Daobo shares will be renamed Contemporary Mingcheng, which spans film, television and sports and does not constitute a shell

After gradually shifting the company's main business to cultural media, Daobo shares applied to change the stock name to Contemporary Mingcheng, with the code unchanged. Behind this name change is a series of capital operations of Wuhan Contemporary Group since 2015. However, these operations have not led to changes in the company's major shareholders, and have also avoided doubts about backdoor listing.

Original title: Daobo shares in transforming cultural media will change its name Wuhan Contemporary Exquisite Capital Technology avoids backdoor borrowing

The original major shareholder of Daobo Co., Ltd. is Xinxing Hanyi, and its main business is phosphate rock trading and student apartment operation and management. In February 2015, Daobo officially announced its transformation after acquiring Qiangshi Media. On February 3, 2015, Daobo announced that it would acquire Qiangshi Media for 650 million yuan, and acquired 100% of Qiangshi Media's shares by issuing shares from original shareholders You Jianming, Ye Xuan, LeTV, etc. However, since the proportion of shares issued did not meet the requirements for backdoor listing, and the actual controller has not changed, this acquisition does not constitute a backdoor listing.

The actual controller behind new star Han Yiqi is Wuhan Contemporary Group. Those who are familiar with the capital market should be no stranger to this long-term group. It has more than 100 subsidiaries and controls three listed companies: Humanwell Pharmaceutical (shareholding ratio of 24.49%), Sante Cableway (shareholding ratio of 15.07%), and Daobo Shares (shareholding ratio of 21.43%), participate in two listed companies: Huamao Shares (holding 36.77% of its major shareholder Huamao Group), Guangyang Shares (7.53%), not to mention many off-balance sheet assets. In addition, Contemporary Group also holds 18.19% of Tianfeng Securities, which also provides great help to the company's asset operation.

In the process of acquiring Qiangshi Media, the reason why it did not constitute a backdoor listing was that Qiangshi Media's major shareholder, You Jianming, only accounted for 16.56% of the total share capital after the issuance. The original major shareholder Wuhan Xinxing Hanyi holds 21.43%, and the actual controller has not changed. This has nothing to do with the asset size and capital allocation scale of Strong Media.

Only seven months after completing the acquisition of Qiangshi Media, Daobo planned another layout of the sports industry. The target of this acquisition was a double-edged sword.

The book value of Suzhou Double-edged Sword is 61.12 million yuan, the estimated transaction price is 820 million yuan, and the value-added rate is 1243%. This transaction still does not constitute a backdoor listing. Since the shares held by Jiang Lizhang, the original shareholder of Double-edged Sword after the reorganization, accounted for 15.72% of the company's total share capital after the transaction was completed, You Jianming's equity was diluted to 11.15%, and the actual controller of Xinxing Hanyi The equity of Contemporary Group was also diluted together. However, Contemporary Group is still the actual controller of the company because the transaction introduced another major shareholder, Tianfeng Securities.

In the process of acquiring double-edged sword, Daobo introduced two funds, Tianfeng Ruiying and Tianfeng Ruiyuan, which are funds owned by Tianfeng Tianrui, a wholly-owned subsidiary of Tianfeng Securities. Contemporary Group directly or indirectly holds 18.19% of Tianfeng Securities, so Contemporary Group and Tianfeng Tianrui are actually acting in concert. After the transaction was completed, Contemporary Group and the concerted actors Xinxing Hanyi, Tianfeng Ruiying and Tianfeng Ruiyuan held 66,442,905 shares of the listed company, accounting for 27.28% of the company's total share capital after the transaction was completed. The shares held by Jiang Lizhang accounted for 15.72% of the company's total share capital after the transaction was completed, and the shares held by You Jianming accounted for 11.15%. Therefore, after the completion of this transaction, the controlling shareholder of the company will still be Xinxing Hanyi, and the actual controller will still be Contemporary Group.

Among this series of capital operations, the most essential thing is the capital injection of contemporary groups. According to the performance commitment, Qiangshi Media's net profit attributable to the parent company after deducting non-profit from 2014 to 2017 will not be less than 47.43 million yuan, 63.92 million yuan, 81.64 million yuan and 101.23 million yuan respectively; while the double-edged sword promises that the profits from 2015 to 2018 will not be less than 52 million yuan, 69 million yuan, 87 million yuan and 104 million yuan. Before and after the acquisition, Wuhan Xinxing Hanyi's shareholding in Daobo shares continued to increase: in the 2014 annual report, before a series of acquisitions had occurred, Wuhan Xinxing Hanyi accounted for 19.39%; after the acquisition of Qiangshi Media, the shareholding ratio reached 21.43%; In the shareholder details disclosed in January 2016, although Xinxing Hanyi's shareholding ratio dropped to 16.47%, Wuhan Contemporary Technology Industry Group, Tianfeng Ruiyuan and other concerted actors were introduced, and the total shareholding ratio reached 25.71%.

After completing the name change, Daobo's original business of phosphate ore trading and student apartments will gradually weaken, and it will be replaced by a listed company in the cultural media fields spanning film and television production and sports economy. Being in the hottest media field and strong capital operation capabilities, will this company make big moves in the future?

Editor: Nancy