Hualu Baina plans to increase 2.2 billion yuan in film, television, sports and variety shows

On the evening of November 3, Hualu Baina announced that the company plans to issue no more than 104 million shares in non-public shares at a price of 21.16 yuan/share, raise no more than 2.199 billion yuan, and invest in film and television drama content production, variety show production, sports event operation, etc. Hualu Group, the actual controller of Hualu Baina, also participated in the subscription. The remaining four investors are Boshi Fund, Boshi Capital, Shenwan Lingxin Fund, and Changcheng Guorong, totaling five investors.

Among them, the proposed subscription amount of Hualu Group is 550 million yuan. After the completion of this issuance, Hualu Group directly holds 7.68% of the company's shares, indirectly holds 17.55% of the company through Hualu Culture, and controls 25.23% of the company's shares in total. Trading in the company's shares will resume on November 4. The amounts subscribed by Bosera Fund, Bosera Capital, Shenwan Lingxin Fund and Great Wall Guorong were 600 million yuan, 300 million yuan, 550 million yuan and 199 million yuan respectively.

The fixed increase plan shows that of the funds raised this time, 600 million yuan will be invested in the production of film and television drama content, 800 million yuan will be invested in the production of variety shows, 500 million yuan will be invested in the operation of sports events, and 299 million yuan will be invested in the centralized procurement of media resources.

Hualu Baina said that this fund-raising investment project is closely carried out around the company's main business, is in line with relevant national industrial policies and environmental protection policies, and is conducive to the company's further expansion in the fields of film and television dramas, variety shows, and sports industries, and enhances the company's Profitability, enhance the company's market competitiveness, consolidate the company's market position, and ensure the company's sustainable development. After this issuance, the company's main business scope remains unchanged. This acquisition does not involve asset or equity acquisitions and will not lead to the integration of the company's business and assets.

Hualu Baina believes that through this non-public offering, the company will vigorously promote the development of various business segments of film and television, variety show and sports, and enhance its market-oriented resource aggregation capabilities and rapid response capabilities on the basis of existing accumulations. Provide high-quality and more diversified content products to the company's cooperative media, enhance the company's product production capabilities faster and better, enhance the company's influence, form an open platform ecosystem, and greatly enhance the company's industry competitiveness.

The company previously released its third quarterly report for 2015. In the first three quarters of this year, it achieved operating income of 1.465 billion yuan, a year-on-year increase of 438.78%; net profit attributable to the parent company was 191 million yuan, a year-on-year increase of 258.18%, exceeding the performance forecast limit of 205% to 235%. In the third quarter, it achieved revenue of 589 million yuan, a year-on-year increase of 1,009.92%, and net profit attributable to the parent company was 129 million yuan, a year-on-year increase of 1479.6%. The significant year-on-year increase in performance was mainly due to the blue fire consolidation factor. In the third quarter,"Goddess New Clothes" and "The Most Beautiful Harmony" had confirmed performance, and the overall performance was excellent.

In an interview with a reporter from China Securities Network, a TMT researcher said that T2O's innovative business model is leading the industry, and the joining of a heavyweight team is expected to create a top variety IP. The debut show "Tornado Filial Son" is worth looking forward to. The company has introduced a gold medal production team with Jin Rongxi as the core to greatly enhance its variety show research and development capabilities. Its original large-scale season-broadcast variety show "Tornado Filial Son" has a strong alliance with Hunan Satellite TV, which is worthy of high expectations. This time, the company is vigorously launching targeted additional issuance, which also lays a good foundation for the production of its follow-up content.

[Original announcement]

Hualu Baina: Plan for non-public issuance of A shares

Editor: vian