Major players in the industry: Cat's Eye Entertainment (01896HK), AliPhotography (01060HK), Ray Media (300251), New Studios (834630), Huayi Brothers (300027), Aikiye (IQ.NASDAQ), Bilibili (BILI. NASDAQ)

Core data in this article: China's movie box office in 2021, China's box office structure in 2021

Movie production rebounded substantially after the epidemic

Benefiting from the rapid growth of the domestic economy in 2016-2019, the residents' income level and per capita consumption level continued to rise, China's film production scale generally showed fluctuating growth.In 2020, due to the impact of the epidemic, the number of domestically-produced films dropped sharply to only 301.In 2021, benefiting from the effective control of the national epidemic, the industry recovered faster, and the number of domestically-produced films broke through to a new high of 740 as of the end of December.

47.258 billion yuan box office led the world

From the point of view of movie box office revenue, from 2016 to 2019, China's movie box office revenue continued to grow and successfully exceeded the 60 billion yuan mark.In 2019, China's box office revenue amounted to 64.1 billion yuan, an increase of 5.4% compared with 2018, and the growth rate overall showed a downward trend.In 2020, affected by the new crown epidemic, China's box office revenue was only 20.3 billion yuan, less than 30% of the box office revenue in 2019.In 2021, according to the data disclosed in the "2021 China Film Annual Survey Report" by M Data, China's annual total box office of the Chinese film market was 47.258 billion yuan, leading the world.

The top three box office grossers all exceeded 4.5 billion yuan

In 2021, the top three box office grossers in China's movie market as of mid-December were "Lake Changjin", "Hello, Li Hwan-young", and "Detective Chinatown 3", which achieved box office grosses of 5.76 billion yuan, 5.41 billion yuan, and 4.52 billion yuan, respectively, with box office revenues far exceeding those of other films . The box office revenues of the 4th-10th ranked films were closer, basically between 1-1.5 billion yuan.

Domestic film box office accounted for about 60%

From the structure of domestic box office revenues, from 2016 to 2019, China's film industry box office revenues of domestic films and the proportion of box office revenues of imported films are relatively stable, basically maintained at about 60% and 40%.2020 and 2021, in the the background of the epidemic, overseas head film and television enterprises postponed or canceled the distribution of their films, resulting in a huge tilt in the box office structure of China, the box office revenue of imported films fell sharply, accounting for less than 20% of the total revenue.

China's movie industry relies heavily on box office

Currently, China's movie industry still relies heavily on box office revenues, with non-box office revenues accounting for a relatively low percentage. However, from the point of view of the proportion of non-box office income of domestic theaters, the proportion of non-box office income to operating income of all major theater companies is increasing. Among them, the non-box office business of Wanda Film has the best development, and the latest data show that for the whole year of 2020, Wanda Film realized non-box office income of 1.274 billion yuan, of which 598 million yuan of advertising income accounted for 9.50% of the total revenue, and 676 million yuan of merchandise consumption income accounted for 10.74% of the total revenue, which accounted for 20.24% in total; of which, the gross profit rate of advertising income was 10.50%. The gross profit margin of advertising revenue was 10.50%, while the gross profit margin of merchandise sales revenue was 39.72%. Wanda film is committed to "multi-dimensional development of non-box office business", not only to organize some exclusive activities, such as cross-border cooperation with the Forbidden City food, H?agen-Dazs and other brands, but also vigorously expand the coffee business, covering 14 cities.

Overall, China's movie industry in 2021 recovered better after the epidemic, but in terms of revenue structure, the degree of dependence on box office revenue remains high.

The above data refer to China Film Industry Market Outlook and Investment Strategy Planning Analysis Report by Prospect Industry Research Institute.