Chen Hang: Investment happy twist two years profit 16 times new three board listing credit

Chen Hang revealed that in the past, he invested in seven companies to be listed on the third board. Huaqiang ranked first in profit among the third board culture, with a profit of more than 600 million yuan. Kaixin Mahua ranked second. The seven companies invested in have already been listed on the third board. Two companies are about to enter the third board. Judging from the company's own situation, the highest profit of these companies is 654 million yuan, and the lowest profit is already more than 20 million yuan. The development of Happy Mahua has made us deeply realize that the market for the third board is a very good market.

The fifth "2016 Financial Street Forum", hosted by the Beijing City People's Government and supported by three meetings, was held in Beijing from May 28 to 29. The theme of this forum will be new opportunities, new finance and new development.

Chen Hang, president of China Cultural Industry Fund, revealed at the forum that in the past, seven companies had invested in listing on the third board. Among the third board culture, Huaqiang ranked first in profit, with a profit of more than 600 million yuan, and Kaixin Mahua ranked second, including the current excitement of the game industry, including the know-how and so on. At the same time, two companies that have invested in the cultural industry have declared on the third board and have been pre-disclosed. They are Huashang Zhihui and Lingsi Marketing. Lingsi Marketing is the second blue cursor. The future development is unlimited. The seven companies we have invested in have already made the third board, and two companies are about to make the third board. Judging from the company's own situation, the highest profit of these companies is 654 million yuan, and the lowest profit is already more than 20 million yuan.

Among this investment, for example, Kaixin Mahua invested in this company two years ago and invested about 50 million yuan. Within two years, there were no Series B or Series C, and we directly made the second round of financing based on the valuation of 5 billion yuan. We made 16 times the profit for this company. I am also very grateful to the Third Board. Without the market of the Third Board and such a good mechanism, we would not have been able to make a fixed increase at the valuation of 5 billion yuan. The development of Happy Mahua has made us deeply realize that the market for the third board is a very good market.

Finally, Chen Hang made some pleas, hoping that everyone could work together in these aspects in the future to solve the problem of how to improve active trading, how to design the transfer mechanism in the future, whether the threshold for investors might drop from the current 5 million, and finally, whether public funds can come in, etc. These issues are what we need to discuss. This is the first step in the long march of thousands of miles, and I believe that we will be able to reach it one day!

The following is a transcript of the written speech:

Today's time is relatively short. I mainly focus on the connection between the cultural industry and private equity funds, including the third board. Let's talk about the two newly introduced items later.

Today, I would like to talk about a few things with you. One is from investment institutions. We are a cultural industry fund. First, we will talk about the cultural industry quickly, because the first four big celebrities just talked about quite serious issues, because culture is leisure and entertainment, so let's see something that is slightly more relaxed. The second is to talk to you about the general situation of our fund investing in companies on the New Third Board. The third is some of our thoughts.

Let's first talk about the cultural industry. Let's look at this industry. In the past three years, this industry has increased by 584%, which is very large. Of course, some companies here have borrowed from behind, and their stock prices used to be relatively low. No matter what, In the past three years, the index of this industry has increased by 584%. Let's look at other Shanghai Composite Index, including the Nasdaq, which are much lower than this. From this picture, we can see that the cultural media industry is very favored by the capital market.

This is about the cultural media industry. We just talked about the GEM market. What is the situation? Among the top 12 companies on the GEM, 8 are integrated with the cultural and Internet industries. They are LeTV, Oriental Fortune, Lens Technology, NetScience, Straight Flush, Huayi Brothers, Light, and Songcheng Performing Arts, which once again confirms that this is a hot spot, and why today's organizers should have something to do with the cultural industry.

There is also a set of data that can also cause us to think. From the number of mobile phone users in China, we can see that the number of Internet users in China has reached 670 million, and mobile Internet users has reached 590 million. You can see why in the past five years we used what mobile phones were Nokia phones, but today we use Apple and Huawei. With such a great development, the development of smartphones has driven the development of the entire industry. The combination of smartphones and the cultural industry is also the main reason why the cultural industry is so prosperous.

Let's take a look at what numbers are changing apart from the growth of mobile phone users? The box office of movies in China, the box office of movies in China last year was 44 billion, and the box office of movies in the United States was 10.6 billion US dollars. Do you know how much the box office of movies in China was the year before? It is about 30 billion yuan. In 2015, China's box office was 44 billion yuan divided by 30 billion yuan in 2014, an increase of 47%. If it increases further, by 2016, China's movie box office may reach 66 billion yuan, which will surpass the United States. If the RMB remains at 6.5 and remains at the current exchange rate, China will surpass the United States to become the world's largest movie box office. This is also why the cultural industry is developing so fast. Because everyone sees the prosperity of so many sub-industries, we are about to become the largest country in the world. In addition to these, we can also see that this year's movie "Mermaid" has a box office of 3.4 billion yuan. This is unimaginable in the past. A domestic movie's box office of 3.4 billion yuan exceeds "Speed and Passion" and "Avatar", which is very remarkable.

