In the magic capital, Zhang Yida visited the Chinese Cultural Industry Fund for the second time.

"Mr. Li, how have you considered the matter of Canxing Culture?" Zhang Yida looked at Li Ruigang with a smile.

"Mr. Zhang, we have negotiated internally and are willing to accept the investment of Zhonghe Group. ”

Li Ruigang said again: "That's the valuation, there is a little increase."

In March last year, Zhefu Holdings acquired a 6.0698% stake in Canxing Culture at a cost of 300 million yuan, with a valuation of 5 billion yuan at the time.

It has been almost a year since this financing. It is also normal for the valuation to increase, and I hope Mr. Zhang understands. ”

"That's no problem," Zhang Yida nodded, "It's normal for valuations to rise as operating performance rises." ”

Zhang Yida's words are also very direct, if you want the valuation to rise, you must use the actual operating performance.

"Okay, this is the financial report of Canxing Culture in recent years, Mr. Zhang, please take a look. ”

Li Ruigang asked the secretary to hand Zhang Yida a stack of materials, and after Zhang Yida took it, he flipped through it.

In 15 years, the revenue was 2,461.88 million yuan and the net profit was 806.47 million yuan, and the revenue in 16 years was 2,706 million yuan and the net profit was 728.59 million yuan.

Revenue increased by 10%, but net profit fell by 10%, which is a bit strange.

Zhang Yida continued to watch, and in 2015 and 2016, the production income of "The Voice of China" and "China's New Song" accounted for 46.43% and 37.33% of the total revenue, respectively.

The total assets are 4.206 billion yuan, the total liabilities are 1.159 billion yuan, and the net assets on the books are 3.047 billion yuan.

The goodwill on the balance sheet is as high as 1.983 billion yuan, which means that two-thirds of Canxing Culture's net assets are composed of goodwill.

The proportion of goodwill in the asset system is a little too high!

Zhang Yida couldn't help but ask, "Why is the goodwill so high?"

"Oh, this!"

Li Ruigang said unshockedly, "The year before last, Canxing Culture acquired the music production company Mengxiang Qiangyin for a transaction consideration of 2.08 billion yuan.

At that time, Mengxiang Qiangyin's book net assets were only 112 million yuan, so this ultra-high premium merger and acquisition increased the goodwill of Canxing Culture by 1.97 billion yuan in its consolidated statements. ”

Li Ruigang's frankness surprised Zhang Yida, and this kind of premium acquisition is usually covered.

This is good, I will explain it clearly and clearly to you directly.

In fact, I can't hide this matter even if I want to. Unless financial fraud is committed.

"Well, I've almost finished reading it, Mr. Li, you can make a price!"

"15 billion!"

Tut-tut, in less than a year, the valuation has tripled!

"Mr. Li, how did you calculate the 15 billion?"

Li Ruigang smiled: "This price is not high, less than 20 times PE." ”

Zhang Yida said: "When Zhefu Holdings became a shareholder, the profit in 15 years was 800 million yuan, 6 times PE.

In 16 years, the profit has also decreased by 10%, how can this valuation triple?"

Li Ruigang explained: "The reason for the decline in profits is that the revenue generated by "The Voice" in 15 years is 1.143 billion yuan, and the revenue created by "New Singing" in 16 years is 1.01 billion yuan.

Mr. Zhang, you may also know that at the beginning of last year, Canxing and the Dutch Talpa, the copyright owner of "The Voice", collapsed due to price issues.

Then Tang De Film and Television came out to cut off the beard, and exclusively bought the copyright of the "TheVoiceof..." program model for 5 years and 4 seasons, and Canxing lost the copyright of the famous work "The Voice of China". ”

Zhang Yida knew about this matter, and it was quite a big trouble at that time.

Everyone thought that Canxing Culture would collapse if it lost the copyright of "The Voice of China", but as a result, they launched a copycat version of "China's New Singing", which is still very popular.

From the perspective of revenue, last year's "China's New Singing" revenue of 1.01 billion yuan was only 130 million yuan less than the previous year's "The Voice of China".

The gap is not large, so to speak, the last battle was successful.

