Gehua Cable plans to increase its investment in copyright and cloud services by 3.3 billion.

On the evening of March 6, Gehua Cable, which was suspended for more than a month, announced its fixed increase plan, and the company plans to raise no more than 3.3 billion yuan per share of non-public offering shares, which will be used for two projects, namely, the construction of high-quality copyright content platform, the upgrade of cloud service platform and application development, in an attempt to build a new media group.

as the first listed company in the cable TV network industry in China, 600037.SH Cable has recently attracted much attention from the capital market because of its huge refinancing plan.

on the evening of March 6th, Gehua Cable, which was suspended for more than a month, announced its fixed increase plan, and the company plans to raise no more than 3.3 billion yuan with 14.95 yuan per share of non-public offering shares. for the construction of high-quality copyright content platform, cloud service platform upgrade and application development two projects, trying to build a new media group.

this increase is not only supported by Beiguang Media, the controlling shareholder of Gehua Cable, but also actively subscribed by a number of well-known companies or investment institutions, including China Film, 600637.SH, 600030.SH, 600208.SH and other well-known companies or investment institutions.

in addition to this increase, Gehua Cable is also involved in the Beijing-Tianjin-Hebei concept and higher-than-expected performance, but the company's stock price performance does not seem to be strong.

< strong > heavily invested in copyright and cloud services to create a new media group < / strong >

according to Gehua Cable's non-public offering A-share plan released on the evening of March 6th, the company intends to issue no more than 221 million shares, the issue price is 14.95 yuan per share, and the total amount of funds raised does not exceed 3.3 billion yuan. In addition to the issuance fees, all the net funds raised will be invested in two projects: the construction of high-quality copyright content platform and the upgrading of cloud service platform and application development.

Gehua Cable said that this non-public offering is a major strategic measure taken in order to maintain the company's sustained growth and further enhance the company's competitiveness and strengthen its main business under the background of the country's continuous introduction of favorable policies in the cultural media industry and cable television network industry and supporting the development of the cable television network industry.

"the ultimate goal of our fund-raising this time is to build a new media group, which is the significance of refinancing, and then to achieve the integrated development of traditional media and new media, which is our overall goal." A person in charge of Gehua Cable told the Weekly Financial Weekly.

the fixed increase plan shows that in order to speed up the strategic transformation from a single cable TV carrier to a full-service integrated service provider and from traditional media to new media, the company plans to invest 1.9 billion yuan to carry out a high-quality copyright content platform construction project, which is used for the integration and purchase of high-quality content copyright at home and abroad, such as films, TV dramas, animation, online dramas, variety shows, new media short films, etc. To support the development of HD interactive digital TV platform, TV theater, Internet + TV, mobile TV and other new media business and all-media copyright distribution, provide users with higher quality products and services, and enhance customer experience and loyalty.

for the second fixed increase project, the cloud service platform upgrade and application development project, the announcement introduces that the project covers three sub-projects: all-media application aggregation cloud service platform upgrade, Gehuayun game platform upgrade and application expansion, and big data analysis system upgrade, with a plan to raise 1.4 billion yuan.

the upgrade sub-project of all-media application aggregation cloud service platform mainly includes the construction of three platforms, among which the construction of all-media application aggregation cloud service platform (Phase II) is mainly to enhance the system capabilities of the company's online all-media application aggregation cloud service platform and improve the new business support management system. The construction of cross-regional Gehua cloud service platform will realize peer-to-peer interconnection between the company and other provincial and municipal radio and television media cloud platforms, promote the output of the overall solution of the company's all-media cloud platform, and the construction of cloud application innovation and development platform, it will provide technical platform support for third-party independent application developers to develop applications based on the company's cloud service platform.

the sub-project of upgrading and application development of Gehuayun game platform will greatly enhance the business carrying capacity and display capacity of the company's existing cloud game platform, realize the business and operation mode innovation of "content + cloud game platform + set-top box", and provide more perfect TV cloud game products and services for interactive TV users in Beijing and even the whole country. Form the complete technical system and national operation system of the TV cloud game platform.

in addition, big data's analysis system upgrade sub-project will achieve centralized storage, unified management and analysis of massive unstructured data generated by user behavior and interactive applications related to the company's cloud service platform. The company believes that the project is beneficial for the company to combine the collected user behavior data and massive content resources to accurately judge the popularity of the program and intelligently distribute the program to the corresponding user groups. At the same time, the company can associate the advertisement with the program according to the relationship between the content of the program and the advertisement, so as to achieve the accurate delivery of the advertisement.

