Evergrande has sold assets in the "moments" again, and this time it is an old friend Tencent!

On the evening of August 1st, Hengteng announced on the Hong Kong Stock Exchange that China Evergrande had sold a total 11 per cent stake in Hengteng for HK $3.25 billion.

Just over a month ago, China Evergrande transferred 739 million shares of Hengteng Network for HK $4.433 billion, which was taken by Ke Liming, the controller of Ruyi Film and Television, which was acquired last year.

Tencent accepted 7% of the offer.Become the second largest shareholder again

According to the announcement, Tencent bought 7 per cent of Hengteng's shares at HK $3.20 per share for a total consideration of HK $2.068 billion, while another independent third-party buyer bought 4 per cent of Hengteng's shares at HK $3.20 per share for a transaction consideration of HK $1.182 billion.

The total transaction cost of the two transactions is HK $3.25 billion.

Upon completion of the deal, Tencent and independent third-party buyers will hold about 23.90 per cent and 4 per cent of Hengteng's issued share capital respectively, while China Evergrande will still hold 26.55 per cent.

The announcement also pointed out that in order to support the development of Hengteng's business, Evergrande agreed to provide a five-year unsecured and interest-free shareholder loan of about HK $2.07 billion.

On June 22nd, Evergrande transferred 739 million Hengteng network shares, accounting for 8% of the total share capital, to Ke Liming, founder of Ruyi Pictures and Pumpkin Film, at HK $6 per share, cashing out HK $4.433 billion. After the completion of the transaction, Evergrande was the largest shareholder with 37.55 per cent, while Ke Liming's shareholding increased to 20.5 per cent, surpassing QQ Music's shareholding and becoming the second largest shareholder of Hengteng Network.

But after the deal was completed, Tencent once again became the second largest shareholder in Hengteng.

Plus Hong Kong version of "popular style Manufacturing Machine"

Many people analyze that Tencent will spend a lot of money to increase its holdings because of the strong development momentum of Hengteng network in the field of streaming media.

According to public data, Hengteng Network is a listed company jointly established by Evergrande Group and Tencent. Previously, the main business is online sales of products such as furniture customization, household appliances, balcony cloth, soft decorations, soft engineering and kitchen supplies.

In July, Hengteng announced that it would acquire Ruyi Pictures with a total price of 7.2 billion Hong Kong dollars (6.2 billion yuan) to complete the transformation from home improvement industry to film and television industry.

Ruyi Pictures is a well-known film and television company in the industry. He has a strong ability to integrate resources in the fields of book publishing, screenwriting, director and production, and has worked deeply with Hollywood film giants for a long time. He has successively produced more than 100 high-quality films and television works, such as "No War in Peiping", "Nirvana in Fire", "Legend of Luyue", "Old Chinese Medicine", "Old Tavern", "Midway Island", "to our lost Youth", "Sewing Machine Band", "Animal World" and so on. Reserve hundreds of film and television rights.

During the Spring Festival in 2021, Ruyi Pictures'"Hello, Li Huanying" and "send you a Little Red Flower" unexpectedly became a "dark horse" at the box office, and the share price of Hengteng soared nearly 800% at one time.

For a time, Ruyi Pictures was known as the Hong Kong version of the "popular style manufacturing machine."

The real controller of Ruyi Pictures officially spent HK $4.4 billion in June to become the second largest shareholder of Hengteng.

Film and television mogul in 1982Spend a lot of 4.4 billion to win the title.The floating loss exceeds 1.9 billion in a month.

Who is Colliming?

According to previous reports of the 21st Century economy, Colliming was born in 1982. In 2014, Ke Liming said in an interview with the media that he was born in Huanggang, Hubei Province and went to study in Australia after graduating from junior high school.

In 2000, Colliming entered Griffith University in Australia, majoring in risk management, and then received a master's degree in money and banking from the university in 2004. After graduation, he worked as a senior analyst at Persistent Hedge hedge fund management company in Hong Kong.

In 2009, the 26-year-old Ke Liming decided to return home to start a business. He took over the advertising company of his brother Ke Jiuming (the predecessor of Ruyi Film) and began to invest in film and television.

In terms of investment in the film industry, Colliming was a success. The films he controls include "to Youth", "Old Boys: the Dragon Crossing the River", "Sewing Machine Band" and other films. Prior to this, the guaranteed release of "Hello, Li Huanying" was a classic. In the end, the film won 5.414 billion yuan at the domestic box office, ranking second in film history.

On June 20, the Hong Kong Stock Exchange disclosed that China Evergrande Group transferred 739 million shares of Hengteng Network Group Co., Ltd. to Ke Liming on June 20. The transfer price is HK $6 per share, with a total price of HK $4.433 billion. The transfer price is 2% off from the closing price of the previous trading day (June 18).

But so far, Hengteng's shares have closed at HK $3.42, down 43% from Colleming's purchase price of HK $6. This means that Ke Liming's paper loss on this investment has exceeded HK $1.9 billion.

It is worth noting that in October 2020, Hengteng Network announced the acquisition of Ruyi Pictures and Pumpkin movies owned by Ke Liming for HK $7.2 billion. The way of acquisition is to issue new shares and grant warrants. Warrants are issued in three batches, and Colliming can exercise warrants only when the subject matter of the acquisition meets the agreed gambling conditions. The gambling condition is that between 2021 and 2023, the annual after-tax net profit of Ruyi Pictures and Pumpkin Film is not less than 400 million yuan, 500 million yuan and 600 million yuan respectively.

If both Ruyi Pictures and Pumpkin Film fulfill their gambling commitments within three years, Ke Liming will have the opportunity to overtake China's Evergrande and become the largest shareholder of Hengteng Network by exercising 2.988 billion warrants.