Perfect World Chi Yufeng: From U.S. stocks to A-shares to become a pan-entertainment comprehensive cultural enterprise

In Chi Yufeng's "perfect world", games are not the only ones. From games, to film and television, to animation, media and education, Chi Yufeng keeps up with the pace of the market, and every layout opens up territory for building the perfect pan-entertainment ecosystem in his heart.

Original title: From U.S. stocks to A-shares: How can the perfect world be "perfectly" reborn?

Chi Yufeng is a student of Changjiang DBA, one of the founders of Changjiang Chuangchuang Community, and the chairman of Perfect World. He has always been recognized as a scholar among Yangtze River DBAs. His seriousness towards himself and his truth-seeking knowledge have become his unique label in Yangtze River DBAs. Sharing is another effective way for Chi Yufeng to learn. He once shared the privatization process of the Perfect World as a practical case in the Changjiang DBA class. The constructive thoughts and suggestions that emerged in the class deeply inspired Chi Yufeng, and the privatization process of the Perfect World immediately accelerated.

For many gamers, the perfect world is no stranger.

From the game of the same name "Perfect World", to the adaptation of the novel "Xian Xian", to the exclusive agency "DOTA2", this classic game developed or represented by Perfect World carries the youth of a generation. However, the perfect world has frequently appeared in the public eye in recent times, more because of the news that it has withdrawn from U.S. stocks and returned to A-shares.

Chi Yufeng in Changjiang DBA Class

In April 2016, Perfect Global successfully injected Perfect World Games into listed companies by issuing shares to purchase assets. In July 2016, Perfect Global Entertainment Co., Ltd. officially changed its name to Perfect World Co., Ltd. This move means that Perfect World has officially returned to the domestic A-share market and completed the comprehensive reorganization of its listing system's movie and video game business. It also announced the official birth of China's largest movie and video complex.

In fact, in Chi Yufeng's "perfect world", games are not the only ones. From games, to film and television, to animation, media and education, Chi Yufeng keeps up with the pace of the market, and every layout opens up territory for building the perfect pan-entertainment ecosystem in his heart. As the founder of the Perfect World Industrial Cluster, what role did Chi Yufeng play in the privatization process of Perfect World?

1. Entering U.S. stocks: Proving oneself

According to public information, on July 26, 2007, Perfect World (then called Perfect Space and Space, but renamed Perfect World in 2010, hereinafter collectively referred to as Perfect World) was listed on the NASDAQ market. The issue price is US$16, becoming the third game company to land on NASDAQ in the United States after Shanda and Jiucheng.

This is something to be proud of for the Perfect World, which was only established in March 2004. Of course, this is also based on the achievements it has achieved in the three years since its establishment: in November 2005,"Perfect World" was tested in the market. It was a great success, and then went abroad and landed in Japan in July 2006; in September 2006,"My Own Swordsman", an adaptation of the popular sitcom at that time, was launched; In April 2007,"Xian Xian", adapted from an online novel, was launched.

The successful launch of these popular games has undoubtedly become the cornerstone of the perfect world towards the United States.

After landing in U.S. stocks, Chi Yufeng and his team proved themselves with their strength. Standing on the stage of the United States, the world's weathervane, Chi Yufeng is thinking about the next step of his pan-entertainment and cultural kingdom.

In 2008, Perfect World Film and Television was established. In 2011, the company's "Piano of Steel" won many international awards such as the "Best International Film Award" at the 28th Miami International Film Festival, becoming a classic for China films to go global in recent years. In the same year, the box office of the Perfect World film "33 Days of Lovelorn" exceeded 100 million yuan in four days after its release, with a box office of 350 million yuan, becoming the biggest "dark horse" in the annual box office market. In 2016, Perfect World reached a film investment and strategic cooperation agreement with Universal Pictures of the United States. This not only made Perfect World the first China company to establish long-term cooperation with mainstream American film companies, but also enabled American cultural companies to gain reliable strategic partners to expand the China market.

Later, Chi Yufeng established Perfect World Education in 2014. Perfect World Animation was established in 2015, and Perfect World Comics was established in 2016.

At this point, the map of the pan-entertainment and cultural kingdom of the Perfect World Industrial Cluster has basically taken shape. The perfect world industrial cluster has also entered the fast lane with the advancement of science and technology and the east wind of industrial policies.

2. The "homesickness" of China Stock Exchange

However, the development of China companies in the U.S. stock market has not been smooth sailing. Under the influence of various factors, a wave of privatization has swept out among U.S. listed Chinese stocks.

According to Bloomberg data, in the first half of 2015, the total amount of privatization offers received by U.S. listed stocks rose to about US$23 billion. In the second quarter alone, 20 companies announced that they had received privatization offers, including many such as 360. Heavyweight mid-level stocks.

In response to this phenomenon, Li Haitao, a professor of finance at Cheung Kong Graduate School of Business, once pointed out: There

are many reasons why China Stock Exchange is eager to return, and 'acclimatization' may be one of the important reasons. Overseas markets are more mature than A-shares, which means that listed companies will experience more challenges, such as possible short-selling by institutions.

Overseas markets are full of challenges, but the domestic capital market environment is gradually improving: the establishment of a multi-level capital market system and the further optimization of market systems, especially relevant systems for emerging industries, have created favorable conditions for the return of Chinese stocks; at the same time, the bull market The high valuation has formed a strong appeal.

The "homesickness" of China Stock Exchange has continued to stir Chi Yufeng's sensitive nerves.

Chi Yufeng shared examples of the privatization of Perfect World with Changjiang DBA students.

3. Return to A shares: Perfect "rebirth"

On January 2, 2015, Perfect World announced that it had received a privatization proposal of US$20 per share from Chairman Chi Yufeng.

