Light Holdings Cat Eye accounted for 57.4% The agreed valuation is approximately 8.3 billion yuan, with a discount

After the completion of this transaction, Enlight Holdings holds 38.40% equity in the target company, Enlight Media holds 19.00% equity in the target company, and Shanghai Sankuai holds 32.6% equity in the target company.

On May 23, according to multiple media reports, Enlight Media will strategically invest in Cat's Eye films. The specific investment amount and proportion have not been disclosed yet. On May 27, the "rumor" finally settled. After the transaction was completed, Enlight Media and Enlight Holdings obtained a 57.4% stake in Cat's Eye. After negotiation between the two parties, Cat's Eye was given a valuation lower than its market position, 8.333 billion yuan. The announcement stated that the relatively fair market value of Cat's Eye films should be ahead of the lithography era and Taobao Films. There is a certain discount on this valuation.

Enlight Media announced that Enlight Holdings plans to exchange its 176,016,506 shares of Enlight Media as a consideration for 28.80% of the equity of the target company held by Sankuai Technology. Enlight Holdings plans to pay Shanghai Sankuai a cash consideration of RMB 800 million to purchase its 9.60% equity of the target company. Enlight Media plans to pay Shanghai Sankuai a cash consideration of RMB 1.583 billion to purchase its 19.00% equity of the target company. After the completion of this transaction, Enlight Holdings holds 38.40% equity in the target company, Enlight Media holds 19.00% equity in the target company, and Shanghai Sankuai holds 32.6% equity in the target company.

Cat's Eye's financial situation for the most recent year (unit: yuan)

Light said that through investment in Cat's Eye, the company can obtain a huge online user base and extensive online movie business resources. The company's advantages in the field of high-quality content production are organically combined with Cat's Eye's 100 million-level precision movie user resource advantages. The company's Internetization degree will be significantly improved. Cat's Eye and Light Media businesses will complement each other's advantages and jointly cooperate to open up online and offline resources. Light Media will further improve the entire film and television entertainment industry. The entire industry chain layout.

After the completion of this transaction, the massive amount of user viewing and interaction data held by Cat's Eye Films will help the company accurately market the films it invests, produces and distributes, which will greatly drive box office growth. The company's comprehensive online promotion and distribution capabilities will be Significantly improved, thereby consolidating the company's industry leading position. Cat's Eye's powerful user behavior data analysis capabilities can significantly enhance the pertinence and marketability of the company's film and television content production, and can effectively reduce the market risk of cultural content products. To achieve deeper cooperation with large-scale Internet cultural and entertainment platforms, the high-quality cultural content products produced by the company will gain a strong online traffic entrance, and the company's cooperation with theaters, cinemas, and online playback platforms will be further strengthened. The company's voice and competitive advantages in the fields of film and television drama production, promotion and distribution will be further enhanced, and it will continue to maintain its leading position in the film and television entertainment industry.

Based on the valuation level of recent private equity financing by other companies in the movie online ticketing industry. Combined with the situation of previous online ticketing platforms, it was finally determined that the overall valuation of the target company of this transaction was approximately 8.333 billion yuan. This is significantly low compared with Cat's Eye's online ticketing market share. The announcement stated that the fair market value of Cat's Eye Films should be ahead of market competitors such as the lithography era and Taobao Films. Considering the strategic cooperation significance of Enlight Holdings and Enlight Media for the target company and its original shareholders, the original shareholders of the target company have discounted the valuation level of Enlight Holdings and Enlight Media's transfer of the equity of the target company to a certain extent.

Since 2014, Cat's Eye's online movie ticket sales market share has grown rapidly and continues to rank first in the market. In 2015, Cat's Eye's online movie ticket sales market share exceeded 30%. As of the announcement date, the number of cooperative theaters nationwide exceeded 5200, and the number of ticket buyers exceeded 120 million, with a transaction volume of 15.6 billion yuan in 2015. The number of films cooperated with the Cat's Eye platform has exceeded 160, of which more than 30 films have been deeply involved in investment and distribution, including box office champions such as "Heart of the Road","Lost in Hong Kong", and "Mermaid", which are at the leading level in the industry.

On May 15,"Taobao Movies"(now known as "Taobao Tickets") received 1.7 billion yuan in Series A financing, and the overall valuation after this round of financing reached 13.7 billion yuan. On April 26, Microlithography Era officially announced the completion of Series C+ financing. The total amount of two Series C financing in Microlithography Era has reached 4.5 billion yuan, and the company's valuation is US$2 billion.

At the same time, Cat Eye also officially announced the completion of its independent spin-off and the introduction of new investors for strategic reorganization. In this strategic reorganization, Enlight Media has become an important shareholder of Cat Eye and will provide corresponding industrial resources to support Cat Eye in strengthening upstream business deployment and creating an "Internet +" comprehensive entertainment platform. This reorganization of Cat's Eye is an innovative cooperation between NMEDA and Light Media to jointly layout the cultural and entertainment industry.

