Great Wall Animation will completely divest its coking business and transform it into an animation cultural enterprise

Great Wall Animation announced the second step of transformation on the evening of July 13. The company plans to sell its 99.8% stake in Shengda Coking through public listing. After the transaction is completed, Great Wall Animation will completely withdraw from the coking industry and completely transform into an animation cultural enterprise.

Great Wall Animation (000835), which is promoting major asset restructuring and transforming into the animation and cultural field, announced the second step of its transformation on the evening of July 13. The company plans to sell its 99.8% stake in Shengda Coking through public listing. After the transaction is completed, Great Wall Animation will completely withdraw from the coking industry and completely transform into an animation cultural enterprise.

According to the asset sales plan, the corresponding value of Shengda Coking's 99.8% equity interest is 164 million yuan. The final transaction price and counterparty are subject to the public listing results on the Zhejiang Stock Exchange. Great Wall Animation stated that in order to improve disposal efficiency, when the first auction transfer fails to collect qualified intended transferees, the company can successively reduce prices within a range of not less than 70% of the aforementioned evaluation value for auction disposal.

Shengda Coking is mainly engaged in raw coal mining and dressing, coke and its series products, and external leasing of lime production lines. In recent years, against the background of national industrial structural adjustment, the coking industry has suffered a serious overcapacity. Restricted by insufficient demand from downstream industries, Shengda Coking's performance continued to suffer serious losses. Shengda Coking suffered losses of 39.8305 million yuan and 116 million yuan in 2015 and January to May 2016 respectively, which had a significant adverse impact on the performance of Great Wall Animation. At present, Shengda Coking's 600,000-ton coke production line and its affiliated production systems have stopped production.

After the sale of Shengda Coking's equity interest, Great Wall Animation can completely divest its coking assets that continue to suffer serious losses. In fact, since Great Wall Group entered Great Wall Animation in 2014, the company has acquired seven animation industry companies through cash acquisitions, gradually transforming from a coking enterprise to a cultural enterprise, and initially forming an animation business covering animation design, production, animation games, and creativity. Tourism and toy sales. On June 30, 2016, Great Wall Animation released a major asset reorganization plan to acquire 100% equity of Lingjing Technology and Mini World, and plans to further enrich and improve the animation culture industry chain.

According to the revised draft acquisition released by Great Wall Animation on the evening of July 13, the transaction prices of 100% equity of Lingjing Technology and Mini World were 508 million yuan and 200 million yuan respectively, and the assessed value-added rates of the two companies were 410.85%. 23,569.6%.

Data shows that Lingjing Technology is a high-tech enterprise engaged 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. The mini world is a miniature version of the city built in accordance with the real society and a quality education base that provides professional experience for young people. Great Wall Animation stated that after the merger is completed, building an animation theme park with the theme of the company's original animation image in the mini world can effectively extend the audience of the company's original animation image and strengthen the stickiness of the original animation image.

In this transaction, Lingjing Technology promised to achieve net profits of no less than 35 million yuan, 43.75 million yuan and 54.6875 million yuan from 2016 to 2018; Mini World promised to achieve net profits of no less than 17 million yuan, 22.1 million yuan and 28.73 million yuan from 2016 to 2018.

[Original Announcement]

Great Wall Animation: Major Asset Sales Plan

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

Editor: vian