Loss of more than 4.7 billion, Wanda Film M & A accrued large amount of goodwill in the first year, and started refinancing

Loss of more than 4.7 billion, Wanda Film M & A accrued large amount of goodwill in the first year, and started refinancing
On the evening of April 21st, Wanda Movies released its 2019 annual report. Since 2019 is the first year for Wanda Movies to acquire Wanda’s consolidated financial statements, Wanda Movies’ 2019 annual report has attracted much attention.The annual report shows that in the reported number, the net profit attributable to the shareholders of the listed company of Wanda Film is -47.29,000,000, the impairment of goodwill directly caused the expectations of Wanda Movies.With goodwill settled, Wanda Movies once again started the pace of refinancing, and it is planned to raise funds not more than 43 through fixed increase.500 million yuan.The breakthrough of more than 4.7 billion yuan, the 2019 annual report of the large amount of goodwill accrued in the first year of mergers and acquisitions showed that the report potential, Wanda Film achieved operating income of 154.3.5 billion, down by 5 every year.23%, the net profit attributable to shareholders of listed companies is -47.2.9 billion, down 324 every year.87%, the net profit attributable to non-recurring gains and losses is -48.4.7 billion, down 529 every year.14%, net cash flow from operating activities was 18.5.9 billion yuan.2019 is the first year for Wanda Films to acquire Wanda Films and achieve consolidated results. Wanda Films was the main military theater business at the beginning of the listing. The theater line is downstream of the film industry. The main income comes from the box office revenue, sales revenue and advertising revenue.From January 2015 to the end of 2018, Wanda Film achieved a net profit of 53.6.4 billion, can be described as real cash cows.Judging from the 2019 annual report, the main source of Wanda Film’s revenue is still from the theater business. By product, the viewing income is 91.2.2 billion yuan, advertising revenue was 19.5 billion yuan, sales of commodities and catering are 19.2.6 billion.In 2019, which continues to be supported by the cinema business, the huge scale of Wanda Movies is mainly provided by the provision of large-scale goodwill impairment reserves. In 2019, Wanda Movies provides goodwill impairment reserves55.USD 7.5 billion. As of the end of 2019, the balance of goodwill of Wanda Movies was 80.04 trillion, accounting for 30 of the total assets.twenty two%.Regarding the provision of goodwill, Wanda Film told Sauna.com that in 2019, due to the macroeconomic downturn, the number of screens in the country continued to maintain rapid growth, the overall microscopic development of the industry and other factors, the company carried out goodwill in accordance with the principle of prudenceProvision for asset impairment.Impairment of goodwill is mainly a book effect, which only affects the reported profit, but does not affect the actual cash flow and business profitability.Worth 59.09 trillion accounting for the book impact of goodwill and other asset impairment provisions, Wanda Film actually made profit last year11.4.1 billion, basically the same as last year.After the impairment of the goodwill, the scale of the company’s goodwill will be reduced to 80,000,000, and the impaired boots will land, further eliminating market concerns.But in 2020, when the cinema line has been shut down for the first quarter, the future of Wanda Films is not optimistic.According to the performance forecast data for the first quarter of 2020, the net profit attributable to shareholders of Wanda Film may reach 550 million to 650 million yuan. In the same period last year, the net profit attributable to shareholders of Wanda Film was 40061.290,000 yuan.The best preliminary is that since January 23, 2020, all of the company’s theaters have been closed due to the epidemic. At the same time, Wanda Film plans to release the films scheduled for the Spring Festival alternately as scheduled.In the first year of the merger and acquisition, Wanda Film and Television did not complete the performance commitment. On May 19, 2017, the Wanda Cinema was officially renamed Wanda Movies, and the ambition to open up the film industry production and distribution and the layout of the entire industry chain of the cinema began to emerge.On February 22, 2019, Wanda Movies released the restructuring plan for the last time. The target asset of this transaction is Wanda Movie 95.7683% equity.Wanda Film intends to issue shares to 20 trading parties including Wanda Investment to purchase Wanda Film 95 it holds.With 7683% of the shares, all parties agree that the transaction price of the underlying asset is 105.2.4 billion.On the evening of February 27, 2019, Wanda Movies announced that it was weighed. After being reviewed by the 5th working meeting of the M & A and Restructuring Review Committee of the Listed Companies of the Securities Regulatory Commission in 2019, Wanda Movies issued shares to purchase assets and related transactions were conditionally passed.According to the “Profit Forecast Compensation Agreement” of Wanda Films and the main body of compensation obligations, Wanda Film promised that in 2018, 2019, 2020 and 2021, the net profit attributable to the owner of the parent company after correcting non-recurring gains and losses are not less than7.6.3 billion, 8.8.8 billion yuan, 10.6.9 billion yuan, 12.7.4 billion.In 2018, Wanda Film and Television completed its performance commitments. In 2019, Wanda Film and TV’s 2019 consolidated financial statements attributed to the parent company’s net profit was 3.The net profit attributable to the owner of the parent company after the non-recurring gains and losses after deducting the company ‘s capital cost of USD 1.6 billion is 3.01 billion, complete performance commitment.Accompanied by performance compensation, performance compensation may also supplement the cash flow of Wanda Movies to a certain extent.Toss 43 again.500 million yuan refinancing, five years after the listing raised more than 22.5 billion wind data shows that Wanda Film has raised funds 225 in five years after its listing.3.8 billion, including 158 direct financing.2.5 billion, indirect financing67.1.3 billion yuan.As of December 31, 2019, the balance of monetary funds in Wanda Movies was 24.6.3 billion, with a short-term loan of 34.If the long-term borrowing is US $ 5.5 billion, and the long-term borrowing is US $ 2.1 billion. If the balance of monetary funds cannot cover short-term repetitive balances, there will be liquidity risks for Wanda Movies.In 2019, Wanda Films tried to issue convertible bonds to ease the tight financial situation on the books.Wanda Film held the sixth meeting of the fifth session of the Board of Directors and the 2018 Annual General Meeting of Shareholders on May 27, 2019 and June 17, 2019, respectively, and adopted the “Practice on the company’s public offering of convertible corporate bonds” and otherIn the relevant name, the company plans to publicly issue convertible corporate bonds. The announcement shows that the proposed fund-raising for the issuance of convertible bonds (including issuance costs) will not exceed US $ 4 billion (including US $ 4 billion).Invest in a new cinema project (31.90,000 yuan) and supplement the company’s working capital and repay bank loans (8.100000000).On October 24, 2019, the ninth meeting of the Fifth Board of Directors was held to adjust the issuance plan, and the scale of funds raised was reduced. The total amount of funds to be raised for this issuance of convertible bonds (including issuance costs) did not exceed 38.1.5 billion (including 38.15 ppm), after deducting the issuance costs, the funds raised will be invested in new cinema projects (30.05ppm) and supplement company liquidity and repay bank loans (8.100000000).However, on the evening of January 6, Wanda Film announced that the company participated in the twelfth meeting of the fifth board of directors and the tenth meeting of the fifth board of supervisors, and through the company to terminate this public issuance of convertible corporate bonds, and toThe China Securities Regulatory Commission applied to withdraw the relevant application documents.On April 20th, Wanda Films threw out a fixed increase plan again, and the budget for raised funds (including distribution costs) did not exceed 43.500 million yuan (including the number), of which 30.4.5 billion yuan for new theater projects, 13.USD 0.5 billion to replenish the company ‘s liquidity and repay its debts.The target of Wanda movie distribution is no more than 35 specific shareholders, in fact, the impact on controlling rights will be relatively small.Reporter Zhang Yanbin, editor Xu Chao proofreading He Yan