Zhongnanhong Culture Group Co., Ltd.
中南文化
002445
Shenzhen Stock Exchange
Company Profile
I．Manufacturing The company is the first listed metal pipe company in China, and the country’s largest metal pipe producer, with its products involved in every aspect of the national economy. II. Culture and entertainment 1. Human resources: Wang Hui, chairman of Datang Brilliant Media Co., Ltd., is the vice chairman of China Television Drama Production Industry Association (CTPIA) who has rich experience in TV drama production and distribution. Chang Jihong, chairwoman of Shanghai Qianyi Zhicheng Culture & Media Co., Ltd., is a prestigious artist broker in China. Wang Xiaodong, chairman of Xinhua Pioneer Culture & Media Co., Ltd., is a powerful influencer in the publication industry. Zhong Deping, chairman of Zhishang Interactive Tech Co., Ltd. and Dai Zhili, chairman of JGgame.net, have widespread influence in the game industry. The company hired Liu Chun, former executive president of Phoenix TV and former CEO of TV.sohu.com, as its chief culture officer; Hong Tao, former general manager of Omnijoi Media Corporation Co., Ltd. as its general manager; and famous music producer Lao Zai as the president of Zhongnan Music. 2. Industrial chain coordination: The company has formed a complete cultural and entertainment industrial chain ranging from development of literature intellectual properties (IPs), TV dramas, and films to game production and derivative products. 3. External cooperation: The company cooperates with Mango Media Communication Co. Ltd. Thanks to its partner’s business ecosystem, the company quickly upgrades its own brand image and position. 4. Financing: The company now focuses on these two main businesses, of which the heavy assets of its manufacturing business may facilitate the financing for its cultural business.
Full description
Zhongnanhong Culture Group Co., Ltd. (SZSE: ZNWH-002445), headquartered in Jiangyin in Wuxi City, Jiangsu Province, was listed on the SME Board of Shenzhen Stock Exchange (SZSE) since July 13, 2010. Its largest shareholder is Jiangyin Zhongnan Heavy Industries Co., Ltd. (ZNHI), and its de facto controller is Mr. Chen Shaozhong. The company mainly operates in two sectors: manufacturing and culture/entertainment. 1. Main business: The main business of the company is divided into two categories: cultural industry and metal manufacturing. Business scope related to the cultural business: investment, planning, production, distribution and marketing of TV dramas and movies and development of derivative products; artist development and brokerage; copyrights development and operations; game production and distribution; and equity investment in the cultural industry. Business scope related to manufacturing: production and sales of metal pipes, flanges, pipe systems and pressure vessels, which are widely used in areas like petroleum, chemicals, marine engineering, shipbuilding, architecture, gas and nuclear power. 2. Business models: In terms of TV dramas and movies, the company mainly earns income through investing in, producing, distributing and selling these projects, which are invested by the company itself or with other investors. The company (with co-investors, if applicable) puts together a team of crews for the filming and production processes. The company and its investment partners enjoy income from sales according to their respective investment percentages or relevant contracts. In terms of artist brokerage, the company mainly engages in artist development ad brokerage and commercial advertisements for which it shares the income with contracted artists according to relevant brokerage agreements. In terms of copyrights operation, the company earns income from copyrights development and sales. In terms of game business, it earns revenue from the development, distribution and operation of mobile and web games. The company’s industrial chain in the cultural industry has begun to take shape. Through resource integration and mergers, the company has established and acquired a number of subsidiaries including Datang Brilliant Media Co., Ltd., a television drama producer; Jiangsu Films, a movie studio; Shanghai Qianyi Zhicheng Culture & Media Co., Ltd., an artist brokerage service provider; Xinhua Pioneer, a copyright operator; Zhishang Interactive Tech Co., Ltd. and JGgame.com, both games companies; and Zhongnan Music, a music company, as well as other companies specializing in development of derivative products. So far, it has established a cultural industrial eco-chain with literature intellectual properties (IPs) as the foundation and artist resources as the catalysts, which features coordinated development of film, TV, games, music, and derivative products. Through integrating the upstream and downstream industrial resources, the company is working hard to become a renowned provider of excellent cultural and entertainment products in China.