After a series of transformations and acquisitions, China Ruyi eventually became the receiver of Wanda Films. The company started as HengTen Networks, a joint venture between Evergrande and Tencent, and was mainly engaged in Internet community business. Subsequently, HengTen Network carried out a backdoor listing through the acquisition of Masg Group, and acquired Ruyi Pictures and Pumpkin Films for 7.2 billion yuan in 2020. Ke Liming, the majority shareholder of HengTen Networks, who studied in Australia and has a master's degree in finance, is a low-key but powerful figure in the film industry. Kolimin has invested in many small-budget films in recent years and has achieved great success. In 2022, HengTen Network changed its name to China Ruyi and began capital operation. At present, China Ruyi's main businesses include Pumpkin Films, Ruyi Pictures and Jingxiu Games.
Wanda Film is one of the largest cinema companies in China, with 704 directly operated cinemas and 6,110 screens. After China Ruyi takes over Wanda Film, it will further strengthen its strength in the Chinese film industry and is expected to become one of the largest film and television groups. The deal will give China Ruyi ownership of Wanda Films, a core asset, and expand its reach in the cinema chain and entertainment industry. Although Wanda Films has lost money in the past few years, it has gradually improved this year and achieved profitability. For Wanda Group, Wanda Film is one of its most important industries, complementing commercial systems such as Wanda Plaza. However, due to various reasons, Wang Jianlin chose to give up control of Wanda Films. The deal also reflects the intricate relationship between Wanda, Tencent and China Ruyi.
China Ruyi's acquisition has attracted a lot of attention, but it also faces many challenges and uncertainties. First of all, the Chinese film market is highly competitive and full of a lot of commercial risks. Secondly, China Ruyi needs to make reasonable decisions on capital operation and business model to ensure the sustainable development of the company. In addition, due to the impact of the epidemic and other factors in the film and television industry, the industry environment is uncertain, and the company needs to respond flexibly. However, China Ruyi, as a company with strength and resources, is actively expanding its business scope and is expected to find its own position in the Chinese film market.
From the incident of China Ruyi taking over Wanda Films, we can see the fierce competition and dynamic characteristics of the Chinese film industry. With the emergence of new market players, the industry landscape will change, which is both an opportunity and a challenge for enterprises and practitioners. For China Ruyi, the acquisition will further strengthen its competitiveness in the film industry and lay the foundation for its future development. However, in the face of many uncertainties, China Ruyi needs to maintain a cautious and optimistic development attitude, pay attention to the company's internal management and resource integration, and continue to innovate and meet market changes in order to maintain a competitive advantage in the industry. At the same time, as consumers, we can also expect China Confucianism to bring more high-quality movies and entertainment content to enrich our cultural life. For the Chinese film industry, this issue is another key turning point.