Huayu: Starting from joining the mainstream entertainment industry in 96

Chapter 489, Section 487: The Arrow is on the String

In August, the heat of summer still lingered in Yalong Bay, Qiongzhou, but the time for parting had already arrived.

After Wang Xian and Wang Ruoruo's first birthday, the festive atmosphere in the villa had not yet completely dissipated when the rhythm of life quietly shifted.

Zhang Xiulan and Wang Baoguo stayed for two more days, hugging and kissing their grandchildren repeatedly before reluctantly boarding their flight back to Beijing.

Gao's parents also passed away one after another due to their respective work and life arrangements.

Wang Sheng stayed in Qiongzhou for another three days, mainly to ensure that Gao Yuanyuan and the children's living arrangements would be perfect after he left.

He held another short meeting with the security and medical teams, emphasizing that safety and health remain the top priorities, and any minor abnormalities must be reported immediately.

……

August 15th, early morning.

Wang Sheng took the earliest flight back to Beijing.

The atmosphere in Beijing is completely different from the laid-back atmosphere in Yalong Bay.

Although the indescribable effects have not completely dissipated, the pulse of the city has already resumed its strong beating.

Traffic surged again, and people hurried along, their faces showing relief at surviving the ordeal and eager anticipation for the future.

Especially in the cultural and media sector, a suppressed desire for explosive growth is permeating the air.

Wang Sheng arrived at the Jingxin Building at around 3 p.m.

The backlog of documents was less than expected. Li Tingting handled her daily affairs efficiently and in an orderly manner, leaving only the core decisions that required his final approval.

This allows him to focus more energy on the upcoming crucial battle that will determine the fate of Shengying Media – its A-share listing.

"Chairman Wang, the third plenary meeting of the Listing Working Group is scheduled for 9:00 AM tomorrow in Conference Room 1." Li Tingting followed in and reported crisply, "This is the meeting agenda, the latest version of the prospectus (application draft) summary confirmed by all the committee members, and the initial draft of the response to the feedback from the China Securities Regulatory Commission last week."

Wang Sheng took the thick stack of documents and quickly scanned the meeting agenda.

The "Listing Working Group" is the highest decision-making and coordination body established by Shengying Media specifically for its IPO. The group leader is naturally Wang Sheng himself, with Han Sanping (representing China Film Group and strategic investors) and Li Tingting (responsible for specific execution and coordination) serving as deputy leaders.

The team members included the heads of all the company's core departments, such as finance, law, business, and public relations, as well as Chinese project leaders from the sponsoring institution, law firm, and accounting firm.

Tomorrow's meeting is the third and final plenary coordination meeting in the final sprint towards the IPO. Its purpose is to conduct a final scenario-based review and identify any issues before formally submitting the IPO application.

"Have the people from the securities firms and law firms all been arranged?" Wang Sheng asked without looking up.

“Everything is arranged. Attorney Zhou from King & Wood Mallesons, Attorney Zhou Xiaowen from Zhong Lun Law Firm, and Mr. Zhu’s team from CICC all arrived in Beijing last night to ensure we can communicate at any time,” Li Tingting replied. “In addition, Chairman Han has also confirmed that he will attend on time tomorrow.”

Wang Sheng grunted in agreement, his gaze falling on the financial data section of the prospectus summary.

Despite the industry suffering a severe blow in the first half of the year, Sheng Ying Media's financial statements remained impressive thanks to the huge profit inflow from overseas projects and the stable financial support from Enlight Media.

The adjusted net profit for the first half of 2003, after deducting non-recurring gains and losses, still maintained considerable growth, mainly due to the revenue recognition from "Night at the Museum" and "Saw".

Ample cash flow and a healthy debt-to-equity ratio are the solid foundation for its ambition to become the "first listed film company in China".

……

August 16th, 9:00 AM.

Shengying Media Headquarters, Conference Room 1.

