In 2015, 46 film and television companies were listed on the New Third Board, and 25 companies are expected to enter the innovation level

In 2015, a total of 5129 New Third Board companies were listed. Among them, there are about 46 companies involved in radio, television, film and film and television recording production (35 new companies were added in 2015), accounting for 0.897% of the total number of listed companies.

From Sheng Tiancai to Qingyu Media, Energy Communication, to Evergrande Culture at the end of the year, the media sector took frequent actions in 2015. Coupled with the release of the tiered plan at the end of 2015, a large number of film and television companies may gather on the new board in early 2016.

On the last day of 2015, the number of companies listed on the New Third Board was finally closed to 5129, with a total share capital of 294.6 billion shares. The implementation of private additional issuance completed the raising of 127.3 billion yuan, of which 1,115/4,014 were market-making/agreements respectively.

According to statistics, in 2013, there were only 7 A-share mergers and acquisitions involving the film and television industry, while in 2014, there were 44 mergers and acquisitions involving this industry, and 38 mergers and acquisitions with the underlying value were announced, involving assets worth 30.176 billion yuan. About half of the "film and television M & A boom" in 2014 was cross-border M & A. Nowadays, in addition to backdoor listings for film and television companies that frequently compete for IPOs, the New Third Board may become new opportunities.

Film and television stocks are traded frequently, and the New Third Board has taken advantage of the momentum.

In 2015, a total of 5129 New Third Board companies were listed. Among them, there are about 46 companies involved in radio, television, film and film and television recording production (35 new companies were added in 2015), accounting for 0.897% of the total number of listed companies.

Tabulation: Media +

Nowadays, film and television entertainment companies want to seek listing, but there are only several ways to borrow, IPO, GEM and the New Third Board. Compared with the main board, small and medium-sized board and GEM, the fee for companies to apply for listing and transfer on the New Third Board is much lower. (Generally, it is about 1.2 million yuan, and the operating cost after listing is less than 30,000 yuan per year. At the same time, enterprises can also apply for restructuring subsidies, with each enterprise supporting 200,000 yuan. Enterprises that enter the share quotation transfer system and list can receive 500,000 yuan in financial support.) For cultural enterprises that have "difficulty in financing" because of "light assets", listing on the New Third Board is undoubtedly a better choice for obtaining investment and promoting corporate development.

The New Third Board has always given people the feeling of a loser. Whether it is a listed company or all parties in the New Third Board industry chain, they all feel inferior. The "Measures for the Filing and Management of OTC Securities Business" was officially implemented from September 1, 2015. The promulgation of this measure broke the historical positioning of the New Third Board as an "equity trading platform for unlisted joint-stock limited companies". Since then, the companies listed on the New Third Board have been equivalent to Shanghai and Shenzhen listed companies, and their status as national stock exchanges has been consolidated. This may also be a major reason for attracting a large number of film and television companies to gather on the new board at the end of the year.

The New Third Board has become the new favorite of most film and television companies, and its listing has also shown signs of accelerating. It can be seen from the above figure that most film and television companies are listed in the second half of the year, especially in the last two months of the year. According to the current trend, the number of film and television companies landing on the New Third Board in early 2016 may continue to rise.

In addition, many film and television companies such as Weiyou Media, Donglun Media, and Huajin Media have been approved by the China Securities Regulatory Commission and are expected to be officially listed in early 2016.

Film and television stocks expand rapidly, and newly listed companies compete in strength.

In the second half of this year, film and television stocks expanded rapidly, and more and more film and television companies have embarked on the "capital express train" of great development of the industry. More than 40 film and television companies, including Qingyu Media, Drama Star Media, Energy Communication, Art Media, and Evergrande Culture, have successively listed on the New Third Board.

So far, the film and television companies that have piled up on the New Third Board are roughly divided into several types:

1. The IPO failed

to lend to the top of the New Third Board ◆ Energy Communication (833482)

On September 1, 2015, Energy Communication that had previously failed to land on the New Third Board was officially unveiled. The stock code is 833482.

