SFC(SH:601595) Xin Lang Zheng Quan·2025-09-08 10:19Core Viewpoint - Shanghai Film has completed the acquisition of a 19% stake in Shanghai Yuan Cultural Technology Development Co., increasing its ownership to 70%, despite the latter's significant revenue and profit decline in the first half of 2025 [1][2]. Group 1: Acquisition Details - The total amount for the acquisition was 66.215 million yuan, with Shanghai Film paying 48.79 million yuan for a 14% stake from Shanghai Film Group and 17.425 million yuan for a 5% stake from Shanghai Meiying [2]. - The valuation of Shanghai Yuan's total equity was assessed at 349 million yuan, representing a substantial premium of 314.43% over its book equity of 84.09 million yuan as of the end of 2024 [2][6]. Group 2: Performance Analysis - In the first half of 2025, Shanghai Yuan reported revenues and net profits of 40.0634 million yuan and 13.0976 million yuan, respectively, reflecting year-on-year declines of 37.45% and 38.10% [1][3]. - In contrast, Shanghai Yuan's performance in 2023 and 2024 showed growth, with revenues of 79.7819 million yuan and 93.8652 million yuan, and net profits of 20.9414 million yuan and 27.502 million yuan, indicating year-on-year increases of 17.65% and 31.33% [3]. Group 3: IP Strategy Challenges - Shanghai Yuan holds rights to 60 classic animation and film works, including "Hulu Brothers" and "Black Cat Detective," and has claimed to expand its IP influence through licensing and collaboration [4]. - Despite a reported online presence of over 6.78 billion for its licensing projects in 2023, the company has struggled to convert this IP popularity into stable revenue, as evidenced by its performance decline in 2025 [4][8]. Group 4: Shanghai Film's Financial Pressure - Shanghai Film itself is facing financial challenges, with mid-2025 revenues of 362 million yuan and a net profit of 53.76 million yuan, down 4.96% and 22.18% year-on-year, respectively [5][6]. - The company's 2024 revenue was 690 million yuan, a decrease of 13.19%, and net profit fell by 29.08% to 90.0471 million yuan, raising concerns about the rationale behind the high-priced acquisition of a declining subsidiary [6]. Group 5: Market Reaction - The capital market has reacted to these developments, with Shanghai Film's current price-to-earnings ratio reaching 132.4, significantly higher than the industry average [7].