Litian Pictures broke into Hong Kong stocks and embraced the thighs of TV stations to survive

Litian Pictures broke into Hong Kong stocks and embraced the “thighs” of TV stations to survive
As a TV drama distribution company, Litian Pictures mainly embraces TV channels and online media platforms to survive. According to the Frost & Sullivan report, according to the number of scripts released by China Satellite TV in 2018, the group is among all TV drama distribution groups in China.Ranked second.On April 24, Litian Pictures again submitted a Hong Kong stock prospectus. From 2017 to 2019, Litian Pictures ‘earnings were 3 respectively.7.9 billion, 3.8.6 billion yuan and 3.At 91 ppm, the gross profit margin is also increasing year by year, but the problems of excessively accepting the top five customers and the increase in the number of days of accounts receivable have also plagued the sustainable development of Litian Pictures.  TV series distribution “Listing Eyes”, revenue increases year by year. Litian Pictures was established in 2013. Its main business is TV series distribution, mainly for making and buying out TV series broadcasting rights.According to the Frost & Sullivan report, the group ranked second among all TV drama distribution groups in China in terms of the number of scripts released by Chinese satellite TV stations in 2018.However, the TV drama distribution industry belongs to a highly decentralized industry pattern, and Litian Pictures only has a market share of 3.85%. People in the film and television industry told Sauna and Yewang that the profits of the self-made TV series distribution mainly come from the sale of copyright rights, including the income from the sale of copyrights after the film, and the sale based on the premium of the film equity before the film, the second part is the commercial within the filmAdvertising, advertising placement sponsorship, etc .; buyout of TV show rights is generally based on the buyout of the right to disseminate the information network, together with buyout transfer authorization, for copyrighted works with transfer authorization, mainly through the second sale to make the difference.  As of December 31, 2019, Litian Pictures served as an executive producer and invested in the production of 7 TV series and 1 online drama, ending 2017, 2018 and December 31, 2019, with 32 releases respectively.43 and 45 TV series (including self-made TV series and TV series purchased by the company from third-party copyright owners / licensors).  The income of Litian Pictures has also increased year by year, from about 3 for the year ended December 31, 2017.US $ 7.9 billion increased to approximately 3 for the year ended December 31, 2018.USD 8.6 billion, and further increased to approximately 3 for the year ended December 31, 2019.9.1 billion yuan.Among them, the income from the licensing of the broadcasting rights of self-made and purchased TV series is about 3 from the year ended December 31, 2017.US $ 5.9 billion increased to 3 for the year ended December 31, 2018.83 trillion U.S. dollars, which subsequently decreased to approximately 3 for the year ended December 31, 2019.6.8 billion yuan.As of 2017, 2018 and the years ended December 31, 2019, the net profit of Litian Pictures was approximately 56.8 million yuan, approximately 67.6 million yuan, and approximately 77 million yuan, respectively.  At the same time as the revenue growth, the prospectus shows that the gross profit margin of Litian Pictures has increased at the same time, and the gross profit margin has increased from about 20 for the year ended December 31, 2017.1% increased to approximately 25 for the year ended December 31, 2018.8%, further increasing to about 36 for the year ended December 31, 2019.1%.  Excessive reliance on the top five customers, the increase in the number of days of accounts receivable Litian Pictures can be said to hold the “thigh” of TV stations. The main customers of Litian Pictures mainly include TV channels (including satellite and terrestrial TV stations) and online media platforms.As of 2017, 2018 and the years ended December 31, 2019, the revenue attributable to the five major clients of Litian Pictures accounted for approximately 73% of the total revenue of Litian Pictures, respectively.6%, 82.3% and 73.8%.  The risk income of the top five customers is too concentrated, with TV stations and online media platforms as customers. The voice of Litian Pictures is relatively weak, which is directly reflected in the increase in receivables and bills income, and the number of turnover days has surged.As of 2017, 2018 and December 31, 2019, Litian Film’s trade and bills receivables were approximately 1.9.4 billion, 3.7.6 billion and 5.3.1 billion yuan.In the end, on the same day, Litian Pictures ‘trade receivable budget and the average turnover days of bills receivable were about 120 respectively.1 day, 276.8 days and 447.3 days.  The increase in the repayment cycle and the increase in accounts receivable will exacerbate the risk of collection of accounts receivable.According to the prospectus, Litian Film ‘s revenue mainly comes from the licensing of self-made and buy-out TV shows to many TV channels.These TV channels are mainly state-owned institutions, making them equivalent to TV drama copyright owners / licensors in terms of alleged credit terms.Their ability to make payments to the company on time depends on whether they can advertise advertising fees to their customers who purchase advertising distributions.Corporate customers may also face unexpected situations, including but not extending fiscal restrictions or financial difficulties caused by changes in the central government’s fiscal policy.Therefore, the company may not be able to repay debts from these customers in a timely manner or at all, and the company may need to make provisions for the trade receivable budget.As of 2017, 2018 and the years ended December 31, 2019, Litian Pictures confirmed the trade receivable budget and the impaired alternative provision for bills receivables of 2, respectively.2 million yuan, 8.0 million yuan and 28.2 million yuan.  In addition to customers, the top five suppliers of Litian Pictures are relatively concentrated. The suppliers of Litian Pictures mainly include TV drama producers or copyright owners who license TV series copyrights or broadcasting rights to Litian Pictures and are involved in production andThird-party service providers related to the above marketing and publicity business.As of 2017, 2018 and the years ended December 31, 2019, the purchases from the five major suppliers of Litian Pictures accounted for approximately 69% of the total purchases.9%, 81.0% and 76.1%.  Marriage shop financing debt reduction reduces debt ratio reduction rate Tianying is a husband and wife shop. Executive director Yuan Li and Tian Tian are a husband and wife relationship. Yuan Li came from Great Wall Film and Television, a listed company of the Great Wall Department. He once served as the deputy general manager of Great Wall Film and Television, responsible for supervising the management of the distribution departmentOperating.Tian Tian is still working in Light Media and Perfect Film and Television, responsible for film investment, production, promotion and distribution. The two have many years of experience in the film and television industry.  It is expected that the data show that Yuan Li and Tian Tian hold a total of 58 Litian Pictures.96% of the shares, of which Yuan Li is the largest shareholder of Litian Pictures, holds 30% of the shares.35%, Tian Tian is the second largest shareholder of Litian Pictures, with a shareholding ratio of 28.61%.  In the reported average, the asset-liability ratio of Litian Pictures increased and decreased. In 2017, 2018 and December 31, 2019, the asset-liability ratio of Litian Pictures was 51.6%, 41.8% and 17%.The decrease in the asset-liability ratio was mainly due to the decrease in assets and the increase in assets. The prospectus showed that the decrease in the asset-liability ratio of Litian Film in 2018 was mainly due to the significant increase in the company ‘s total equity due to equity injection and increase in net profit.The return on assets has gradually decreased to about 17 on December 31, 2019.0%, mainly due to the company’s commitment to repay the reduction of bank and other loans and increase in total equity.  In October 2019, Litian Pictures submitted a prospectus. In April of that year, Litian Pictures completed a shareholding change. Rui Jiuyu and Career Ventures transferred their shares to natural persons Huang Weishu and Gong Yueliang.  Reporter Zhang Yanbin, editor, Sun Yong proofreading Li Ming