Real friends, drink Jane wine!Guizhou Zhenjiu, Zhenjiu · Zhen15 exclusive title Sina Finance created a high-end interview program《At least one hour》DialogueHuayi Brothers Founder and Chairman Wang Zhongjun.
[Introduction of this issue]
The history of Huayi Brothers' entrepreneurship itself is a commercial blockbuster of "brothers unite as one, and their benefits break the gold", and it is also a microcosm of the continuous leap and development of China's cultural industry.After 26 years of entrepreneurship, the once "the first film and television entertainment in mainland China" also began to slow down, adjust its breath, and experience an unprecedented "dark moment".《At least one hour》Have an exclusive conversation with Wang Zhongjun, the founder and chairman of Huayi Brothers, to see how Huayi Brothers will cultivate internal skills, rebirth from nirvana, start the battle of self rescue and defense, and walk on the road of climbing again after experiencing the downturn.
A wonderful record will be presented immediately:
[Guide]
A fresh start to break through adversity
Wang Zhongjun: In 2019, we will repay all kinds of loans and debts, amounting to 4.7 billion yuan.At that time, I thought in the media that we would sell out.The market forces you to reduce your burden. In the short term, it is necessary to take measures to live.
Wang Zhongjun: 2018 is the most difficult year for me and 2019 is the most difficult year for the company.It is still in the tense stage, so I think the most difficult thing is the past.
A test of generosity
Wang Zhongjun: I borrowed more than 10 billion yuan last year when the stock fell.
Deng Qingxu: Ma Yun, they lent you money. Do they believe you can get up again, or do they just think that I will accept the loss?
Wang Zhongjun: I must believe that I can get up. No one will make a claim.
Deng Qingxu: But I think this person is really upright.
Wang Zhongjun: Of course, friendship is the first. It must be friendship. Secondly, I think it is trust.No matter how big the friendship is, I can't say that I will give you hundreds of millions of dollars to make a living.Now this money is borrowed to help you tide over difficulties, not to let you live.
An open self-criticism
Wang Zhongjun: I think I should be regarded as an artist. I was born as a student of fine arts. Finally, I made a movie and built such a huge entertainment empire and company.Not being careful is definitely a shortcoming, which is your character defect.
Wang Zhongjun: If China wants to be a Disney, it is not impossible for decades. A few years ago, we were too arrogant. When Huayi reached a market value of more than 10 billion dollars, we felt, wow, I am.
An exploration in the direction of ambition
Wang Zhongjun: Cultural tourism is a very, very important project of Huayi. People who have been to my town feel that its culture is very strong after coming out. It is like an architectural expo.The minimum standard for our (built) town is 2.5 billion yuan.Now, there are four companies that will become six next year. In the next two or three years, there will be more than one billion profit recovery and 10 billion sales.
Deng Qingxu: In fact, it is a big point in your future.
Wang Zhongjun: It's very important. It's a long-term project. I think it has a bright future.
Narration
Huayi Brothers, once the first member of the film and television entertainment track, stepped on the hard brake in 2018. After the financial deficit, they encountered many problems, such as film downshifting, stock price decline and so on. The former entertainment empire has reached the critical moment of the shell battle.
Wang Zhongjun, who gradually faded out of the management and retired behind the scenes, also had to return to the front line in a high profile.Under heavy pressure, Wang Zhongjun cut projects, sold shares, and even sold his art collection, using various means to alleviate the financial pressure.
[Interview]
Deng Qingxu: Do you think 2018 is difficult or 2019 is difficult?
Wang Zhongjun: 2018 was difficult at the beginning, but you didn't expect 2019 to be so difficult. 2018 was the year when we made the Xiaogang movie. The pressure of public opinion was right. The stock fell precipitously. At that time, the company was not so difficult financially because the company's liquidity and debt were relatively healthy.I was under a lot of pressure,
Deng Qingxu: Why?
Wang Zhongjun: I think one of the reasons is that I pledged my own shares when the stock fell. I broke my position and repaid the bank loan. I paid it back about a year ago. In all kinds of ways, whether it was asset disposal or not, I might have paid more than 10 billion yuan. That is, I just made up positions in the stock market and made up more than 1 billion yuan in cash. This is a bit of pressure on me personally.But I think all these can be passed. I think the biggest difficulty is our Xiaogang film. It was originally expected to be the Spring Festival in 2019, which is our gap in the Spring Festival.This is a fatal and competitive film for a film company, but it has not been released, which has lost a lot of income. This income has pressed your own investment, and then we arrived. In March and April, there was a 2.2 billion debt due, and the interest rate increase was 2.3 billion.
