Byte Beat 1.1 Billion Shares In Palm Reading Technology

On November 4, the company's controlling shareholders and actual controllers, Cheng Xiangjun and Zhang Lingyun, have signed an agreement with quantum leap. Cheng Xiangjun and Zhang Lingyun intend to transfer their 22522523 shares and 22522523 shares in circulation to quantum leap, a wholly-owned subsidiary of byte jump, respectively.

According to the agreement, the transfer price of the shares is 24.42 yuan / share, and the total transaction price is about 1.1 billion yuan. After the completion of the transaction, quantum leap will hold 450450 46 shares of ZhangYue technology, accounting for 11.23% of the total share capital of the company, and will become the third largest shareholder of the company, and has the right to nominate a director to the board of directors of the company.

ZhangYue technology said that the transfer of this agreement will not lead to changes in the company's controlling shareholder and actual controller. The company has always focused on the field of digital reading, while byte hopping has a leading edge in the industry in terms of advertising, commercial services, search and technical platform support. The introduction of quantum leap through this agreement transfer will become an important shareholder of the company, which is conducive to the introduction of the company Superior resources are conducive to enhance the overall competitiveness of the company.

Based on the consensus on investment and business cooperation between palm reader technology and byte jump, based on the existing business cooperation, palm reading technology and byte jump will further promote deep-level continuous business cooperation with the help of the cooperation at the equity level, including jointly developing the reading business, and strengthening the cooperation in commercialization, operation and content production.

Byte beat also agreed to provide superior resources to support the company, so as to expand the sales of works, enhance the reader experience, improve economic benefits, and further strengthen the cooperation between the two sides.

As of the end of November 4, the stock price of palm reading technology was 27.13 yuan / share. On November 5, the stock price of the company rose 10% to 30.36 yuan / share, with a market value of 12.1 billion yuan.

Hand in hand with Baidu

In fact, the introduction of strategic shareholders and deepening cooperation with shareholders have been tried before, but at that time, the object of cooperation was Baidu, and the two sides did not successfully join hands.

On March 17 this year, the company's board of directors has agreed to introduce Baidu group as a strategic investor by means of non-public offering of shares, and has agreed to cooperate with Baidu in strategic investment, digital content authorization and in-depth strategic cooperation (such cooperation is subject to the completion of equity participation).

At that time, Baidu's equity investment platform Dazi County bairuixiang Venture Capital Management Co., Ltd. planned to subscribe for 38.674 million shares, accounting for 8.80% of the total share capital of ZhangYue technology.

At the same time, palm read technology also disclosed the content of strategic cooperation with Baidu in business. According to the disclosure, ZhangYue technology has agreed to cooperate with Baidu group in digital content authorization. The company will authorize Baidu group to enjoy the non exclusive license for the right of information network dissemination of authorized works for Baidu group platform. The copyright fee of authorized works within the license period is calculated by net income sharing + minimum guarantee According to the calculation, the total amount of guarantee authorization is RMB 100 million (including tax) every 12 months in each period, and there are three periods of 36 months, with RMB 300 million (including tax).

Palm reading technology (including palm reading content company) has the right to distribute and authorize or sublicense the copyright content of any palm reading group company licensed to Baidu and its affiliated enterprises, and give priority to supporting the copyright content purchase demand of Baidu and its affiliated enterprises, and the cooperation conditions and treatment of Baidu and its affiliated enterprises are not inferior to any third party. Under the same conditions, Baidu and its related parties can give priority to the development of IP derivative products for the above copyright content (including but not limited to the priority of adaptation of the above copyright content).

Baidu will also give priority to the support of palm reading technology. Under the same conditions, compared with any third party other than Baidu and its related parties, baidu gives priority to palm reading technology in terms of traffic (including search), content procurement and development, commercialization, artificial intelligence, big data, software application, etc.

In addition, the two sides will jointly explore and vigorously develop the digital reading content ecology, expand the derivative forms of high-quality IP, and establish a regular exchange mechanism; based on their own resources and advantages, they will strengthen cooperation in online education and intelligent hardware fields; ZhangYue group will carry out commercialized cash cooperation with Baidu alliance.

However, the above cooperation has not been further implemented. On August 20, the company announced that according to the relevant policies of refinancing and strategic investor identification, after full communication with regulators and intermediaries, and careful research and analysis with relevant intermediaries, the company decided to apply for termination of the non-public offering and withdraw the application documents of non-public Development Bank shares.

Byte beat "stir up" reading market

According to the semi annual report of ZhangYue technology, in the first half of 2020, the revenue of ZhangYue technology was 980 million yuan, with a year-on-year growth of 8.96%. The net profit attributable to shareholders of listed companies was 110 million yuan, with a year-on-year growth of 72.82%. The net profit after deducting non-profit was 109 million yuan, with a year-on-year increase of 137.28%.

The main business of palm reading technology is Internet digital reading platform services (including digital reading payment and commercial value-added services) and copyright products.

Specifically speaking, with publishers, copyright agencies, literary websites and writers as the source of digital content of legitimate books, palm reading technology carries out editing, production and aggregation management of digital book content, and issues digital reading products to Internet users through digital reading platforms such as "palm reading". Users recharge their value on the digital reading platform to purchase virtual currency and purchase books and magazines Digital content.

At the same time, in terms of copyright product business, palm reading technology exports its content value and IP value to readers, movies, games and other cultural and entertainment customers through the operation of literary copyright such as network originality, so as to obtain copyright sales revenue.

In terms of content reserve, palm reading technology has more than 500000 digital reading contents. At the same time, it has established an extensive direct content procurement network with thousands of publishing companies and literature websites, and its "palm reading literature" content incubation ecosystem has also signed tens of thousands of authors.

In the digital reading market, byte skipping also plays a "black horse" role. In April this year, byte beat announced that today's headline novel channel will update its brand to "tomato novel", which is consistent with the name of the independent novel app launched by today's headline in 2019.

In addition to brand integration, tomato novel also announced that all its novels support free reading. When introducing content resources, tomato novel said that its content types not only cover a large number of paid online content owned by well-known copyright owners such as palm reading, Chinese online, book flag, etc., but also cover all kinds of classic novels and original films and TV works.

This time byte jump shares in palm reading technology, which should also be in the hands of palm reading copyright resources, and through the form of shares, can deepen the cooperation between the two companies. In fact, in addition to this investment, byte skipping has made repeated efforts in the field of reading. According to incomplete statistics, byte hop has invested in a number of online companies, including Dingtian culture, Xiuwen technology, Wuli culture, reading infinity, etc.

According to questmobile, as of June this year, tomato novel has become the largest player in the field of free online writing, with a user scale of 51.2 million, ranking first in the market, followed by seven cat novel with 49.5 million users and the third with only 24.88 million users.

It is worth noting that Baidu is the controlling shareholder of Qimao novel. According to qixinbao, Dazi County bairuixiang Venture Capital Management Co., Ltd. holds 51% of the shares of Shanghai Qimao culture media Co., Ltd. Therefore, byte jump shares in palm reading technology, but also byte jump and Baidu two companies, from information flow to digital reading business competition.