HBMC(SZ:300027)2022-12-08 02:10Business Overview - Huayi Brothers has a history of 21 years since its establishment in 1994, with three main business segments: Film, TV series, and Artist Management [1] - The company has expanded its business structure to include Film and Entertainment Group, IP/Brand Licensing Group, and Internet Entertainment Group [1] - Profit growth from 68 million RMB before listing to nearly 900 million RMB in 2014, representing a significant increase [1] Film and Television Segment - The Film and Entertainment Group includes film, TV series, artist management, music, cinema, and entertainment marketing, with a focus on content creation [1] - The annual film production increased from 3-4 films before listing to 7-8 films post-listing, with a target of approximately 15 films annually starting this year [1] - The company held a 15% share of the total box office in China and 25%-30% of the domestic film market [1] - The TV series business is cautious due to the "one drama, two stars" policy affecting new productions [1][7] IP/Brand Licensing Segment - The brand licensing/IP licensing group is exemplified by the Haikou Mission Hills project, which features themed streets and integrates Huayi's content [2] - The company aims to sign 20 projects by 2016, having already signed 11 projects by the end of 2014 [3] Internet Entertainment Segment - The Internet Entertainment Group includes new media collaborations with telecom companies and Tencent, with 130 million registered users in the fan economy community [3] - The gaming business includes investments in gaming companies like Zhangqu and Yinhan, with a market value of 40 billion RMB for Zhangqu [4] - The company has invested in online distribution channels to enhance film marketing, leveraging O2O strategies [4] Financial Insights - The average ticket price for films has dropped to approximately 35 RMB, influenced by internet marketing and group buying [5] - Revenue from theme parks includes brand licensing fees, equity income, management fees, and revenue from derivative products [6] Strategic Partnerships - Huayi Brothers collaborates with STX for global box office revenue sharing, focusing on films with production budgets around 50 million USD [8]