Songliao Automobile transformed into film and television company Li Bingbing and other star shareholders received 100 million yuan in value-added

After the transaction is completed, Songliao's main business will add new cinema film screening, film and television investment production and distribution, cultural entertainment brokerage and online game development and operation, as well as film and television game businesses with strong profitability and good development prospects.

On April 7, the reorganization and renaming ceremony of "Cultural Investment Holdings Co., Ltd." was held at the Shanghai Stock Exchange. Huang Xiaoming, Jackie Chan, Feng Xiaogang, Zhang Guoli, Li Bingbing, Zeng Zhiwei and Tang Jili joined hands as star shareholders. Celebrity "stockholderization" is very popular recently, but it is rare to recruit multiple heavyweight celebrity shareholders in such a high-profile manner. What is the charm of this company?

This cultural industry company, which has seven star shareholders, used to produce automobiles and

originally operated the following businesses:

"Pre-packaged food (excluding refrigerated food), dairy products Wholesale and retail (including infant formula milk powder); General business items: manufacturing and sales of a series of light off-road buses and light buses, car modifications, self-operation and agency for the import and export of various commodities and technologies, wholesale and retail of textiles, clothing, daily necessities, primary agricultural products, stationery, sports equipment, mineral products, building materials, chemical products (excluding hazardous chemicals), machinery and equipment, hardware products, electronic products, leasing of own houses and machinery and equipment."

However, due to historical constraints such as a single market, backward technology, and single product, the company's automobile body parts processing and sales business has been in a state of production suspension, and it relies solely on smaller-scale trading business to support the company's operations. In desperation, we can only adjust the business to the cultural industry that the country is vigorously promoting at present:

"Investment and investment management, investment consulting, asset management; film and television cultural information consulting services; design, production, agency, and publishing of various advertisements; exhibition and conference services, hosting exhibitions and displays; planning cultural activities, organizing cultural and artistic exchange activities; organizing and planning sports activities; self-operating and acting for the import and export of various commodities and technologies, wholesale and retail of stationery, sports equipment, and electronic products."

Songliao basically overturned what he had done before and started over. The company's address has also been moved from "Sujiatun, Shenyang City, Liaoning Province" to the "Beijing Economic and Technological Development Zone" with a strong entrepreneurial atmosphere. It plans to "rely on the capital platform of listed companies to rapidly increase the scale and profitability of the main business, develop in depth at both ends of the cultural and creative industry content and channels, improve the industrial chain and 'pan-entertainment' layout, and create a 'leading enterprise in the capital's cultural industry'."

Traditional businesses cannot make money and companies are forced to transform?

From a traditional enterprise to abandon its original business and turn into a cultural industry, you will know that the old business must no longer make money and can only carry out business reorganization.

Let's not talk much about business that is too long ago, let's talk about the recent ones. Songliao Automobile suffered losses for two consecutive years in 2013 and 2014, and was warned of delisting risks. The stock abbreviation was capped as "ST Songliao". However, the 2015 annual report released by Songliao showed that the company turned a profit in 2015, achieving operating income of 767 million yuan, a year-on-year increase of 7123.45%; the net profit attributable to shareholders of listed companies was 138 million yuan, achieving a loss into profit. ST Songliao also applied to the Shanghai Stock Exchange to withdraw the delisting risk warning on the company's shares, which was approved on March 14, and the stock abbreviation was changed to "Songliao Automobile".

Songliao Automobile's transformation process is not easy. Songliao Automobile's revenue has continued to suffer losses, the company's asset-liability ratio has increased year by year (the asset-liability ratios in 2012, 2013, and 2014 were 85.64%, 95.33%, and 122.62% respectively), and its financing capabilities have also become weaker and weaker. Even if it wants to transform, there is nothing it can do.

