Tencent-backed Entertainment Plus, China’s largest movie ticketing platform, applies for US$1 billion Hong Kong IPO
But company, which was behind last ‘Transformers’ movie, says it may never be profitable
Entertainment Plus, China’s biggest online movie ticketing platform, has applied to the Hong Kong stock exchange for an initial public offering. But the company, which helped to fund last year’s Transformers: The Last Knight and is backed by Tencent Holdings and Meituan Dianping, said it had been making losses and might continue to report declines in the future.
Media reports have suggested the company, valued at 20 billion yuan (US$2.92 billion) in its last funding round in November, was looking to raise about US$1 billion.
Meituan Dianping begins institutional order taking for up US$4.4 billion IPO in Hong Kong, the city’s second major tech listing this year
“We may not be able to become profitable in the near future – or at all,” Entertainment Plus said in an application prospectus submitted on Monday. “In addition, we expect our costs and other operating expenses to increase as we expand our business.”
We may not be able to become profitable in the near future – or at all
Entertainment Plus is a movie related online platform where people can buy tickets and review films. The company enjoys a 60.9 per cent market share, according to iResearch Consulting Group, which measures online audiences in China. Its Maoyan Pro app is the most popular app among professionals in China’s entertainment industry, according to iResearch. The app’s average monthly active users reached 133.5 million in the first half of 2018.
But Entertainment Plus incurred a cash outflow of 447.4 million yuan in the six months to June end. its losses before income tax worsened to 217.2 million yuan, up from a loss of 69 million yuan for the same period a year ago. Its earnings before other losses, depreciation and amortisation expenses also worsened to minus 93.1 million yuan in the six months to June end from minus 66.4 million yuan in the same period a year ago.
According to Entertainment Plus’s application, its shareholding structure includes Wang Chang-tian, who has an indirect 48.8 per cent interest in the company’s issued share capital through Vibrant Wide (28.77 per cent) and Hong Kong Pictures International (20.03 per cent), which is in turn owned by film producer Beijing Enlight Media. Shares in Enlight Media jumped by 3.8 per cent to 8.50 yuan in Shenzhen on Tuesday.
