Huayu: Starting from joining the mainstream entertainment industry in 96

Chapter 500, 498: Going Public

Monday, August 2003, 12.

Before the morning mist had completely dissipated from the streets and alleys of the capital, the morning newspapers, still carrying the fresh scent of ink, had already been delivered by newspaper vendors to various newsstands and subscribers.

This winter morning is destined to be remembered in the history of China's cultural industry.

The cultural and financial sections of mainstream media outlets such as China Youth Daily, Beijing Youth Daily, Huaxia Film News, and even People's Daily all published two related, yet equally significant, news items in prominent positions.

The front page headlines are often reserved for news with greater political significance, but in the fields of culture, entertainment, and finance, there is only one focus today—Shengying Media.

The entertainment section of the *Beijing Youth Daily* featured a striking headline in bold black font on its front page:

"Kung Fu Hustle sweeps the box office, with a preliminary opening weekend gross of over 5500 million!"

The main body of the report reads:

(Our reporter reports early this morning) Since its release in theaters nationwide on December 5th, the highly anticipated blockbuster "Kung Fu Hustle," directed by and starring Stephen Chow, and co-produced by Star Overseas and Sheng Ying Media, has swept the national box office with unstoppable momentum. According to incomplete statistics from the distributor, as of 24:00 on December 7th, the film's cumulative box office revenue over its opening weekend (Friday, Saturday, and Sunday) has exceeded 55 million RMB (this is preliminary data; the final figure will be subject to the subsequent announcement by the Special Fund Office).

On December 6th (Saturday) alone, the film grossed approximately 25 million yuan, setting a new record for the highest single-day box office for a domestic film this year. Its strong performance even surpassed last year's Lunar New Year box office champion, *Night at the Museum*.

"It is reported that 'Kung Fu Hustle' has an average screening share of over 75% in major cinemas across the country, and in some core cinemas of 'China Film Shengshi Cinema Circuit' under Shengying Media, the screening rate even exceeds 85%."

The film's extremely high market share, coupled with its overwhelmingly positive word-of-mouth (according to data from the local film rating website 'Maoyan Community', its audience score is as high as 9.4 points), has enabled the film to maintain an astonishingly high occupancy rate.

Cinema managers in first-tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen told our reporter that tickets for prime-time screenings of "Kung Fu Hustle" were extremely difficult to obtain, with constant laughter and applause in the theaters, creating an unprecedented atmosphere.

In stark contrast, "Hero," released the previous week, suffered a precipitous drop in both screenings and box office revenue due to the impact of "Kung Fu Hustle," earning less than 500 million yuan over the weekend, with a worrying outlook.

The report also quoted comments from several industry observers who believed that the success of "Kung Fu Hustle" was "a perfect example of the combination of mature Hong Kong-style comedy core and top-notch mainland film industry technology (especially special effects)," marking "a new stage in the exploration of genres and industrial production of Chinese commercial films."

……

In many financial newspapers, such as the Economic Observer and the Securities Daily, another news item occupied a more prominent position:
"China's first listed film company, Shengying Media, rang the opening bell today and debuted on the Shanghai Stock Exchange!"

The reports are usually accompanied by the prominent logo of Shengying Media and its stock code "603888".

"(This report is from Shanghai) Today, China's capital market will welcome a highly anticipated new member."

Shengying Media Group Co., Ltd. (stock abbreviation: Shengying Media, stock code: 603888) will be officially listed and traded on the Shanghai Stock Exchange at 9:30 a.m.

This not only marks the successful listing of the first privately-owned cultural media company with film as its main business on the domestic A-share main board market, but is also seen as an important milestone in the deepening of China's cultural system reform and the deep integration of industry and capital.

The report reviewed the development history of Shengying Media: it started in 1996 when Wang Sheng, a son of a member of the Beijing Film Studio, founded a "private customized wedding film service", and gradually expanded to the establishment of Shengying Media Co., Ltd., and then to the full industry chain layout of film production, distribution, cinema, film and television cultural tourism, special effects technology, etc.

