Great Wall Animation plans to acquire 100% equity interest in Lingjing Technology with 500 million yuan, layout VR to expand the animation industry chain

Great Wall Animation announced a reorganization draft on the evening of the 29th, planning to spend 708 million yuan to acquire Xi'an Lingjing Technology Co., Ltd. and Beijing Mini World Cultural Exchange Co., Ltd., of which Lingjing Technology is a well-known company in the VR industry.

Original title: Great Wall Animation plans to acquire two companies for 700 million yuan. Great Wall

Animation announced a reorganization draft on the evening of the 29th, planning to spend 708 million yuan to acquire Xi'an Lingjing Technology Co., Ltd.(hereinafter referred to as "Lingjing Technology") and Beijing Mini World Cultural Exchange Co., Ltd.(hereinafter referred to as "Mini World"), of which Lingjing Technology is a well-known company in the VR industry.

The company first plans to purchase 100% equity of Lingjing Technology held by Xu Jianrong and other 25 transaction partners by issuing shares and paying cash for a price of 508 million yuan. Among them, it is planned to issue 25.9949 million shares at a price of 12.69 yuan/share to pay a consideration of 330 million yuan and 178 million yuan in cash.

Data shows that in 2015, Lingjing Technology's operating income was 114 million yuan, and its parent's net profit was 10.5468 million yuan. Lingjing Technology promises that the net profit in 2016, 2017 and 2018 will not be less than 35 million yuan, 43.75 million yuan and 54.6875 million yuan respectively.

According to reports, Lingjing Technology is a high-tech enterprise specializing in multimedia display and digital experience. It focuses on multimedia display and digital experience products and comprehensive solutions based on virtual reality technology, and focuses on serving museums, science and technology museums, planning halls, and cultural theme parks, tourist attractions and other application areas. Great Wall Animation stated that by applying Lingjing Technology's virtual reality technology to original animation images, developing animation games based on virtual reality technology, and creating virtual reality animation theme parks, it can bring interactive and immersive experiences to customers and comprehensively enhance customer experience and strengthen the influence of the company's original animation image.

Secondly, Great Wall Animation paid 200 million yuan to purchase a 100% stake in Mini World held by Wang Zhongwen, Hong Binglei, Wang Chaoji and Wang Xuewei. It also issued an additional 10.2443 million shares at a price of 12.69 yuan/share to pay 130 million yuan, and paid 70 million yuan in cash.

Mini World's operating income in 2015 was 13.6 million yuan, and its net profit after deducting non-profit was-2.08 million yuan. The trading party promised that Mini World's net profit from 2016 to 2018 will be no less than 17 million yuan, 22.1 million yuan and 28.73 million yuan.

According to reports, the main business of Mini World is quite interesting. The company builds a miniature version of the city based on the real society, a quality education base that provides professional experience for young people, and builds a 5-star growth education experience venue with educational experience, technological experience, safety experience, cultural experience, and environmental protection experience to experience Nearly a hundred social occupations. Great Wall Animation stated that the main audience group of the mini world is young people, which has a high degree of overlap with the main audience group of animation. In the future, we will build an animation theme park with the theme of the company's original animation images in the mini world to effectively extend the audience of the company's original animation images and strengthen the stickiness of the original animation images.

In addition, Great Wall Animation also plans to raise matching funds of no more than 425 million yuan through a lock-price issuance method from two specific investors, Great Wall Group and New Great Wall Fund, of which Great Wall Group will contribute 225 million yuan and New Great Wall Fund will contribute 200 million yuan. The funds raised will be invested in four major projects, of which 85.5 million yuan will be used for theme park construction projects, 76.5 million yuan will be invested in animation film production projects, 248 million yuan will be paid in cash consideration for this acquisition, and 15.37 million yuan will be paid in intermediary fees.

Great Wall Animation said that after the completion of the merger, by integrating the company's existing original animation images and sales channels with Lingjing Technology's virtual reality technology and the youth audience in the mini world, the customer experience can be comprehensively enhanced, the animation audience can be extended, and the animation audience will be strengthened. The stickiness of original animation images will further enrich the company's offline derivatives industry.

At the same time, Great Wall Animation terminated its restructuring plan released in April to acquire 100% equity of Guangdong Feixiangda Technology Co., Ltd. The company stated that due to failure to reach agreement with the counterparty on subsequent operating arrangements and future development strategies, the process was terminated through negotiation.

Great Wall Animation, formerly known as Sichuan Shengda, acquired seven animation and game industry companies for 1 billion yuan in 2014, transformed into a cultural industry, and changed its name to Great Wall Animation. According to Great Wall Animation's 2015 annual report, the company's revenue last year was 357 million yuan, a year-on-year decrease of 20.45%, of which 57.9% came from coking products. However, Sichuan Shengda Coking Co., Ltd., which is responsible for coking business, lost 39.8 million yuan last year. In response to the sluggish domestic coke market, Great Wall Animation also announced yesterday evening that it plans to sell the company's 99.8% stake in Sichuan Shengda Coking Co., Ltd. and clear its coke business. After the sale is completed, Great Wall Animation will no longer be engaged in the production of coke.

[Original Announcement]

Great Wall Animation: Issuing Shares and Paying Cash to Purchase Assets and Raising Matching Funds and Related Party Transactions Report (Draft)

Great Wall Animation: Asset Evaluation Report of the Equity Project of Xi'an Lingjing Technology Co., Ltd. Involved in Issuing Shares and Paying Cash to Purchase Assets

Great Wall Animation: Asset Evaluation Report of the Equity Project of Beijing Mini World Cultural Exchange Co., Ltd. Great

Wall Animation: Audit Report of Beijing Mini World Cultural Exchange Co., Ltd.

Great Wall Animation: Audit Report of Xi'an Lingjing Technology Co., Ltd.

Editor: Nancy