Research On The Financial Capability Of Huayi Brothers Media Corporation And The Promotion Strategy

With the rapid development of economy and society,people's demands for cultural consumption are gradually improving,so as to greatly promote film-television consumption and constantly increase market scale of film-television industry.Meanwhile,domestic and overseas competitiveness is also intensifying.As a leading enterprise in the traditional private film-television industry,market occupancy is constantly decreasing.The film-television industry also suffers from profit losses.It is urgent to improve corporate financial competitiveness and core competitiveness.The thesis aimed to conduct comparative analysis and difference examination on 12 financial indexes in the annual report of 11 film-television listed companies in 2016 and explored 6 representative financial indexes in financial competitiveness evaluation of the film-television industry to construct the financial competitiveness evaluation index system.The author conducted empirical analysis on continuous 5-year financial indexes in Huayi Brothers Media Group(for short,“the company”)and evaluated financial competitiveness from continuous operation ability and capital management ability,finding out existing problems in financial competitiveness of the company.Combining FAHP model and analytic hierarchy process to get the ideas of Huayi Brothers to enhance financial competitiveness.In the thesis,the company was chosen to do multi-aspect comparative analysis.The author drew the following conclusions:1.Huayi Brothers Media Group is a positively expanded diversified company.The company is expanded to multiple industries of internet entertainment,live-action entertainment and investment,so that main business of the company is scattered.Operation of the internet entertainment and live-action entertainment is facing up with a huge challenge in the future.Therefore,it is necessary to concern film-television industry development,become a listed company that focuses on the film media,develop upstream and downstream film-television industry chain,improve financial competitiveness in the film-television industry and gradually enhance operation efficiency in other operation fields.2.From the perspective of continuous operation ability,though the company has the higher gross profit rate,net profit ratio is lower.After deducting expenses,net profit ratio is lost.The profitability in film-television industry has been poor.And internet entertainment profits are decreasing year by year.Live-action entertainment is kept in the construction period,showing long return period.And it is hard to make profits in a short time.In this way,the company must improve profitability.The method that makes profits by depending on reducing holding shares is unsustainable.In strategy,the company should improve main business quality,accelerate internet entertainment operation,reduce costs and expenses,and increase net profit ratio. Huayi Brothers Media Group favors external investment and expansion,but it presents excessive networking and heavy capitalization and affects main business investment,resulting in slow growth of incomes in film-television entertainment.It suggests that the company should refine the film-television entertainment,gradually sell defective items irrelevant of main business,reduce financial risks,avoid from expanding to more industries,avoid from scattering corporate resources,and focus on existing business for relevant diversification.Furthermore,the company should enhance financial competitiveness of the industry chain,layout propaganda and cinemas,and improve the cooperative relationship with Wanda Cinema to enhance growth level of incomes and profits.3.As for capital management ability,the company has the higher debt ratio.External expansion and heavy capital investment have lots of capital demands.Long-term high debt ratio shows that the company has the weak capital management ability and large management pressure.Due to high debt ratio,it suggests that the company should increase financing,enhance capital,reduce asset-liability ratio,enhance the enterprise's financial competitiveness and reduce debt repayment risk in the future.If necessary,some corporate stock rights should be sold,so as to enhance cash inflow and reduce debt ratio.As a result,it is imperative to enhance cash inflow of operation activities.The company must be inclined to operation activities in capital aspect and enhance hematopoietic ability of main business.From the perspective of financing,the company should reinforce financing in stock rights and enrich cash flow.For investment,the company should refine the existing investment,transfer investment in partial stock right investment and enhance cash inflow,reduce large-scale external investment,and enhance stability of cash flow.At the same time,the company has extremely weak inventory turnover,proving the relatively weak asset management ability.The company should constantly optimize management efficiency,complete matching management of asset debt and reduce financial risks.4.To sum up,existing shortcomings in the company should be sufficiently valued.In addition,the company should take measures to improve profitability and profit level of main business,enhance sustainable operation ability,enhance operation efficiency and reduce financial risk by reducing debt ratio,enhance asset management ability and improve advantages of financial competitiveness.