Li Ruigang continued: "At that time, everyone thought that Canxing would finish playing, but they were disappointed.

With more than ten years of experience and accumulation in variety show production, we have launched the self-made program "China's New Singing", which continues to continue the ratings miracle.

Similarly, after this incident, it once again proved the strength and potential of Canxing Culture. ”

Speaking of this, Li Ruigang smiled. The first brother of the domestic variety show is not called in vain, thinking that the copyright will kill us.

However, Li Ruigang also knows how dangerous it is, and it is not an exaggeration to say that it is a gamble.

Zhang Yida believes that after losing the copyright of the voice, Canxing Culture can continue to succeed, and the company's strength must be there.

In addition, the main reason is that the previous good voice was too successful, with a user base and inertia.

"New Singing" is relative to "The Voice", just a change of vest.

The TV station has not changed, the host has not changed, the production company has not changed, and the general process of the program has not changed......

The audience watched it, and they didn't feel much difference.

Especially Hua Shao, that is simply a highlight of the show.

"So, Mr. Zhang, don't think I'm raising prices indiscriminately. At that time, when Zhefu Holdings became a shareholder, the situation was still unclear.

The contract with the Dutch side has just been terminated, and the new song in the first season has not been released, so no one knows what the situation is.

Therefore, when Zhefu Holdings became a shareholder, the valuation was only 5 billion yuan.

Now that the situation is clear, the new song continues its success. In the foreseeable next few years, the performance will not be lower than last year. ”

The timing of the stake was not good, and I didn't pick up the leak.

Zhang Yida was not disappointed, and said: "Canxing Culture relies too much on the variety show of New Singing, which is not a good thing for a company. ”

He smiled and said, "Mr. Zhang, you are right, but you can also see from the financial report that the proportion of income is declining."

The year before it accounted for nearly half of the total revenue, and last year it was just over a third.

This year, it will definitely be reduced to less than one-third.

In this way, the income structure is still stable and healthy. ”

After listening, Zhang Yida didn't speak, he was not very optimistic about the future of Canxing Culture.

I was thinking of a billion-dollar valuation, so I came to pick up the cheap ones.

The valuation of 15 billion is a bit too high. Although the valuation of Canxing Culture in the previous life once reached more than 20 billion yuan, no one knew whether this valuation could be held up before it was listed and realized.

Any variety show is popular, and The Voice has been launched for several years, and various data show that its popularity is declining.

If it leaves the ace variety show of The Voice, and Canxing Culture can't launch a new ace show, its performance is likely to change dramatically.

There is also a goodwill of up to 2 billion yuan, which is another small bomb.

Mengxiang Qiangyin and Canxing Culture are both subsidiaries of Star Chinese Media, and they are brother companies.

As a result, Canxing Culture acquired this little brother with a net asset of 112 million yuan at a price of 2.08 billion yuan, which can be regarded as a related party transaction.

It's not an Internet company or a technology company, and the 20 times premium is indeed a bit high.

Although Mengxiang Qiangyin also has the possibility of launching a show that is awesome and explosive, the possibility is relatively small.

This kind of thing that depends entirely on creativity, and even depends on a bit of luck, is not as likely as a street game company to suddenly launch a popular game, such as Blue Hole.

Zhang Yida smiled and shook his head, "If Canxing Culture can solve the problem of single-point dependence on performance, for example, reduce the proportion of new singing revenue to less than 20%, Zhonghe Group can agree to a valuation of 15 billion." ”

"Mr. Zhang, this is a bit difficult for a strong man. ”

Li Ruigang said unhurriedly: "Many film and television entertainment companies have obvious single-point dependence on performance, and the annual performance of these companies often depends on a single film or a single program that has placed heavy bets.

For example, a successful Chinese New Year blockbuster may make a listed film and television company's performance explode, but if the Chinese New Year film does not do well at the box office, the company's performance may face the danger of falling off a cliff.

Whether it is Huayi Brothers, Huace Film and Television, Hualu Baina, or companies like Tangde Film and Television or Guangguang Light Media, there is no exception. ”

This is true, a film does not do well at the box office, and there are film companies that go out of business.

"How's the performance bet?"

