital line is also a problem to rent. Industry insiders said the Wanda Hospital line and Wanda commercial real estate related transactions is a double-edged sword. With Wanda Square rapid expansion, let Wanda Hospital line quickly seize resources to do China first, the formation of industry discourse right, and then take all the upstream and downstream industry chain. This bundle also has a loss of risk--if Wanda Square is poor, it will naturally seriously drag the Wanda cinema. Radical expansion of capital hunger and thirst there are analysis that Wanda Hospital line to raise 2 billion yuan is due to capital hunger. The prospectus shows that as of June 30, 2014, Wanda Hospital has 150 theaters and 1315 screens in more than 80 cities nationwide. Even so, in comparison with competitors, Wanda Hospital line in the terminal layout does not have a clear advantage. The collection of 2 billion yuan plan, 400 million yuan for supplementary liquidity, 1.6 billion yuan for theater construction projects, will be in Shanghai, Chongqing, Dalian and other 43 cities to create 50 cinemas, plans to be completed by the end of 2016 260 cinemas, screen more than 2300, compared to the end of 2013 growth of 83%. In fact, as early as August 2012, Wanda had bought the second-ranked American chain-cinema giant, AMC, for a 2.6 billion-dollar price, completing its initial layout in the film and television industry; September 22, 2013, Wanda investment 50 billion yuan construction of Qingdao film and television base was officially launched, Dalian Wanda in the film studio investment will reach 30 billion yuan. "Although in recent years the domestic box office growth rate is faster, but the theater attendance has declined year by year, the National Theater construction speed is bigger than the demand, the entire theater industry profit level already started to decline, at this time the expansion risk is very big." Huang to this newspaper reporter said. On the one hand is the capital hunger for expansion, on the other hand, some three or four-line City Wanda Cinema is experiencing serious losses. The prospectus showed that, as of June 30, 2014, Wanda had a total of 98 wholly owned subsidiaries and 1 holding subsidiaries, of which 15 had lost money in the first half of the year. The most serious loss is the Weihai Wanda Film City Co., Ltd., the first half of this year, the loss of nearly 1.5 million yuan, followed by the city is Xuyi, Chenzhou, Manchuria, the first half of the losses were 1.3717 million yuan, 1.047 million yuan, 754,100 yuan; Zibo, Texas and Changbaishan Wanda Cinema in 2013 years loss of 2.396 million yuan, 2.1461 million yuan, 2.0966 million yuan. With the growth of domestic movie box office income, more and more investment subjects began to create new cinemas, this year, a number of hospital line companies are waiting in line for a-share listing, market competition is increasingly fierce. Like the United States, the Chinese hospital line industry faces the potential supply and demand imbalance caused by excessive duplication and concentration of investment. According to the film market statistics published this year by the Arts advisory, China has created 18 screens a day, while the shadowThe average attendance of the courtyard is only 15%. In the increasingly white-hot market competition, how to solve the contradiction between capital thirst and loss, test the wisdom of Jianlin.