In 2015, Huaqiang Fangte successfully listed. In 2016-2018, the company's net profit was 708 million yuan, 748 million yuan, and 787 million yuan, respectively, breaking 700 million yuan for three consecutive years.
2018 profit of 787 million yuan
Recently, Huaqiang Fangte Culture Technology Group Co., Ltd. (hereinafter referred to as “Huaqiang Fangteâ€) disclosed the 2018 annual report, and its net profit continued to improve. According to the announcement, Huaqiang Fangte's operating income in 2018 was 4.345 billion yuan, a year-on-year increase of 12.49%; net profit was 787 million yuan, an increase of 5.12%; deducted non-net profit of 457 million yuan, an increase of 2.01%.
Huaqiang Fangte said that the main reason for the increase in revenue was that the new project was put into operation, the original opening project was operating well, and the digital animation revenue achieved a significant increase from the previous year. Among them, the income of science and technology theme parks is the main source of income of the company. In 2018, this income accounted for 82.95% of operating income.
According to public information, Huaqiang Fangte has been climbing for four consecutive years, and its net profit has been rising. In 2015, Huaqiang Fangte successfully listed. In 2016-2018, the company's net profit was 708 million yuan, 748 million yuan, and 787 million yuan, respectively, breaking 700 million yuan for three consecutive years.
Public data organization
Huaqiang Fangte Group, the parent company of Huaqiang Fangte Animation Co., Ltd., is a large-scale cultural technology group in China. It started as a theme park. According to the official, Huaqiang Fangte has been put into operation in Wuhu, Qingdao, Zhuzhou, Shenyang and Zhengzhou. There are more than 20 theme parks in the four major brands of Happy World, Fang Fantasy Kingdom, Fangte Oriental God Painting and Fangte Water Park. Huaqiang Fangte is the producer of the "Bear Infested" animation series. The company's main business includes cultural content products and services and cultural technology theme parks.
According to the annual report, Huaqiang Fangte’s cultural content products and services achieved operating income of 404 million yuan, accounting for 16.83% of total operating income. Among them, special film revenue was 404 million yuan, a year-on-year decrease of 39.79%.
Huaqiang Fangte said that the main reason for the decline in the income of special films is that the production and commissioning of special films have a certain periodicity. In addition, digital animation revenue was 327 million yuan, up 50.09% year-on-year, mainly due to the increase in revenue from the new media revenue of "Panda Bears 1" series and "Big Inflation Metamorphosis".
Bears have an IP-selling policy to support the development of the animation industry
Although it started in the theme park, the most familiar one is the animated series "Bears."
According to the Spring Festival box office data released by the Cat Eye Institute, the 2019 Spring Festival movie box office reached 5.84 billion yuan, including 533 million in the animation movie box office, accounting for 9.1%, compared with 6.4% in 2018, an increase of 2.7%. Among them, "Bear Infested and Primitive Times" has occupied the bulk of it.
The "Bear Infested" series of animated films, as the "old face" of the Spring Festival, has appeared in the Spring Festival for six consecutive years. The series has grown into a major IP for China's first animated film, with strong gold absorption.
According to CBO China's box office and cat's eye movie statistics, the "Bears infested" series of six works have a total box office of 2.6 billion yuan.
Up to now, there have been a total of 9 TV animated versions of the bears, 2 Chinese New Year movies, 6 animated films, and 1 stage drama. The "Bear Infested" series is undoubtedly the strongest IP of domestic animation.
Anime brand authorization
Adding a strong umbrella for IP, it is reported that Huaqiang Fanta has applied for copyright registration for a series of works such as “Xiongdaâ€, “Xiong II†and “Baotouqiangâ€, and also registered it as a trademark. February 24, 2013 The Japanese patent "Bears Haunted" applied for copyright registration, and the National Copyright Administration has registered and issued a copyright registration certificate.
Although the "Bear Infested" IP has brought huge profits to the company, but a close look, the announcement shows that Huaqiang Fangte's 2018 non-recurring net profit and loss of about 30 million yuan, including 327 million yuan of government subsidies included in 2018.
According to the China Animation Industry Policy, which was organized by iResearch, from 2005, it puts forward the domestic animation in prime time, implements the tax preferential policy in 2012, and supports the animation industry project in 2016. The policy is continuously improved to support the development of the animation industry.
The annual report shows that the company has enjoyed income tax exemptions in accordance with relevant national policies such as high-tech enterprises. The tax incentives enjoyed in 2018 accounted for 14.29% of the company's net profit for the year. In other words, Huaqiang Fangte's 2018 profit was 787 million yuan, and the government subsidized 327 million yuan. But if the relevant tax incentives are no longer implemented, how much will the company's profitability be affected?
The core of the animation industry is creativity, but more than 70% of the profits of the animation industry come from the development of animation IP, the sales of toys and the surrounding areas, and the construction and operation of theme parks are the main sources of output value of the animation industry. Product production and development is one of the main ways of cost recovery for animation investors. How long can Bear Bears be a single IP? Disney, which only sees a single IP, has always adopted the IP economy model, relying on movie content to build IP, and then relying on IP to further develop the landing project in the park.
China's animation industry profit model
In 2017, the more internationalized China has a more professional segmentation in theme parks such as entertainment/theme parks, water parks, museums, etc. Foreign giants have entered the Chinese tourism market with a vibrant life, such as Disney and Universal. They have already set their own "sites" in China.
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