It particularly emphasized its tremendous commercial success in recent years, including the global box office success of films such as "Night at the Museum," "Saw" (overseas), and "The Pursuit of Happyness" (co-production), as well as the international influence brought about by its founder Wang Sheng's recent appearance on the cover of Time magazine.

The report also detailed the core data related to the listing:

Issue price: RMB 22.8 per share (the final price was set at the lower end of the range, showing the issuer's prudence and leaving room for future market fluctuations).

Number of shares issued: 2.5 million A shares.

Total share capital after issuance: 12.5 billion shares.

Funds raised: 57 billion RMB!
发行后股权结构：王盛持股61.6%（约7.7亿股），中国电影集团公司持股16%（约2亿股），陈良持股2.4%（约3000万股），社会公众股东持股20%（2.5亿股）。

Many financial commentators pointed out in their reports that Sheng Ying Media's extremely high price-to-earnings ratio (approximately 48 times after dilution), as well as the record amount of frozen funds and extremely low winning rate of the online subscription, fully reflect the market's high expectations for the emerging "cultural media" sector, and for Sheng Ying Media's leading position and future growth potential.

Its performance after listing will become a "litmus test" for the A-share market's recognition of the cultural industry.

……

Meanwhile, in Shanghai, a thousand miles away.

The Bund's collection of international buildings gleams with a cool luster in the winter morning light, while across the river, Pudong's Lujiazui exudes the vitality of a modern financial center.

The atmosphere at the Shanghai Securities Building, located at 528 Pudong South Road, is slightly different from usual today.

Although it wasn't a holiday, the trading hall of the Shanghai Stock Exchange on the first floor of the North Tower of the building exuded a sense of solemnity, as if it had been meticulously prepared.

On the huge electronic display screen, the red words "Shengying Media" and "603888" are particularly eye-catching.

Inside the trading hall, people were bustling about, yet the atmosphere was orderly.

The management team of Shengying Media, core employee representatives, the sponsoring institution CICC team, important partners, as well as some institutional investors and media reporters who were invited to attend the listing ceremony gathered here.

Most of the men were dressed in suits, while the women wore appropriate business attire or formal dresses, and everyone's face was filled with smiles of excitement and anticipation.

As the company's key figure, Wang Sheng was naturally the focus of the entire event.

Today he chose a well-tailored dark navy blue suit, a white shirt, and a dark tie, which made him look calm and reserved.

Contrary to what some might have imagined, he did not stand quietly at the front of the crowd, occasionally exchanging a few words in hushed tones with Han Sanping or General Manager Zhu of CICC, his gaze calmly fixed on the opening gong and the huge market display screen directly in front of him.

His calmness contrasted subtly with the slightly restless atmosphere around him.

Perhaps, for him, who had foreseen this moment, ringing the bell was more of a necessary procedure than a climax of ecstasy. The real battle would begin after the bell rang.

Looking at his young disciple and business partner beside him, Han Sanping was filled with emotion.

From a greenhorn at the Beijing Film Studio who proposed the idea of ​​"personalized customization" to a media giant about to ring the listing bell, Wang Sheng has only taken less than eight years. These eight years have been eight years of dramatic changes in the Chinese film market, and also eight years in which Wang Sheng, with his forward-looking vision, decisive courage, and profound understanding of market rules, has gradually propelled Shengying Media to the forefront of the wave.

"Are you nervous?" Han Sanping asked in a low voice.

Wang Sheng shook his head slightly and smiled faintly, "Teacher, it's just a natural progression."

The listing ceremony officially began at 9:25 a.m.

A deputy general manager of the Shanghai Stock Exchange presided over the ceremony, briefly introducing the basic situation of Shengying Media and the significance of its listing, emphasizing that this is "an important step in the integration of China's cultural industry development and capital market".

Subsequently, Wang Sheng, as the company's chairman, delivered a speech at the invitation of the company.

