Hengteng’s acquisition of Pumpkin Movie not only enhances Pumpkin Movie’s monetization capabilities, but also enhances Pumpkin Movie’s strength, allowing it to produce more high-quality works. At the same time, it also brought huge benefits to Hengteng Network.

Since Evergrande and Tencent have joined forces to acquire important assets of Ruyi Pictures, Pumpkin Movie has already had high hopes, not only to become the Chinese version of Netflix, but also to become the future Hengteng Network (0136.HK) Performance growth engine.

According to the announcement, Ruyi Pictures promises that from fiscal year 2021 to fiscal year 2023, the annual after-tax net profit will reach more than 400 million yuan, 500 million yuan, and 600 million yuan respectively. In other words, Hengteng Network will lock in an after-tax net profit of more than 1.5 billion yuan in the next three years to promote the improvement of the company's performance.

It is worth mentioning that Hengteng Network’s acquisition will be paid for by issuing new shares or warrants. In other words, while ensuring profits, it will also obtain Ruyi Pictures’ subscription for corresponding equity interests. About 1.76 billion Hong Kong dollars in cash, this is really a good deal for Hengteng Network.

The recent performance of Pumpkin Movie also indirectly proves that the deal between Evergrande and Tencent is indeed "great value for money." Especially in the past three days, Pumpkin Movie’s data of new registered users, new paying users, and movie viewing time in a single day have repeatedly reached record highs. Among them, the number of new registered and paying users exceeded 1 million, and it also simultaneously attracted old users. renewal rate.

At the same time, the per capita online movie-watching time increased by 20%, and both the total real-time online users and movie-watching users reached an all-time high. Prior to this, the installed capacity of Pumpkin Movie has exceeded 100 million units/time, with 30 million registered users, making it the largest subscription-based video platform in China.

The huge loyal user base brings stronger traffic monetization capabilities to Pumpkin Movie. Coupled with the support of the "two big trees" of Evergrande and Tencent, as well as the strong film and television production capabilities of Ruyi Pictures, it is foreseeable that Pumpkin Movie will become one of the top film and television companies in three years, creating a net profit of 1.5 billion , is by no means a fantasy.

Hengteng Network’s market value is also expected to keep pace with its performance, and it is not impossible to approach Netflix’s market value of over HK$1.7 trillion.