Zero-cost purchase? Hengdian Film and Television's zero-cost transfer of the target aims to shift the focus to IP-centered transformation.

Jingjing Zhang, a reporter for China Business News, reports from Beijing

On the evening of April 1, Hengdian Film and Television (603103.SH) issued an announcement stating that the company and its subsidiary, Zhejiang Hengdian Film and Television Investment Co., Ltd. (hereinafter referred to as “film and television investment”), plan to respectively acquire 39% and 10% of the equity interest in Zhejiang Hengdian Film and Television City Co., Ltd. (hereinafter referred to as “Hengdian Film and Television City”) held in Hengdian Film and Television Technology Co., Ltd. (hereinafter referred to as “film and television technology” or “the target company”), for a total of 49% of the shares. The transaction prices are 0 yuan and 0 yuan, respectively, for a total of 0 yuan.

In response, Hengdian Film and Television explained that as of the date of disclosure of this announcement, the target company has not actually commenced operations. Based on consultations among the parties, the acquisition price is 0 yuan. After completion of this transaction, Hengdian Film and Television’s ownership stake in film and television technology will increase from 51% to 90%. Film and television investment, as a subsidiary, will hold 10% of the equity interest in film and television technology. Hengdian Film and Television City will no longer hold any equity interest in film and television technology, and the scope of the company’s consolidated financial statements will not change.

Regarding the purpose of this related-party transaction, Hengdian Film and Television stated that, according to the development strategy after the company’s comprehensive optimization and upgrade, it plans to, on the basis of its existing “channels + content” business, steadily upgrade and transform into an “IP-centered full-chain operating model.” It will attempt to build a complete industry ecosystem ranging from IP resource acquisition, development and operations to multi-channel monetization, and develop an end-to-end industry chain business layout of “IP + content + technology + derivatives + scenarios.” To ensure effective implementation of this strategy, the company plans to carry out a series of organizational structure optimization measures. These include further increasing its holding of equity in film and television technology, with the aim of developing film and television-related technology businesses and enhancing the company’s capacity for technological innovation. At the same time, it will improve the film and television industry chain ecosystem, strengthen the effects of industry collaboration, further achieve cost reduction and efficiency gains, enhance the company’s profitability, and improve its core competitiveness.

The China Business News reporter found that in the past year, a number of domestic film and television companies have announced their transformation toward directions including IP operations. Among them, Guangxian Media announced its transformation toward “IP creators and operators” in its 2025 interim report. In June 2025, Wanda Films (proposed to be renamed “Yuyi Films”) released the “Super Entertainment Space” strategy, aiming to leverage Wanda Films’ business resources in areas such as cinema chains, strategic investments, and pop culture toys to incubate a series of “super IPs” and “super brands.” iQiyi has also begun to frequently mention IP externally. After publishing its 2025 fourth-quarter financial report in February this year, iQiyi stated that it is building experience-based business into a new engine for sustainable growth, with IP consumer products and iQiyi Paradise at its core.

(Editor: Wu Qing; Review: Li Zhenghao; Proofreading: Zhai Jun)