On November 23rd, Xinxi Media, a company that had remained silent since its inception, announced that it has just received over 10 million RMB from Aplus Capital to complete its Series A funding, pushing the estimated total worth of the company over 200 million RMB. This is the second major funding news after Toutoushidao Capital’s investment into Xinxi at the beginning of the year.
At the event, Xinxi also announced its new operating strategy that they’re calling “Music+,” along with other future plans, including labels, internet music, IP management, promotions, tourism and live events. Additionally, the company announced Tour plans for their artist Xie Chunhua. The popular singer-songwriter had already completed a 15-city tour along with various festivals previously after being signed to Xinxi.
According to Yuan Tao, founder of Xinxi Media, the company will be announcing a new addition to the current artist roster of 3 (Xie Chunhua, Meng Huiyuan, and Zhang Wanqing) very soon with plans to accrue 8 to 10 musical acts of different genres. Furthermore, the company has obtained rights to Gao Yuan’s book “Sing Through the Youth” and is now looking to commercially exploit the content through live shows, theater productions, music festivals and web videos.
It should be noted that Xinxi is also focused on the blending of the music and movie industries. For instance, it is partnering with one of China’s largest movie information websites, 1905.com, to launch a “movie-music” festival, a first of its kind in China.
As the man that founded Xinxi Media, Yuan Tao has previously held positions at Rock Records and Huayi Music. He’s known for his successful promotion campaign for Yu Quan when the group first signed to Rock Records in 1998. When asked about Xinxi’s mission statement, he said, “we need changes in this industry. We need to discover new things, new people, and more importantly, new talented young people. This is what Xinxi is focused on accomplishing.”
It was no coincidence that Aplus Capital chose to invest in Xinxi. The decision was made after the investor’s careful research of over 40 music-related companies–Xinxi was the only one that they deemed worthy of funding.
Aplus was founded in November of 2014 by famous entrepreneur Yu Minhong and experienced banker Sheng Xitai. The company’s investments span a wide variety of industries, including big data, AI, finance, IoT and even medical care. They provide all types of funding, including seed funding, Series A, Series B and “Xin San Ban,” a system unique to the Chinese stock market.
“I’ve always firmly believed that it is the company that creates value for the society, not the capital itself. In other words, we’re the least important factor in the grand scheme of societal development,” said Jin Cheng, managing director of Aplus Capital, “the youth truly represents today as well as the future. More often than not, the society dictates the meaningful value of a company, which is why we’ve been researching this industry a lot. We have been waiting for the right people, and Yuan Tao’s team fit the bill perfectly.”
According to Xinxi, they currently operate in 6 major aspects of the entertainment industry, including artist management, live events, promotion, IP management, OST and cultural tourism. As a result of its broad spectrum of operations, it is on track to earn a revenue of 60 to 80 million RMB, with roughly 5 million RMB in profit. As the company matures, it is estimated to hit 150 million RMB in gross revenue in 2018, 60%-70% of which being earned through promotions and events.
Copyright © 2015 China Music Business News