Hong Kong Stock Exchange: non-controlling interest losses expand, involving 37 mutual entertainment, etc

2022-06-05 0 By

On April 1, 2022, Fenghua Qiushi Group Holdings Limited (hereinafter referred to as “Fenghua Qiushi”) submitted its prospectus again at the Hong Kong Stock Exchange to be listed on the Main board of Hong Kong.According to Bedouin Finance, this is the third time for Fenghua Qiushi to deliver the form, after the first sprint for Hong Kong Stock Exchange listing on January 22, 2021.After failing to pass a hearing or offer within six months, the prospectus “lapsed” in July 2021.On September 27, 2021, Fenghua Qiushen submitted the form for the second time, and updated the prospectus (revised version) on November 15, 2021, and then “expired” again.According to the Research report, Fenghua Qiushi ranked 16th among music record companies in terms of revenue generated from licensing and recording in 2020, with a market share of about 0.6%.Among china-based music labels, Fenghua Qiushi ranks fifth, with a market share of about 1.5 percent.Beiduo financial learned that the sprint Hong Kong Stock Exchange listing, fenghua full complement disclosed financial data and other information for the fiscal year 2021.In 2019, 2020 and 2021, Fenghua Qiushi’s operating revenue was 55.605 million yuan, 70.5661 million yuan and 81.858 million yuan, respectively, less than 100 million yuan in 2018.In 2019, 2020 and 2021, Fenghua Qiushi’s net profit was 18.818 million yuan, 42.717 million yuan and 33.251 million yuan respectively.Among them, the profit attributable to the owner of the company is 21.316 million yuan, 47.646 million yuan and 39.056 million yuan respectively, and the non-controlling interest is -2.498 million yuan, -4.929 million yuan and -5.85 million yuan respectively.Among them, the non-controlling interest refers to the profit and loss of minority shareholders, which reflects the interests of other investors in the subsidiary other than the parent company and represents the shares held by other investors in the owner’s equity of the subsidiary.In other words, the handsome non-controlling shareholders’ equity continues to lose money, and the loss is widening.According to beiduo Finance, fenghua Qiushi’s non-controlling shareholders include Sanqi Interactive Entertainment (SZ:002555), etc.Earlier, Sanqi Interactive Entertainment had invested 120.2 million yuan to participate in the investment.In the shareholder structure before the listing of Fenghua Qiushi, Sanqi Interactive entertainment’s Anhui Shangqu play through creds dawn holding 20.00%.In contrast, Li Hui, Tang Yuxiao, Bian Zhenmin, Tang Haizhen, Huang Zhenfeng, Wu Jun respectively directly hold 20.8%, 15.36%, 4.8%, 4.8%, 3.84%, 2.4%, the six people also indirectly hold 28% through Camphor Tree Fenghua.Li Hui and other six people hold fenghua Qiushi 80% of the equity, together to form the controlling shareholder.Among them, Li Hui is the founder and chairman of the board (chairman) of Fenghua Qiushi.In addition to Li Hui, Fenghua qiushi’s management team includes Tang Zhengyi, Chief Executive Officer and Director; Zhao Mingyi, Chief Content Officer and Deputy General Manager; Chen Yijun, chief Financial Officer; and Huang Zhenfeng, Wu Jun and Yang Jun, non-executive directors.According to the prospectus, the majority of its revenue came from licensing and recording music, both of which accounted for more than 90% during the period.In fy2019, fy2020 and fy2021, its revenue from music copyright and recording was 50.56 million yuan, 68.765 million yuan and 73.78 million yuan, accounting for 90.9 percent, 97.5 percent and 90.1 percent, respectively.It’s worth noting that Fenghua relies heavily on the company’s key artist, Lu Han.During the reporting period, Lu’s direct share of total income accounted for about 25.5%, 21.2% and 9.3%, respectively.During the same period, Fenghua Qiushen paid 46.1 percent, 29.5 percent and 16.1 percent of purchasing costs to The Lu Group, respectively.In an earlier interview, Huang Zhenfeng, co-founder of Fenghua Qiushen, said, “We work with Lu very well and trust each other.After he returned to China, we had to create works with his own label, which highlighted his identity and temperament as a singer.”Along with Lu, Fenghuaqiu manages eight music artists and 10 trainee artists, including Black Panther, Xu Mingming, Hao Yun, Zhao Zhao, Yang Jiasong and Hulu Boyz.