Shanghai, China Film Groups Prepare Domestic IPOs
China Business News, 11/26/12
Shanghai Film Group (SFG) and China Film Group are preparing domestic IPOs, according to the China Securities Regulatory Commission (CSRC).
Ren Zhonglun, president of SFG, said the company will progressively shift its businesses into the newly listed company, with its East Film Distribution subsidiary's business and assets forming the initial IPO, listing in early 2013. In the next phase, SFG will shift its film production, media, and technology-related businesses and assets into the listed company. The entire Group is expected to be integrated into the listed company by 2015.
According to corporate filings, SFG's revenue reached RMB 2.01 bln in 2011, with net profit reaching RMB 194 mln. By comparison, film and TV production firm Huayi Brothers (300027.SZ) reported RMB 892 mln in revenue and RMB 202 mln in net profit in 2011.
China Film Group began its IPO preparations earlier, selling its 40% stake in subsdiary Beijing China Film First Film Production in 2010. At the time, the move was believed to be part of corporate restructuring in anticipation of a future IPO.
According to an industry insider, more than 20 of China's film companies will IPO domestically.
Keywords: Ren Zhonglun East Film Distribution China Film First Film Production film IPO distribution revenue television Shanghai Film Group China Film Group film production
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