iQIYI's Strawbear Entertainment Group to Go Public in Hong Kong

Communication Author: Chendi Qian Editor: Luke Sheehan Jul 21, 2020 01:00 AM (GMT+8)

Its revenue in 2019 ranked sixth among all TV series producers and distributors in China, with a market share of 1.7%.

Image credit: Jakob Owens/Unsplash

On July 20, Jiangsu Strawbear Entertainment Group (referred to as Strawbear) submitted a prospectus to the Hong Kong Stock Exchange. Strawbear plans to list on the Hong Kong Main Board. According to the prospectus, China Merchants Securities International and China Securities International are their joint sponsors.

The prospectus shows that the company is a TV series and web series producer and distributor, covering the investment, development, production and distribution of TV series and online dramas. For revenue, the company ranks sixth among all series producers and distributors in China, with a market share of 1.7%.

The company's largest shareholder is Liu Xiaofeng, who holds 58.41% of the pre-listing shares and has 80.43% voting rights. IQiyi holds 19.57%, Liu Shishi holds 14.8%, and Zhao Liying holds 0.79%.

Strawbear's income has grown steadily in recent years, with revenues of CNY 540 million (USD 77.32 million), CNY 680 million (USD 97.37 million), and CNY 770 million (USD 110.26 million) in 2017, 2018, and 2019, respectively. Earnings were slightly fluctuating, with CNY 64.03 million (USD 9.17 million), CNY 10.51 million (USD 1.5 million) and CNY 50.4 million (USD 7.22 million) from 2017 to 2019, respectively.