Changes in the listing path: Canxing landed in the capital market alone?

On the evening of September 28, Zhefu Holdings announced that it planned to sell a 20% stake in Dream Qiangyin for 458 million yuan. Before the end of the year, it will continue to sell the remaining 20% stake held by the company, and the takeover party will be Minxing Cultural Media.

"The Voice of China" has entered the most critical period of competition for the championship. Its competition format has changed this year, and the production company's ideas on how to enter the capital market have also changed.

At the beginning of last year, the producer also hoped to take advantage of the momentum of "The Voice of China" to spawn two listed companies: the production company Canxing Culture was listed in Hong Kong stocks with its parent company Star Chinese Media, and Mengxiang Qiangyin was listed in A-shares.

Everyone is familiar with Canxing, so what is the dream of strong voices? Canxing Culture exclusively licenses Mengxiang Qiangyin all rights related to brand management, development and operation, artist brokerage, derivative product development, live performances, and audio content operation of the film and television programs it produces and/or operates (of course, including "The Voice of China"). Mengxiang Qiangyin is a downstream company of Canxing Culture.

The latest trend can be observed from the strong voice of dreams.

Dream Qiangyin and Canxing Club merged

into one. On the evening of September 28, Zhefu Holdings announced that it planned to sell a 20% stake in Dream Qiangyin for 458 million yuan. Before the end of the year, it will continue to sell the remaining 20% stake held by the company, and the recipients are Minxing Cultural Media.

In addition, Zhefu Holdings and Canxing Culture have simultaneously signed an investment and shareholding framework agreement, planning to invest and subscribe for 6%-10% of the equity of Canxing Culture after the capital increase is completed. This asset sale is very surprising. You should know that Mengxiang Qiangyin's 40% stake was just acquired by Zhefu Holdings for 840 million yuan in March and April last year.

However, Zhefu Holdings 'explanation provides enough information: considering the adjustment of Mengxiang Qiangyin's securitization path, Canxing Culture may further integrate Mengxiang Qiangyin. So the two companies are going to merge into one.

Let me interrupt, whether it is the one who sold shares to Zhefu Holdings last year, the one who came to buy shares this year, or Canxing, the boss is Tian Ming.

Tian Ming's plan last year was as follows: Mengxiang Qiangyin could be listed on a backdoor basis in China. Currently, various acquisition methods and backdoor methods are under consideration, and there may be further actions in the future. Zhefu Holdings had also expected to continue to acquire 11% of Mengxiang Qiangyin's shares, most of which were in listed companies.

Then, Dream Qiangyin may be listed together with Canxing.

However, this also eliminates a major embarrassment: if Mengxiang Qiangyin wants to list on the A-share market alone, it has to solve the approval problem. Mengxiang Qiangyin and Canxing Productions are both controlled by Tian Ming's team, and the related transactions in them may have a lot of risks.

By the way, Mengxiang Qiangyin's data is not bad, much better than the gambling agreement between Zhejiang Fu Holdings at that time. In 2014, the company's revenue was 527 million yuan and net profit was 229 million yuan; in the first eight months of this year, revenue was 289 million yuan and net profit was 148 million yuan.

Why hasn't Star Chinese Media heard anything yet?

Tian Ming is also the CEO of Star Chinese Media. According to him, Star Media will go public in Hong Kong at the end of 2014 or early 2015. Of course, Canxing will also be able to go public.

Star Media originally belonged to Murdoch's News Corporation. In 2010, the Chinese Cultural Industry Fund acquired a 53% stake in Star Media and established Star Chinese Media. In 2014, Murdoch decided to transfer Star Chinese Media and "liquidate" it from China.

Star Media's management team will cooperate with the Chinese Cultural Fund to acquire the remaining 47% of the shares. At that time, Tian Ming sold 40% of Mengxiang Qiangyin's shares, which was also needed by Star Media's management team to raise acquisition funds.

Why Hong Kong? You know, the Hong Kong market's valuation of the cultural industry is lower than that of A-shares.

This is because its subsidiaries also include Star TV Mandarin Channel, Star International Channel, Channel [V] Music Channel and Chinese movie library businesses. Due to policy limitations, it is difficult to land in A-shares.

However, since Tian Ming's remarks were made early last year, it seems that no news from Star Sky Chinese Media has leaked out.

Therefore, can I boldly guess: With the integration of Canxing Culture with Dreams and Strong Voice and the gradual improvement of the industrial chain, it will be independent from Star Media and re-listed separately?

"The Voice of China" doubled the value of Canxing

. In 2012, the emergence of "The Voice of China" doubled the value of Canxing's production."The Voice of China" is regarded as the first truly separate program in the country to produce and broadcast, and it adopted a method of betting on ratings and directly participated in the advertising share of this program.

The unique business model created by Canxing definitely ranks first among domestic program production companies. In the past model, the production company did not participate in program advertising, so the profits were lower. However, Canxing Productions cleverly used "The Voice of China" to adopt a viewership betting model to obtain higher profits.

The title fee for the first season of "The Voice of China" has reached 60 million yuan, and it has doubled to 200 million yuan in the second season. Although it has been broadcast in the fourth season, this program is still very popular, with ratings and investment prices rising steadily. The advertising price before the championship was announced this year's finals has reached the ceiling of variety show advertisements, reaching a price of 500,000 yuan per second!

During 2012, Canxing Production's revenue from "The Voice of China" alone reached 217.8 million yuan, while in 2013, the profit of "The Voice of China" reached 335 million yuan. Among domestic program production companies, this revenue figure definitely ranks first. This year's revenue data has not yet been announced, but this year's "The Voice of China" program profit should double compared with the first quarter.

With the brand benchmark of "The Voice of China", Canxing's production became even more popular in 2015. Not only did it extend the broadcast of many popular variety shows such as "China's Good Songs" and "Outstanding Chinese People", but it also created a highly topical "King of Masked Singers" and "The Voice of China" staged a fierce battle in the third quarter variety show. It was simply a "dominating" weekend variety show. Canxing also relied on its own brand to become a valuable investment tool for many programs. It can always get higher naming fees and advertising revenue, so it is not impossible for Canxing Productions to go public separately with the help of "The Voice of China."

Editor: yvonne