News just broke today that Canxing Productions has completed Series A funding and is planning to launch its IPO early next year. The company is currently valued at ¥21 billion RMB.
According to a representative, Canxing’s main goal for this round of Pre IPO is to 1. Attract financial and strategic investors before going public to optimize the board structure and; 2. To acquire more assets in preparation for its online platform development.
Canxing was brought under the spotlight thanks to its production work for the show The Voice of China. It has since become one of the most sought-after production companies, producing shows such as Sing! China, Song of China, So You Think You Can Dance China, Let’s Shake It and many more. Additionally, The Voice of Dream, a subsidy of Canxing, is currently one of the largest music/talent management companies in China.
As the single largest and most experienced production company in the Chinese entertainment industry, Canxing has drawn a lot of attention in its capitalization process.
In 2014, Canxing’s Chairman and Executive Chairman/CEO of STAR China Media (SCM), Tian Ming, gestured that The Voice of Dream and Canxing’s parent company, SCM, would be entering the capital industry soon. At the same time, he proposed a spin-off IPO plan, meaning that Canxing would go public in Hong Kong, following SCM, and The Voice of Dream would go public on A-share.
Canxing Productions was initially founded when STAR, a subsidiary company of News Corp., first entered the Chinese market. Once jointly controlled by Murdoch and Li Ruigang, Canxing is now under the control of Li’s China Media Capital and STAR Management after News Corp.’s exit in 2014.
In March of 2016, Zhefu Holding Group’s investment announcement, for the first time, revealed Canxing’s financial statistics that point to a stock restructuring within the company. According to the announcement, Zhefu has invested ¥300 million RMB in the production company, receiving 6.0698% of its shares in return. Also, The Voice of Dream has officially become Canxing’s holding subsidiary, instead of its affiliate company. As a result, as many analysts have pointed out, Canxing is very likely to launch as a standalone company.
Aside from changes in share structure, the announcement has also disclosed Canxing’s financial data: In 2015, its total revenue was ¥2.21 billion RMB with a profit of ¥720 million RMB; In Q1 2016, its total revenue and profit reached ¥160 million RMB and ¥44 million RMB, respectively. This signifies that Canxing has become the most lucrative production company in China, leading to an evaluation of ¥5 billion RMB, although many within the industry believe that the company is undervalued.
As this round of Pre IPO funding completes, Canxing is in the final stages of launching officially.
In addition to traditional television programs, Canxing is planning to expand its talents to the internet, exploring new industries, with the intention to potentially enter the movie industry as well. In terms of its current internet efforts, the company’s joint venture with Youku, This is Chinese Hip Hop, a dance-centric variety show, is slated to roll out in Q1 2018. The show’s producer, Chen Kun said that the show will “use the dance element of hip-hop as the entry point to the various popular cultures, creating a hub for the modern youth.”
On July 3rd, according to Korean social media, Starship Entertainment, a Korean talent agency, has announced that Xuanyi Wu, Meiqi标签：idol, produce 101, Rocket Girls 101, XuanMei’s 2018-07-05
Copyright © 2015 China Music Business News