Wang Zhongjun,So that 2 billion yuan was a great challenge to us at that time. Of course, there were many friends here who helped me pay for it.
Wang Zhongjun: Cao Guowei is one of them, Ma Yun, Lu Zhiqiang, Shi Yuzhu, Chen Yihong, Wang Yusuo, Yu Feng, Liu Chuanzhi, Hu Baosen, and Chen Dongsheng.
Deng Qingxu: Ma Yun, they lent you money. Do they believe you can get up again, or do they just think that I will accept the loss?
Wang Zhongjun: I think I must believe that I can get up. No one will make a claim.
Deng Qingxu: Really?
Wang Zhongjun: I don't think I will be compensated.
Deng Qingxu: But I think this person is really upright.
Wang Zhongjun: Of course friendship comes first. It must be friendship. It must not be a business, right.
Wang Zhongjun: Second, I think I still trust you. I think I will be able to pay back the money. No matter how big the friendship is, I can't say that I will give you hundreds of millions to make a living. Is it OK for me to give you hundreds of millions to live? Now this money is borrowed to help you tide over difficulties, not let you live.This is the complex of friends. I think I have an advantage, which may be more than ten years ago. Everyone thinks that when I borrow money, people are confident, and you can certainly do a good job in this company.
Wang Zhongjun: I thank these friends very much. Almost 99% of my openings are borrowed from me.
Deng Qingxu: This is actually quite difficult.
Wang Zhongjun: Yes, I didn't say that the Chinese army is also difficult, not yet.
Deng Qingxu: Now what do you think the cash flow is like?
Wang Zhongjun: It's still in the tense stage.Then I think the most difficult thing is the past.
Deng Qingxu: Does liquidity still depend on movies in the short term?
Wang Zhongjun: Sell assets. We paid off all kinds of loans and debts last year and 2019, amounting to 4.7 billion yuan.We have paid off so much debt.That's another bad thing. In fact, it's also a good thing. The market forces you to reduce your burden and sell some assets that are not on the core assets. In the short term, these are all necessary measures to survive.
Narration
The losses of two consecutive years forced the former film and television giant to take "survival" as the primary goal.Wang Zhongjun is straightforward and good at dancing. His strong circle of friends is also helping Huayi Brothers relieve pressure.The former Huayi Brothers, whose film and television works have continued to explode.In 26 years, hundreds of film and television works have been launched.
After sitting in the top chair for a long time, I will inevitably feel restless.In 2014, following the diversified development model of Hollywood entertainment giants was put on the agenda, and the company's abundant cash flow began to spread to the Internet, live entertainment, games and other businesses.However, diversification was not as expected, and the main business of film was declining. The outside world questioned Huayi Brothers' "dishonesty" and "over capitalization".
[Interview]
Wang Zhongjun.In 2014, before 2015, China's entertainment industry was booming, Huayi had a market value of 80 billion, and corporate tax payment has always been the best in this industry.So I made some investments at that time. Today, on the other hand, the investment is too large. For example, we invested in the beauty of Xiaogang, the vastness of stars, and the mutual entertainment of heroes. We used nearly 4 billion yuan of cash in three companies, which is a bit overweight today.At that time, I thought there was nothing wrong with Huayi.
Deng Qingxu: I heard what you just said is that investment is willing to gamble and lose. When times are bad, you have to admit it.To put it bluntly, it is a matter of one breath. I think it doesn't matter whether the decision is good or not.If the breath is relieved, it is a hero. If it cannot be relieved, it may be in trouble.
Wang Zhongjun: I think all the so-called economic comments are from behind.
Deng Qingxu: No one is a party.
Wang Zhongjun: Yes.
Deng Qingxu: Try it, right.
Wang Zhongjun.
Deng Qingxu: So I think there is no question of reflection on this issue. You haven't seen the results yet.
Wang Zhongjun.I think this is a process.
Wang Zhongjun: At the peak of our TV drama production, we had ten studios. Let's shoot one drama in one studio. There were ten TV dramas a year, and several of them might have been cut off. At that time, we went to a TV drama ordering meeting, and the friendship between TV stations was at the height of the sun.But there is a big problem in the rough management here.
Wang Zhongjun: Huayi didn't catch up with the most popular Chinese opera in the two years. That's because I was too busy ahead. When I finished, it was just the time for others to play.
Deng Qingxu: Yes.
Wang Zhongjun: You have to think about this person. Do you think this is a mistake? You did it early.
Deng Qingxu: In fact, when you were good, you didn't make a lot of money.
