“Mother and wife shop” in the film and television company, the second is the light shareholder
Editor’s note: This article is from WeChat public number “Entertainment” (ID: huayufunds), the author of the entertainment.
Because of the mainland’s regulatory policies and environment, the company’s own income volatility and other issues, most of the film companies that have hit A-share IPOs in recent years have failed.
The data shows that in 2017, a total of 438 companies successfully landed in A-shares, including only Hengdian Film and Television, Jinyi Film and Television, and Zhongguang Tianze, three film and television companies; in 2018, a total of 105 companies were listed, film and television companies. Zero pass”; In 2019, Yongle Film, Happy Twist, and Bona Film’s IPO road are full of hardships and twists and turns.
In the case of frequent A-shares, in order to meet the financing needs, Hong Kong seems to be becoming a carnival for mainland film and television entertainment companies.
In March 2018, Huatu Education was the first former new three-board enterprise to submit a listing application in Hong Kong. After that, Xintuo Network, Tianzhu Media, and Kuike Music submitted their prospectus.
In February 2019, Cat Eye Entertainment officially went public in Hong Kong. In July 2019, the original stone culture of the works such as “Remote Distance”, “Dream of the Nursing Mother”, “Super Weng”, “Return to Come” and other works were submitted to the Hong Kong Stock Exchange for the listing of the prospectus. Recently, the powerful Tianying Industry submitted a Hong Kong stocks listing application to the Hong Kong Stock Exchange, becoming the second TV drama company to go to Hong Kong IPO in 2019.
01 “Mother and wife shop” in the film and television company, the second is the light shareholder
According to the prospectus, Litian Films was established in 2013. Its main business is to make and sell TV drama rights; to sell TV drama scripts; to act as an distribution agent for TV series broadcast rights; and to invest in non-executive productions. Human TV series.
At present, the company’s shareholding structure is shown below:
Checking the information shows that Litian Film is actually controlled by Yuan Li, holding 35.35% of the shares, and the second largest shareholder is Yuan Li’s wife, Tian Tian, with a shareholding ratio of 28.61%.
It is worth mentioning that Litian Film Industry has been the vice president of TV drama distribution of Great Wall Film and Television (June 1998 to June 2013), and has more than 15 years of experience in the film and television industry. In addition to Litian Film, Yuan Li also holds 100% of the company, holds 99.9% of the sweet and beautiful investment management partnership of Ningbo Meishan Bonded Port Area, and holds 33.28% of the equity of Hangzhou Feilin Investment Partnership.
The partner and wife, Tian Tian, was born in the Department of Light, and was responsible for the perfect film and television drama release. In September this year, Tian Tian was appointed as the executive director and CEO of Litian Film. In addition to Litian Film, Tian Tian also invested in four companies, including 0.08% of the shares of Light Media.
Source: Enterprise Check
Before selecting the IPO to go to Hong Kong, Litian Films completed a total of 4 rounds of financing, and the investors and the amount are unknown.
In this prospectus, Litian Film did not disclose the amount of funds raised, but said that the fundraising purpose is mainly used to buy out the copyright (or broadcast rights) of 75 TV series in the next three years, including About 4 history/war dramas, 22 family dramas, 25 urban/love dramas, 18 modern/contemporary dramas and 6 mainstream TV series; hire other experienced professionals for production management, distribution, business development, copyright management , sales and marketing, and post-production management; used to fund working capital and general corporate purposes.
To buy the copyright (or broadcast rights) of 75 TV series in 3 years, Litian’s ambition is not small, so what is the strength of its IPO in Hong Kong?
02 “Mastering” Great Wall Film and Television, focusing on realistic subjects, making a fortune
According to the Frost & Sullivan Report, Litian Pictures ranks second among all TV drama distribution groups in China according to the number of Chinese satellite TV launches in 2018. The main customers include TV channels and online media platforms. More than 90 provincial and municipal channels and online media platforms have entered into a transfer agreement for the distribution of home-made and buy-out TV drama rights.
Specific number, from 2016 to 20In the first half of the year, Litian Pictures issued a total of 4, 32, 43 and 27 TV series.
These TV series are divided into two types: self-made and buyout. The former is the hair-making business of Litian Film, which refers to the works that they participate in and produce. In the first half of 2016 to 2019, the company produced a total of 11 TV dramas, including “Yi Hai”, “Tiger Team” and “German Heroes”.
Maybe, the founder Yuan Li has been a senior executive at Great Wall Film and Television for many years. Li Tian’s self-made works also have the shadow of Great Wall Film and Television. Focusing on realism in the subject matter, and even creating a lot of anti-Japanese dramas, such as netizens’ comments on “Guerrilla Heroes” is like this: Anyone can make the devils fall into the water, and a village woman can also be invincible by the long tongue. What heroes and heroes have not been photographed in the anti-Japanese drama? Have the ability to take a butterfly and anti-Japanese…
However, the investment price of these works without much popularity is not low. For example, “German Heroes”, “Double Guns”, “Yihai” and “Tiger Team” brought 42.378 million, 8.7 million, 47.48 million to Litian Films respectively. 210.64 million in income.
In addition, the future production or the production of the upcoming production will also belong to the realist theme, including “Golden Blood Glory”, “Green Water, Green Mountain, Red Day”, “Smile Mother”, “Man of the Chieftain”, the company’s investment amount is 22.5 million yuan, 18 million yuan, 16.25 million yuan, 20 million yuan.
Of course, compared to the self-made drama, the buyout is the biggest bargaining chip for the Hong Kong stock market. In the first half of 2016 to 2019, the number of TV dramas bought by the company reached 105, including “Starlight”, “Across the Sea to Love You”, “Undercover”, “Days of Life”.
With the help of the buyout business, the company’s financial position has been relatively good, not even losing most of the A-share TV drama companies. According to the prospectus, from the first half of 2016 to 2019, Litian Films recorded revenues of 73.66 million yuan, 379 million yuan, 386 million yuan and 198 million yuan respectively; net profit reached 20.61 million yuan respectively.E-val=”640,640″>
In addition, Litian Film has a low sense of presence in the industry relative to A-share film and television drama listed companies such as Huace Film and Tsing Wen Media. As the second-ranked company in the TV drama distribution group, Litian Film has released hundreds of TV series in the past four years, and there are only a handful of works that are well-known for their names.
In fact, looking at the works produced or distributed by Litian Film, the quality content of word-of-mouth and win-win is always lacking in Litian Film.
Very reliant on the “buy, buy and buy” model, lack of self-control, lack of competitive work, accounts receivable and the rapid increase in the amount of notes receivable, which may become Litian’s promotion to the head. “Fatal defects.”