On July 29, 2015, Perfect World announced that it had completed all privatization work and would withdraw from Nasdaq with immediate effect.

The speed at which the perfect world is privatizing is amazing.

Talking about the reasons for Perfect World's return to A-shares, industry insiders believe that during the U.S. stock market listing, many of the online game products that Perfect World's main main market performed well and could generate a large amount of cash flow and profits. However, due to R & D and marketing expenses, the growth of net profit shown in Perfect World's earnings report has slowed down, which has affected the capital market's valuation of Perfect World.

In addition, game companies are facing the situation of entering the mobile game market. For this rapid change in the future market landscape, the advantage of privatization being able to avoid many restrictions is revealed-it is more conducive to rapid decision-making and tactical execution.

What is certain is that after the completion of privatization, Perfect World has indeed begun to be reborn rapidly-

in January 2016, Perfect Global announced that it planned to acquire 100% equity of Perfect World for a price of 12 billion yuan. At the same time, the company plans to issue additional shares to Chi Yufeng, employee stock ownership plan, perfect No. 1 special asset management plan, etc., and raise matching funds of no more than 5 billion yuan for projects such as film and television drama investment, game research and development, operation and agency.

In March 2016, Perfect Global announced that "Perfect Global issued shares to purchase assets and raised matching funds and related transactions" was reviewed and approved by the China Securities Regulatory Commission. This also means that Perfect World will officially return to A shares by injecting assets into Perfect Global.

Chi Yufeng once said that Perfect World can be listed separately or backdoor.

In the end, he chose to merge with Perfect World to fully integrate superior resources, stimulate fusion effects, make the company bigger and stronger, and better promote China culture. Overseas. "Perfect has an international dream."

The Perfect World is a perfect example of privatization and return to China. It takes advantage of the high-PE era, capital investment methods, and its own origins to build the company's own network.

Many people don't understand why Chi Yufeng said it was a "merger" and what is the "native" of the perfect world. By sorting out the development history of Perfect Universal, it is not difficult to find that the Perfect World film and television business has been the Perfect World since its establishment. An indispensable and important component of the industrial layout.

In August 2008, Perfect World registered and established Perfect Time and Space Cultural Communication Co., Ltd.(i.e. Perfect Film and Television) in Beijing, which mainly invests in film and television works.

On August 3, 2011, Perfect World divested Perfect Film and Television's business and sold it to Beijing Happy Permanent Film and Television Culture Co., Ltd.(Chi Yufeng is the main shareholder) for 360 million yuan.

In August 2014, Perfect Film and Television officially announced that it would use Jinlei shares to land in the A-share market. On May 4, 2015, Jinlei Co., Ltd. completed the industrial and commercial change registration procedures, and the company name was changed from "Zhejiang Jinlei High Temperature Materials Co., Ltd." to "Perfect Global Entertainment Co., Ltd.".

It can be seen from the above series of actions that the trader who separated this part of Perfect Global's assets from the Perfect World was also Chi Yufeng.

Simply put, before the Perfect World of U.S. stocks and the Perfect Universal of A-shares represented the game and film and television businesses respectively. Now, the game business is actually withdrawn from U.S. stocks and merged into A-share film and television companies. Simply put, before the Perfect World of U.S. stocks and the Perfect Universal of A-shares represented the game and film and television businesses respectively. Now, the game business is actually withdrawn from U.S. stocks and merged into A-share film and television companies. Before its name change, Perfect Universal was a film and television company, but after its name change, it became a comprehensive entertainment platform, moving from pure film and television to a movie and game linkage.

4. Naming the model that strives to approach the perfect world in the great era

as 'perfect world' actually has some meanings, with social responsibility considerations in it. We are not just trying to make money, we also hope that through our efforts, society can develop better and move closer to the model of a perfect world.

Chi Yufeng's positioning of the "perfect world" comes from his recent sharing at the New Business Civilization Forum. He mentioned that the perfect world itself is constantly exploring the "model of the perfect world." In his view, the state of the perfect world actually has no end. This is determined by the thinking system of people constantly wandering around "looking for the excitement of the edge."

Returning to the current reality of the Perfect World Industrial Cluster, Chi Yufeng said that the Perfect World Industrial Cluster has long since emerged from the simple "model" of a game company."It started as educational software, and then programmers made games, becoming the largest domestic 3D game developer and has become the largest online game exporter in China for three consecutive years; Later, he began to participate in film and television production, and has now become the largest TV drama production company in China. It is also doing some theater and film things. In addition, in the past two years, Perfect World Animation and Perfect World Comics have been established one after another. Perfect World has expanded from an original game company to a comprehensive 'cultural enterprise'."

As a China cultural enterprise, an unavoidable question is how to export China cultural products to the world. Perfect World has created many game products that integrate elements of China's classical culture, such as "Red Cliff" and "Pocket Westward Journey"; similarly, Perfect World has also displayed film and television classics such as "The Qin of Steel" to the world. In the future, the Perfect World Industrial Cluster also plans to launch more pan-entertainment products including animation, comics or education. So, as more global and integrated exports, can these products become effective carriers for China's culture to "go global"?

Chi Yufeng believes that whether it is games, film and television, animation, or comics, building a new pan-entertainment ecosystem requires a "culture that keeps pace with the times." In his eyes, in fact, 99% of the content in the lives of Eastern and Western people is common., in terms of business, social governance, civilization, etc., there are no fundamental differences involved. Whether in terms of rationality, technology or other aspects, the genes of the East and the West can tolerate each other, communicate more, talk more, and communicate effectively, which is conducive to social development.

Editor: Nancy