The oval-shaped conference table was packed with people.

Wang Sheng sat in the main seat, with Han Sanping and Li Tingting on his left, and Mr. Zhu from the sponsoring institution CICC and Mr. Zhou, the chief partner of King & Wood Mallesons, on his right.

The remaining seats were filled with company executives and key members of intermediary agencies. The atmosphere was serious and focused.

"Everyone, let's cut to the chase." Wang Sheng got straight to the point, his voice steady and carrying an unquestionable authority. "Today is the last plenary meeting before the IPO. There is only one goal: to ensure that Shengying Media's IPO application can be approved smoothly and quickly after submission. Any potential risks must be identified and solutions determined today."

He glanced across the room: "Let's start with President Zhu. The distribution plan will be finalized."

Mr. Zhu opened the folder in front of him: "Chairman Wang, colleagues. Based on the latest market inquiry and the company's fundamentals, our final proposed issuance plan is as follows: We plan to issue 1.2 million shares, accounting for 20% of the total share capital after the issuance. The initial price range is set between RMB 18.8 and RMB 22.8. Based on this, the funds raised will be between RMB 22.56 billion and RMB 27.36 billion."

This financing amount is slightly adjusted from Wang Sheng's initial estimate of 30 billion yuan, but considering the current market situation and the need to ensure the success of the issuance, it is the optimal solution.

"What about the valuation?" Wang Sheng asked.

"Based on the upper limit of the offering price and the total share capital after the offering, the corresponding market value is RMB 136.8 billion," Mr. Zhu quickly replied. "This valuation level fully considers the scarcity of the company as an industry leader with a complete industrial chain layout and strong overseas profitability, while also leaving sufficient room for growth after listing. We believe the market can accept it."

Wang Sheng looked at Han Sanping: "Teacher, what do you think?" Han Sanping pondered for a moment, then nodded: "This valuation and financing scale meet the expectations of the higher-ups and also reflect the company's value. I have no objections. The key is to ensure a successful issuance and fire the first shot in the 'first stock' IPO."

"Okay." Wang Sheng made the decision. "The distribution plan will be finalized based on this. Mr. Ma, what about the roadshow arrangements?"

"The initial plan is to launch it next week after the meeting," Mr. Zhu replied. "It will consist of two parts: an online roadshow and an offline inquiry. The focus will be on institutional investors in Beijing, Shanghai, Guangzhou, and Shenzhen. Mr. Wang, as the key figure in the company, you need to personally attend several of the most important meetings with institutional investors."

“Sure,” Wang Sheng readily agreed. “Schedule the most important matches, and I’ll reserve the time.”

Next, we'll move on to the legal compliance aspect.

Attorney Zhou cleared his throat and began his report: "Chairman Wang, everyone. The latest feedback from the China Securities Regulatory Commission last week mainly focused on the following aspects: First, the compliance and potential risk disclosure of overseas subsidiaries, especially offshore structures holding equity in projects such as 'Saw' and 'Twilight'; second, the fairness of pricing in related-party transactions between the company and related parties, especially with Enlight Media, Star Era, and other companies controlled by your directors and senior executives; third..."

Attorney Zhou analyzed each point and provided the law firm's draft response.

The questions were professional and detailed, some even demanding. Wang Sheng listened attentively, occasionally interjecting to ask for details or giving instructions on response strategies.

"The compliance of overseas structures is of paramount importance," Wang Sheng emphasized. "Although we have implemented isolation measures, we must fully disclose to regulators the purpose of their establishment, their operating model, and the controllability of their risks. Responses must be clear, well-reasoned, and avoid any statements that may trigger associations with 'capital outflow' or 'regulatory circumvention.'"

"Regarding related-party transactions," he turned to the CFO, "all transaction contracts, pricing bases, and comparable prices from third parties must be fully prepared to ensure they can be accessed and verified at any time. The principle is openness, fairness, and impartiality."

