Can Star Culture Break Through A Shares: Can The Former "Variety King" Renew Its Brilliance?

In 2012, the Shanghai Chan Star Cultural Media Limited by Share Ltd (hereinafter referred to as "Chan Xing culture"), which created the "good voice" viewing myth in China, updated its prospectus on the evening of May 8, 2020 8 years later in the official website of the SFC, which is closer to A shares.

Chan Xing culture indicated that it would be listed on the Shenzhen Stock Exchange's growth enterprise market. The number of initial public offerings is no more than 42 million 600 thousand shares, and it plans to raise 1 billion 500 million yuan to supplement the production and operation of variety shows.

As early as 2014, Tian Ming, chairman and founder of Chan Xing culture, openly pointed out that the star culture and its parent star Chinese media, as well as the dream and strong voice of the Performing Arts brokerage business, will enter the capital market in the future.

Subsequently, the A share listed company Zhejiang Fu Holdings (002266.SZ) announced in March 2016 that it could earn 300 million of its cash in capital star culture, gaining 6.0698% of its shares and releasing the signal of the listing of the star culture.

In December 2017, the star culture completed its first round of financing with a valuation of 21 billion yuan, and announced that it would be listed on 2018 IPO. In July 26, 2018, the star culture introduced Ali Hangzhou Alibaba entrepreneurship Cci Capital Ltd and Tencent Department Tibet Qiming music Co., Ltd., both of which invested 200 million yuan and 160 million yuan respectively, and gained 1.17% and 0.94% of the stock of Chan Xing culture.

Since then, the culture of Xing Xing has submitted materials and completed the guidance of securities firms. Until December 19, 2018, it submitted the prospectus to the SFC, which formally clarified the trend of listing A shares.

However, from the 2012 theme screen to the copyright crisis of Tang De film and television, the eight season of China's good voice has been fading away. In the context of Iqiyi, Tencent, Youku three big video platform self-made network, can the star culture highlight the tight encirclement and continue to maintain the title of "domestic variety one brother"?

Reserve program to exert force

The prospectus shows that Chan star culture focuses on the production of variety content and the development and operation of the industry chain. In 2017 -2019, Chan Xing culture achieved 2 billion 58 million yuan, 1 billion 653 million yuan and 1 billion 733 million yuan in revenue respectively, and its performance fluctuated greatly. Besides, the net profit attributable to shareholders of the parent company also showed a downward trend of 452 million yuan, 453 million yuan and 345 million yuan respectively.

From the perspective of business composition, there are two main businesses: content production and operation, licensing of music production and other derivative businesses (including maritime and intellectual property licensing, concert, artiste brokers, etc.).

In the past 2017-2019 years, its revenue in content production and operation accounts for about 81%, 75% and 75%, while its revenue from music licensing and other derivatives business accounts for about 19%, 25% and 25% respectively.

In recent three years, "new Chinese singing" and "good voice of China" are still trump cards of the star culture, and the proportion of their programming income in total income is 32.33%, 32.96% and 26.67% respectively.

It can be seen that after the explosion of "good voice of China", Chan Xing culture put the focus of the overall production on the production of music variety.

Since then, Chan star culture has gradually created "China's good songs", "masked singing will guess Guessing", "this is hip-hop", "this is the original" and many other original variety shows. Among them, the "China good song" mode landed in Vietnam to realize the first overseas output of Chinese variety copyright.

In 2018, the first time to try the net culture of the star, launched this "street dance" in the first quarter, "instant electric" two program, broadcast volume exceeded 1 billion yuan.

Chan Star Culture said that as of the end of 2019, 24 productions of the variety show were produced, 23 of the seasonal variety shows and 1 of the weekly variety shows, including the "good Chinese voice", which was co operated with Zhejiang satellite TV, "masked singing and guessing Guessing" which was co operated with Jiangsu satellite TV, China's Got Talent, which was co operated with Dongfang satellite TV, and this cooperation with Youku! Hip-hop is its representative program.

In addition, the star culture also has a start. Master, "the great the Great Wall", "this! There are 13 follow-up programs, including hip-hop 2020 and China's Got Talent 2020.

In terms of music production authorization and other derivative businesses, Chan Xing culture mainly develops music production authorization, artist brokers and other derivative businesses through the dream of the subsidiary company, Shanghai. In the past 2016-2019 years, the number of artists signing the contract was 145, 144, 146 and 162, including Wu Mochou, Zhang Bichen, Zhou Shen, Huang Xiaoyun, Li Qi, Su Yunying, Dan Zeng Ni Ma, Bi Xia and other new generation entertainers.

With the rise of self-made variety such as "summer band of the band", "creation 101", "youth have you" and so on, such as Iqiyi, Tencent, Youku and other video platforms, the transition of network integration has become the trend of the times. The predicament faced by Chan Xing culture is obvious: "good voice" represents the lack of influence after the Taiwan ensemble influence, and the cooperation with the network video platform is still in its initial stage.

"There are no big representative works in the past two years. The competition in the two years is fierce. Everyone is fighting for the audience." In May 11th, a film and television industry commented.

Increased risk of receivables

Apart from fierce competition in core content production, Chan Xing culture has a larger risk of accounts receivable balance.

The prospectus shows that the main customers of Chan Xing culture include major domestic TV stations such as Zhejiang satellite TV, Jiangsu satellite TV, Dongfang satellite TV, CCTV, Youku, Iqiyi, LETV and other major video websites. Because of the longer payment period of some customers, there is a larger risk of accounts receivable balance.

At the end of -2019 in the end of 2017, the net accounts receivable of Chan Xing culture were 707 million yuan, 881 million yuan and 1 billion 36 million yuan respectively, accounting for 63.28%, 67.18% and 58.12% of current assets respectively.

In this regard, Chan Xing culture explained that the accounts receivable at the end of 2018 were mainly Zhejiang satellite TV's 2018 China good voice, Oriental TV's new dance forest conference and Jiangsu satellite TV's third season program of "masked singing, guess Guessing", and Youku's "new dance forest conference", "masked singing and guessing guess" third quarter and Iqiyi's "2018 China good voice" authorization fee. The above payments are in the normal clearing cycle.

In the end of 2019, the balance of accounts receivable increased significantly. First, it originated from the new mode of cooperation between Chan Xing culture and Internet users in 2019. The settlement method was different from the previous year, resulting in slower accounts receivable than the previous year. Second, it originated from the sixth quarter of China's Got Talent in 2019 and the 2019 guessing guessing guesses. A slight lag from last year. The above programme money was collected in January 2020.

It needs to be pointed out that there is a contractual dispute between Chan Xing culture and LETV, Guangxi golden voice Food Co., Ltd. and bus Online Technology Co. Ltd.

By the end of 2019, Chan Xing culture had prepared 80 million 301 thousand and 900 yuan for the accounts receivable of 100% of the accounts receivable of the music network, and about 90% yuan for the accounts receivable account receivable under the age of 3 years, accounting for 19 million 520 thousand yuan.

In addition, the amount of money that can be collected in golden star and so on has been up to 2-3 years, and the provision for bad debts is about 24 million 690 thousand yuan.

Chan star culture mentioned that the company has confirmed accounts receivable for the music network, bus online, Jin Sangzi and Shenzhen radio and Film Television Group. According to the policy of bad debts, the provision of single policy or the age allowance for bad debts has been made. As of the date of issue of the prospectus, the total provision for bad debts is 122 million yuan.

On the afternoon of May 11th, in the afternoon of twenty-first Century, the economic report reporter sent a call to the Ministry of culture and securities affairs.

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