Gongda Electroacoustics terminates the reorganization of film and television assets Lehua Culture shareholders create dreams of wealth

According to the content of the announcement, the failure of this reorganization was due to the fact that shareholders of the target company Lehua Culture had different ideas on the conditions and methods for the company to connect with the A-share market, so it decided to terminate the major asset reorganization matters with Tongda Electronics.

Original title: Lehua Culture was unwilling to "marry" Gongda Electroacoustic terminated the reorganization of its film and television assets.

The reorganization that lasted for more than a year ended in failure. At noon on February 28, Gongda Electroacoustic issued an announcement that the company's board of directors decided to terminate the issuance of shares, payment of cash to purchase assets, raising supporting funds and related transactions, and terminated the reorganization of the New Third Board Film and Television Company-Lehua Culture.

It is worth noting that this failure not only shattered the dream of co-realization in film and television assets to "feed back" the main business. It also ruined the huge profits of all shareholders of Lehua Culture.

According to the previously disclosed reorganization plan, if the marriage into A shares is successful, Du Hua, the controlling shareholder of Lehua Culture's post-80s beauty, will receive 534 million yuan in cash and a total of 36.1442 million shares worth 503 million yuan in Dadian Electronics; the second shareholder Shanghai Cultural Investment will withdraw completely after making a profit of 171 million yuan; star shareholders Han Geng, Zhou Bichang and Huang Zheng will also receive a total income of 66 million yuan.

In addition, while the dream was shattered, the 2017 opening drama "The Broken Horse of the Past in Northeast China", which was mainly invested by Lehua Culture, was also facing the fate of losing money. The reporter calculated based on the contents of the reorganization plan previously disclosed by Gongda Electroacoustic, this movie, which invested 65.84 million yuan, did not fall short of expectations at the box office, and its investment income may not cover the cost.

Lehua Culture's shareholders

have experienced a suspension of restructuring, inquiries from regulatory authorities, and adjustment of plans. The electro-acoustic restructuring of Gongda, which has been struggling for more than a year, still ended in voluntary termination.

According to the announcement disclosed by Gongda Electroacoustic on February 28, the failure of this reorganization was due to the fact that shareholders of the target company Lehua Culture had different ideas on the conditions and methods for the company to connect with the A-share market, so it decided to terminate the cooperation with Gongda Electroacoustic. Major asset reorganization matters.

It was really a long reorganization. From the suspension of restructuring at the end of 2015 to the adjustment plan in October last year, even though the transaction consideration and the profit commitment of the target company "shrank", Gongda Electric still failed to take over the film and television assets. Relevant persons from the company told reporters that specific information about the reorganization will be disclosed in the future.

In fact, in addition to the shattered dream of jointly achieving electro-acoustic placement in film and television assets, the real controller of the target party Lehua Culture, the fund behind it and the star shareholders all missed the opportunity to "create wealth".

Du Hua, the controlling shareholder who holds 50.54% of Lehua Culture, is a beautiful boss born in the 1980s. According to the previously disclosed reorganization plan, if the reorganization is successful, Du Hua will receive 534 million yuan in cash and a total of 36.1442 million shares of Dadiao Electronics worth 503 million yuan, accounting for 7.64% of the total share capital after the issuance, second only to Weifang Gaoke, the largest shareholder who will hold a total of 11.62% equity of Dadiao Electronics.

In addition to Du Hua, the biggest cash beneficiary in this reorganization is actually Shanghai Cultural Investment, the second largest shareholder of Lehua Culture. This company, whose legal representative is Li Ruigang, focused on investment in film and television assets at the beginning of its establishment. Based on its original investment in Lehua Culture, Shanghai Cultural Investment will reap 425 million yuan in cash after the successful reorganization and make a profit of 171 million yuan before completely withdrawing. In addition, the total profits of 66 million yuan from star shareholders such as Han Geng, Zhou Bichang, and Huang Zheng were also "ruined".

Lehua Culture failed in its first battle this year?

According to the above-mentioned reasons disclosed by Gongda Electroacoustic about the failure of the reorganization, it was the shareholders of the target Lehua Culture who took the initiative to stop it. What considerations made Lehua Culture give up marrying into A shares?

It is worth mentioning that even if Lehua Culture's profit commitment was reduced in the adjusted restructuring plan of Gongda Electroacoustics, according to the content of the plan, Lehua Culture will still complete 150 million yuan and 190 million yuan respectively from 2016 to 2018. Net profit of 250 million yuan. However, according to Lehua Culture's results for the first half of 2016, its profit commitment was only 36.7%. In addition, the reporter noticed that the 2017 opening drama "The Broken Horse of the Past in Northeast China", which was the main control of Lehua Culture, is also facing the fate of losses.

According to the reorganization plan disclosed by Gongda Electro-Sound in October last year, Lehua Culture actually invested 49.04 million yuan in the film "The Broken Horse of the Past in Northeast China", accounting for 70%, and spent 16.8 million yuan on publicity and distribution expenses. Based on its previous forecast of box office revenue of 280 million yuan, Lehua Culture can receive a box office share of 56.84 million yuan, copyright income of 4.2 million yuan, and a total revenue of 61.04 million yuan.

However, as of now,"The Broken Horse of the Past in Northeast China" has only completed 103 million yuan in box office. Based on the above ratio, Lehua Culture is only likely to receive a box office share of 20.9 million yuan. Even with the copyright revenue of 4.2 million yuan, it still cannot cover the cost of 65.84 million yuan.

Regarding the revenue of the above films and the company's performance in 2016, the reporter called Lehua Culture to understand, but as of press time, the phone could not be connected.

Editor: Nancy