Yang Mi's Jiaxing Media: senior executives pull up and cash out to leave behind the high valuation

Shihezi City Junyi Yunyang Equity Investment Limited Partnership (hereinafter referred to as "Junyi Yunyang Fund"), a fund owned by Perfect World, invested RMB 500 million to subscribe for the publicly issued shares of Jiaxing Media at a price of RMB 250 per share and transferred the equity of some existing shareholders to acquire 10% shares of Jiaxing Media.

Jiaxing Media is undoubtedly one of the most concerned new three board enterprises in the market at present.

A few days ago, Shihezi City Junyi Yunyang Equity Investment Limited Partnership (hereinafter referred to as "Junyi Yunyang Fund"), a fund owned by Perfect World, invested RMB 500 million yuan to subscribe for the publicly issued shares of Jiaxing Media at a price of RMB 250 yuan/share and accept the equity of some existing shareholders, obtaining 10% shares of Jiaxing Media.

The valuation of Jiaxing Media rose to 5 billion yuan, and the value of Yang Mi's indirect 7% stake in Jiaxing Media rose to nearly 350 million yuan.

However, behind this capital operation, there are cases where executives pull up stock prices and cash out of office. Gao Fan and Li Juan, who served as senior executives of the company, realized a huge cash withdrawal of 250 million yuan through equity transfer.

At the same time, in order to clear the "obstacles" of trading, Gao Fan, as chief financial officer and director, raised the share price of Jiaxing Media from 1 yuan/share to 128 yuan/share within 8 trading days through "left-right mutual inversion".

Li Juan, who served as secretary and director of the board of directors, also chose to resign when Gao Fan cleared the "obstacle" for cash... The

valuation time of 5 billion yuan

dates back to March 2,2017. On the second day after the film and television drama "Three Lives and Ten Mile Peach Blossom" produced by Jiaxing Media ended, Jiaxing Media announced a stock issuance plan, which is planned to issue no more than 1.1 million shares at a price of 250 yuan/share, and the financing amount does not exceed 275 million yuan.

On the other hand, 250 yuan/share is the stock price of Jiaxing Media, which is quite "embarrassing". The price of the last agreement transfer (August 18,2016) is only 2 yuan/share.

Jiaxing Media's high-priced financing plan has been recognized by Perfect World.

On March 23, Perfect World issued an announcement saying that its subordinate fund Shihezi City Junyi Yunyang Equity Investment Limited Partnership (hereinafter referred to as "Junyi Yunyang Fund") signed an agreement with some existing shareholders of Jiaxing Media to subscribe for the publicly issued shares of Jiaxing Media and accept the equity of some existing shareholders, contributing RMB 500 million yuan in total, and obtaining 10% shares of Jiaxing Media after the transaction is completed.

This also means that the valuation of Jiaxing Media will be as high as 5 billion yuan.

Although Perfect World is fully optimistic about Jiaxing Media, the high valuation has also been questioned by the CSRC.

In October 2015, Jiaxing Media once issued shares to Shanghai Shangshi Film Co., Ltd.(hereinafter referred to as "Shangshi Film") due to capital demand, and the issue price at that time was 78.95 yuan/share.

In the reply letter, Perfect World said that the performance of Jiaxing Media has achieved leap-forward growth and the value of the enterprise has been greatly improved.

According to the disclosure of 2016 annual report, Jiaxing Media realized operating income of RMB 333 million yuan in 2016, with a year-on-year growth of 134.96%; net profit attributable to mother was RMB 129 million yuan, with a year-on-year growth of 59.35%.

It is worth pointing out that the operating income and net profit of Jiaxing Media in 2015 have increased by 576.32% and 3071.11% compared with the same period in 2014.

On June 2, Junyi Yunyang Foundation started its operation. At 11:12 a.m., Jiaxing Media's shares traded 1 million shares at a price of 250 yuan/share, with a turnover of up to 250 million yuan, accounting for nearly 25% of the total turnover of the New Third Board on that day.

According to the equity change report subsequently issued by the company, the seller of the transaction was Xizang Fantasy Fengfan Investment Management Partnership (hereinafter referred to as "Xizang Fantasy Fengfan"), the original shareholder of Jiaxing Media.

On June 8, Junyi Yunyang Fund once again subscribed for shares issued by Jiaxing Media at a price of 250 yuan/share.

At this point, Junyi Yunyang Fund held 10% of the shares and became the fourth largest shareholder.

Based on the net profit of 129 million yuan realized by Jiaxing Media in 2016, its valuation of 5 billion yuan corresponds to a P/E ratio of nearly 39 times.

As

mentioned above, the stock price of Jiaxing shares transferred by agreement was quite "embarrassing" at that time_the price of the last agreement transfer was only 2 yuan/share.

On March 25, the Stock Transfer System issued the Notice on Setting Effective Price Range for Declaration of Shares Transferred by Agreement (hereinafter referred to as the Notice), setting up and down limit for the agreement transaction.

According to the Notice, the declared price of shares transferred by agreement shall not be higher than 200% of the previous closing price and not lower than 50% of the previous closing price. Any declaration outside the valid price range is invalid.

With the release of the Notice, the low closing price has become the biggest obstacle in front of Jiaxing Media shareholders.

It is worth pointing out that the shareholder background of Xizang Fantasy Fengfan, which sold 1 million shares at 250 yuan/share on June 2, is not simple.

The reporter of 21st Century Economic Report inquired and learned that Xizang Fantasy Fengfan was founded by Li Juan and Gao Fan in July 2015 with an investment of 6 million yuan, with both parties holding 50% shares.

Li Juan once served as Secretary and Director of Jiaxing Media, Gao Fan served as Chief Financial Officer and Director of Jiaxing Media, and both parties were husband and wife.

However, unlike many supporting policies such as "accidental injury" company shareholders, Gao Fan took the initiative to take "countermeasures" to remove obstacles.

Since May 17, Gao Fan and Xizang Fantasy Fengfan, which holds 50% of the shares, as buyers and sellers, have raised the stock price from 1 yuan/share on May 17 to 128 yuan/share on May 31 in just 8 trading days.

It is worth pointing out that it was also on May 17 that Jiaxing Media announced that it had received the resignation report submitted by Li Juan, secretary and director of the board of directors.

From the data of Dragon and Tiger List, we can see that this "left-right mutual inversion" lifting means, May 18, Xizang fantasy Fengfan to 2 yuan/share price to buy 1000 shares from Gao Fan. On May 24, Gao Fan bought 1000 shares from Xizang Fantasy Fengfan at a price of 16 yuan/share. On May 26, Gao Fan bought 1000 shares from Xizang Fantasy Investment Office at a price of 64 yuan/share.

It is through this repetition that Jiaxing Media's share price has risen to 128 yuan. At this point, Junyi Yunyang Fund to 250 yuan/share transfer of Xizang fantasy Fengfan 1 million shares of the "obstacle" has been cleared.

On June 2, Gao Fan and Li Juan transferred 1 million shares to Junyi Yunyang Fund through Xizang Fantasy Fengfan, cashing in 250 million yuan.

The 21st Century telephone has repeatedly called the office of the Secretary of the Board of Directors of Jiaxing Media, but the telephone has not been answered, and the mail has not been answered.

Editor: Mary