Author: Gong Jinhui
A few days ago, Hero Interactive Entertainment announced the change of coach, and Wu Dan, who has been fighting in Jiangshan for 6 years, will succeed Ying Shuling to take charge of Hero Interactive Entertainment, who will be transferred to the executive chairman of the board of directors of Hero Interactive Entertainment. Next, whether Wu Dan can reverse the decline of Hero Mutual Entertainment is not only the expectation of all employees and investors, but also the focus of attention of the outside world.
In the end, Hero Interactive Entertainment is not a high-quality investment target, and its investor Huayi Brothers has the most say. In February 2016, Huayi Brothers spent 1.9 billion yuan to subscribe for 27.72 million new shares of Hero Interactive Entertainment, becoming the second largest shareholder of the new third board game company with a 20% stake. Five and a half years later, Huayi Brothers transferred 15% of its hero mutual entertainment shares to game investor Chen Chen, realizing 870 million yuan.
Through calculation, it can be concluded that Huayi Brothers' investment in Hero Interactive Entertainment is a loss-making transaction, with a loss of up to 555 million yuan, which is worse for the film and television giant with a huge loss of nearly 6.2 billion yuan in 3 years. Recall that Huayi Brothers' investment of 1.9 billion yuan in Hero Interactive Entertainment was based on the valuation basis of 19 times (that is, 9.5 billion yuan) of the audited net profit after tax in 2016 promised by the actual controller.
Behind the high premium acquisition, there is no low performance commitment target. The agreement stipulates that in the next three years (2016-2018), Hero Interactive Entertainment will commit to a net profit after tax of not less than 500 million yuan, 600 million yuan and 720 million yuan respectively, that is, the total net profit of the three years is not less than 1.82 billion yuan. Fortunately, the hero mutual entertainment is still powerful, and the VAM agreement was successfully completed, but the process was very "amazing".
According to the financial report, from 2016 to 2018, the net profit of Hero Interactive Entertainment was 532 million yuan, 915 million yuan and 728 million yuan, respectively. Embarrassingly, at the end of the 3-year performance commitment period, Hero Interactive Entertainment immediately "changed its face", and the performance took a sharp turn, and the net profit in 2019 and 2020 plummeted to 24.5875 million yuan and 27.9714 million yuan respectively, and the loss in the first half of 2021 was 26.844 million yuan, which was a big surprise.
At the same time, the road to the listing of Hero Interactive Entertainment is also quite bumpy. After the failed restructuring with Huayi Brothers, in 2017, Hero Interactive Entertainment tried to take the green channel of the IPO of poor counties, and in October of that year, the company's registered place was changed from Haidian District of Beijing to Yanchuan County of Yan'an City, then a poor county in Shaanxi Province. In addition, Hero Interactive Entertainment also tried reverse takeovers, restructuring and listing and other "backdoor listing" shortcuts.
For example, Hero Interactive Entertainment has successively borrowed backdoor A-share listed companies *ST Hemei and Dongjing Electronics, but the restructuring actions have ended in failure. After repeated defeats, the hero mutual entertainment with low performance can only continue to stay on the new third board. At the end of December last year, it submitted to the Shaanxi Securities Regulatory Bureau the counseling and filing materials for the public offering of shares to unspecified qualified investors and listing on the select layer, but it has not yet entered the selection layer, and the listing prospects are still full of variables.
Looking to the future, as a co-founder, Wu Dan can lead the company out of the predicament, usher in a rebound at the bottom, and let the dream of listing in his heart shine into reality after taking charge of Hero Interactive Entertainment, which has become the two major problems that he must face, and it is also the biggest challenge that cannot be avoided. Can Hero Interactive Entertainment live a good life again under the leadership of Wu Dan, let the bullets fly first, and time will finally give the answer!