According to the news, Chinese fans cheered. Royal Spaniard host Xinghui entertainment directly opened at 5.98 yuan per share, more than 8 points higher than the previous trading day, with a market value increase of more than 550 million yuan. On January 7, the stock price continued to rise and stop in the opening, with a maximum increase of more than 16% in two days and a market value increase of 1.1 billion yuan. Compared with the peer Wanda Group, which has successively smashed 3.5 billion yuan, and has not even received a single share of a football club so far, Star Entertainment (300043. SZ) is just relying on its investment in the football club, and its performance is eye-catching.
Nearly 600 million Spanish clubs have been bought and reported frequently
According to the public information, in November 2015, Xinghui entertainment invested more than 60 million euros to hold the Royal Spanish club, obtained 50.1% of the equity, and then increased the capital to control 99.25% of the shares. According to the companys plan to spin off the sports related subsidiary Hong Kong stock listing in August 2018, the cost of holding the sports related subsidiary of the company is about 607 million yuan (including the subsidiary Xinghui sports) u3002
Since 2019, Spaniard club has reported frequently, and the share price of starlight entertainment has been rising.
On March 2, 2019, Wu Lei entered the Spanish championship and beat baladolide, which is the first goal of the five European leagues for Chinese players in more than ten years. Therefore, the stock price of Xinghui entertainment increased by more than 30% at one time and its market value exceeded 7 billion yuan.
On May 18, 2019, in the last round of the Spanish league match, the Spaniard defeated the Royal Society team 2-0 at home, and successfully won the qualification of the European Union Cup next season. Wu Lei scored a goal in the match. Then one trading day, Xinghui entertainment once hit the limit.
Selling stars makes a lot of profits
The main business of Xinghui entertainment is games, toys and sports.
In the first three quarters of 2019, Xinghui Entertainments operating revenue reached 2.06 billion yuan, down 8.05% year on year. The net profit was 339 million yuan, up 59.58% year on year, and the sports business contributed a lot of net profit.
In the morning announcement of Xinghui entertainment on August 14, 2019, the companys holding subsidiary, Royal Spanish football club, plans to transfer player Iglesias to Royal Betis football club with a player valuation of 28.14 million euros. After the completion of this transaction, the companys net profit after tax directly contributed was about EUR 14.8576 million (equivalent to RMB 117 million).
Since then, on August 30, 2019, Beijing time, the Spaniard has won the qualification of the European Union cup in the 2019-2020 season. At that time, according to the announcement of Xinghui entertainment, according to the rules of UEFA, the Spaniard was promoted to the European Union cup, and it is expected to increase the net profit of the company by at least 6.5476 million euros (about 51.6619 million yuan at the exchange rate on August 29).
On the evening of August 6, 2018, star entertainment also announced that the companys grandson, Royal Spaniard, intends to rent a player to the Bundesliga club Mainz for 3 million euros. After the lease is completed, it will bring the company 16.9412 million yuan of income. If the transfer purchase right is implemented, the income will be 33.8824 million yuan.
In recent years, the whole sports business has contributed a lot to listed companies. In 2016, Xinghui Entertainments football club business realized a revenue of 481 million yuan and a net profit of 31.09 million yuan. In 2017, the football revenue was 597 million yuan and the net profit was 6897300 yuan. In 2018, the revenue of the football club reached 862 million yuan, realizing a net profit of 104 million yuan. According to Xinghui Entertainments half year report in 2019, in the first half of 2019, the revenue of sports business was 462 million yuan, with a gross profit of 182 million yuan, of which the revenue of TV broadcasting rights reached 284 million yuan.
In September 2019, Chen Yansheng, the actual controller of Xinghui entertainment, said in an exclusive interview with people.com that the Spaniard is a team dominated by youth training. In the last game of our Europa League add-on, there were 11 starters and 6 of them came from our youth training system. After Xinghui entertainment took the lead, it further increased its youth training efforts and increased its investment in youth training every year. It is precisely because of the sustained investment in the early stage that the above-mentioned revenue from sponsorship and advertising, ticketing members, player transfer and other aspects will perform well in 2019.
It is worth noting that the company plans to spin off its sports related subsidiary Hong Kong stock listing successfully as mentioned above, and it will become the only listed company of Spanish football club in Hong Kong stock market.
Source: editor in charge of Changjiang Business Daily: Liu Songpeng nbj9949