Editorial Summary

Beijing-based movie production company Huayi Brothers plans to list in Shenzhen this year, reports Shanghai Securities News quoting company president Wang Zhongjun on March 19. According to Wang, Huayi Brothers has attracted strategic investors including Alibaba Group CEO Jack Ma, Focus Media (Nasdaq: FMCN) chairman Jason Jiang and Focus Media CEO Tan Zhi. According to an unnamed insider, Huayi Brothers plans to raise 25 percent of its total capital via an offering underwritten by Citic Securities (600030.SH) and China Merchants Securities. Wang said Huayi Brothers prefers bank loans to other forms of capital raising, and has reached an agreement to receive one RMB200-300 million loan for every 500 episodes of TV series it produces.

Huayi Brothers has recorded average revenue growth rates exceeding 50 percent for three consecutive years, said Wang. Company revenue is divided evenly among movies, TV programs, and celebrity representation, according to the president. Huayi Brothers took out a RMB100 million loan from Shenzhen Development Bank (000001.SZ) on the movie "The Banquet" and a RMB50 million loan from China Merchants Bank (600036.SH; 3968.HK) for "Assembly", said the report.