Wang Jianlin is helpless. Wanda Films lost 11 billion in two years. The pressure is huge.

Following a huge loss of 4.729 billion yuan in 2019, Wanda Film is expected to lose another 6.150 billion yuan to 6.950 billion yuan in 2020, with a cumulative loss of about 11 billion yuan in two years. The epidemic is only a superficial factor. The core reason is that Wanda Film's operating ability is not worthy of its ambition to cover the entire industry chain. The industry changes and market deterioration have led to a total loss.

Wanda Film recently disclosed its 2020 performance forecast. Last year, the company's operating income was between 5.9 billion yuan and 6.7 billion yuan, and the net profit attributable to the parent company was expected to be a loss of 6.15 billion yuan to 6.95 billion yuan, an increase of about 2 billion yuan from the previous year's performance of -4.729 billion yuan. Among them, the net profit loss after deducting non-recurring gains and losses was 6.34 billion yuan to 7.14 billion yuan. In addition to the provision of goodwill and asset impairment of 4 billion yuan to 4.5 billion yuan, the company's main business itself had a net loss of 2.15 billion yuan to 2.45 billion yuan.

The epidemic has indeed caused Wanda to suffer huge losses. But the more important reason is that the industry mergers and acquisitions that the company has carried out in recent years have not only dragged down its performance, but also caused huge goodwill impairment due to substandard performance.

Wanda Cinema, formerly known as Wanda Cinema Line, was established in 2004 and has grown into China's largest cinema company under the umbrella of Wanda Group. Wanda also used Wanda Cinema Line as a platform to acquire Mtime.com, film company Chengya Films, game company Huai Interactive, and TV drama company New Media Eslite from 2016 to 2017.

However, before this huge machine could generate value, it encountered major changes in the industry in 2019. The epidemic in 2020 made the situation even worse. The decline in performance and the impairment of goodwill led to huge losses.

However, the epidemic, a common excuse in 2020, cannot conceal the weakness of Wanda Film in the content map. Although Beijing Culture has been constantly exploding since 2019, its product strength is unparalleled. The top three in the total box office list of Chinese movies are occupied by "Wolf Warrior 2" and "The Wandering Earth", which is on par with Huayi Brothers 10 years ago. In recent years, Enlight Media has led the rise of Chinese comics. In recent years, Bona Film Group has made a lot of money by relying on big country themes, occupying three of the top ten box office. When it comes to Wanda, what else is there besides the "Detective Chinatown" series?

In 2019, due to the small number of films invested and controlled by Wanda Film, the low volume and the fact that some of the box office performances were lower than expected, the company's film investment and production revenue dropped sharply. 2020 was even worse, with the company having almost no film releases. Wanda Films put all its hopes for 2021 on the postponed release of "Detective Chinatown 3". The film has always been at the top of the pre-sale list for the Lunar New Year. However, for Wanda Films, whose business is in a state of distress, this is still a drop in the bucket.