New Culture, the investor of "Jedi Escape", benefited more than 30 million yuan from selling its stake in Waban Media

On July 29, New Culture announced that the company had sold some shares of Waban Media at a price of 17.49 yuan/share, earning an investment income of approximately 31.4 million yuan after deducting costs and related taxes. The reporter noticed that compared with the company's additional equity in Waban Media for 10 million yuan, this sale can be said to be very profitable.

Original title: Whether high-premium mergers and acquisitions were hit, the stock price fell, New Culture sold its stake in Waban Media to "hedge"

On July 29, New Culture announced that the company had sold some shares in Waban Media at a price of 17.49 yuan/share, deducting costs and relevant taxes. The investment income was approximately 31.4 million yuan. The reporter noticed that compared with the company's additional equity in Waban Media for 10 million yuan, this sale can be said to be very profitable.

New Culture also stated that in the seven days since the film "Escape from the Jedi", which the company participated in, the domestic box office has exceeded 550 million yuan. The operating income range of the film attributable to the company is approximately 8 million yuan to 10.3 million yuan.

The

reporter noticed that New Culture announced on July 29 that the company sold 2.396 million shares of Wabang Media at a price of 17.49 yuan/share, accounting for 3.96% of Wabang Media's total share capital. The preliminary calculation of investment income after deducting costs and relevant taxes is approximately 31.4 million yuan.

In January 2014, New Culture spent a total of 10 million yuan to subscribe for the 1.1111 million shares of privately issued shares issued by Waban Media at a price of 9 yuan/share, thereby obtaining a 10% stake in Waban Media. After that, Waban Media also made three fixed increases in November 2014, January 2015 and September 2015 respectively, and New Culture's shareholding ratio also decreased, from 10% to 7.8%.

However, in 2015, Wow Bang Media launched a high-transfer plan, using capital reserve fund to increase 27.046153 shares for every 10 shares to all shareholders. The number of shares held by New Culture has increased from 1.1111 million shares to 4.116198 million shares. Based on the company's previous average price of 17.49 yuan/share, this part of equity has increased to 71.9923 million yuan, with a floating profit exceeding 619.92%.

The good investment return also stems from the rapid growth of Waban Media's performance in recent years. According to Waban Media's annual reports in recent years, operating income from 2013 to 2015 was 30.5887 million yuan, 100.8 million yuan and 222.4 million yuan respectively, and net profit was 5.1385 million yuan, 14.2791 million yuan and 24.3140 million yuan respectively. On the evening of July 12, Wow Bang Media disclosed its results forecast for the first half of 2016. It is expected to achieve a net profit of 23 million yuan to 26 million yuan, a year-on-year increase of 180.05% to 216.58%.

Regarding the purpose of selling the equity of Waban Media, New Culture stated that the company can obtain certain investment income by disposing of the above-mentioned available-for-sale assets according to the securities market conditions, which will help improve the efficiency of the company's overall assets and maximize the interests of shareholders.

Is the plan for tightening supervision approved?

Although New Culture has made a lot of profits from selling Wawbang Media, the company's share price has fallen continuously, and has fallen by 15% since trading resumed on July 28. What are the reasons?

On July 28, New Culture issued an announcement stating that the company received a notice from the China Securities Regulatory Commission. After review by the China Securities Regulatory Commission, the company's issuance of shares to purchase assets and raise matching funds was not approved. The reason for the rejection was that the application materials related to the target company's operating model and profit forecast were not disclosed sufficiently and did not comply with relevant regulations.

According to New Culture's previously disclosed reorganization plan, the company plans to acquire 100% equity of Qianzu Culture at a price of 2.16 billion yuan and raise matching funds of no more than 2 billion yuan to pay the cash consideration in this transaction and supplement the company's working capital, etc. However, the value-added rate of 15,020.81% is also questioned. Data shows that as of December 31, 2015, the book value of Qianzu Culture's unaudited net assets was only 14.2849 million yuan, and the estimated value of 100% equity was 2.16 billion yuan, with an appreciation of approximately 2.146 billion yuan.

The reasons for this new cultural reorganization being vetoed by the China Securities Regulatory Commission are similar to those for Storm Group to vetoed its acquisition of film and television assets such as Caocao Bear Film, mainly because the profitability of the relevant target companies was questioned. In fact, due to the continued popularity of film and television IP, the phenomenon of high valuations and high premiums in the film and television industry has attracted the attention of the regulatory authorities. In June this year, Storm Group's acquisition of film and television assets was vetoed by the China Securities Regulatory Commission. Later, Tang De Film and Television also took the initiative to "stop" the acquisition of related film and television assets. On July 5, Lugang Culture announced that it would suspend its plan to acquire the remaining equity of Tianyi Pictures.

On July 29, the reporter called New Culture, but as of press time, no reply had been received.

Editor: Nancy