CITIC Securities recently issued a research report pointing out that the establishment of this fixed increase plan is a major progress in promoting the transformation of new media and business expansion of Gehua Cable. On the one hand, it reserves funds and foodstuffs for the company's future development. Help it broaden the user base, enhance user stickiness, and further enhance the competitiveness of the industry. On the other hand, it will greatly accelerate the process of resource integration and industrial layout, so that the company can continue to promote the established policy of building a new media group, and lay the foundation for future value growth.

< strong > luxury lineup to participate in the fixed increase < / strong >

in addition to the goals of the new media group, this target is also quite interesting.

announcement display This additional issue is aimed at Beijing Beiguang Media Investment and Development Center, Beijing Broadcasting Corporation, Jinzhuangsi Investment (Shenzhen) Partnership (Limited Partnership), China Film Co., Ltd., BesTV New Media Co., Ltd., CITIC Construction Investment Securities Co., Ltd., CITIC Securities Co., Ltd., Xinhu Zhongbao Co., Ltd., Jiangxi Radio and Television Network Transmission Co., Ltd. 9 companies.

among them, Beijing Beigang Media Investment and Development Center is the controlling shareholder of Gehua Cable. It currently holds 480 million shares of the company, accounting for 45.15% of the total share capital of the company. This time, it plans to invest 500 million yuan to subscribe for 33.4448 million shares. Beijing Broadcasting Corporation is an enterprise under the same control of Beijing Radio and Television, which is the actual controller of the company. This time, it plans to invest 150 million yuan to subscribe for 10.0334 million shares.

after the completion of the fixed increase, without considering Gehua Cable's existing non-convertible debt-to-equity swap, the shareholding ratio of Beigang Media Investment and Development Center will be adjusted to 40.005%. Beijing Radio and Television will indirectly hold 41.32% of Gehua Cable shares through Beijing Beiguang Media Investment and Development Center, Beijing Cable all-Day TV Shopping Co., Ltd., and Beijing Broadcasting Corporation. The controlling shareholder and the actual controller of the company shall remain unchanged.

in addition to the strong support of the controlling shareholders, a number of well-known companies and investment institutions have also actively participated in this increase, including listed companies and companies to be listed.

the Dingzeng plan shows that BesTV plans to invest 300 million yuan to subscribe for 20.0669 million shares, New Huzhong Bao plans to contribute 300 million yuan to subscribe for 20.0669 million shares, and CITIC Securities plans to contribute 500 million yuan to subscribe for 33.4448 million shares. In addition, China Film shares of the proposed IPO enterprise plans to contribute 200 million yuan to subscribe for 13.3779 million shares, CITIC Construction Investment Securities plans to contribute 650 million yuan to subscribe for 43.4783 million shares, BRICS Silk Road Investment plans to contribute 600 million yuan to subscribe for 40.1338 million shares, and Jiangxi Radio and Television plans to contribute 100 million yuan to subscribe for 6.6889 million shares.

the aforementioned general manager of Gehua Cable told the Financial Weekly that the company chose the above-mentioned companies as the target for fixed growth, mainly out of three considerations: "on the one hand, the program source, on the other hand, the channel, and the provision of services."

according to a recent research report released by Guolian Securities, Gehua Cable's introduction of China Film shares and BesTV as strategic shareholders is expected to strengthen the company's content copyright construction and cloud platform construction. At present, China Film Co., Ltd. is a film and television drama company with strong comprehensive strength, complete industrial chain and rich copyright resources, and has rich overseas film introduction resources. after the introduction of China Film, it is expected to greatly strengthen the copyright strength of the company.

