Ali and the State Grid squeezed into the board of directors, radio and television stocks rose, where is the dividend of the new giant participating in 5G operation?

Per reporter: Liu Chunshan Per reporter Per editor: Zhang Haini

The integration of the national radio and television network and the construction of radio and television 5G pressed the fast-forward button and entered the substantive landing stage. What makes the outside world even more exciting is the addition of giants outside the industry.

Affected by the news of the initiation of participation in China Radio and Television Network Co., Ltd., at the opening of the market on August 27, more than 10 listed companies in the radio and television department rose rapidly, and Gehua Cable rose by 9.34% in the intraday and the Oriental Pearl rose by 9.53%. It is worth noting that the participation in the establishment of China Radio and Television Co., Ltd. is also alibaba, state grid and other cross-border giants, they spend tens of billions of cash to get involved in 5G construction.

In addition, China Radio and Television is positioned as a central cultural enterprise, and the Daily Economic News reporter noted that in terms of funding methods, the various promoters are very different and almost intricate. For example, if the listed company of the radio and television department contributes capital in cash, the capital contribution is 200 million yuan or 500 million yuan; the non-listed company will subscribe according to 51% of the net assets of the non-listed provincial network company in the form of assets, and the shareholders of individual non-listed provincial network companies will subscribe the capital contribution in currency. The way of capital contribution is directly related to the control of the joint-stock company over the provincial companies in the future, and in the eyes of the outside world, the current plan is not very strong in controlling the listed companies in the radio and television department.

Capital contributions of the top five shareholders. Image source: Screenshot of the announcement

In May last year, China Radio and Television was licensed by the Ministry of Industry and Information Technology to become the fourth largest telecom operator to participate in the construction of 5G. The integration of the national network and the acceleration of 5G construction have always been the two main tasks facing China's radio and television, and local radio and television companies in various provinces have not been directly controlled by China's radio and television. If China Radio and Television wants to work with provincial radio and television to develop 5G, integration is imperative.

China Radio and Television has to face an obstacle, the Ministry of Industry and Information Technology documents stipulate that companies approved to operate telecommunications business may authorize their subsidiaries that hold not less than 51% of the shares and meet the conditions for operating telecommunications business to operate telecommunications businesses that they are allowed to operate. In other words, if China Radio and Television wants to give licenses to local radio and television companies, it must hold 51% of its shares.

The reality is that the registered capital of China Radio and Television was only 4.5 billion yuan, and the assets of the ten listed radio and television companies alone far exceeded 100 billion yuan. There is a huge disparity in capital power, and it is clear that there is not much hope for direct control of this road. For possible solutions, Zeng Huiming, chairman of Zhongguang Grand, told reporters last year: "Can we jointly establish a company?" As the operating company of 5G, let China Radio and Television take control. "Judging from the plan announced this time, it does refer to such a path, which is conducive to the use of 5G licenses."

"It must be a good thing. We are also cooperating with the higher authorities to do it, and at present we are cash-funded to participate in the preparation. A person from the Oriental Pearl Investor Relations Center told the "Daily Economic News" reporter on August 27 that the specific operation depends on the arrangements after the establishment of the company. As for whether China Radio and Television Network Co., Ltd. directly controlled the company after its establishment, his answer to the reporter was a direct negative, "We are an investor."

Judging from the way of this capital contribution, in addition to the top five shareholders, the listed companies of the radio and television department contribute in cash, and the amount of capital contribution is 200 million yuan or 500 million yuan. Among them, Jiangsu Cable, Wasu Media and Oriental Pearl invested 500 million yuan and held 0.49% of the equity; Radio and Television Network, Hubei Radio and Television, Jishi Media, Guangxi Radio and Television, Tianwei Video and Guiguang Network each contributed 200 million yuan, holding 0.20% of the shares. In addition to 200 million yuan in cash, TVB Media also used the corresponding shares of Guangzhou Pearl River Digital and Tianjin Broadcasting as a way of capital contribution.

In terms of non-listed companies, the equity participation in the form of assets will be subscribed according to 51% of the net assets attributable to the parent of each non-listed provincial network company, and the audit node is December 31, 2019, and the shareholders of individual non-listed provincial network companies will subscribe for the capital contribution in monetary terms.

According to the announcement, according to the relevant management regulations of the central cultural enterprises, the first board of directors has 11 members. The election result of the shareholders' meeting was that 6 of the 11 people were nominated by China Radio and Television, 1 each nominated by Alibaba, State Grid and Beiguang Media, and the remaining 2 were jointly nominated by listed companies and non-listed provincial network companies funded in currency.

Although this solves the purpose of uniting radio and television companies, it is not very binding. Fu Liang, an analyst in the telecommunications industry, analyzed the "Daily Economic News" reporter that China Radio and Television Network Co., Ltd. gave up its absolute control over the shares of 10 listed companies, but adopted the way these ten companies used small cash to become the promoters, which is conducive to the establishment and operation of China Radio and Television Network Co., Ltd. as soon as possible, but also left hidden dangers for coordination, and there are still many problems to be solved from the national network.

The impact of the investment on listed companies, the listed companies in the radio and television department almost gave the same content. For example, Wasu Media said in the announcement that this move is to achieve the unified operation and management of the national cable TV network, the preservation and appreciation of state-owned assets, the construction of a 5G network with radio and television characteristics and the empowerment of cable TV networks, and the integration and development of the national first network and 5G. It is conducive to Wasu Media's deep participation in the integration of the national first network and the construction of radio and television 5G, which is in line with the strategic development direction of Wasu Media.

The establishment of China Radio and Television Network Co., Ltd., the cross-border emergence of Alibaba and the State Grid has attracted much attention, and the intervention of Alibaba and the State Grid can directly supplement a large amount of funds, after all, the construction of 5G is costly. A radio and television system expert told the "Daily Economic News" reporter that since Alibaba is a strategic investment and has mutual needs, it must be considered from the perspective of resources and business synergy. The future development potential of 5G is important in the B-end, the Internet of Things, the construction of china radio and television in the future 5G and Alibaba Cloud, Ali City Brain and other aspects have a huge space for cooperation.

According to the Shanghai Securities News, the cooperation between China Radio and Television and the State Grid in 5G was basically established in December last year. For the State Grid, in the 5G era, everything is interconnected, the State Grid has a huge amount of its own body, and the industry private network construction demand is strong. On the other hand, 5G base stations consume a lot of electricity, and the power lines, smart meters, and towers of the State Grid can be well coordinated with China Radio and Television.

However, China Mobile did not appear in the list of promoters this time, although China Mobile has shared with China Radio and Television in many ways on 5G. Industry insiders analyzed the reporter that it may still be related to the different positioning of the two companies, China Radio and Television positioning is a cultural enterprise, and the superior authorities of China Mobile are also different, so that in the 5G competition can also maintain a distance from China Mobile.

In May this year, China Mobile and China Radio and Television announced a cooperation plan for the joint network construction plan, jointly investing in the construction of a 700MHz 5G wireless network in a 1:1 ratio. Earlier on August 13, Yang Jie, chairman of China Mobile, also revealed at the company's interim results meeting that it did not intend to establish a joint venture with China Radio and Television, and it is expected to start building and sharing 5G next year. The co-construction and sharing time revealed by Yang Jie was delayed from the original plan.

Fu Liang analyzed to reporters that the number of 5G base stations of the three major operators has exceeded 400,000, and by the end of the year, this number is likely to exceed 600,000, and at that time, the capital payment of China Radio and Television Network Co., Ltd. can be completed. At this time, China Radio and Television has been granting 5G licenses for more than 18 months.

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