Zhiyin Animation is preparing to go public within three years, parent company Zhiyin Media wants to fight back in the capital market

Zhiyin Animation is one of the subsidiaries of Zhiyin Media, and Zhiyin Media has tried to land in the capital market through IPO. The launch of the share reform by Zhiyin Animation this time is also considered by the industry to be one of Zhiyin Media's second attempt to connect with the capital market.

Original title: Zhiyin Media uses subsidiaries to fight the capital

market. Nowadays, more and more cultural companies are connecting with the capital market. Among them, Hubei Zhiyin Animation Co., Ltd.(hereinafter referred to as "Zhiyin Animation") recently announced that it will attract 567 million yuan to officially launch business restructuring and share reform work, and strive to promote the listing of Zhiyin Animation within three years. It is worth noting that Zhiyin Animation is one of the subsidiaries of Zhiyin Media, and Zhiyin Media has tried to land in the capital market through IPO. This time, Zhiyin Animation launched the share reform, which is also considered by the industry to be one of Zhiyin Media's second attempt to connect with the capital market.

Zhiyin Animation was established in January 2006. Its core product is "Zhiyin Manke", with a maximum monthly circulation of 6.8 million copies. In March this year, Zhiyin Animation completed its capital increase and share expansion through the Central China Cultural Property Exchange, raised 567 million yuan in funds, sold 52% of its shares, and introduced strategic partners Hubei Changjiang Radio and Television Media Group Co., Ltd. and Kashgar (Hubei) Cultural Industry Fund Management Co., Ltd., Hubei Changjiang Radio and Television Cultural and Creative Equity Investment Fund Partnership (Limited Partnership).

If Zhiyin Animation can be listed, it means that Zhiyin Media will gradually connect with the capital market. In 2011, Zhiyin Media publicly stated for the first time that it would go public. Subsequently, in 2014, Zhiyin Media appeared in the IPO queue and updated its prospectus twice. However, in April 2015, Zhiyin Media was also among the list of companies that had terminated IPO review announced on the official website of the China Securities Regulatory Commission. At that time, industry analysts believed that the reason for Zhiyin Media's IPO failure was related to the company's continued decline in performance. According to the public prospectus at the time, Zhiyin Media's revenue in 2013 fell by 1.51% year-on-year; in the first half of 2014, its revenue was 246 million yuan, and its annualized revenue dropped by 14.95% year-on-year.

Through observation, we can find that Zhiyin Animation's performance in recent years has also been in a downward trend. The net profit from 2013 to 2015 was 70.454 million yuan, 38.6 million yuan and 32.587 million yuan respectively. From January to September 2016, Zhiyin Animation's net profit was 20.327 million yuan. In addition, Zhiyin Animation also needs to face fierce market competition. Industry insiders believe that the development of paper magazines is facing a bottleneck at this stage, but there is a large room for development in the animation industry. Zhiyin Animation needs to further expand its business around its own advantages to help stabilize and gradually grow its performance.

Editor: Nancy