He walked onto the small stage covered with a red carpet, faced the microphone, his gaze sweeping over the crowd and cameras below, his voice steady and powerful:
"Distinguished guests and friends, good morning."

"Today, Shengying Media officially went public, marking an important milestone in the company's development."

On behalf of all employees of the company, I would like to express my sincerest gratitude to leaders at all levels, partners, investors, and friends from all walks of life who have long cared for and supported the development of Shengying Media!

"Eight years ago, we started from Beijing Film Studio with our love for the art of film and our belief in marketization."

Along the way, we have experienced the downturn and recovery of the Chinese film market and participated in the exploration and practice of industry reform.

We firmly believe that the prosperity of the cultural industry cannot be separated from the power of the market, the support of capital, and, most importantly, the recognition of every audience member.

"For Shengying Media, going public is not the end, but a new beginning."

This means greater responsibility—responsibility to shareholders, to employees, to the industry, and to promoting Chinese culture.

We will strictly abide by capital market rules, continuously improve corporate governance, make good use of raised funds, focus on our main business, create more profound, artistically excellent, and well-produced film and television works, and continuously improve our industry chain layout.

We are committed to building Shengying Media into a comprehensive cultural media group with international competitiveness, rewarding investors and giving back to society with outstanding performance!

His speech was brief and pragmatic, without excessive flowery language, yet it clearly conveyed a sense of responsibility and a direction for the future, winning enthusiastic applause from the audience.

At 9:28, the most exciting moment arrived.

Wang Sheng, Han Sanping, General Manager Zhu of CICC, along with important guests and dozens of employee representatives, stood together in front of the huge opening gong.

The hostess handed over a gong mallet tied with a red ribbon.

Wang Sheng and the others exchanged nods and together grasped the long gong mallet.

"Five, four, three, two, one!" The host and the crowd counted down together.

The moment the clock struck exactly 9:30, the four men worked together to strike the center of the gong with the mallet!
"clang--!"

A loud, melodious gong sound instantly resounded throughout the trading hall and was broadcast nationwide via media signals.

Almost at the same time the gong sounded, the huge electronic market data displays on the four walls of the trading hall instantly refreshed the previously blank "Latest Price" and "Price Change" columns behind the words "Shengying Media (603888)"!

Opening price: 29.64 yuan!
Compared to the issue price of 22.80 yuan, it has surged by 30.00%!

"Wow—!" A gasp and enthusiastic applause erupted from the audience!
The increase exceeded 30%!

This fully demonstrates the market's enthusiastic pursuit of "China's first listed film company".

Wang Sheng looked up at the bright red numbers and a clear smile appeared on his face.

He shook hands firmly with Han Sanping, General Manager Zhu, and others around him, accepting their congratulations.

The trading hall instantly became tense and busy.

Traders in red vests began nervously accepting and submitting orders, with the sounds of keyboards clicking and telephones ringing incessantly.

On the stock chart, Shengying Media's stock price began to fluctuate, and trading volume rapidly increased.

Within just ten minutes of opening, the turnover rate exceeded 15%, demonstrating extremely high market activity.

After briefly surging to 35 yuan, the stock price retreated slightly, but remained stable above 29 yuan.

The Sheng Ying employees present hugged each other excitedly, and some even had tears in their eyes.

……

A financial reporter, reporting live from the scene, exclaimed excitedly: "Dear viewers, as you can see, Shengying Media's stock price surged on its first day of trading! It's currently holding steady above 29 yuan, a 30% increase!"

The market has expressed its strong optimism for this leading private film and television company with real money! The journey to becoming 'China's first listed film company' has begun in earnest!

The bustling trading hall contrasted sharply with the tranquility of the Huangpu River outside the window.

Across the country, countless people who follow the stock market and entertainment news also learned of this news through various channels.

Beijing.

Shengying Media Headquarters, Jingxin Building.

The moment the opening price was announced, the entire floor erupted in enthusiastic cheers.

(End of this chapter)