BAINATION (300291) Announces Major Asset Re‑Structuring Plan – A Strategic Move Toward Full‑Channel Digital Marketing
Beijing Baination Pictures Co. Ltd., a leading film and television production, content marketing, and media agency in China, disclosed on 25 December 2025 a comprehensive asset re‑structuring proposal that will reshape its business model and expand its service footprint. The announcement, published by stock.eastmoney.com and stcn.com, confirms the company’s intention to acquire 100 % of Xiamen Zhonglian Century Co. Ltd. (hereafter “Zhonglian Century”) through a combination of share issuance and cash payment, with the possibility of raising additional capital from up to 35 select investors.
Key Elements of the Proposal
| Item | Detail |
|---|---|
| Target Company | Zhonglian Century – a digital advertising and cloud‑computing platform with established access to China’s mainstream ad‑traffic networks. |
| Acquisition Method | Equity‑cash hybrid: Baination will issue new shares and pay cash to acquire the target outright. |
| Capital Raising | Baination plans to issue shares to a maximum of 35 “specific investors” to secure the necessary funding. |
| Strategic Rationale | The deal will allow Baination to (i) diversify beyond traditional film and TV production; (ii) integrate digital advertising and cloud services; and (iii) deliver a fully‑connected, end‑to‑end digital marketing solution to its existing client base. |
| Regulatory Status | Audits and valuations are pending; the transaction will be subject to standard regulatory approvals. |
| Re‑Opening Date | The stock will resume trading on 26 December 2025, following the completion of the announcement. |
Financial Snapshot
- Market Capitalisation: ¥5 020 000 000 (≈ $737 million)
- Last Close (23 Dec 2025): ¥5.33
- 52‑Week High/Low: ¥7.36 / ¥4.05
- Price‑to‑Earnings Ratio: –12.34 (negative, reflecting current operating losses typical for media‑content firms in a highly competitive environment)
The proposed transaction is expected to materially alter Baination’s earnings profile. By integrating Zhonglian Century’s advertising inventory and cloud‑based delivery platforms, the company can generate new revenue streams that are less cyclical than traditional content production. The acquisition also positions Baination to capitalize on the rising demand for data‑driven, omni‑channel marketing services among China’s expanding digital economy.
Market Implications
- Valuation Upside: Analysts project that the integration of Zhonglian Century’s ad‑traffic and cloud capabilities could lift Baination’s revenue per employee by 20–30 % over the next three fiscal periods, thereby improving profitability metrics.
- Competitive Positioning: The move will strengthen Baination’s standing against rivals that are aggressively pursuing digital transformation, such as Tencent Video and iQIYI. By offering a unified platform for content creation, distribution, and monetisation, Baination can appeal to larger clients seeking a single‑vendor solution.
- Capital Efficiency: The equity‑cash structure allows Baination to preserve cash reserves while diluting shares strategically. The planned share issuance to a limited set of investors may mitigate market dilution and attract partners with complementary expertise in advertising technology.
Forward‑Looking Considerations
- Integration Risk: Successful alignment of Zhonglian Century’s technology stack with Baination’s existing operations will be critical. Delays or cost overruns could compress expected synergies.
- Regulatory Environment: China’s tightening scrutiny over data handling and digital advertising could affect the projected revenue gains, necessitating proactive compliance strategies.
- Market Reception: The stock’s performance following the re‑opening will provide an early indicator of investor confidence in the re‑structuring plan. A positive market reaction could unlock further capital for Baination’s expansion ambitions.
Conclusion
Baination’s planned acquisition of Zhonglian Century marks a decisive pivot from a traditional media production focus to a comprehensive digital marketing ecosystem. If the integration proceeds as outlined, the company stands to unlock significant revenue diversification, enhance its competitive positioning, and deliver higher shareholder value in a rapidly evolving digital landscape.
