Hengteng Networks moves into the streaming media industry! The Chinese version of Netflix is here

On October 26, Hengteng Network (0136.HK), a Shenzhen-Hong Kong Stock selected for inclusion in the Hang Seng Technology Index, announced that it will acquire RuYi Pictures wholly through the issuance of additional shares for a total price of HK$7.2 billion.

RuYi Film is one of China’s top film and television companies, and is one of the few industry leaders with both film and television production capabilities, and owns the first domestic membership subscription video platform “Pumpkin Films”. The company has strong resource integration capabilities in the book publishing, screenwriting, directing and production fields, and has long-standing in-depth cooperation with Hollywood film and television giants, and has produced over 100 high-quality products such as “No War in Peking”, “Langya Table”, “Mi Yue Zhuan”, “Old Chinese Medicine”, “Old Tavern”, “Duel in Midway”, “To Our Youth Who Will Pass Away”, “The Sewing Machine Band”, “Animal World” and so on. Film and TV works, stocking hundreds of film and TV rights.

Pumpkin Movie aims to build China’s version of Netflix, using a purely paid, ad-free operating model, providing a large number of global high-quality film and television works, with an installed base of more than 100 million units / times, with 30 million registered users, has become China’s largest membership subscription video platform. Relying on the huge user resources and strong capital strength of the two major shareholders of Hengteng and Tencent, as well as the strong film and TV production capacity of Ruyi Film, Pumpkin Movie is expected to achieve explosive growth and become China’s top streaming media platform that is comparable to Netflix.

Analysts said, compared with Netflix’s market capitalization of more than 1.6 trillion Hong Kong dollars, the market capitalization of Hanteng Network is only 24.6 billion Hong Kong dollars, which undoubtedly brings huge imagination to investors. And mainland investors can participate in the rapid development of the dividends of the network through the Shenzhen-Hong Kong Stock Connect.