The public transfer specification shows that Energy Communication was established in 2004 and is mainly engaged in the production of video programs, including columns, documentaries, brand service programs and TV dramas. Such as "A Date with Luyu","One Week Libo Show","Super Speaker", etc., as well as the documentaries "Red Star Shines on China" and "The Power of Culture".

Data source: The

top ten shareholders who understand the energy spread of the New Third Board are star-studded. Among them, Lu Yu holds 3.25 million shares, accounting for 4.56% of the total share capital, ranking the fifth largest shareholder; Zhou Libo holds 2 million shares, accounting for 2.81% of the total share capital, ranking the ninth largest shareholder; Tang Jian, chairman of the company's largest shareholder, holds 25.473 million shares, accounting for 35.73% of the total share capital. (Note: On December 23, 2015, Tang Jian reduced his holdings of Energy Communication shares by a total of 1,500,000 shares through agreement transfer through the National Small and Medium-sized Enterprise Share Transfer System, and the shareholding ratio changed from 35.73% to 33.62%)

From the perspective of company performance, in 2013, 2014, and January to March 2015, Energy Film and Television achieved operating income of 271 million, 399 million, and 94 million yuan; net profits of 37.44 million, 24.23 million, and 7.96 million yuan.

2. Seeking a new way out through backdoor obstacles

◆ Qingyu Media (832698)

has also experienced bumps in its capital road to seeking listing.

As early as 2012, Qingyu Media submitted a public prospectus to the China Securities Regulatory Commission, but the company terminated its IPO review in 2013.

In August 2014, Qingyu Media reported another marriage with Wanhao Wanjia-on August 23, 2014, Wanhao Wanjia released a reorganization plan. The company plans to acquire Qingyu Film and Television, Zhaoxun Media and Xiangtong Animation. 100% equity of cultural media company. However, Wanhao Wanjia, who has been repeatedly defeated on the road to reorganization, was not approved this reorganization. In March 2015, Qingyu Media and Wanhao Wanjia announced that the merger had failed.

On July 3, 2015, Qingyu Media officially landed on the New Third Board. On the day of listing, 6 institutions were introduced to conduct market-making transactions (CITIC Construction Investment Securities, Guotai Junan Securities, Guangfa Securities, Ping An Securities, Hongta Securities, and Qilu Securities). Among them, Zhang Jing and Zhang Hongzhen directly and indirectly hold a total of 41.98% of the company's equity and are the actual controllers of the company. Sun Honglei holds 1.5 million shares and is the eighth largest shareholder of the company.

Previously, with the good performance of works such as "Hidden","Borrow Gun","Don't Talk to Strangers" and "Lancet", Qingyu Media has obvious advantages in spy dramas, but the outstandingly outstandingly of spy dramas also restricted Qingyu Media's balanced development. After Qingyu Media landed on the New Third Board, its imagination space for M & A development has increased. Zhang Jing, chairman of Qingyu Media, said that in the future, the company will also get involved in movies and online dramas, and lay out Internet marketing to seek balanced development.

3. Straight to the New Third Board

◆ Longteng Film and Television (835003)

On December 30, 2015, Longteng Film and Television was listed on the New Third Board for trading. Unlike the previous stars and directors such as Yang Mi and Lu Chuan who directly went to the sea, the leader of Longteng Films and Television is Wu Huaixi, the former "coal boss"(who directly holds 29.56% of Longteng's shares and is his actual controller). But similarly, Longteng Film and Television has also attracted some star shareholders. In May 2015, Fan Wei, Yingda and Jiang Wu invested in Longteng. The public transfer letter shows that Fan Wei holds 4.12% of Longteng's shares, ranking the fifth largest shareholder. Yingda and Jiang Wu hold 2.58% respectively, ranking for the ninth largest shareholder.

Longteng Film and Television was established on December 25, 2008. Its main business is the planning, investment, production, distribution and operation of film and television products. Operating income from January to May in 2013, 2014, and 2015 was 22.2987 million yuan, 30.7481 million yuan, and 5.9847 million yuan respectively; net profit was 1.7388 million yuan, 5.3036 million yuan, and 1.7160 million yuan respectively. But its main income does not come from its main TV series and movies. For example, in 2014, all of Longteng's revenue came from copyright transfers, and 95% of its revenue in the first five months of 2015 came from advertising business.

