Tiange Interactive invests 100 million yuan to subscribe for equity rights in Zanthoxylum bungeanum Live Broadcast. The live broadcast industry has huge potential

Listed company Tiange Interactive announced that the company plans to inject 100 million yuan in cash into Beijing Mijing Hefeng Technology Co., Ltd., the parent company of Zanthoxylum bungeanum Live Broadcast, to subscribe for certain of its shares.

Original title: Zanthoxylum Live Broadcast received 100 million yuan capital injection from Tiange Interactive to accelerate financing mergers and acquisitions in the live broadcast industry.

On the evening of May 23, Tian Ge Interactive, a Hong Kong-listed company, issued an announcement stating that the company plans to enter into a cooperation agreement with Zanthoxylum Live Broadcast in a way of 100 million yuan in cash. Inject capital into Beijing Mijing Hefeng Technology Co., Ltd., the parent company of Zanthoxylum Live Broadcast, and subscribe for certain of its equity. At the same time, Tiange Interactive will have the right to appoint an observer to the board of directors to attend the Beijing Mijing Board of Directors, and will enjoy rights including information rights, pre-emptive rights, joint sales rights and anti-dilution rights.

However, Tian Ge Interactive did not disclose the specific equity ratio. For comparison, not long ago, Yingke, which planned to use Daoxuan Asia International to land in A-shares, was valued at 7 billion yuan during previous financing.

Data shows that as of June 2016, the daily active users of Zanthoxylum bungeanum live broadcast exceeded 5 million, and the monthly active users exceeded 10 million. In the January 2017 mobile APP rankings released by Analysys, among the entertainment live broadcast APP rankings, the number of monthly active users of Zanthoxylum bungeanum live broadcast reached more than 10 million, becoming one of the oligarchs in the field of mobile social live broadcast. It is worth mentioning that the monthly active number growth rate of Zanthoxylum bungeanum live broadcast ranks first for several consecutive months. At present, hundreds of stars have settled in the live broadcast of Zanthoxylum bungeanum, and Fan Bingbing is the chief experience hall.

Tiange Interactive was founded in 2008 and was listed in China Hong Kong in July 2014. It owns well-known live broadcast platforms such as 9158, Sina SHOW, and Meow Broadcast. It is currently one of the only three listed companies with live broadcast as its main business. The other two are Huanju Times and Momo.

Regarding this capital injection, Fu Zhengjun, CEO of Tiange Interactive, said: "China's Mobile Live Video Broadcasting industry continues to grow and has huge potential. As a leader in the industry, Tian Ge Interactive has rich experience and a large and loyal user base in second-to fourth-tier cities in China.' Zanthoxylum bungeanum Live Broadcast 'has a short time in existence and has touched relatively small areas, but its anchors in first-tier cities have accumulated a certain popularity. We believe that the two sides will complement each other and create synergy through cooperation." The management capabilities and unique resources of the 'Zanthoxylum Live Broadcast' team will help Tian Ge Interactive continue to deeply develop its Mobile Live Video Broadcasting business and increase the Group's market share. We do not rule out further investment in Beijing Secret Territory in the future."

While releasing the proposed capital injection plan, Tian Ge Interactive also released the first quarterly report for 2017. The financial report shows that as of March 31, 2017, Tian Ge Interactive's revenue was 244 million yuan, an increase of 61.0% from 152 million yuan in the same period last year; of which revenue from online entertainment was 211 million yuan, and other income was 33.5 million yuan. The Group's gross profit margin was 84.7%, and net profit was 99.227 million yuan; adjusted net profit was 105 million yuan, a year-on-year increase of 177.5%; adjusted EBITDA was 127 million yuan, a year-on-year increase of 151.3%. As of the close of May 23, Tian Ge Interactive's share price closed at HK$6.22/share, with a market value of HK$8.096 billion, continuing to hit new highs.

Editor: jessica