Sanqi Mutual Entertainment plans to acquire the remaining equity interests of two subsidiaries and delays the resumption of trading for three months

Sanqi Mutual Entertainment, which has been suspended for three months due to planned reorganization, has no plans to resume trading. On June 13, the company announced that the target of this major asset reorganization was mainly the remaining equity of the two subsidiaries, and at the same time, the resumption of trading was postponed for another three months.

Sanqi Mutual Entertainment, which has been suspended for three months due to planned reorganization, has no plans to resume trading. On June 13, the company announced that the target of this major asset reorganization was mainly the remaining equity of the two subsidiaries, and at the same time, the resumption of trading was postponed for another three months.

As of now, Sanqi Mutual Entertainment holds 31.57% equity of Shanghai Mokun Digital Technology Co., Ltd.(hereinafter referred to as Shanghai Mokun) and 51.00% equity of Jiangsu Zhiming Network Technology Co., Ltd.(hereinafter referred to as Jiangsu Zhiming) respectively. If the reorganization is successfully completed, the above two companies will become wholly-owned subsidiaries of Sanqi Mutual Entertainment.

The reporter noticed that on February 3 this year, Sanqi Mutual Entertainment invested in Shanghai Mokun at a price of 430 million yuan, and began to suspend trading on March 10 to plan to acquire the remaining equity. Why are you eager to acquire a company that currently has only two games online? Zhang Yun, secretary of the board of directors of Sanqi Mutual Entertainment, declined the reporter's interview on the grounds that "it is in the reorganization period and will be subject to future announcements."

On February 3 this year, Sanqi Mutual Entertainment stated that Sun Company's Xizang Taifu Cultural Media Co., Ltd.(hereinafter referred to as Xizang Taifu) invested 400 million yuan to transfer the 30% equity of Shanghai Mokun held by Molin Shares, and separately increased the capital of Shanghai Mokun by 30 million yuan to obtain 2.25% equity. This means that Shanghai Mokun is valued at 1.333 billion yuan for this acquisition.

At that time, some media questioned that Sanqi Mutual Entertainment's net profit in 2015 was only 449 million yuan, but it spent almost a year's net profit to participate in a loss-making affiliated company. The status of the target product and whether it can continue to be profitable also attracted inquiries from the Shenzhen Stock Exchange.

On March 10, Sanqi Mutual Entertainment suspended trading due to planning to issue shares to purchase assets. It was announced on June 13 that one of the planned major asset reorganization targets was to continue to acquire all remaining equity interests in Shanghai Mokun.

In the previous equity transfer agreement, Xizang Taifu and Molin agreed that "if Shanghai Mokun's profitability increases steadily in the future and the types of games operated online are more abundant, Xizang Taifu will have the opportunity to give priority to Shanghai Mokun shareholders and sell part or all of their equity in Shanghai Mokun to any third party."

However, from February 3 to April 30, the benchmark date selected for the evaluation of this reorganization, the reporter found that Shanghai Mokun's performance did not meet the above two conditions for continuing to purchase equity.

Shanghai Mokun was founded in May 2013. It was not until the end of December 2015 that it released its first game,"Unparalleled for All"(mobile game). Although it once ranked fourth in the overall iPhone list (best-selling), it was up to June 13., has slipped to 63rd.

In the first quarter of this year, Shanghai Mokun's second game,"Battle of Martial Arts"(page game), was launched. According to statistics from the web game application data analysis platform 07073, its service number has recently remained at around 1700. Compared with the service numbers of 7000 and 8000 for the two flagship web game products of Sanqi Mutual Entertainment,"The Battle of Martial Arts" has performed generally, and it has not been able to "create a flow similar to" Unparalleled People "and become another hit game" as Sanqi Mutual Entertainment predicted in its reply letter to the Shenzhen Stock Exchange.

The reporter noticed that "Unparalleled for All" launched at the end of last year made Shanghai Mokun profitable for the first time in January this year, with a net profit of 19.21 million yuan. However, as of January 2016, Shanghai Mokun's net assets were still-21.248 million yuan.

With only two mobile games online and still having negative net assets, how can a pure game developer let a listed company make the decision to "acquire all remaining shares" in the short term? Yesterday, Zhang Yun told reporters that these issues will be disclosed in future acquisition drafts and will not respond at present.

Taking "expanding mobile games" as the strategic orientation, but in preparing to plan for a major asset reorganization for half a year, he chose a mobile game company. Guo Chengjie analyzed that judging from last year's market performance, Sanqi Mutual Entertainment still maintains a good concentration in the field of web games."At present, web games are still the foundation of Sanqi Mutual Entertainment, and we will continue to acquire web games. Perhaps the target is to consolidate its advantages, so this can only be explained."

Editor: yvette