Film and television companies gather together on the new board to stage a financing drama, listed companies surged in the first quarter

In the first quarter of this year, the national box office was 14.496 billion yuan, a year-on-year increase of 51%. The marriage between capital and film and television accelerated. However, under the high threshold of A-shares, a large number of film and television companies turned their attention to the New Third Board.

In the first quarter of this year, the national box office was 14.496 billion yuan, a year-on-year increase of 51%, setting a new record again. In this context, the marriage between capital and film and television is accelerating. However, under the high threshold of A-shares, a large number of film and television companies have turned their attention to the New Third Board. Data shows that in the first quarter of this year, 19 companies in the film and entertainment industry chose to list on the New Third Board, compared with only 3 companies at the same time last year. What is even more interesting is that many film, television and entertainment companies that have entered the New Third Board are preparing to issue additional financing immediately after listing.

□ Phenomenon

newly listed companies are eager to issue additional

shares in the National Small and Medium-sized Enterprise Transfer System. Data shows that in the first quarter of this year, 19 film and entertainment companies including Zhonghui Film and Television, Deep Blue Culture, Yongsheng Animation, Shishi Times, Good-looking Media, Xingyuan Culture, Disheng Digital Entertainment, Happy Animation, Donglun Media, Wick Media, Yuanyi Media, Feifan Media, Baoqi Films, Jiahua Merui, Ugly Duckling, Atejia, Fengshang Century, Shuhu Image, and Core Creative Arts were listed on the New Third Board for transfer.

Among the above 19 newly listed film, television and entertainment companies, 9 companies issued additional shares shortly after listing, accounting for nearly one-half of the newly listed companies.

Yongsheng Animation landed on the New Third Board on March 3 and will issue additional shares on April 8. The company plans to issue shares to Shenzhen Innovation Investment Group Co., Ltd., Guangzhou Hongtu Kexin Venture Capital Co., Ltd. and Guangdong Hongtu Venture Capital Co., Ltd., with a total of 1.8423 million shares at 13.57 yuan per share, and an additional amount of 25 million yuan.

Wake Media landed on the New Third Board on January 21 and announced an additional share issue on February 24. The company issued 5 million shares to four objects, including Tianfeng Ruitong-Fenfengbao No. 1 Film and Television Fund and Zhang Zhaoyan, at a price of 4 yuan per share, with an additional amount of 20 million yuan.

In addition, four companies, including Yuanyi Media, Goodview Media, Donglun Media, and Shuhu Image, have carried out and completed additional issuance, with amounts of 40 million yuan, 28.56 million yuan, 12.24 million yuan, and 12 million yuan respectively. The core creative art has issued an announcement to issue an additional 7.5 million yuan, which is in the process of implementation.

However, extraordinary Media's additional issuance did not proceed smoothly. On March 4, it issued an announcement that the additional issuance originally scheduled to be completed on the same day was postponed. The original plan was to issue no more than 400,000 shares at a price of 90 - 120 yuan per share, and raise no more than 48 million yuan.

Zhonghui Film and Television's additional issuance is a popular debt-to-equity swap nature. According to the company's announcement on February 24, Suzhou Songhe Growth No. 2 Venture Capital Center (Limited Partnership) subscribed for 4.918,033 million shares of Zhonghui Film and Television at 12.20 yuan per share, totaling 60 million yuan. This fixed increase is to convert debt into equity, and the issuance target is creditors.

Entertainment companies have strong financing capabilities

According to incomplete statistics, as of April 20, there were nearly 70 film, television and entertainment companies listed for transfer on the New Third Board. Since the second half of last year, nearly half of the film, television and entertainment companies have put out fixed value-added plans. In addition to the above-mentioned newly listed and transferred companies, about 20 other companies have received financing funds of more than 2.7 billion yuan.

At the end of last year, Huaqiang Culture and his family put out a financing plan of more than 1.2 billion yuan. According to an announcement issued in March this year, the stock offering was targeted to 14 investors at a price of 29 yuan per share, with a total of 42.6 million shares issued, with an amount of 1.2354 billion yuan. In addition to a number of private equity funds, Xinhuanet Co., Ltd. is also one of the subscription targets. This financing became the largest amount of financing among the New Third Board film and television companies. Jimei Media and Kaixin Mahua followed closely with financing amounts of 600 million yuan and 300 million yuan respectively.

Although the additional issuance amount of other film and television companies has not exceeded 100 million yuan, the cumulative amount cannot be underestimated. Among them, Chuanshi Film and Television raised 97.32 million yuan; Energy Communication raised 88 million yuan; Beijiao Media raised 80.04 million yuan; Chunqiu Hong raised 75 million yuan; Qingyu Media raised 50.72 million yuan; Xianjian Culture raised 42 million yuan; Rui Fengxing raised 35.63 million yuan; Jinnuo Jiayin raised 30 million yuan; Nanguang Film and Television raised 25.2 million yuan; immersive financing 24 million yuan; Haofu Culture raised 22.56 million yuan; Zhongjucheng raised 21.6 million yuan; Century Factory raised 18 million yuan; Yindu Media raised 17.44 million yuan; Daily Vision raised 15 million yuan; and Lehua Culture raised 10 million yuan.

The

reporter noticed that most of the above-mentioned companies claimed in the announcement that the money raised would be used to supplement working capital, expand the company's business, enhance its main business capabilities, and improve profitability. However, some listed companies did not invest in performing arts or film and television production after additional funds were in place, but purchased financial products.

