New Third Board Star IP Capitalization is Hot, High Valuation, M & A Film and Television Asset Transaction Replays

since the beginning of this year, the number of 11 new listed enterprises in the new third board film and television plate has reached 128 as of July 2, and the team of companies with star shareholders has become large, of which 29 have entered the innovation layer, accounting for 22.66%.

since last year, mergers and acquisitions of A-share film and television assets have been tightened, and chaotic phenomena such as "double-high" film and television mergers and acquisitions with high valuations and high performance promises, and star IP capitalization transactions have been curbed. But the reporter found that in the new third board, the star IP capitalization party is hot, high valuation mergers and acquisitions of film and television assets for a new "packaging" will be staged again. At the same time, there are also attempts to land A shares through the new third board of film and television assets frequently failed, and the performance commitments made by relevant companies in the transaction have not been fulfilled.

< strong > star IP capitalization is becoming more and more popular < / strong >

Wind data show that since the beginning of this year, 11 new enterprises have been listed in the new third board film and television sector, including Longda Pictures, Senyu Culture, Kangqi Pictures, Cross-Border Pictures, and so on. As of July 2, the number of enterprises listed in the new third board film and television plate has reached 128, of which 29 have entered the innovation layer, accounting for 22.66%.

at present, the new third board company team with star shareholders has become large-scale, including Jiaxing Media, Tianmu Pictures, several yuan Film and Television, first Film Media, Xicheng Media, Tang Dynasty Film and Television, Longteng Film and Television, Tian Mei Shang, Qingyu Media, Times Film and so on. Among the listed enterprises with star shareholders, the head of the film and TV drama division of the first Film Media is Cui Baozhu, a famous producer and producer, who has participated in the production of films such as "Crouching Tiger, Hidden Dragon", "Kung Fu", "Huo Yuanjia" and "Yangtze River No. 7". He currently holds an 8% stake in the first Film Media. Zhang Xin, the star shareholder of Xicheng Media, has a stake of 2.09%. He has directed and filmed many works such as "Mountain City Bang Bang Jun" and "neighborhood neighbors". He has been the director, deputy general manager and artistic director of Xicheng Media since May 2016. Li Li, another star shareholder of Xicheng Media, has a shareholding of 0.42%. He is now the director of the brokerage business department of Xicheng Media and has participated in the shooting and production of film and television works such as "Mountain City Bang Jun" and "neighborhood neighbors".

Jiaxing Media once attracted attention for Yang Mi and her IP drama" Peach Blossom for three generations ". Before Jiaxing Media changed its name to Xi'an Tongda, Xizang Jiaxing bought 500000 shares of Xi'an Tongda held by Yuefeng for 850000 yuan, plus the 5.5 million shares previously issued by Xi'an Tongda to Xizang Jiaxing. Xizang Jiaxing holds 37% of Xi'an Tongda shares, making it the largest shareholder in Xi'an Tongda. Xizang Jiaxing is a company owned by Yang Mi and his two brokers, Zeng Jia and Zhao Xiaoyao.

A few days ago, Perfect World's investment and M & A fund, Junyi Yunyang Equity Investment Co., Ltd., in Shihezi City, invested 250 million yuan and held 5.00% of the company at the price of 250 yuan per share (the previous fixed increase price was 78.95 yuan per share). The audited net profit of Jiaxing Media in 2016 was 129 million yuan, with earnings per share of 6.81 yuan and net assets per share of 24.33 yuan.

from the perspective of cooperation, Perfect World is also the star IP of Jiaxing Media through investment. According to the Jiaxing Media announcement, in the future, the company and Perfect World will carry out in-depth cooperation in the joint production and distribution of films and TV dramas, film and tourism linkage, artist brokerage and so on. Perfect World's planned TV series "while We are still Young" has reached a cooperation plan with the company in terms of artists.

people in the industry said that, on the one hand, stars (including well-known directors, screenwriters, etc.) set up or buy shares in film and television companies, transforming a large part of their personal income into company income and, in a certain proportion, into profits. After the profits are enlarged in the capital market, the stars can reduce their holdings and cash out. On the other hand, listed companies in the binding star IP, because of the star's personal influence, its film and television works by the market attention, the stock price may have a better response, the star can also reduce holdings and cash at that time.

< strong > "performance promises" are difficult to fulfill < / strong >

Wind data show that since 2014, A-share listed companies have initiated a total of 5 transactions involving changes of control, targeting companies listed in the new third board film and entertainment industry. Among them, the merger and acquisition of Dena Pictures initiated by Great Wall Film and Television and the 100% equity stake in the premiere time are under way; contact interaction 300 million yuan investment in Sanshang Media 42.86% equity has been completed; the other three transactions have been terminated, including a total of 1.89 billion yuan for the acquisition of 100% equity in Lehua Culture.

it took more than a year for Gunda Electronics to acquire the entire stake in Lehua Culture, during which the transaction plan was revised and the total transaction volume was reduced, but it still failed to take place. Lehua Culture has a number of star shareholders. Han Geng, Zhou Bichang and Huang Zheng indirectly hold shares of Lehua Culture through Xizang Huaguo, the third largest shareholder of Lehua Culture.

on March 1, Lehua Culture announced that in view of the long operation time of the major issues to be acquired and the great changes in the economic and policy environment, the company's shareholders have different ideas about the conditions and methods of the company's docking with the A-share market, and hope to terminate the merger with Gongda as soon as possible.

according to the revised trading plan, Lehua Culture's committed performance in 2016 is 150 million yuan in net profit after deducting non-profit. According to the 2016 annual report, the company's net profit after deduction is only 59.7657 million yuan.

on July 17, 2014, Zhejiang Guangsha traded its assets for a 100% stake in Futian Film and Television. The performance commitment shows that the net profit of Futian Film and Television in 2014,2015 and 2016 (net profit after deducting non-recurring profits and losses) is not less than 52.2177 million yuan, 62.7296 million yuan and 78.1531 million yuan. According to the 2016 annual report of Zhejiang Guangsha, Guangsha Media (formerly Futian Film and Television) made an actual profit of 26.7046 million yuan in 2016, with a net profit of 23.926 million yuan after deducting non-recurrent profits and losses.

it is worth noting that the performance differentiation of the new third-board film and television enterprises is obvious. According to Wind data, among the 128 new third-board film and television companies, 75 companies achieved net profit growth in 2016, accounting for 59% of 95 companies to achieve profits, accounting for 74% of the company's net profits of more than 100 million yuan. They are Helichenguang, Tang Dynasty Film and Television, and Jiaxing Media.

people in the industry believe that the threshold for listing of the new third board is relatively low, there are no financial requirements for listed enterprises, and the average time for the increase of the new third board is relatively short, and it can fully meet the strong demand for funds of small and medium-sized enterprises. However, the capitalization of film and television assets, whether by mergers and acquisitions, landing on the new third board, active IPO, etc., all need to take reasonable pricing and reasonable valuation as the core.

Edit: mary