Zhang Yida decided to take a detour and rely on gambling to achieve the purpose of buying shares at a low valuation.

After thinking about it, Canxing Culture still has to take a stake, and its variety show production strength is an indispensable part of Zhonghe Group's big entertainment strategy.

If Doushi or Station B wants to enter the field of long video, they must engage in several popular variety shows. Of course, popular online dramas also have to be created.

"How to bet?"

Zhang Yida said with a smile: "Simple, just take 16 years of revenue and net profit as the standard, and the performance in the next three years will not be lower than this number." ”

Li Ruigang is also an old man, and he did not reply immediately after hearing this, but thought about it seriously.

Zhang Yida's gambling conditions cannot be said to be strict, and even he has not required a three-year growth rate, which is considered relaxed.

But his own family knows his own affairs, and the new singing voice is already going downhill.

And "The Masked Singer Guess Guess", "Great Challenge", "Brilliant Chinese", "Venus Show" can only be said to be good.

can't take over the big responsibility in the hands of the new singer and become the company's new trump card.

Zhang Yida didn't ask, and drank tea quietly on the side.

Canxing Culture is a good company, there is no doubt about it. At least in terms of domestic variety shows, he is currently the first brother.

In the previous life, Ahri and Penguin also invested in Canxing, and Canxing also co-launched the variety show "Instant Electronic Music" with Penguin Video.

However, Zhang Yida remembered that since this year, Canxing seems to have begun to decline, its performance has deteriorated, and it has been stolen from the limelight by iQiyi's "China Has Hip Hop" and Penguin's "Creation 101".

Therefore, Zhang Yida dared to make a three-year bet.

"What about the unfinished bet?" Li Rui just thought for a moment and began to ask.

"At 20 times PE, the valuation is recalculated. The original shareholders compensated Zhonghe Group for equity. ”

Li Ruigang asked again: "How much does Zhonghe Group plan to invest?"

"The stock swap of Doushi and Canxing Culture that I mentioned last time, do you still want to carry it out?

If it does not proceed, it will invest 300 million yuan in cash, and if it is a share exchange, it will invest an additional 1 billion yuan. ”

Li Ruigang said with a smile: "Our board of directors has discussed, the volume of Doushi is too large, and it is not in the same order of magnitude as us, so it is better not to exchange shares!"

Regarding the valuation of tens of billions of US dollars, Li Ruigang believes that the water is too much.

A piece of software that has been around for less than two years is valued at nearly 100 billion yuan, and I don't know how big this bubble is.

"It's okay if you don't exchange shares, then invest 300 million yuan in cash. ”

Zhang Yida wanted to tie Canxing Culture to the Shake Chariot, but the other party didn't get into the trap, which made him a little regretful.

"Mr. Zhang, don't invest a little more? 300 million is only 2% of the shares. ”

Zhang Yida said with a smile: "Zhonghe Group is still a start-up company, and the funds are limited, so let's add them when the funds are abundant in the future! ”

Zhang Yida actually wants to join him for one billion and two billion, and wait for three years to ensure that he wins the bet and makes money.

However, one is that the current funds are not allowed, and the second is that the equity of Canxing Culture is dispersed, and many excellent producers have shares.

The bet won too much, became a major shareholder, and was dumbfounded when the talent was forced to run away. The most important asset of such a company is its people.

There are talents, and there are a steady stream of popular variety shows. If you leave the talent, you can't eat the old capital for two years.

The company has some chicken ribs, just learn from penguins and Ahri to invest in one or two points, and there is no need to pursue holdings.

"That's good, 300 million is 300 million, and if you bet, you need to negotiate with the original shareholders. ”

Zhang Yida smiled: "Don't make me wait for months like last time." ”

Li Ruigang waved his hand again and again, indicating that he would not. The 16-year financial report has been delayed by him, and there is no point in delaying it any longer.

Zhang Yida stayed in the magic capital for another day, and after the shareholders of Canxing Culture arrived, they signed an investment agreement and a VAM agreement together.

Li Ruigang gave Zhang Yida a little discount, and the post-investment with a valuation of 15 billion was not counted as pre-investment. 300 million yuan was invested in, just accounting for 2% of the shares.