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COVID-19 Causes Almost 70% Drop in Box Office Revenue for China’s Film Industry

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COVID-19 Causes Almost 70% Drop in Box Office Revenue for China’s Film Industry

China’s film industry has become one of the biggest in the world in the last decade and looks to continue its success for many decades to come. However, the Coronavirus pandemic of 2020 put a hold on the strong momentum of the industry. According to data presented by TradingPlatforms.com, Box Office revenue from China’s film industry declined by 68.23% in 2020.

Prior To COVID-19 China’s Film Industry Was Experiencing Tremendous Growth

China’s film industry recently become a major player in the global film industry. Before COVID-19 changed the global landscape, the Chinese film industry was projected to grow by a staggering 91.2% from 2018-2025. Revenue from China’s box office also impressively grew by over 275% from 2012-2019, with revenue amounting to 64.27B Yuan (around $10B) in 2019.

The number of movie tickets sold in China has also dramatically increased in the last decade as a younger more affluent middle class became bona fide moviegoers. In 2019, over 1.7B movie tickets were sold in China compared to 284M in 2010 – an increase of over 500%. To fulfil the increase in demand, the number of cinema screens in China also rose by over 1000% from 2010-2019, with a total of almost 70K screens in 2019.

Movie production in China also significantly increased in the same time period before COVID-19. In 2019 there were 1037 movies produced in China after 2018’s record high of 1082.  Of these films, 850 were feature films in 2019 and a record high of 902 feature films for 2018. Revenue from domestic Chinese movie production also rose by over 50% from 2015-2019, from  27.14B Yuan ($4.2B) to 41.18B Yuan ($6.4B).

Box Office Revenue Down Almost 70% in 2020 Due to COVID-19

Wuhan, China was where the COVID-19 virus was first identified, and China was the first country in the world that had to fight the virus. As with many countries, the pandemic affected many industries negatively, and the Chinese film industry was one of them. The rise of China’s film industry in recent times made the effects of the pandemic even more pronounced.

Almost 70% fewer movie tickets were sold in 2020 resulting in a decrease in revenue of over 40B Yuan ($6.2B), 68.2% lower than 2019’s numbers. This is a clear impact of the pandemic as people were forced to stay home and protect themselves. Movie production also dramatically decreased as the pandemic presented a plethora of logistical obstacles, a blow to many people’s employment and source of income.

There was a 37% decrease in film and feature film production compared to 2019, in what has been the lowest number in over 5 years. On a positive note, the number of movie screens still increased in 2020, perhaps painting a more positive future post-COVID-19. The total number of movie screens in China increased to over 75K in 2020 which could suggest that demand is expected to rebound once the pandemic is under control around the globe.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Business

NCDMB and NEXIM Sign $30 Million Agreement to Support Oil and Gas Services Firms

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The Nigerian Content Development Monitoring Board (NCDMB) and the Nigerian Export-Import Bank (NEXIM) yesterday signed a $30 million agreement on working capital and capacity building fund to support oil and gas services firms.

Simbi Wabote, Executive Secretary, NCDMB and Managing Director, NEXIM Bank, Abba Bello, signed the funding agreement at the Abuja office of the Nigerian content monitoring agency.

Wabote said the Oil Producers Trade Section, Independent Petroleum Producers Group and Petroleum Technology Association of Nigeria had raised concerns over funding challenges confronting oil services firms, as this had made most of the companies to consider downsizing their staff.

He said, “The OPTS and IPPG had at some point raised before the NCDMB the inability of most indigenous contractors to provide services to them due to challenges of funding.

“This was especially when we got struck by the COVID-19 pandemic. I recall receiving several letters particularly from IPPG trying to see how we can support this.”

He added, “I also recall receiving similar letters from PETAN when the COVID-19 struck and most of their members had nothing to do anymore.

“This is because companies were shut down and their members were threatening on how to downsize and take Nigerians off their payrolls.