Wang Zhongjun: Yes.
Deng Qingxu: Now you are a little bit more serious. People have made a lot of money.
Wang Zhongjun: Another thing is that more than ten years ago, our films accounted for more than 10% of the total. At that time, the box office was small."Assembly Number" is just over 200 million.
Deng Qingxu: At present, there are five billion and four billion.
Wang Zhongjun: Yes, "Assembly Number" is worth 2 billion yuan now.
Deng Qingxu: Yes.
Wang Zhongjun: I think it is normal. Since you have this market, you will always have the opportunity to do it well.
Deng Qingxu: Do you think the film industry is different from that of a few years ago?
Wang Zhongjun: Of course there are differences. I thinkChinese movieHowever, the profitability of single play is very high. There are more and more films worth 2 billion, 3 billion, 4 billion and 5 billion, which proves that this industry has opportunities.The best way to sell a movie is to sell it for 1 billion yuan. It's impossible for your company to grow.For such a small industry, which supports so many listed companies, we have started to lose money in the past two years. We have made money for ten years, and there is always the possibility of loss. I went public in 2009 with a profit of only 68 million yuan, and worked to the final profit of 1 billion yuan. It is also a difficult climbing process. After climbing the slope, a downward adjustment may lead to a higher level.
Wang Zhongjun: I think there are still opportunities in this industry. If you have a few, two or three good movies every year, you can support the main business income of a listed company.
Narration
The film industry also follows the "28/20 law", earning two and losing eight. High profits and high risks coexist. Behind the high box office of a blockbuster film is the failure of most films.
In 2019, the total box office of Chinese films exceeded 64 billion yuan, and the influx of hot money led to the release of a large number of films of all kinds in turn.Under the bombardment of both good and bad films, Chinese audiences have developed a more sophisticated taste in watching films. Famous directors and stars can no longer endorse the box office, and every film investment can be called "gambling".
In this case, Feng Xiaogang's new novel Only Yun Knows It, which Wang Zhongjun had high hopes for in 2019, finally grossed less than 200 million. Huayi Brothers had no choice but to miss another good opportunity on the road to recovery.
[Interview]
Deng Qingxu: What's the reason? The audience's taste has changed now?
Wang Zhongjun: I don't think it's necessary to fathom the tastes of the audience. If you are a creator, you can fathom the tastes of the audience every day, which is not creative.
Wang Zhongjun: Although the box office of Only the Clouds Know is not good, I think I have always liked this movie until today. Chinese movies also need this kind of warm and pure love.
Wang Zhongjun: I think Xiaogang is still valuable. Although he sent this message on WeChat a few days ago, the hero is old.
Deng Qingxu: I sighed with emotion.
Wang Zhongjun: I think everyone should sigh. He is in a mood for ups and downs, right.
Deng Qingxu: Do you still have confidence in Xiaogang?Let's not lie.
Wang Zhongjun: Of course I have confidence, of course I have confidence. Here, a person can shoot a play. Where is his cultural ability? There must be a play.
Deng Qingxu: But they also say that Huayi doesn't know young people. They say that young people's tastes have changed. You'd better take 1942 and take us. We must like it. But you say that we won't go to the movies when we get busy.
Wang Zhongjun: Personally, I think film companies are not only catering to the audience, but also have their own cultural responsibilities.For example, I didn't think it could make money when shooting Assembly, but I thought it should be heroic.Including the shooting of Eight Hundred, I think I can't shoot Eight Hundred without feeling. I'm not boasting myself. After you see it, you will know that I personally think it is the best war movie in the world in recent years.
Deng Qingxu: Do we still have a chance to see it?
Wang Zhongjun: Sure.Look at what you said.
Deng Qingxu: Are you sure?
Wang Zhongjun: I'm sure you can see how long a movie can be changed. It's just a change.
Deng Qingxu: What is your favorite work after working for so many years? Is there a film complex that has not been completed?