Looking at the game industry in China, console games have achieved great development from end games, page games and mobile games. Fifty to sixty billion yuan for end games, and fifty to sixty billion yuan for page games plus mobile games. Such a large market scale.

This is a video. A popular TV series recently is "Descendants of the Sun". Is this TV series shown on TV stations? But please raise your hands if you have watched this TV series? 25% of my friends have watched this TV series, and this TV series is only broadcast on the Internet. There is also a TV series,"You from the Stars". Please raise your hand if you have seen it? What's more, this TV series is only broadcast on the Internet. The development of this industry is very rapid. Last year, a landmark case occurred in the history of China's media. Iqiyi has exceeded 10 million Internet paying users. It is very remarkable and has driven the great development of this industry.

Including some industry data, our company invests in companies like Luo Ji Thinking, who recently invested in Papi Sauce. What I just shared with you is that the cultural industry is about to become the world's number one in the box office of movies in China. The game industry has more than 100 billion yuan in the entire market. From the online video industry, many TV dramas are no longer broadcast through TV stations, but through online video, which shows that this industry has made great development. What does this industry have to do with the third board?

We have made some investments in the past. We have invested in seven companies to list on the third board. We are also relatively lucky. Huaqiang ranks first in profit among the third board culture, with a profit of more than 600 million yuan, and Kaixin Mahua ranks second. Including current players in the game industry, including the best seller, etc., they have invested first and second in profit in the cultural industry. At the same time, two companies have already declared on the third board and have been pre-disclosed, namely Huashang Zhihui and Lingsi Marketing. Lingsi Marketing is the second blue cursor, and its future development is unlimited. The seven companies we have invested in have already entered the third board, and two companies are about to enter the third board. Judging from our company's own situation, the highest profit of these companies is 654 million yuan, and the lowest profit is already more than 20 million yuan.

During this investment, we are really grateful to tell some big truths, such as Kaixin Mahua. When we invested in this company, we invested in this company two years ago. You can guess, this company is now announced on the New Third Board. The information has made a round of fixed increase. In January this year, it raised 6% based on the market value of 5 billion yuan, and 9 institutions were introduced, bringing in a total of 300 million yuan. Can you guess what price I invested in this company two years ago? We invested about 50 million yuan, and there were no Series B or Series C within two years. It was directly the second round of financing based on a valuation of 5 billion yuan. We made 16 times the profit for this company. I am also very grateful to the Third Board. Without the market of the Third Board and such a good mechanism, we would not have been able to make a fixed increase at the valuation of 5 billion yuan.

The development of Kaixin Mahua has made us deeply realize that the third board market is a very good market. At the time, Lingsi Marketing on our side, this company invested cheaper, but is now preparing to list on the third board. This may have a higher valuation., can't talk too much now. We ourselves truly feel that the New Third Board is of great help to the cultural industry. Two and a half years ago, we invited some leaders from the New Third Board to chat with our company. Today, we are very happy. Two years later, we see that the entire New Third Board is developing very rapidly, with more than 7,000 yuan. We also solemnly stated here that we will continue to send some excellent companies to list here, because the efficiency of listing and financing here is very high and it is also a very fair and transparent market. We have already sent 7 companies and plan to continue to send 7 more in the future. We hope that by the end of this year, we will have 14 companies listed on the third board. Judging from the current situation, most of the companies we send are about to enter the innovation level.

Finally, let's talk about our thoughts on the three boards. We ourselves truly feel that as our fund, we have

benefited from three benefits by sending the companies we invest in to the third board. The first light gave our brands a great voice and we saved advertising expenses. Second, the company's governance structure has been improved at the management level. I don't have to rush the company every day. Naturally, they will wind up a clockwork and do a good job in the company's governance structure. In addition, at the capital level, they made some fixed increases, which are more than ten times our investment. Judging from these three aspects, we have benefited from the third board.

We also make some requests, hoping that everyone can work together in these aspects and solve these problems in the future. For example, how to improve the issue of active trading, how to design the transfer mechanism in the future, whether the investor threshold is likely to drop from the current 5 million yuan, and finally whether public funds can come in, etc. These issues are issues we need to discuss. As several big shots have said just now, this is the first step in the Long March of Thousands of Miles. I believe we will be able to reach it one day. We may have just set off from Jinggangshan and hope that one day before we come to Yan 'an. We wish the Third Board to occupy 50% of China's capital market. Thank you!

Editor: vian