Huaqiang Fant, the father of the theme park's tens of billions of businesses, sprinted IPO.

Wu Yi, a reporter from Time Weekly, came from Beijing.

With the help of six series of animated films "Bears Come and Go" and 23 theme parks, Huaqiang Fangte Culture and Technology Group Co., Ltd. (hereinafter referred to as "Huaqiang Fangte") rushed for IPO and applied for the A-share listing from the New Third Board.

On June 28th, official website, the CSRC, published the prospectus of Huaqiang Fangte's initial public offering and listing on the Growth Enterprise Market. According to the data, Huaqiang Fangte raised 1.1 billion yuan this time, which was mainly used for R&D center construction projects, animation film production projects, brand building and promotion projects.

It is worth noting that this is the second time that Huaqiang Fante has rushed for the A-share IPO. Huaqiang Fangte launched the A-share listing plan for the first time in 212, but the information was withdrawn due to the IPO lockout period. In 215, it was listed on the New Third Board. In May last year, Huaqiang Fangte started listing counseling again, and since April this year, it has suspended stock transfer due to "planning IPO".

For listing issues and IP incubation and other related issues, Time Weekly reporter called Huaqiang Fangte's office, and the other party declined to be interviewed. "The company is in the silent period of listing, and it is not convenient to speak out."

More than half of the profits depend on subsidies

Before the suspension, the total market value of Huaqiang Fangte was 13.2 billion yuan. Its most well-known IP is "Bears Come and Go". With this super IP, its series of movies firmly occupy a place in the annual Spring Festival box office war. In fact, Huaqiang Fangte, with total assets of nearly 2 billion yuan and annual profit of nearly 8 million yuan, has a larger cultural territory.

according to the prospectus, Huaqiang Fante's revenue comes from cultural and technological theme parks and cultural content products, which include special films and digital animation. From 216 to 218, the revenue of Huaqiang Fangte was 3.353 billion yuan, 3.848 billion yuan and 4.328 billion yuan respectively, with a compound annual growth rate of 13.61%.

the theme park of culture and technology is the "pillar" of Huaqiang Fangte's revenue. From 216 to 218, this part of the revenue accounted for 93.3%, 77.14% and 83.28% of the total revenue. According to the research of Ai Media Consulting, the number of visitors to the theme parks under Huaqiang Fangte Group was 42 million in 218, up 9.3% year-on-year, ranking fifth among the global theme park groups, second only to OCT in China.

However, most of the theme park projects in Huaqiang Fante are only slightly profitable or in a loss. According to the prospectus, among the 77 subsidiaries of Huaqiang Fangte Holdings, 45 were at a loss in 218, and most of these subsidiaries operated and invested in theme park projects.

The actual profit source of the company relies on animation and film industry, whose revenue accounts for less than 17%. The two truly profitable subsidiaries are Fantawild Animation Inc. and Fangte Film. The former is responsible for the creativity, production and distribution of digital animation works, while the latter is responsible for the creative design and development and production of special films. In 218, the profits were 19 million yuan and 585 million yuan respectively.

Huaqiang Fangte finally recorded a net profit of 778 million yuan in 218, but after deducting non-recurring gains and losses, the net profit attributable to owners of the parent company was only 458 million yuan. In addition to being affected by the loss of theme parks, the huge amount of non-recurring gains and losses has to be mentioned in the company's "welfare".

According to the prospectus, Huaqiang Fante, as a cultural and technological enterprise, has been receiving tax incentives and government subsidies related to the business of cultural and technological theme parks and cultural content products in recent years.

In 216-218, the income tax incentives of Huaqiang Fangte accounted for 16.75%, 16.6% and 16.4% of net profit respectively; In addition, the government subsidies included in the current profit and loss were 353 million yuan, 33 million yuan and 327 million yuan respectively, accounting for 38.91%, 36.68% and 36.45% of the total profit of the year respectively. This means that more than half of Huaqiang Fangte's net profit comes from tax incentives and government subsidies.

Expanding theme parks

Although most theme parks are still operating at a loss, Huaqiang Fante keeps expanding. By the end of May 219, Huaqiang Fangte had built 23 cultural and scientific theme parks and planned to build and construct 21 theme parks.