Wang Zhongjun: "Assembly" must be a movie I like very much, because it is related to my life and my family. There are four sons and three soldiers in our generation. Only Zhonglei has never been a soldier. Our family eats together and a lot of people wear military uniforms. So it must be my own feelings for the military theme and heroism.You are like the Soldier Assault, My Regiment Leader and My Regiment that we shot. These are all my own culture. There are too many plots in the future. I especially hope to shoot a battle to fight against America and aid Korea. First, I was born in the 38th Army. Since I was a soldier at the age of 16, what I taught every day is how to be good in the 38th Army,I especially hope that I can take a story of the 38th Army. I recently read a short story about the Sino Vietnamese counterattack like reportage, which touched me very much with just a few pages. Because although I didn't go to the Sino Vietnamese counterattack, I was in the army when the Sino Vietnamese counterattack was fought. I called on duty every day, answered the phone, and said that a mechanized division of the Soviet Union was on the front line,Anyway, it was all about posing a threat to China. Although I didn't go to the front, a very good friend of mine was transferred to the Kunming Military Region through the back door just to go to the front. You can't understand the heroism at that time. Going to the front would be fatal.He was a soldier in my same year, and we grew up next to each other. Now go to ask him, I don't think he can imagine why a soldier had to go to the front. Many people must not believe it when it was written in this art work, saying that it was too false, and that it might be death there, but the real person and the real thing, if it happened around you, would know that it was the real person and the real thing,So I may be very interested in this topic.This is me. Of course, I can't control the people in our company, because the company's director structure is composed of Cheng Er, Tian Yusheng, Huzi (Guan Hu), Xiao Gang. People's films are director's art, not producer's art.
Deng Qingxu: Is the price of actors down now?
Wang Zhongjun: Of course, it has come down a lot.
Deng Qingxu: In fact, the cost of this piece is a little bit.
Wang Zhongjun.Now the film pay is generally reduced.
Deng Qingxu: But do the actors accept it?
Wang Zhongjun: The general environment is like this. Why not accept it.
Deng Qingxu: So this tax reform is still benign for our industry as a whole?
Wang Zhongjun: It is benign in the long run.
Narration
The sound development and continued popularity of the domestic film market have always filled Wang Zhongjun with confidence. In his view, the real gold and silver brought by the box office may be the best medicine to help Huayi Brothers tide over the difficulties.It is not necessary to overestimate the audience's preferences. It is still a very familiar success path for Wang Zhongjun to pry the box office with high-quality content and a large amount of investment.Although Huayi Brothers is facing the biggest crisis since its establishment, in Wang Zhongjun's view, this is just a painful time for the growth of the enterprise.
[Interview]
Deng Qingxu: I think it's really difficult to interview you. You know why, because you feel nothing.
Wang Zhongjun: There will always be ways to decompress yourself. You will compare your past. You think that when you studied in the United States 30 years ago, and spent 13 hours a day fighting for 100 dollars, I was a soldier for several years. The labor intensity and upward pressure of being a soldier are right. When you were young, you wanted to join the Party and promote cadres. I think this was a process.We have been in Huayi for 25 years now. There are many good things and few bad things. In 25 years' time, is it possible that you have forgotten the difficulties like life and death today.
Deng Qingxu: Then your main work is still in the film field or in some industries before you. For example, do you still have small towns or other things, and will you spend some energy on them?
Wang Zhongjun,This is the advantage of Huayi. In recent years, we have made great contributions to Huayi in terms of cultural tourism. We have received 1.2 billion yuan in cash from trademark IP alone. Now there are four towns. We call them small towns, Hainan, Suzhou, Changsha and Zhengzhou.
Deng Qingxu: But these things are a relatively heavy industry?
Wang Zhongjun.
Deng Qingxu: What is your concept of asset light?
Wang Zhongjun: With this construction industry, Zhengzhou is the main town.Hu Baosen and I set up a joint venture called Zhengzhou Jianye Huayi Film Town. The first income of this joint venture is that it pays me the right to use the trademark. In fact, we still have some commercial development in the surrounding areas. This commercial development is the second income.
Deng Qingxu: Then you won't invest in commercial development. It's Hu Baosen.
Wang Zhongjun: But I have equity. I have income. Hainan is the first company to open for the longest time, so it is very successful now.Our town has invested 2.7 billion yuan in cash.
Deng Qingxu: Has all the money come back yet?
Wang Zhongjun: All are back.2.7 billion cash is now valued in our market, and the loan is valued at 4 billion. Perhaps from now on, there will be more than 1 billion profit recovery and 10 billion sales in the next two or three years.
Deng Qingxu: That future is actually a big point in your future.
Wang Zhongjun.
Deng Qingxu: You are not so bitter. You have so many enterprises and assets?
Wang Zhongjun: So from the health level of the enterprise, there is nothing unhealthy. Do you think I am unhealthy? Otherwise, I will quit.
Deng Qingxu: I think so, but you must also be ambitious because of people like you?
Wang Zhongjun: In the future, we will gradually eliminate all the games we made in the past few years.So the main business is film, television and artists. We also have a small online celebrity section. The last one is cultural tourism. I think cultural tourism has a longer staying power. But this cultural tourism must rely on your movies, because it depends on your four words, Huayi Brothers, what is behind Huayi Brothers, and what is the movie.