Xu Feng, vice president of Blockbuster, further said in an interview with the media: "Gehua Cable will become an important partner for Blockbuster to enter Beijing and the national cable network market in the future. This cooperation is not limited to content copyright, but more importantly in the Internet TV business, as well as TV shopping and e-commerce. "

it is worth noting that in addition to participating in Dingzeng, BesTV has also signed a strategic cooperation agreement with Gehua Cable, and the two sides will carry out multi-form, multi-level and multi-channel capital cooperation by strengthening cooperation in capital and equity. Further consolidate and deepen the cooperative relationship Give full play to their respective advantages of copyright resources, and carry out in-depth cooperation in areas such as interactive cable TV on demand, Internet TV, mobile TV, IPTV, including TV cinemas; promote in-depth cooperation in DVB+OTT, TV shopping and other fields based on their respective channels, platforms and user advantage resources; and actively explore interaction and cooperation in content production, channel landing and other areas based on the resource advantages of both sides.

while Xinhu Zhongbao believes that the investment is a continuation of the company's real estate plus Internet financial control strategy. Gehua Cable, a leading CATV network operator, is realizing the strategic transformation from a single cable TV carrier to a full-service integrated service provider and from traditional media to new media. By taking a stake in Gehua Cable, it will help the company to further improve its layout in the field of Internet finance, which is in line with the interests of all shareholders.

Gehua Cable said in the announcement that through capital ties to integrate resources, raise funds to develop business and introduce strategic partners at the same time, improve the layout of the all-media industry, optimize the industrial structure, accelerate the promotion of new media business, speed up the pace of strategic transformation, and make every effort to explore and build a new type of media group with strong strength, communication power, credibility and influence.

< strong > is constantly positive, and the stock price performance is mediocre < / strong >

. It is worth noting that shortly after the release of the above scheduled increase plan, Gehua Cable released the good news again.

on the evening of March 8, Gehua Cable announced that in order to promote the complementary advantages of cable networks in Beijing, Tianjin and Hebei, and promote the great-leap-forward development of radio and television industries in the three places, the company recently signed a strategic cooperation agreement with Tianjin Radio and Television Network Company and Hebei Radio and Television Network Group to achieve comprehensive strategic cooperation in the field of radio and television cable networks in Beijing, Tianjin and Hebei.

< Through various forms of cooperation in business, technology, and capital, we will form a close business partnership, and plan to carry out strategic cooperation in the fields of capital cooperation, content cooperation, network interconnection and technical cooperation, to achieve Beijing-Tianjin-Hebei network interconnection, technology docking, content resources sharing, market mutual opening, value-added business expansion and capital level cooperation, so as to accelerate the coordinated development of the three places.

in addition to dabbling in the current hot concept of Beijing, Tianjin and Hebei, Gehua Cable's business tentacles also extend to the film field.

on December 24, 2014, Gehua Cable announced that it had signed a "TV Theater Project Cooperation Agreement" with 25 provincial and municipal cable network companies, including Oriental Cable Network Co., Ltd., Tianjin Radio and Television, Hebei Radio and Television, etc., and jointly with a total of more than 30 provincial and municipal cable network companies to launch the China Television Theater Alliance. The alliance aims to promote the business model of "TV theater line" (a product that allows users to watch movies at home) through the national cable television network, shorten the "window period" of films from traditional cinemas to television platforms, and open up a film distribution market outside the traditional cinema line.

in this regard, Guolian Securities believes that Beijing has always been a national cultural center, and Gehua Cable is based on the capital and is expected to become a service platform for national radio and television. This alliance fully proves the company's resource integration strength. At the same time, the establishment of the alliance will enhance the attractiveness of traditional TV to home users. With high-quality visual experience and rich copyright resources, traditional TV is expected to attract users to return from the PC side.

the general manager of Gehua Cable said to Financial Weekly: "Beijing, Tianjin and Hebei is now just a framework agreement, and our next step is the TV theater line, which is an application pioneered by our Gehua Cable. Last year, we took the lead in the establishment of the National Television Theater Alliance, and this year is mainly to promote the landing of members of the alliance in the country. Probably in late March, our TV theater line in Tianjin may be implemented on the ground. There are about 1 million users here in Tianjin. "

the latest performance KuaiBao shows that in 2014, Gehua Cable achieved an operating income of 2.466 billion yuan, an increase of 9.62% over the same period last year, and the net profit of shareholders belonging to listed companies was 569 million yuan, an increase of 50.96% over the same period last year, exceeding market expectations.

despite a lot of good news, the share price of Gehua Cable is mediocre in the secondary market. As of March 13, 2015, the company's share price closed at 22.02 yuan, up only 20.13% from 18.33 yuan before the suspension (closing price on January 27).

Edit: yvonne