Perfect World intends to purchase the film and television assets of the era in cash to make up for the film deficiency.

the announcement on the progress of suspension revealed that this time Perfect World has his eye on three film and television assets of time Jindian Media Co., Ltd. (hereinafter referred to as "time Jindian"), including Jindian cinema chain, Jidian culture and Jindian Studios. Perfect World Dong Secret Office staff told reporters yesterday, "this acquisition will be wholly owned by cash acquisition, does not involve the issue of shares."

original title: Perfect World made up for the film deficiency and planned to buy the film and television assets of the era in cash

since Perfect World was installed into perfect Universal at the beginning of the year, this media ship with a market value of more than 48 billion yuan is being driven by the twin engines of film and television + games. After the return of film game assets to the domestic capital market, Perfect World suspended trading from July to plan for asset purchases, and finally got a picture yesterday.

the progress announcement of suspension reveals that this time Perfect World has his eye on three film and television assets of time Jindian Media Co., Ltd. (hereinafter referred to as "time Jindian"), including Jindian cinema chain, Jindian culture, and Jindian Studios. Perfect World Dong Secret Office staff told reporters yesterday, "this acquisition will be wholly owned by cash acquisition, does not involve the issue of shares."

when it comes to the film industry of the times and times, the latest impression of the capital market should be an asset-backed securities issued by the Shanghai Stock Exchange in May this year based on the future income of cinemas. According to the industry, the securities is the first ABS asset securitization product issued by the Shanghai Stock Exchange to be supported by film box office receipts, raising a total of 1 billion yuan. In this regard, Cao Haitao, a well-known investor in the field of culture, analyzed that the way of issuing ABS financing can alleviate the financial pressure of the cinema line in the process of expansion. As for whether the financing of 1 billion yuan can be repaid, Cao Haitao analyzed the risk factors. "taking advantage of the spring breeze of the growth of Chinese film box office, the cinema chain of this festival layout will benefit from this, but the revenue of the cinema line has always been stable enough, but the growth is insufficient."

< strong > after the box office asset securitization < / strong >

perfect Universal merged with Perfect World's "Movie Tour", the first acquisition was aimed at the company's relatively weak film industry.

according to the announcement of the progress of suspension, the underlying assets of this major asset reorganization include Beijing time Huaxia Jindian Cinema Line Development Co., Ltd. (referred to as Jindian Cinema Line), Beijing Times Jindian Film and Television Culture Co., Ltd. (referred to as Jindian Culture), and Beijing Jindian Sidaokou Cinema Management Co., Ltd. (referred to as Jindian Cinema).

the direct controlling shareholder of Jindian cinema chain and culture is time Jindian, and the direct controlling shareholder of Jindian Cinema is the subsidiary of time Jindian Cinema Investment Co., Ltd. According to industrial and commercial registration documents, the three underlying companies are all film assets of Jindian Investment Group Co., Ltd. (Jindian Group for short), and its industry is also involved in resorts, contemporary art and public welfare, according to its website.

the shareholders behind Jindian Group are Zhang Baoquan and Wang Qiuyang. Zhang Baoquan is the business leader who created the mangrove resort world in Sanya Bay; a 2012 report revealed that Wang Qiuyang and Zhang Baoquan are husband and wife. However, Perfect World mentioned in yesterday's announcement that "Zhang Baoquan and Wang Qiuyang indirectly hold 100% of the shares in time Jindian, and the proportion of their shareholding and voting rights are 50%. There is no consistent action relationship between the two, and there is no actual controller in the underlying company."

in the capital market, the most recent appearance of the Times is the announcement of the listing and transfer of asset-backed securities issued by the Shanghai Stock Exchange. The reporter saw the announcement yesterday that from June 23 this year, the Shanghai Stock Exchange will provide transfer services for the "Galaxy Jinhui-Jindian 17.5 Cinema Trust income right Asset support Special Program" on the fixed income platform. At that time, the media reported that time Jindian Group issued ABS asset securitization products based on the future box office receipts of its 78 cinemas, raising a total of 1 billion yuan. It was the third film industry group after Xingmei and Dadi to try to earn ABS at the box office.

