GHY Culture & Media, positioned as an integrated regional media and entertainment player, has made a big move to grow what is now its smallest business segment, amid a flurry of activities following its IPO three months ago.
On March 17, GHY signed a non-binding memorandum of understanding with a subsidiary of China’s second-largest video streaming player and Nasdaq-listed iQIYI, to set up a Singapore-based talent management firm. The joint venture, UNI-ICON Entertainment, aims to “identify and promote talent across Southeast Asia”.
For FY2020 ended Dec 31, 2020, costume, props and make-up, as well as talent management services made up just a tiny 3% of GHY’s total revenue of to $127.1 million, which came mainly from TV, film and concert production.
See: GHY Culture & Media sees FY20 earnings more than triple to $38.1 mil
GHY’s strategy is to build a stable of producers, directors, actors and other creative talents to capture growth across a wider swathe of the industry value chain. By tapping iQIYI, which is both its customer and shareholder, GHY hopes to expand its network.
GHY’s executive chairman and CEO Guo Jingyu recalls that GHY was among iQIYI’s earliest collaborators when the latter was launched back in April 2010. More than 100 million subscribers later, the two parties have grown tighter. “We have been united as we work together, never giving up. This strong relationship will carry us as we venture into the future,” he says.
iQIYI, which has a market value of around US$20 billion ($26.8 billion) versus GHY’s $800 million, claims Southeast Asia is a “very important” market to further its global ambitions. “Apart from its multicultural facet, there is also a wealth of talent that can serve as a base for content development,” says iQIYI’s president of membership and overseas business group, Yang Xianghua.
“Through the collaboration with GHY, we hope that UNI-ICON Entertainment [will] provide a platform for talent in Southeast Asia ... Besides having a firm foothold in China — the largest global entertainment market — they can also shine on the global stage,” Yang adds.
See also: Resilient earnings for integrated media and entertainment group GHY Culture & Media
The two companies’ first original collaboration in Southeast Asia will be released later this year. The Ferryman: Legends Of Nanyang is an adaptation of a 2014 production by iQIYI and its cast includes two well-known Singapore artistes: Qi Yu Wu and Tay Ping Hui, who lent their stardust by showing up at the media event announcing the MOU. Tay will also be one of the artistes to be managed by UNI-ICON.
Along with investment figures, the two companies declined to reveal how many artistes they aim to sign under UNI-ICON, though Guo notes that with the regional market in mind, it will not be limited to only Mandarin-speaking talent. A talent search programme featuring candidates from Singapore, Malaysia, Thailand, Indonesia and the Philippines is currently in the works.
The pandemic last year put a halt to GHY’s line-up of live concerts. However, it has been busy in other aspects of the business. On Jan 19, Tianjin Changxin Film & Media Co, GHY’s indirect associated company in China, incorporated a joint venture to produce and develop scripts.
See also: GHY Culture & Media sets its sights on 'Nanyang': Guo
Along with the steady news flow, GHY insiders have been buying shares of the company from the open market.
On March 1, Guo and the company’s group advisor John Ho Ah Huat paid around 74.8 cents on average to buy 655,800 and 148,900 shares respectively. Guo now holds 59.76% of the company while Ho, who used to be the CEO of Scorpio East Holdings, owns a stake of 10.55%. Other notable shareholders in GHY include Ron Sim, the founder of famous massage chair maker Osim before expanding to other lifestyle products.
On Feb 26, GHY reported earnings of $38.1 million for FY2020, trebling its FY2019 earnings. Revenue in the same period came in at $127.1 million, up 93% from a year ago. From its IPO price of 66 cents, GHY traded at its recent peak of 85 cents on Jan 20, before closing March 17 at 75 cents.