"Domestic theme parks present a three-legged competition pattern of OCT, Huaqiang Fangte and Chimelong, with market share reaching 22.2%, 19.9% and 16.% respectively in 218." Wang Qinglin, an analyst of Ai Media Consulting, said in an interview with Time Weekly that the number of domestic theme parks is relatively large, but the tourists are scattered and the conversion rate of payment is not high. Therefore, domestic regional large-scale theme parks are relatively lacking, and the profitability of theme parks is weak.

according to AECOM survey data, the total number of visitors to theme parks in China reached 19 million in 218, but theme parks with less than 2 million visitors accounted for 85%, theme parks with more than 3 million visitors accounted for less than 1%, and there were less than 4 large-scale theme parks, of which about half were profitable parks.

in fact, drunkenness is not about wine. For some domestic cultural tourism enterprises, the real value of theme parks lies in driving the premium of surrounding land and boosting the development of real estate.

The expansion of Huaqiang Fantine is also closely related to its parent company, huaqiang group. Liang Guangwei, 56, is the legal representative of shenzhen huaqiang Group Co., Ltd. and the actual controller of Huaqiang Fangte, holding 65.74% of its shares.

In huaqiang group's capital map, apart from Huaqiang Fante, there are also four large enterprises, Huaqiang Industry, Huaqiang New City Investment, Huaqiang Qianhai Technology and Huaqiang Financial Holdings, among which Huaqiang Industry is mainly engaged in computer software and communication products, and listed on the A-share market as early as 1997.

Huaqiang Fante is closely integrated with Huaqiang New City Investment Group, which is mainly engaged in real estate investment and development. In the theme park project in Wuhu, Anhui Province, Huaqiang New City Investment also participated in the development and construction of comprehensive residential projects, including 9 plots with a total construction area of 2.6 million square meters. In addition, Shenyang's cultural tourism projects also have the investment of Huaqiang New City.

Chen Shaofeng, vice president of Peking University Cultural Industry Research Institute, told Times Weekly that the core competitiveness of Huaqiang Fangte's theme park development is mainly as follows: first, the scale effect of the industry, with mature operating experience; Second, it has its own content IP, and the means of expression of science and technology are relatively mature; Third, close cooperation with local governments.

among the theme park investment and development subsidiaries that Huaqiang Fangte holds or shares, * * * is mainly funded by local cultural tourism investment and development enterprises, and the ultimate beneficiaries behind it are mostly local government SASAC. In 218, the amount of goods sold and services provided by Huaqiang Fangte to related parties reached 446 million yuan, accounting for 1.28% of the current revenue.

The heavy investment in theme parks has also increased the financial pressure of Huaqiang Fante. Since the listing of the New Third Board in 215, Huaqiang Fangte has completed two private placements with a total amount of 2.7 billion yuan. The funds raised are mainly used for theme park construction investment, project research and development, and repayment of bank loans.

It is worth noting that Huaqiang Fante, which enjoys subsidies from cultural and technological enterprises, planned to invest 15 million yuan in the construction of Garden Hotel in Zhengzhou Cultural and Technological Industrial Park in 217, but the investment amount has been lowered to 7 million yuan in 218.

In addition, since 212, Huaqiang Fangte has shifted from independent investment and cooperative investment in parallel to cooperative investment, trying to alleviate the financial pressure. By the end of 218, the company's consolidated asset-liability ratio was close to 5%, and the balance of available raised funds was only 52.51 million yuan.

Self-reliance in the cultural sector

"Most theme parks need to rely on real estate sales revenue, but this income is one-off, so many cultural tourism projects lack growth." Chen Shaofeng concluded that in recent years, Huaqiang Fangte has paid more and more attention to enhancing the added value of animation business, IP content and technological innovation.

according to the prospectus, from 216 to 218, the income from cultural content products accounted for 6.7%, 22.86% and 16.72% of the main business income, respectively, and the income contribution was improved, among which the big IP of "Bear haunt" contributed a lot.

Six films of "Bears Come and Go" are among the top ten domestic animation films, with a total box office of nearly 2.7 billion yuan, of which the cinema distribution income of these three films produced in recent three years is 182 million yuan. In addition to the cinema, from 216 to 218, the new media broadcasting revenue of animation movies and series of cartoons also reached 3 million yuan, with a compound annual growth rate of 97.74%.

However, the head IP is single, and over-reliance on "bear infestation" is still an urgent problem for Huaqiang Fante. Although the company has launched more than 3 series of cartoons and animated films, including Chickens Don't Provocate, the only thing that really attracts gold is Bears, and the IP was launched in 212. With the growth of younger groups, it may face the risk of user loss and IP aging.

In this regard, Wang Qinglin believes that Huaqiang Fangte needs to pay attention to the enrichment, development and growth of IP characters, and more importantly, develop a number of related IP product lines to improve the IP acceptance age range of existing users and maintain sustainable competitiveness.