Shanghai Stock Exchange's first film industry ABS issuance raised 1 billion yuan to boost the layout of the 1+X third-generation theaters

Recently, Times Jindian Group successfully issued asset-backed securities based on the future box office revenue of its 78 theaters, raising a total scale of 1 billion yuan.

Recently, Times Jindian Group successfully issued asset-backed securities based on the future box office revenue of its 78 theaters, raising a total scale of 1 billion yuan. This is the first asset securitization product on the Shanghai Stock Exchange supported by box office revenue. Times Jindian is the third film industry group after Xingmei and Dadi to successfully test the ABS box office revenue. The ABS financing model is a securitization financing method supported by the income of the assets to which the project belongs, guaranteed by the expected income that the project assets can bring, and a financing method that raises funds by issuing bonds in the capital market. Cinema ABS is mainly based on Box office backed securities. With the rapid surge in domestic movie box office in recent years, movie theater assets have been favored by capital parties.

Data shows that the compound growth rate of box office revenue of Times Jindian Cinema has exceeded 55% in the past three years, and the geographical dispersion of theaters has been very wide, which has reduced investment risks. At the same time, Times Jindian has a strong impact on hardware, theaters, theater projection management platforms, production and other businesses. The comprehensive development of production and other businesses is also an important reason for successfully obtaining capital support. In 2009, the Times Huaxia Jindian Theater Line was established with the approval of the State Administration of Radio, Film and Television. It was one of the first theaters to develop third-and fourth-tier cities. Times Huaxia Jindian Theater Line has 226 theaters under it, with about 1200 screens. Currently, there are 17.5 brand theaters in 23 provinces and more than 60 cities.

After the successful release of ABS, Times Jindian Group released the 1+X third-generation cinema development plan. The financing will be mainly used to accelerate the realization of the 1+X third-generation cinema plan nationwide. The plan includes offline There are two parts: the construction of physical 1+X cinemas and the online platform for 1+X cinemas operation.

Zhang Yu, president of Times Jindian Group, said that Times Jindian 1+X Cinema is positioned as a third-generation cinema and is a comprehensive experience space for a new film lifestyle in my country's digital film era. The first generation of cinemas are single-hall cinemas in the era of flammable films, providing audiences with one-direction film projection services. The current multi-hall cinemas in the era of safe film bases. Although they all adopt digital projection, they still adopt theaters in the film era. Operation model, the third generation of cinemas is an experiential interactive theater in the era of digital projection, breaking the single movie-viewing function of traditional cinemas and integrating multiple functions such as bars, KTV, catering, and video games. Selling "digital movie lifestyles" focusing on leisure and entertainment experiences.

The 1+X theaters planned to be built by Times Jindian Group include themed movie-on-demand halls, movie IP restaurants and game rooms, e-sports games and movie complex halls, 4D video restaurants, movie blocks, movie production studios, high-end movie business clubs, etc. "We are considering integrating excellent video resources at home and abroad. For example, we will set up a live video restaurant in 1+X theaters and cooperate with live broadcast platform resources to watch live broadcasts while having dinner, catering to the popular social interactions of young people. We have also contacted some domestic and foreign e-sports game resources, including hardware facilities and content research and development teams, providing large-screen online game experiences and organizing e-sports competitions. At the same time, theme restaurants, coffee bars, and real-life game halls of movie IP are new leisure experiences." He revealed that as early as 2009, Mr. Zhang Baoquan, founder of Jindian Group, proposed the concept of 1+X cinema. After years of technology and content reserves, the time is ripe for the project to be fully launched. The first batch of Times Jindian 1+X theaters will be presented in Beijing, Kunming, Sanya Mangrove Resort World and other places in the second half of 2016.

At the same time, Zhang Yu believes that the operation of 1+X third-generation theaters is inseparable from the online support of the Internet platform. It is the integration of online operation management platforms and offline 1+X theaters. Therefore, this 1+X plan simultaneously launched the construction of the MOVMALL online platform. It is reported that the system has completed independent development, connecting more than 130 theaters and about 700 movie halls across the country. The improvement of the online content platform and management platform of Times Jindian will form a large platform to support 1+X theater operations, and then create a cloud platform to support the development of the digital film industry in my country. The 1+X theater operation platform is planned to be launched in the second half of this year, which will provide strong technical support for the transformation and upgrading of traditional theaters in my country.

Editor: yvonne