Beijing Happy Twist Entertainment Culture Media Co., Ltd. is planning to go public in the US.

Editor’s note: This article is from WeChat public account “IPO knows early” (ID: Ipozaozhidao), author Shi Yuanjing.

According to the IPO, I know that Beijing Happy Flower Entertainment Culture Media Co., Ltd. is planning to go public in the US. After the listing of the new three boards and delisting, sprinting A shares in the end of the failure of the happy twist, this time again set sail again, preparing for the sprint of US stocks.

From “Charlotte’s Worries”, “Wandering Water”, to “Shameful Tekken”, Happy Dawn, established in 2003, has become the largest entertainment industry in China with its explosive works. One of the comedy IP producers.

In 2015, a burst of “Charlotte Trouble” won 1.4 billion box office for Happy Twice and produced a movie costing less than 21 million.
  Directly bring in 190 million yuan in revenue, accounting for 51.8% of the total annual revenue.
  The net profit in the same year exceeded 130 million yuan
  ,
  The year-on-year increase was 243%.

Happy Twist is therefore listed on the New Third Board,Two rounds of growth in a week, the valuation has grown rapidly from 300 million to 5 billion, once It is called “the first share of Chinese drama.” After one and a half years of listing, Happy Twist began to sprint A shares, but eventually ended in failure and withdrew the IPO listing application.

The Chinese Cultural Industry Investment Fund, which used to acquire 15% of Happy Twist in 2014, also transferred 11.33% of its equity in October 2018 for 612 million yuan.

On May 22, 2019, Happy Twist terminated the listing and officially bid farewell to the new three board. Behind the happy and frustrating IPO road, it is difficult to copy the classic works to ensure sustainable profitability.

Happy Twist plans to go public in the US: The valuation of the new three board has increased from 300 million yuan to 5 billion yuan

Play drama Happy twists from the business, have been deeply involved in the stage planning, production and performance industry for more than ten years, shaping their own independence
  Special comedy brand, with all the serious questions in a funny and witty styleThe drama market stands out.

The annual IP signature stage dramas, such as “Crazy Stone” and “The Earl of Oolong Mountain”, have expanded the brand influence for Happy Twist and attracted a group of loyal audiences.

From the content point of view, happy twist is not only well-known drama performances, but also in musicals, movies, online dramas and sketch creations, especially in the creation of comedy sketches, in many CCTV Spring Festival Evening. Excellent performance, but also established a good brand image for happy twist. Happy Twist plans to go public in the US: The valuation of the new three board has increased from 300 million yuan to 5 billion yuan Happy Twist really began to transform into a comedy black horse, starting from its official entry into the movie market. Happy Twist defines its business model as “drama + movie.” He has rich experience in comedy practice, and the content theme and comedy elements have been polished by the audience’s laughter test mechanism. The first film work “Happy Charlotte Worry” was born, and the domestic film was supported by the policy-raising industry. The environment is amazing,
  Harvest 1.4 billion box office.

But after the success of Charlotte Trouble, Happy Twist began to have its own troubles.

First of all, Shenteng, Ma Li and other artists are not shareholders of the company, but contracted artists, and in recent years, they have appeared in the works launched by Happy Twist. Reduced, happy twists are therefore facing the potential risk of head artist loss after the contract expires. Happy Twist plans to go public in the US: The valuation of the New Third Board has increased from 300 million yuan to 5 billion yuan

Shen Teng as the most successful artist of Happy Twist,
  Bad binding to company capital
  After “Charlotte Trouble”, he did not starred in a movie dominated by Happy Twist. In the past year, he starred in the 2.5 billion box office comedy movie “Xihong City’s richest man”, the main producer is Xihong City Film and Television Culture Co., Ltd.
  Happy Twist only holds 15% of the company, ranking fourth among shareholders
  .

Second,The success of the explosion works, existsDifficult to replicate, profit sustainability is not clear. After “Charlotte’s Worries”, Happy Twist launched “Wandering Water” in 2016, although it has achieved a good reputation, but the box office only received 173 million, the same year net profit fell 45%.

Although the “Shame of Tekken” has once again won a box office of 2.2 billion yuan, but the “Aunt Li of Licha” has lost the box office reputation, and the performance of Happy Twist is fluctuating, whether it can be sustainable in the future. The profit model and maintaining its core competitiveness are still unknown.

This plan is going to the US market. Happy Twist needs to focus on stabilizing performance at this stage, consolidating its core competitiveness in the drama industry, regaining its high reputation and continuing high-quality original content output. In order to succeed in the road of sprinting US stocks.