Frbiz.com reports Huayi Brothers and other three companies today agreed to apply the GEM starter

GEM China Securities Regulatory CommissionBrothers, was released shareholding ratio will drop
Development Review Committee, in 2009 theto 34.41%. Ranked the third largest shareholder
first meeting was held today 17,18. Huayi Brothersand the company is the vice chairman Jack Ma,
Media Co., Ltd., Tianjin Red Sun Pharmaceuticalchairman of Alibaba, holding 1382.4 million, 10.97%
Co., Ltd., Hangzhou Huaxing Venturestake; the fourth-largest shareholder of Focus
Communication Technology Co., Ltd. 3 starter forMedia CEO, respectively, and Wanxiang Group
the GEM adopted by the SFC.Jiangnan Spring CEO Lu Wei-ting, respectively,
According to the prospectus Huayi Brothers,Huayi Brothers to hold 590.4 million shares, each
which the tentative 4200 million A shares to beholding 4.69%.
issued, representing the proportion of total shareIn addition, the listing prospectus, the director
capital after the release of 25%; issued shareFeng Xiaogang to hold 288 million shares, 2.28%
capital of about 16.8 thousand million; pre-IPO netstake; Zhang Jizhong hold 216 million shares,
assets per share of 2.22 yuan ; Sponsor CITIC toholding the proportion of 1.7%; actor Huang
build man-made cast. Prospectus shows thatXiaoming held 180 million shares, compared to
Huayi Brothers 32.02875 million yuan net profit in1.4%; Bingbing hold 36 million shares, accounting
the first half.for 0.28%. Statistics show that Huang Xiaoming
Orient Securities analyst Zhang Ga the media, saidand other entertainment stars stake in early
on Sina Finance, A shares is not comparable with2008, when the transfer price by 6.4 times the
the Huayi Brothers Company, although noearnings calculation, only 3 yuan / share. Once the
shortage of film and television productionHuayi media market, these "stars shareholders"
companies, but generally in the main business inwill be profitable.
the very small proportion, from the visibility,Meanwhile, the prospectus noted that a small
revenue and other matters Huayi Brothers Monumber of contract producers and directors to
Fabi. He believes that because the film audiencethe company contribution to the performance of
has increased, film and television industry, willa relatively high proportion. Such as film business,
certainly be of great development. "Last year, theFeng Xiaogang's studio during the reporting period
national income of more than 40 million inproduced the "assembly" and the "You Are the
theaters, up about 50% the previous year, HuayiOne," films, these films during the reporting period
Brothers works mainly in the theater show."to achieve the box office split aggregate income
Huayi Brothers The fund-raising about 6.2 billion,of 18,896.50 million, accounting for distribution
mainly used to supplement working capital forduring the reporting period Movie revenues were
movies and television business. Huayi Brothers,40% and 18% of total revenues, the Company's
said the actual fund-raising such as the issuance isteam has a certain dependence on Feng Xiaogang.
expected to raise funds exceeded the amount ofThe prospectus on the company's tax incentives
excess capital investment will be the use ofare also described. Huayi Brothers-related policies
theater projects with a total investment ofin recent years, according to the state enjoyed a
129.6632 million yuan.tax credit, business tax breaks and government
Prior to Huayi Brothers "star shareholder" hassubsidies. 2006, 2007, 2008 and 2009 from
become the focus of media attention, someJanuary to June of the tax breaks and
media comments that Huayi signed a few of thegovernment subsidies, respectively, after
many star holding unequal reveals the trueexcluding the income tax impact of the impact of
position within the star. In this regard, vicethe company's net profit for the year 47.49%,
president of Huayi Brothers, the Board Secretary,42.37%, 25.65% and 20.93%. Tax incentives and
Hu dialogue with the Sina entertainment, "said Stargovernment subsidies gradually reduce the rate of
is a personal investment holding behavior, andprofit contribution, but still the company's
their career can not be equated."operating results constitute a certain extent.
According to the prospectus, Huayi Brothers inThe other two companies at the same time I
actual control of artificial promoters, Wang Jun,would go red, respectively Tianjin Pharmaceutical
Wang Lei brother, the pre-release the twoCo., Ltd. and Hangzhou Huaxing Venture
brothers together, holding 45.88% stake in HuayiCommunication Technology Co., Ltd..