data show that the Times Huaxia Modern Theater Line, established in 2009 with the approval of the then State Administration of Radio, Film and Television, was one of the first to open up third-and fourth-tier cities. In the past three years, the compound growth rate of box office revenue of this cinema line has exceeded 55%. At present, there are 226 cinemas under the Jindian cinema chain, with more than 1200 screens.

according to the Yien think tank, as of August 31, the 2016 box office of the time Book had a total box office revenue of 411 million yuan, with a total of 697200 screenings, with a total of 13.2827 million cinema visits and an average of 19 people per show, ranking 17th in the country. The total box office in the first half of the year rose 6.67 percent over the same period last year, of which first-tier cities accounted for 24.23 percent, down 1.16 percentage points from the same period last year.

in this regard, Cao Haitao analyzed that cinema lines have always had a relatively large demand for funds in the process of expansion. "in the past, it was difficult for the film industry to borrow money, and some chairmen raised their own real estate mortgage financing." at present, there are accounts receivable pledge financing, listed company share pledge financing, copyright pledge financing and so on. Turning box office revenue into securitization products is equivalent to a kind of crowdfunding, realizing the return of funds ahead of schedule.

< strong > to acquire in cash < / strong >

the reporter noted that Perfect World mentioned that the transaction was initially determined to "purchase the equity and target creditor's rights of the underlying company by paying cash." Yesterday, Perfect World Dong Secret Office staff also confirmed to reporters, "this acquisition will be wholly owned by cash acquisition, does not involve the issue of shares."

how much will I pay for the cash acquisition? Is the "net creditor's right" related to the above-mentioned financing of 1 billion yuan? The staff said that the company's senior executives are holding a shareholders' meeting, details of which can be found in the later announcement.

so, what is Perfect World's cash strength? Perfect World had a total revenue of 2.115 billion yuan and a net profit of 382 million yuan in the first half of the year, with monetary funds of about 1.8 billion yuan as of June 30, according to the 2016 medium report.

however, in order to realize Perfect World's privatization and return to the domestic capital market, major shareholders pledged a lot of assets to obtain funds. Although at present, the asset pledge and mortgage involved in issuing shares to purchase assets have been lifted, according to the shareholders' share pledge announcement disclosed on July 20, 80% of the shares in the hands of Perfect World Chairman Chi Yufeng and the concerted action are in the state of pledge financing, and they are still in the process of additional pledge.

Perfect World hinted in the announcement that "the trading plan has not yet been finalized, and the scope of the underlying assets may be adjusted."

in fact, film is a relatively weak link in Perfect World's current film and television sector. judging from the revenue in the first half of this year, TV series revenue is 160 million yuan, while film revenue is only 39.87 million yuan. Chi Yufeng once told the media, "the TV series business of perfect Global will continue to grow in the future, but the proportion will decrease." Movies are the focus of efforts this year and next year.

with regard to Perfect World's acquisition of contemporary film assets, Cao Haitao told reporters that cinemas belong to a link with stable income but not enough growth and few bursts in the entire industrial chain, but it is expected that Perfect World's film assets will be merged into the latter's film and television assets to form an industrial chain.

Jindian cinema line was previously positioned as a third-and fourth-tier city, which in Cao Haitao's view also has a certain degree of growth. Previously, the third-and fourth-tier cities with a low degree of urbanization will play a leading role in the process of new urbanization. The industry expects the domestic box office to exceed 50 billion yuan this year, so that third-and fourth-tier cities can also get a piece of the pie. "there is growth, but the film consumption habits of third-and fourth-tier cities still need to be cultivated in order to provide sustained and stable box office revenue."

Edit: nancy