Binhai CBD witnessed China's first film factoring product

2017-12-14 16:37

Recently, the Binhai Central Business District (Binhai CBD for short) officially gave birth to the country's first film factoring product. Reporters yesterday went into the product's issuer - Xin Ying International Business Factoring Co., Ltd., to learn more about background of the product, how it works, as well as the impact on the film industry. 

Key word

The so-called factoring is based on the transaction formed on the basis of accounts receivable of buyers and sellers on factoring, which provides financing services to their creditors by the transferee (seller) of accounts receivable, and after the expiration, the debtor (buyer) can recover the accounts receivable. This product is operated in this way: accounts receivable split votes will be formed before and after the film premiere day, and in the first two weeks about 90% of the votes can be formed. After factoring business transferee receives the accounts during this period, it allocates funds to issuers once or several times as financing, with a proportion of 90% of the receivable split fare. "This business depends on the movie box office data platform that enables real-time observation of box office data changes; at the same time, the special funds from National Film Box Office Data Business Development Office (Special Fund Office) make data of the box office split revenue of issuer companies more reliable and more persuasive, which lays the foundation for the factoring financing of film industry," said a responsible person of Xin Ying International Business Factoring Co., Ltd., the first film factoring product issuer.

During industrial research process in the Binhai Central Business District, the reporter learned that Huayi Brothers’ distribution company - Huaying World encountered financing problems because of the establishment of a short time, light assets, expansion and other business issues. Immediately afterwards, Xin Ying International Business Factoring Co., Ltd., a leading factoring company in the joint regional operation of the Binhai CBD, innovated the trade receivables factoring business model in the film distribution industry to help it recover the box office funds in advance so as to ease the cash flow pressure on film distributors .

At the same time, the Binhai CBD and Xin Ying International Business Factoring Co., Ltd. signed a strategic cooperation agreement; Xin Ying Factoring will be located in the Binhai CBD with a registered capital of 100 million yuan, and financial sector will be the main business. In addition, the two parties also jointly launched the project of "Tianjin Pilot FTZ Video and Cultural Investment and Financing Service Platform", to be dedicated to strengthening the hematopoietic function of film and television cultural industry, to improvement of the industry's financial services capabilities for film and television cultural and business capital and to building an effective integration of financial investment and financing platform.

It is claimed that in the entire industry chain in the film industry, production companies in the filming and production process need to pay a large number of filming costs, and distribution companies need to get film distribution rights from production companies. Sometimes they need to pre-pay the guaranteed box office money; in the marketing process, they need to pay the declaration fee in advance, and for issuing companies, the box office received from the theater begin to be collected in Huaxia / China Film, and then settlement from China Huaxia / China Film will be issued to the companies. Therefore, the first payment needs 1-3 months and all the money needs 4-6 months for a full circulation. In order to solve the problem of cash flow, as the core area of the demonstration area of financial innovation operation, and in order to give full play to the "blood" function of the finance of film and television cultural industry, the Binhai CBD innovated the financial service mode and compared the financing needs of the film and television distribution industry with commercial factoring financial services. Then, it innovatively launched this film factoring product.

A relevant person in charge of the Binhai CBD held that: "In the past, all the money circulated for 4-6 months, but now 90% circulates two weeks before the film premiere. The innovative film and television distribution business model in Binhai CBD gives timely assistance to solve financing problems of Huaying world and other film distribution companies, which can be seen as the determination of Binhai CBD to support film and television enterprises and the development of cultural industries. "

The official said that the Binhai CBD has the absolute advantage of developing film and television cultural industry in terms of hardware conditions such as location, transportation and urban landscape, as well as in the soft environment such as economic basis, educational resources and human resources. Up to now, the total number of all kinds of enterprises in the CBD has exceeded 20,000, with a total registered capital of nearly 120 billion yuan. Among them, more than 400 companies including Shanghai Film Co., Ltd., Perfect World, Wanda Mowe Fashion, Mahua Fun Age, Pilot Media, Peacock Mountain Films, Canwell Film, Kun Peng Century, Ming Stream Entertainment and other well-known movie and television companies, have a registered capital of over 5 billion yuan. It has initially formed a film and television industry chain involving IP research and development, production, distribution, marketing, derivatives development and property rights transactions. In his opinion, the financial industry is a dominant industry in the Binhai CBD and has attracted 1,150 financial institutions such as Celestica Fund, China Life Insurance, China Financial Leasing, IDG Capital and Ant Financial Services, with assets exceeding 2.2 trillion yuan under management. There is a huge space for innovation between television and finance, and Tianjin Pilot Free Trade Zone has taken a crucial step. He hoped that the film and television cultural industry can further complete its own industry standards, business upgrades and innovation and development with the support of financial industry.

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