Taking Kaixin Mahua as an example, its announcement issued on March 25 stated that the company issued a total of 2.841,835 million shares to 11 new investors including Shanghai Shengge Investment, Shi Lei, and Orient Securities, at an issue price per share of 106 yuan., a total of 301.23 million yuan was issued. Among them, Shanghai Shengge Investment Management Co., Ltd. subscribed for 805.16 million shares, with an amount of 85.34696 million yuan; Shi Lei, vice president of Microfilm Times, subscribed for 710,435 million shares, with a total of 75.30611 million yuan; and Orient Securities had 473.65 million shares, with an amount of 50.2069 million yuan.

But on April 8, Happy Mahua published a "Announcement on Using Idle Funds to Purchase Financial Products" that surprised people. The announcement stated that the company will use idle funds to invest in wealth management products with higher security and shorter maturity. The maximum wealth management balance will not exceed 300 million yuan, and the single financial management period will not exceed one year. This wealth management amount can be recycled. In terms of the amount, the 300 million yuan of idle funds obviously came from previous additional issuance.

In addition, it is worth noting that on January 4 this year, Kaixin Mahua announced that it would issue shares to Zhang Chen, the controlling shareholder and actual controller of the company, at a price of only 2.4 yuan per share, a total of 1.52182 million shares, and a total amount of 3.652368 million yuan. After this share issuance, Zhang Chen's shares in the company increased to 23.176964 million shares, accounting for 52.06% of the company's total shares after the issuance. 2.4 yuan per share is the price of cabbage. In the 2015 annual report released in March this year, Kaixin Mahua's net profit per share was as high as 3.11 yuan.

Fengshang Century also announced on March 25 that it plans to use its own idle funds to purchase short-term wealth management products with a total amount of no more than 40 million yuan. The investment period will run from January 1, 2016 to December 31, 2016.

Among these listed companies, some companies have been aiming for innovation since the beginning. Take Goodview Media as an example. Before being listed for transfer in January this year, it issued 2.1 million shares of common shares to 6 securities companies qualified as market makers, including Shenwan Hongyuan Securities Co., Ltd., at a price of 13.60 yuan per share, and raised funds The total amount is 28.56 million yuan. After the issuance, the company's total shares were 22.1 million shares, which was also its total share capital at the time of listing. Not long after, Goodview Media announced that the company's stock transfer method had changed from agreement transfer to market maker. According to the solicitation draft for opinions on the new board layering plan, Goodview Media meets the third criterion of the plan, which is,"the average daily market value in the past three months shall not be less than 600 million yuan; shareholders 'equity at the end of the most recent year shall not be less than 50 million yuan; There are no less than 6 market-making companies," so it is highly likely to enter the innovation level.

□ Analysis that

the growth of the film and television industry is inseparable from the capital market

Wealth Securities SME Financing Department Qi Qian said that the film and television cultural industry is developing rapidly in my country, and there are currently more than 6000 film and television cultural companies across the country. In 2015, the box office of domestic films was 27.136 billion yuan, accounting for 61.58% of the total box office. It can be said that China's film and television cultural industry has developed to a certain stage, and at this stage, it will inevitably choose to enter the capital market.

First of all, by raising funds and revitalizing funds through the capital market, film and television cultural enterprises can grow and grow, become multimedia and cross-industry enterprise groups, and consolidate their dominant position in the industry through the capital market. Secondly, the institutional design of the New Third Board prompted the listing of film and television culture companies. The capital market represented by the New Third Board meets the needs of emerging industries represented by the film and television cultural industry. The growth, flexibility, innovation and entertainment characteristics of the film and television industry also match the novel system and flexible valuation method of the New Third Board. Film and television entertainment companies on the New Third Board can gain greater development space by entering the capital market through small, rapid and multiple financing methods. Coupled with the pending decision of the Shanghai Strategic Emerging Board, many companies have returned to the New Third Board. Since the beginning of this year, there are more than 1600 companies listed on the New Third Board, a year-on-year increase of 200%, and the number of film and television listed companies has also risen. Finally, the New Third Board has valuation advantages. Taking this week's data as an example, the price-to-earnings ratio of companies listed on the New Third Board is about 40 times, but the price-to-earnings ratio of film and television companies in the main market reaches 77 times.

The industry has good prospects and strong financing needs

. Some securities firms believe that judging from the disclosed 2015 annual results, the fundamentals of the film, television and entertainment industry are good, new things are emerging in the media industry, and the industry has positive vitality. This may be the reason why institutions are actively involved in investing in this industry.

Essence Securities believes that there are mainly the following reasons for the strong financing needs of New Third Board film and television entertainment companies: First, centralized listing benefits from the great development of the entire film and television industry. 2015 is not only a big year for the film market, but also a year when online dramas and online movies have exploded. As the pattern of online and offline channels gradually becomes fixed, the demand for film and television content in playback channels with "theater + online video" as the main body has begun to increase. Film and television content companies have ushered in a good market situation, and film and television companies have a position in the capital market. Status is also rising.

On the other hand, film and television companies 'demand for funds has further increased. With the increasingly fierce market competition, film and television companies are increasingly competitive for core resources such as IP and talents. The popularity of IP in 2015 caused the copyright price of IP to rise, and the copyright price of well-known IP even rose to more than 10 million. At the same time, the production cost of film and television content is also rising. The production cost of some high-quality online dramas has exceeded 5 million episodes. These changes in the situation have forced film and television companies to find more funds to invest in business operations, while listing can further increase the company's financing capabilities and meet corporate capital needs.

Editor: vian