The meeting proceeded item by item, with each aspect—from business model and core competitiveness to risk factors and the use of raised funds—being repeatedly examined and scrutinized.

When discussing "major pending litigation or arbitration", Li Tingting added a report: "In addition, we have detected that Mr. Zhang Weiping of New Pictures Film Industry recently reduced his holdings of other listed company stocks on a small scale in the secondary market through a cultural investment company he controls."

Although it's unrelated to us, considering their competitive relationship and the upcoming clash between "Hero" and our "Kung Fu" during the Lunar New Year season, we need to pay attention to whether they will take any other actions to try and influence market sentiment or regulatory decisions.

Upon hearing this, Wang Sheng said calmly, "They're just clowns, no need to pay them too much attention. But we can't let our guard down in monitoring public opinion. The public relations department should have contingency plans ready. If they dare to play dirty tricks, we'll shut them up with facts and results."

The meeting lasted from 9 a.m. to 1 p.m. before taking a break for lunch.

The meeting resumed at 2 p.m.

The focus has shifted to corporate governance and development strategy after the IPO.

Wang Sheng reiterated his core ideas: "Going public is not the end, but a new beginning. We will use the power of the capital market to do three things: First, consolidate our content advantages, promote the 'Sheng Film List' plan, and ensure a stable number of top-notch content productions every year;

Second, we need to accelerate technological upgrades, especially the digital transformation of China Film Shengshi Cinemas. I want to see digital screens account for more than 50% of the total screen area within three years.

Third, deepen the globalization strategy, which involves not only exporting content but also investing capital overseas, and at the right time, investing in or acquiring promising overseas production companies or technology teams.

His words were clear and powerful, outlining an ambitious blueprint for Shengying's post-IPO future.

The attendees were deeply moved and felt a heavy sense of responsibility.

"Finally," Wang Sheng looked at Li Tingting and the staff of the board secretary's office, "the listing ceremony, media publicity, the realization of the internal employee stock ownership plan... every detail must be handled flawlessly. This is a highlight moment for our Shengying Media, and also an answer to all those who have trusted and supported us."

“Yes, Chairman Wang!” Li Tingting nodded solemnly.

As the streetlights outside began to illuminate the night, the meeting finally drew to a close.

All major issues have been discussed, and action items and responsible persons have been identified.

Wang Sheng stood up, placed his hands on the table, and slowly scanned each tired but excited face with his gaze.

"Ladies and gentlemen," his voice echoed in the quiet conference room, "we started from a small office at the Beijing Film Studio, navigated the confusion of institutional reforms, experienced the trials of the market, and withstood the impact of unforeseen events. Today, we sit here not to boast about past achievements, but to usher in a greater future."

"Shengying Media is more than just a film company. It carries the exploration of market-oriented reform of the Chinese film industry, the dream of achieving cultural export through commercial rules, and the hard work and expectations of everyone here, as well as many more Shengying employees who have worked silently behind the scenes."

"In a few days, we will formally submit our application to the China Securities Regulatory Commission. A tough battle is ahead. But I believe that with our solid preparations, clear strategy, and the joint efforts of everyone, we will definitely succeed in listing on the A-share market and become a new benchmark for the Chinese film industry!"

He didn't raise his voice, but the confidence and strength in his words touched everyone present.

"Meeting dismissed."

Everyone stood up, and the sound of tidying up documents and chairs filled the conference room, mixed with hushed conversations and energetic exchanges of glances.

Wang Sheng stood there, watching everyone leave one by one, until only he and Han Sanping remained in the conference room.

"How are you feeling?" Han Sanping walked up to him.

"The arrow is on the bowstring," Wang Sheng uttered simply.

Han Sanping patted him on the shoulder, his tone carrying the care of an elder and the trust of a comrade: "Go for it. I'll keep an eye on things back home. Your ship has already left the harbor; now it's time to explore the stars and the sea."

(End of this chapter)