Amusement Animation sprints for IPO, can 'Pig Man' succeed in breaking through the barriers?
Following the Xiong's infestation of Jianzhi's IPO, Pigman also tried to bravely break into the A-share market. Recently, nearly five months after submitting the prospectus, Guangdong Yongsheng Animation Co., Ltd. (hereinafter referred to as Yongsheng Animation) responded to the opinions of the Shenzhen Stock Exchange and updated the prospectus. Wing Animation, which has been transformed from the record business, mainly produces Pigman series, Funny Didi series, and Crazy Candy series. The prospectus shows that from 2017 to 2019, Yongsheng Animation’s revenue was 153 million yuan, 200 million yuan and 194 million yuan, and net profits were 27 million yuan, 58 million yuan and 44 million yuan respectively. From January to June 2020, the company's net profit was only 4.501 million yuan, and the growth of revenue and net profit slowed down. As an animation company, the main business of IP Pigman for 15 years, the animation TV and movie business is the core business of Yongsheng Animation, which supports half of the sky. The predecessor of Yongsheng Animation was Yongsheng Records. In 2004, the company began to develop cartoons, and successively launched products such as 'Ghost Horse Elf' and 'Magic Pig Root'. Among them, the most well-known IP is Pig Man. In the prospectus, Yongsheng Animation has repeatedly stated that the company's Pigman is the first echelon IP, and its broadcast volume and popularity on various new media platforms exceed most IPs. In response to this statement, the exchange requested Yingsheng Animation to supplement relevant arguments in its reply. Every reporter learned that the Pigman IP originally originated from the original 3D animation series in 2005. Subsequently, Yongsheng Animation serialized this IP. Up to now, Aria has launched 16 TV animations, 6 movies, and 4 dramas of Pigman, making it the number one IP that Aria has relied on. According to the data, from 2017 to 2019, pigman’s IP income was approximately 145 million yuan, 141 million yuan, and 139 million yuan, accounting for 95.00%, 70.43%, and 71.56% of the year’s revenue respectively, which contributed the most to the company’s revenue. IP. From January to June 2020, Pigman’s IP income will be 30,536,400 yuan, accounting for more than half. Pigman’s IP income. Source: A screenshot of the prospectus. The professional version of Maoyan shows that the cumulative box office of the five major movies with box office statistics for 'Pigman' totaled 183 million yuan. From 2012 to 2019, the sum of the income generated by the 6 'Pig Man' series of movies was RMB 2.4559 million. In addition to the Pigman IP, the company claims that it also has IPs such as Nuclear Crystal Youth Variety School Bus Funny Didi Crazy Candy, but at present, these IPs are far less than Pigman in terms of revenue contribution. It will take some time for it to become the company's next pig man, and Yongsheng Animation also pointed out that the risk that the IP monetization ability cannot meet expectations cannot be ruled out. Important shareholders have transferred their shares four times. In 2017, Yongsheng Animation stated when it was listed on the New Third Board that the company has entered the guidance stage of initial public offering and listing. In August of that year, Yongsheng Animation terminated its listing on the New Third Board. In July of this year, Yongsheng Animation disclosed its prospectus. Founded in 1986, Wing Sound Animation was founded by Kuching Ming. In 2003, the company transformed the animation industry. After listing on the New Third Board in 2016, Yongsheng Animation conducted two rounds of financing. Only half a year later, the company's valuation rose from 500 million yuan to 960 million yuan. Since the termination of listing in 2017, Yongsheng Animation has conducted a total of 6 equity transfers. In January 2019, Kuching Ming transferred 430,000 shares of the company at a price of 35 yuan per share. At this time, the company's corresponding market value was about 1.376 billion yuan; in February of the same year, when Ruixiang Youdao received 350,000 shares of Aingsheng Animation, The transaction price has fallen to 28.57 yuan per share, and the valuation has shrunk. The equity transfer situation of Yongsheng Animation Image source: screenshot of the prospectus. At present, Kuching Ming has withdrawn from the management of the company. The company is operated by his son Gu Zhibin and his daughter Gu Yanmei. The three together constitute the actual controller of Yongsheng Animation. As of the date of signing of this prospectus, Gu Zhibin directly holds 27.7875% of the issuer’s shares, and Gu Zhibin holds 27.688% of the property share of Yongsheng Investment and is the executive partner of Yongsheng Investment, able to control the issuer through Yongsheng Investment 6.9469% of the shares. According to this, Gu Zhibin is able to control 34.7344% of the issuer's shares in total and is the controlling shareholder of Yongsheng Animation.