Gome via Jia Xuan holding Chinese star culture spread to media business

Hong Kong listed companies in China star Culture announced today, the company introduced the new holding shareholder Jia Xuan Group, to become a major shareholder of Chinese star culture. And the main shareholder of Jia Xuan Group is Gome, the company is Gome Holding Group and the founder of Zhongmin, Mrs. MCA joint venture. It is reported that this transaction will bring about 5 of the Chinese star culture industry. HK $500 million, of which the Jia Xuan Group contributed nearly HK $400 million.

The announcement shows that the Chinese star culture in the price of HK $0.2 per share, Shang group ﹑vision Path and Ruidong Global and other four subjects allotted 1.379 billion shares, and 1.379 billion shares of preferred shares with stock exchange. 4 Investors with new shares, a total of 60% stake in the company, of which Jia Xuan Group held 42%. If the preferred stock conversion, the combined shareholding will be further increased to 75%, of which Jia Xuan Group holds 52.5%.

It is reported that Jia Xuan Group and other investors to invest in the Chinese star culture, will vigorously expand in the mainland culture, media and entertainment business.

Why is gome in the Chinese star culture?

Data show that China's star culture formerly known as the Chinese media film and Television, formerly affiliated to the Hong Kong China Star Group, the business involved in film and television production, film and television copyright, film brokers and so on.

Gome Holding Group currently covers electrical chain ﹑ logistics Warehousing ﹑ Commercial real estate and medicine and other fields. One of the electrical chain business in the mainland nearly 400 cities have nearly 1700 stores, annual tax-inclusive sales reached 100 billion yuan.

Jia Xuan Group, another shareholder of MCA's husband Zhongmin in the early 1990 's, the founder of the Beijing-recorded records, its artists include Han ﹑ Cui Jian ﹑ feng, but also for the Amin ﹑, Li Disneyland and other issues such as ﹑-Lang issued records. In the early 1990s, Jingwen recorded the largest record distribution and media promotion platform in the country. It is also the first private enterprise in the mainland to cooperate with the international record company ﹑ Film company ﹑ Media company, and has successfully introduced discovery and the National Geographic Channel to the mainland China market.

It is understood that the Chinese star culture in the future will be combined with the Internet, will be a strong intervention in the Internet cultural pathway. Gome needs to speed up its Internet transformation through a new plate.

In the past two years, the Gome biggest competitor Su Ning through the capital means, such as the acquisition pplive and so on a series of movements to the Internet, and Gome due to the continued decline in performance has been to close the store, improve customized products and other ways to change the loss of performance, but not to accelerate the overall pace of

By the end of the three quarter, Gome began to turn the profit, net profits reached 1.018 billion yuan year-on-year increase of 74.9%. Gome's development ushered in the best period. Yesterday, Gome Holding group President Huang at the 12th annual China Enterprise Competition meeting.

But at the same time, Gome is also facing a crisis of sustained performance growth.

Gome Performance Although the loss, but the growth of home appliances retail market slowdown, by the Beijing-east, Ali and other electric giants to the offline market squeeze, gome by the original business to maintain sustained growth has been very difficult. An electric business personage analysis thinks, gome as a home appliance channel business, not comprehensive to the Internet transformation will surely die, Best Buy in China home appliance retail market exit can glimpse.

More importantly, the Beijing-east, the cat and other electrical appliances market penetration has threatened Gome and suning. At present, home appliance brand manufacturers have begun to increase the proportion of the electricity quotient, and planning for the next two years to increase the proportion of electricity sales to 30%.

So Gome needs to find new business and core resources to reverse its position as a retailer.

Gome's investment in the Chinese star culture, Gome believes that the new network of cultural services more promising. Data show that 2014 China's network audio-visual industry output value is expected to reach 37.84 billion yuan, a record high. The film and TV industry has also developed rapidly.

At present, internet companies have infiltrated the media industry, Alibaba Entertainment treasure a period of 73 million yuan to raise funds into the "small Age 3" "Wolf Totem" and other 4 movies and a network social game. Baidu to 191.5 million yuan to complete the Chinese network of the acquisition of vertical and horizontal.

After investing in the Chinese star culture, Gome will be in front of how to harness the new field of cultural media to drive the positive growth of future performance.