31 film and television companies have entered the innovation layer of the New Third Board with a total market value of nearly 21.5 billion yuan

In the 2017 New Third Board Innovation Layer list released by the National Stock Transfer System, the number of film and television companies reached 31, with a total market value of nearly 21.5 billion yuan, of which 8 have market values exceeding 1 billion yuan.

Original title: New Third Board innovative layer film and television companies have undergone a major transformation, and 23 new companies including Media

have entered the market. On May 30, the National Stock Transfer System officially released the 2017 New Third Board innovative layer list. Compared with last year's 953 companies, the number has increased significantly., a total of 1393 companies were selected. Among them, 627 innovation-level enterprises have been successfully maintained, and 766 basic-level enterprises have been newly promoted to innovation levels.

The innovation-level film and television companies have undergone a major transformation during this adjustment, and the number has also increased, from 12 last year to 31. Among them, 8 companies including Jiaxing Media have successfully maintained their positions, and 23 companies including Zizai Media have newly introduced innovative layers.

In 2017, the list of film and television companies in the innovation layer of the New Third Board has a

total market value of nearly 21.5 billion yuan and a total revenue of over 4.4 billion

yuan. According to the "Measures for the Layered Management of Listed Companies in the National Share Transfer System for Small and Medium-sized Enterprises (Trial)", the New Third Board has three innovative layers. A set of parallel standards aims to screen different types of companies that are of concern in the New Third Board market to enter the innovation layer.

Among them, on the standard side, the profitability of the re-listed company requires continuous profits in the past two years, with an average net profit of no less than 20 million yuan, and the weighted average return on net assets of no less than 10% on average in the past two years; Standard 2 focuses on the growth of listed companies and requires continuous growth in operating income in the past two years, with an average of no less than 40 million yuan, an average annual compound growth rate of no less than 50%, and a share capital of no less than 20 million shares; Standard 3 focuses on the market-making market value of listed companies, requiring that the average market value of the 60 market-making transfer days with recent transactions be no less than 600 million yuan, shareholders 'equity at the end of the most recent year be no less than 50 million yuan, and no market makers. There are no less than 6 companies and no less than 50 qualified investors.

Data

from the New Third Board Research Institute shows that among the 31 innovation-level film and television companies, 15 had revenue exceeding 100 million yuan in 2016, and Yangtze River Culture ranked first in revenue of 563 million yuan. The revenue of three companies, including Zai Media and Jintiandi, also exceeded 90 million yuan. The overall revenue scale of 31 film and television companies has increased significantly, with total revenue increasing from 2.893 billion yuan in 2015 to 4.405 billion yuan in 2016. There are 25 companies with compound revenue growth rates of more than 50% in the past two years.

In terms of net profit, the overall profitability of the 31 film and television companies is relatively good, with only 2 companies losing money. The net profit of 27 companies including Zizai Media exceeded 10 million yuan, and Jiaxing Media had the highest net profit, reaching 129 million yuan.

In terms of market value, as of May 26, the total market value of 31 innovation-level film and television companies was close to 21.5 billion yuan. Among them, 8 have market values of more than 1 billion yuan, and the highest, Starlight Film, has a market value of more than 3.1 billion yuan.

Overall, most of the 31 innovation-level film and television companies adopt agreement transfers. Only 4 have adopted market-making transfers and shareholder accounts exceeding 50 households. Among them, 4 companies have more than 6 market makers. The number of market-makers and shareholder accounts ranked first, with 16 and 642 respectively.

Successfully entering the innovation level is undoubtedly a further verification of the growth of these companies.

Well-known shareholders gather

entertainment stars, social celebrities, well-known investment institutions or individuals, well-known enterprises, etc. to invest in the New Third Board often attracts market attention to listed companies, creating a "star effect".

Among the 31 film and television companies selected for the innovation level this time, there are many star shareholders. For example, Jiaxing Media, the shareholding of Yang Mi Studio has attracted widespread attention from the capital market, and its valuation has also risen.

Constellation Magic Mountain, a newly advanced innovation layer, is favored by Wang Sicong. In the new round of fundraising for Constellation Magic Mountain, Tianjin Pusi No. 1 Asset Management Partnership (Limited Partnership), a private equity investment fund under Pusi Capital, plans to increase its capital by more than 40 million yuan.

In addition to star shareholders Hu Haiquan, Chen Yufan (formerly known as Chen Tao) and Dong Chengpeng (Dapeng), Huayi Brothers Cultural Brokerage Co., Ltd., a subsidiary of Huayi Brothers, also holds 1.2585 million shares, accounting for 4.21%, making it its sixth largest shareholder.