Een research found that the proportion of online seat selection soared to 57.5% in 2015. Based on the annual movie-goers of 1.26 billion, more than 700 million people completed "touch" ticket purchases. Online ticket purchases accounted for about 30% in 2014, but in 2013, this figure was only 8%. According to Yien's research data, in 2015, the online box office contribution rate of the Lunar New Year online platform was as high as 77%, with Cat's Eye accounting for the highest proportion, Baidu Nuomi ranked second, and Weibo ranked third with a slight gap. According to data, Cat's Eye still ranked first in the online ticketing share in Q1 of 2016. The huge online user base and extensive online movie business resources help Light accurately market the films it invests, produces and distributes., to a large extent driving box office growth.

Wang Changtian, chairman of Enlight Media, said: "The combination of the Internet and the film entertainment industry is a development trend. I am very happy to cooperate with NMDA this time. The two sides are highly consistent in cultural concepts such as low-key and pragmatism. We will continue to inject various resources to support Cat's Eye to become the leading 'Internet +' comprehensive entertainment platform in China."

Wang Xing, CEO of NMDA, said: "We are very happy to see that the Cat's Eye team is the first to use capital power to set sail to sea in the 'T-shaped' strategy. New America will continue to closely integrate the comprehensive advantages of Cat's Eye and Light Media in culture and entertainment with Meituan-Dazhong Dianping's local life service platform and big data platform to jointly contribute more to China's film, cultural and entertainment industries."

Zheng Zhihao, CEO of Cat's Eye, said: "With the support of two important strategic shareholders, NMD and Light, the future Cat's Eye team will operate independently and carry out independent capital operations, strategically layout the film-related industry chain, and actively explore 'Internet +' cultural entertainment. Various innovative possibilities."

The Sankuai Technology Department was jointly funded and established by Wang Xing and Mu Rong, with a registered capital of 1 million yuan at the time of establishment. On May 11, 2015, the shareholders 'meeting of Sankuai Technology passed a resolution, agreeing to increase the company's registered capital from 10 million yuan to 1.040 million yuan. The new registered capital will be subscribed by Wang Xing and Mu Rong in proportion to their shareholding ratios.

Sankuai Technology's main business is Internet information services, and it has developed well in the past three years. As of March 31, 2016, the owner's equity of Sankuai Technology was-123,161 million yuan; in 2015, Sankuai Technology's operating income was 358.48 million yuan, and its net profit was-131,488 million yuan. (Unaudited)

The following is the full text of Wang Xing's internal letter

Dear colleagues:

I would like to announce to you news of important strategic significance: the company has reached a strategic cooperation agreement with Enlight Media, the largest private media and entertainment group in China, and Cat's Eye Film will introduce Enlight Media as an important shareholder to complete a major strategic reorganization after the independent spin-off. We will work with Enlight Media to support Cat's new development as an independent company and establish a strategic partnership in the cultural and entertainment industry.

In the past four years, Cat's Eye Films has grown from scratch to become a leading brand in the field of online film ticketing in China through internal innovation. Faced with a highly competitive market, we continue to seek and actively promote the industry transformation of online sales of movie tickets in China, create a number of product experiences, and contribute to the vigorous development of the film industry.

Enlight Media is a leader in domestic film production and distribution. In recent years, it has successfully operated many Chinese box office champion films such as "Mermaid","Lost in Thailand", and "To Youth", cultivated and discovered many new directors, and led the development and transformation of domestic film production, marketing, and distribution systems. Enlight Media and Cat's Eye Films have had many in-depth and successful collaborations before, have a deep understanding of each other, and are highly consistent in the development concept of "Internet + Culture and Entertainment".

Through this strategic cooperation with Enlight Media, Cat's Eye Films will obtain industrial resources such as film and television IP, animation, and artist brokerage, as well as industry-leading upstream industry operation capabilities, and accelerate the construction of a comprehensive cultural and entertainment online platform. New America will continue to closely integrate the comprehensive advantages of Cat's Eye and Light Media in culture and entertainment with Meituan-Dazhong Dianping's local life service platform and big data platform to jointly contribute more to China's film, cultural and entertainment industries.

As a one-stop platform based on the field of life services, we have continued to explore innovation and development in many fields such as film, hotel travel, and takeout in the past few years, insisting on improving industrial efficiency through the power of technology, and providing users and upstream and downstream partners. Create value. After four years of development, we are very happy to see that the Cat's Eye team is the first to use capital power to set sail to sea in the "T-shaped" strategy.

In 2015, we put forward the goal of building a platform and building an ecosystem to serve the entire industry chain of Internet + food, drink and entertainment with a more open mind. The strategic cooperation between Cat's Eye and Enlight Media is an important step for us. In the future, we will continue to work hard to fulfill the lofty mission of Internet +, build a platform and ecosystem for win-win cooperation, fully open our service capabilities to upstream and downstream of the industrial chain in more fields, and continue to serve our users and merchants better.

Congratulations to the Cat Eye team! Let us not love the past and move forward with indulgence!

Wang Xing

[Original Announcement]

Enlight Media: Announcement on Joint Foreign Investment and Related Transactions between the Company and its Controlling Shareholders

Editor: yvonne