On August 13, 2015, the company issued a fixed increase plan, raising a total of 3.890 billion yuan in non-public funds from 10 investors including Cultural Capital Holdings, all of which were used to acquire 100% equity of Yaolai Studios and 100% of Duwan Network. and supplement working capital, etc. The 10 investors are: After the

financing, Wenzi Holdings, Yaolai Culture and Junlian Jiarui became the company's three new major shareholders, accounting for 22.13%, 17.11%, and 9.41% respectively, replacing the previous 24.89% largest shareholder "Beijing Yizhuang International Investment", the company's asset reorganization was completed.

Songliao Automobile used 2.32 billion yuan of the raised funds to wholly acquire Jiangsu Yaolai Studios and Shanghai Duwan Network, which is the key to the company's transformation and performance growth. After the transaction is completed, Songliao's main business will add new cinema film screening, film and television investment production and distribution, cultural entertainment brokerage and online game development and operation, as well as film and television game businesses with strong profitability and good development prospects.

Later, the stars joined because of their boss's personal connections,

Yaolai Studios (Yaolai Jackie Chan International Studios), the second largest shareholder of Songliao Automobile, is a company that became popular because of Jackie Chan. Its shareholding structure is Yaolai International, Beijing Yaolai, Jun Ruiqi, and Huayi hold 60.1%, 1.42%, 18.42% and 20% respectively. Yaolai International and Beijing Yaolai controller Qi Jianhong are guests on Hurun's Rich List. Qi Jianhong holds many shares in companies and has deep connections with the entertainment industry. With his good personal relationship, Yaolai Group has the exclusive ownership of the Jackie Chan brand. Therefore, Yaolai Studios can use "Jackie Chan" to name its own studios. After Yaolai Studios joined Songliao Automobile, Qi Jianhong became a member of Songliao Automobile's board of directors and also served as the general manager of Songliao Automobile.

Since Yaolai Studios brought Jackie Chan, Songliao Automobile brought Yaolai Studios, and Qi Jianhong's personal entertainment industry resources, it is not difficult to understand why Huang Xiaoming, Jackie Chan, Feng Xiaogang, Zhang Guoli, Li Bingbing, Zeng Zhiwei, and Tang Jili later became star shareholders.

In addition, Beijing Junlian Jiarui, the third largest shareholder of Songliao Automobile, was established in August 2014. It is a limited partnership under Junlian Capital, with project investment as its main business. Feng Xiaogang, Zhang Guoli, Li Bingbing, Huang Xiaoming, etc. are all Limited partners of the company, of which Huang Xiaoming invested 16 million yuan, the other three all invested 20 million yuan. According to analysts who declined to be named,"Judging from the timing of the company's establishment, the company's establishment was entirely based on the reorganization of Songliao Automobile."

Other public information shows that Li Bingbing, Zhang Guoli, Feng Xiaogang and Huang Xiaoming hold 3.91%, 3.91%, 3.91% and 3.13% of Junlian Jiarui respectively. Based on the total number of subscribed shares of 77.6082 million shares, the four indirectly hold 3.0345 million shares, 3.0345 million shares, 3.0345 million shares, and 2.4291 million shares of Wentou Holdings. The equity price is 19.6636 million yuan, 19.6636 million yuan, 19.6636 million yuan and 15.7406 million yuan. Based on the closing price of Cultural Investment Holdings on April 7, the value of the shares held by the four people has increased by 108 million yuan, 108 million yuan, 108 million yuan, and 84.4598 million yuan compared with the subscription price.

After joining Songliao, Yao Lai was responsible for the film and television projects including: the film "Kung Fu Yoga" directed by Tang Jili, the film "Railway Flying Tiger" starring Jackie Chan, the film "I am Not Pan Jinlian" directed by Feng Xiaogang, and the film "The Dragon Shocks the World". Yaolai Films and Television also invested in the reality TV program "I Think You Have a Play", and invited guests include Jackie Chan, Zhang Guoli, Feng Xiaogang and Li Bingbing.

In February 2015, Feng Xiaogang, Zhang Guoli, Li Bingbing and Huang Xiaoming became shareholders of Songliao Automobile.

Editor: yvonne