“Based on this, we then set up a committee to say how do we support these firms with the provision of working capital.”

Wabote noted the roll-out date for the fund would be July 1, 2021 and that the fund size of $30m would be boosted by matching funds of the same amount to be provided by NEXIM in naira (to be converted at prevailing official exchange rate).

“The scheme shall cover loans for working capital support and capacity building, oil service contracts, invoice discounting including acquisition of low-end equipment to service short-term contracts/service obligations,” he stated.

He said the target market comprised Nigerian oil service providers which belonged to a professional association in the Nigerian oil and gas industry and commercially viable with a business relationship with either an international oil company or a major Nigerian oil firm.

“Maximum amount that can be borrowed by a single obligor is $1m or its naira equivalent at the official exchange rate prevailing at the time of borrowing,” Wabote said.

He added, “Tenor shall be up to 12 months for working capital loans and up to three years for capacity building loans with moratorium of up to 12 months.

“The applicable interest rate shall be five per cent per annum all-in for dollar-denominated loans and eight per cent all-in per annum for naira-denominated loans and the rate shall be fixed throughout the tenor of the loan.”

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Appointments

LivingTrust Mortgage Bank Appoints Mr. Timothy Olorunsogo Gbadeyan as Company’s Secretary

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LivingTrust Mortgage bank has appointed Mr. Timothy Olorunsogo Gbadeyan as company secretary/head of legal services.

The bank disclosed in a statement signed by Ikechukwu Omuku, the Finance Officer/Head, Investor Relations, LivingTrust Mortgage Bank Plc.

The statement reads “We wish to notify The Nigerian Stock Exchange and the investing public of the appointment Mr. Timothy Olorunsogo Gbadeyan as Company Secretary/Head, Legal Services of LivingTrust Mortgage Bank Plc.

“Mr. Gbadeyan is a consummate corporate attorney with experiential background in deals advisory, real estate finance, facioring, general commercial transactions, corporate governance, company secretarial services and regulatory compliance. Until his appointment, he was the Head of Legal Services of Infinity Trust Mortgage Bank Plc.”

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Farmforte, Others Signs MoU To Strengthen and Sustain Growth in Agricultural Sector

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Farmforte Limited has signed a strategic Memorandum of Understanding with the Agricultural Fresh Produce Growers and Exporters Association of Nigeria; HYBR, a pan-African innovation firm; and ALTS, a consulting and strategy development firm.

The firm said in a statement on Sunday that the partnership would strengthen common interest cooperation and stimulate inclusive and sustainable growth within the agricultural sector, by capitalising on the synergy and comparative advantage offered by each organisation.

Speaking during the signing ceremony, Farmforte Co-Chief Executive Officer, Osazuwa Osayi, said, “Our mid to long-term strategic goals are further reaffirmed, as this partnership will facilitate the sharing of knowledge, ideas, and expertise across the agricultural sector.

“We will collectively address initiatives and approaches concerning agricultural investments, food security, and the overall robustness of the value chain.”

He said the collaboration would also unlock the full potential of the sector and place it on a renewed path for success, especially within a post-pandemic economy.

The President of AFGEAN, Tajuddeen Dantata, said, “By creating dialogue and fostering investment in the horticulture sector, this partnership will endeavor to support Farmforte in its exporting efforts by improving operational efficacy and cost-savings, while ultimately driving socio-economic growth in the country.”

The Chief Executive Officer, HYBR, Charles Ojei, said to drive inclusion, sustainability, job creation, and Nigeria’s overall economic growth, the optimisation of the agriculture value chain was critical.

“This collaboration is a fusion of the complementary capabilities of all partners to move a bigger agenda forward.”

The Managing Partner, ALTS, Akintunde Sawyerr, said, “The goal of this partnership is to support Farmforte’s vision of becoming the largest agribusiness by 2035 via scalable and world-class innovation across its enterprise.”

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