On August 12, 2026, Dasheng Times Cultural Investment Co.,Ltd. (SHA: 600892) announced it would sell its entire 100% stake in Wuxi Zhonglian Chuanbo Culture Communication Co., Ltd. through a public listing on a property exchange, with a starting price of just 1 yuan. This move effectively closes the book on a blockbuster movie industry merger that shook the market 11 years ago. Back then, Dasheng Times Cultural Investment Co.,Ltd. 鈥?then known as Baocheng Shares 鈥?acquired Wuxi Zhonglian for a hefty 605 million yuan. The decline from 605 million to 1 yuan marks a near-total loss for what was once a highly anticipated movie investment.

The 14-Times Premium Frenzy: A Movie Merger Craze Starting in 2015

Flash back to 2015, a peak era for movie industry mergers and acquisitions. Dasheng Times Cultural Investment Co.,Ltd. raised funds through a private share placement, shelling out 605 million yuan to buy Wuxi Zhonglian. This deal involved a staggering premium. At the time, Wuxi Zhonglian's net assets were only about 40.09 million yuan, but an income-based valuation pegged the premium at a whopping 1,408.59% 鈥?over 14 times the book value. This sky-high valuation was backed by Wuxi Zhonglian's performance promises: from 2015 to 2018, it pledged net profits of at least 60 million yuan, 75 million yuan, 93.75 million yuan, and 93.75 million yuan, respectively. Back then, the "Tiny Times" movie series was hugely popular, and Wuxi Zhonglian gained fame by co-producing them. In the midst of the movie capital boom, these promises seemed within reach.

However, the movie industry's fortunes shifted faster than anyone anticipated. Annual reports show that from 2015 to 2018, Wuxi Zhonglian's cumulative net profit hit only about 33.21 million yuan, achieving just 10% of its promised target. After barely meeting the first year's goal, it failed for three consecutive years, culminating in a massive loss of over 97 million yuan in 2018.

The Current State of the Target: Insolvent, Zero Revenue, 139 Million in Liabilities

Eleven years later, Wuxi Zhonglian has become a "zombie" company. As of June 30, 2026, its total assets stood at just 21.22 million yuan, while liabilities soared to 139 million yuan, leaving net assets negative at 118 million yuan. Its debt-to-asset ratio hit 655%, indicating deep insolvency. In the first half of 2026, Wuxi Zhonglian recorded zero revenue and a net loss of 197,900 yuan. For the full year of 2025, its revenue was a mere 77,500 yuan. The company has zero employees. A spokesperson for Dasheng Times Cultural Investment Co.,Ltd. confirmed to Jiemian News that Wuxi Zhonglian "initially had business, but later, especially in recent years, no new business was added." Goodwill from the acquisition had already been fully impaired in prior years.

Selling for 1 Yuan: Damage Control or Passing the Buck?

Dasheng Times Cultural Investment Co.,Ltd. attributes the sale to a strategic shift and business focus. The company says it now concentrates on low-risk short dramas and custom drama production, which feature shorter cycles, faster capital turnover, and manageable risks. In contrast, Wuxi Zhonglian focused on movies and TV series production, which involve long investment cycles, high capital demands, and greater market risks. Cleaning up this asset helps the company streamline its core business. But behind the 1-yuan sale lies a thornier issue. As of June 30, 2026, Wuxi Zhonglian owed Dasheng Times Cultural Investment Co.,Ltd. 72.81 million yuan, mainly from historical internal fund transfers to support its movie and TV production. When the equity transfer is completed, this debt will become passive financial assistance. The company acknowledges that "there is a possibility that this passive financial assistance may not be recoverable." Dasheng Times Cultural Investment Co.,Ltd. estimates that selling the 100% stake for 1 yuan will boost its net assets by about 45 million yuan. But investors are focused on whether the 72.81 million yuan internal debt can be recovered.

Dasheng Times Cultural Investment Co.,Ltd.'s Own Struggles: Near Insolvency, Widening Losses

Dasheng Times Cultural Investment Co.,Ltd. itself is in a precarious financial position. At the end of 2025 and the first quarter of 2026, its debt-to-asset ratios were 94.86% and 98.75%, respectively, teetering on insolvency. Over the past three and a half years, attributable net losses have exceeded 187 million yuan, with non-recurring losses surpassing 263 million yuan. In 2025, despite posting 333 million yuan in revenue (a 99.86% surge year-on-year), the company suffered a net loss attributable to shareholders of 81.16 million yuan, widening the loss. For the first half of 2026, it expects a net loss of 23 million to 36 million yuan. The company's 2025 TV and film revenue was 171 million yuan, skyrocketing 1,309.20% year-on-year, driven by short dramas. Short drama revenue hit 131 million yuan, up 2,057.75%, with a gross margin of 75.38%. But this high growth came at a cost: sales expenses surged 186.28% to 236 million yuan, mainly due to increased traffic acquisition costs. Operating cash flow was negative 181 million yuan, indicating ongoing cash flow deterioration.

Who Will Take Over? A Hot Potato No One Wants

Listing Wuxi Zhonglian's 100% stake for 1 yuan seems like a steal, but the deal's success hinges on finding a qualified buyer. A spokesperson from Dasheng Times Cultural Investment Co.,Ltd. revealed that "currently, no interested parties have approached us." Industry insiders say that whether the passive financial assistance from this sale is fully recovered depends on whether the buyer has the will and ability to turn around this insolvent company. With Wuxi Zhonglian having no new business for years, near-zero revenue, and zero employees, finding a buyer willing to take it on is tough. If no qualified buyer emerges during the public listing period, the deal may fall through.

From 605 million to 1 yuan, Dasheng Times Cultural Investment Co.,Ltd.'s 11-year movie investment saga ends in near-total loss. It serves as a case study of a failed 14-times premium acquisition and a stark example of the movie capital bubble bursting around 2015. For Dasheng Times Cultural Investment Co.,Ltd., shedding Wuxi Zhonglian might boost net assets by about 45 million yuan on paper, but the real test lies in recovering the 72.81 million yuan internal debt and finding a profitable path in the short drama sector.