Previously, most of the company's TV dramas and films were mainly regular dramas. The TV dramas it invested in and produced included "The Legend of Jieshua" and "Singing a Big Play at the Door of My Hometown"; the main investment in and controlled the films "Desperate Island" and "Offering Flowers to the Beasts", and separately distributed the films "The Thirteen Heroes of Jinling","The Trap of Two Cities","The Bottomless Hole", etc. After listing, the company will achieve a comprehensive transformation, from focusing on the main theme in the past to being fully close to the market and moving closer to commercial dramas.

4. Business divestiture, packaged and listed

◆ Evergrande Culture (834899)

On December 4, Evergrande Culture was officially listed for public transfer on the New Third Board. This is the collective landing of the Evergrande cluster on the New Third Board after the launch of the Evergrande Taobao football team on the New Third Board.

Among them, Evergrande Culture has a music business that is quite mature in the industry. This is also the one with the most stable profitability among the six business segments of Evergrande Culture. Its artists include Da Zhang Wei, Jin Zhiwen, etc.; Evergrande Film and Television Culture mainly invests in the production of films, TV series, and related derivative businesses. The main works include "The Legend of Wu Mei Niang","Love on the Roof","Massage" and "Master". However, judging from the current performance, the film and television drama production business has not brought considerable benefits to Evergrande Culture; in addition, Evergrande Cinema is the most closely related to the real estate business. It is reported that the eight cinemas with an operating period of more than 6 months have all achieved profits. However, due to the overall rapid expansion rate, Evergrande Cinema is still at a loss.

Evergrande Culture is currently one of the few large-scale comprehensive cultural industry groups in China that effectively integrates theater, music, film and television, brokerage, distribution, and animation businesses. The spin-off and listing of Evergrande Real Estate makes Evergrande's main business clearer.

25 film and television companies are expected to enter the innovation level

. On November 24, 2015, the "Tiering Plan for Listed Companies in the National Stock Transfer System (Draft for Comments)"(hereinafter referred to as the "Tiering Plan") was officially released. The "Layered Plan" stipulates that in the initial stage, the New Third Board will divide listed companies into the innovation layer and the basic layer. As the market continues to develop and mature, relevant levels will be optimized and adjusted. Entering the innovation level means that you can get the attention of more investors, and your value and fixed increase amount will also double, which is expected to reach the size of the main board.

According to the "Layered Plan", listed companies that meet one of the three sets of parallel standards can enter the innovation level.

Three sets of criteria:

1. Net profit + return on net assets + number of shareholders

(1) The last two years have been profitable continuously, and the average net profit is not less than 20 million yuan (net profit is calculated based on the lower before and after deducting non-recurring gains and losses);

(2) The average return on net assets in the last two years is not less than 10%(based on the lower before and after deducting non-recurring gains and losses);

(3) The average number of shareholders in the last three months is not less than 200.

2. Compound growth rate of operating income + operating income + equity

(1) Operating income has increased continuously in the past two years, and the compound growth rate is not less than 50%;

(2) The average operating income in the past two years is not less than 40 million yuan;

(3) Equity is not less than 20 million yuan.

3. Market value + shareholders 'equity + number of market-making merchants

(1) The average daily market value in the past three months shall not be less than 600 million yuan;

(2) Shareholders' equity at the end of the most recent year shall not be less than 50 million yuan;

(3) The number of market-making merchants shall not be less than 6.

On the basis of meeting any of the above criteria, it must meet the requirements that the actual transaction days in the last three months account for no less than 50% of the number of transaction days available, or that financing has been completed since listing (including at the same time as listing), and comply with corporate governance, common standards such as the standardization of corporate operations.

According to statistics, as of November 24, 2015, 488 companies listed on the New Third Board met the requirements for entering the innovation level, including 5 film and television companies (radio, television, film and film and television recording production industries).

Tabulation: Media +

Overall, the cultural media industry has frequently received support from national industrial policies and has promising development prospects. Before the specific implementation of the innovation level policy in May 2016, if some companies make some efforts, they may impact the innovation level.

Editor: yvonne