Narration
Before the founding of Huayi Brothers, Wang Zhongjun had crossed many circles. His label has always been that he was a soldier, went to the sea, studied abroad, and had a wide range of friends and hobbies.
As an entrepreneur, he built Huayi Brothers into the first brand of Chinese film and television companies;As an artist, he has successfully held many exhibitions.
Wandering among different circles of friends and freely switching between different roles, Wang Zhongjun's multifaceted life is wonderful enough.
[Interview]
Deng Qingxu: Are you still living a colorful life?In the words of Wang Zhonglei.
Wang Zhongjun: Rich and colorful.When you were in the army and your comrades in arms gathered together, we now have active lieutenants. When you were deputy commander of Lanzhou Military Region, I worshipped you when you were young. When you were young, you were like a company commander, like a platoon leader.But up to now, our comrades in arms have been very friendly.
Deng Qingxu: Before you, I remember that six years ago, you said that entrepreneurs were the first productive force to make friends. Do you still think so?
Wang Zhongjun.You see, I came back from Sanya to attend Ma Yun's Charity Foundation the day before yesterday. The first meal of the next day was our primary school reunion.The day after tomorrow, I flew to Hangzhou for an interview at Lakeside University. I was also a sponsor for a new group of students to interview.Last night we were in the art circle. We had a party together.
Wang Zhongjun.In the past two years, red wine has become popular again, and there has been a red wine circle again.
Deng Qingxu: How do you understand what a true friend is? Evaluate the people you are willing to associate with. There must be a standard for you. You pick people.
Wang Zhongjun: They also pick on you.
Deng Qingxu: Yes, they are mutual.
Wang Zhongjun: It must be very important to have similar interests. I like the more cheerful and cheerful personality. We say that we are more Jianghu people. I like Jianghu people.
Deng Qingxu: Ma Yun said that you are not the laziest CEO. Do you still recognize this now?
Wang Zhongjun: I think he is also a joke.
Deng Qingxu: Yes.
Wang Zhongjun: I think if I don't admit it, I have to admit it. It's the kind of struggle I want to fight with Ma Yun. I think I'm lazy.His flight is much more than mine. I spent more than one year, more than 300 hours. He seems to have worked for 700 or 800 hours.
Deng Qingxu: I don't think you are lazy. You are busy, too.
Wang Zhongjun: Working mode.
Deng Qingxu: But it seems that you are too busy to do your job. You either have a primary school reunion or learn to drink red wine.
Wang Zhongjun: You can't have everything when you live.
Deng Qingxu: I think Ma Yun may not be as smart as you.
Wang Zhongjun: The same.Jack Ma.
Deng Qingxu: Also very smart?
Wang Zhongjun: People can also live.
Deng Qingxu: Do you have any shortcomings?
Wang Zhongjun: That has too many shortcomings.
Deng Qingxu: What? Let's listen.
Wang Zhongjun: Carelessness is also a disadvantage. They are not meticulous and emotional. Their management of the company is not so refined and professional.I think I should be regarded as an artist. I was born in fine arts. My original ambition was to be the last painter. Finally, I made a movie and built such a huge entertainment empire. In such a company, there are thousands of employees in subsidiaries and branches.
Deng Qingxu: Do you think you are a businessman or an artist?
Wang Zhongjun: It's useless to evaluate myself. I said I was an artist, but people didn't realize that at least the biggest symbol of me was the boss of the enterprise.
Deng Qingxu: Year old, still a businessman.
Narration
Despite continuous refining, Huayi Brothers still have a large number of outstanding core creative forces such as Feng Xiaogang, Guan Hu, Tian Yusheng, Cheng Er, etc.Heroes are not old, and their lofty ambitions are not fulfilled.To turn losses into profits in 2020 is a hard battle that Huayi Brothers must fight.The Huayi Brothers, led by Wang Zhongjun, have rallied and are on the way to climb again.
Real friends, drink Jane wine!Guizhou Zhenjiu, Zhenjiu • The exclusive title of Sina Finance and Economics high-end character interview program during the 15th Five Year Plan《At least one hour》Deng Qingxu, senior vice president of Sina, presided over the in-depth dialogue with outstanding industry leaders and entrepreneurs.The program features "a profound dialogue,At least one hour”With the theme of restaurant dialogue as the main scene, we will explore the little known, rational and profound business philosophy and life wisdom of enterprise elites, and show the decisive influence of the interviewed entrepreneurs in breaking through the industry when they are drinking and answering questions.