Although industry segmentation

belongs to the film and television industry, the 31 companies have different business priorities and obvious industry segmentation characteristics.

According to data from the Dibei New Third Board Research Institute, among the 31 companies, the majority are engaged in more traditional TV series, film investment, production, distribution and artist brokerage businesses. However, among the companies that have entered the innovation level this year, there are also many companies that are engaged in animation, film and television films., stage dramas, variety shows, online dramas and other new media film and television works, as well as companies that focus on providing marketing services for film and television works.

The New Third Board, which is positioned to serve the development of innovative, entrepreneurial, and growing small, medium and micro enterprises, undoubtedly provides these companies engaged in segmented businesses with more opportunities to access capital and grow.

Take the new studio and Zai Media, which entered the innovation level in 2017, as an example.

Data from the Dibei New Third Board Research Institute shows that the new studio is mainly engaged in the training of new media film and television creators, as well as providing one-stop and integrated services such as incubation, investment, distribution, production, production, and operation for their creation of new media film and television works. Its "New Studio Community" is currently the largest Internet community for new media film and television creators in China. In October 2016, the new set was raised for the first time after its listing, and Sequoia Capital and Tianxing Capital invested 70.08 million yuan in shares.

Since its inception, Zifu Media has been known as the "No. 1 Film, Film and Television Marketing in China". It mainly provides full-case marketing services for movies, TV series, TV programs, online homemade dramas and programs, including precise positioning, delivery strategies, promotion planning, and strategy execution. Participated in or led the promotion of popular film and television projects such as "Tomb Robber Notes","Run, Brother","The Quest for the Dragon","Pancake Man","Charlotte Worries", and "Operation Mekong River".

According to Digbe.com, Zizai Media completed fundraising of 24.145 million yuan in June 2016. In addition to Hu Haiquan, Chen Yufan (formerly known as Chen Tao) and Dong Chengpeng (Dapeng), the New Third Board Fund of China Merchants Bank is also among them. Its second fundraising of 52.0344 million yuan has also entered the subscription stage.

Both companies achieved significant growth in revenue in 2016. Among them, the revenue of the new studio was 72.9913 million yuan, with a compound revenue growth rate of 475.15% in the past two years; the revenue of Zifu Media reached 91.5843 million yuan, with a compound revenue growth rate of 115.46%, and the net profit was 15.522 million yuan, a year-on-year increase of 176.36%.

Matrix layout and building an ecological chain have become a magic weapon for the two companies to break through. The Self-Media Short Video content matrix launched by the new studio has contracted to manage hundreds of Self-Media Short Video programs. The number of fans on the entire network has exceeded 200 million, and the cumulative clicks on the entire network have exceeded 6 billion. It has successfully incubated well-known Short Video programs such as "Creation Collection","Magic Food" and "Little Love Letters". Zizai Media has built a film and television marketing ecological chain by investing in representative companies in the film and television marketing segment and deploying multiple business segments.

According to reports, Zizai Media and its participating companies, Beijing Zizai Tianhao Culture and Entertainment Co., Ltd.(hereinafter referred to as: Zizai Tianhao) and Beijing Tracking Film and Television Culture Co., Ltd.(hereinafter referred to as: Tracking Film and Television) constitute the first level of the ecological chain. Among them, Zizai Tianhao is committed to the production, promotion and marketing of film and television music, and belongs to the domestic film and television music flagship company. Promotion cases include "The Great Wall","Ghost Blows the Lantern","Pancake Man","Wolverine 3", etc. Zizai Media currently holds a total of 34.3% of its equity. Tracking Films is currently the only company in China that can provide full-process visual integrated marketing solutions in the film and television field. It participates in the promotion of many Hollywood blockbusters, including the "Resident Evil" series,"The Hunger Games" series,"The Expendables" series,"Assassin's Creed","La Land", etc. The latest information shows that Zizai Media will increase its stake in Tracking Films by no more than 20%(inclusive) for no more than 12 million yuan. After the completion of the increase, Freedom Media's shareholding in it will increase from 10% to 30%.

In addition, Zizai Media also includes "Zizai Department" companies such as Herald Interactive, a professional communication agency that provides social integrated marketing of film and television entertainment; Qisi Miaoying, a domestic professional promotion agency for online dramas and online homemade programs; Cognitive Culture, the most professional marketing agency for variety shows and TV dramas; and "Zizai Department" companies such as Zizai Dianxing, a professional creative Short Video customization service company. At present, the top three companies have all achieved profits.

It is foreseeable that with the rapid growth of China's film and television industry and the implementation of future innovation dividends, these 31 film and television companies may usher in more development opportunities.

Editor: jessica