Huangshi Group plans to invest 130 million yuan to acquire the equity of Yilian Video and increase the layout of the cultural industry

Huangshi Group announced that the company plans to invest 134.91 million yuan in cash capital increase and equity transfer to invest in Beijing Yilian Video Technology Co., Ltd. to obtain 30% of its equity. It is worth noting that Huangshi Group also announced that night that after the company invested 180 million yuan to acquire a 60% stake in Perfect Online, Huangshi Group invested 156 million yuan in cash to acquire the remaining 40% stake in Perfect Online. After the acquisition was completed, Perfect Online became a wholly-owned subsidiary of Huangshi Group, and Huangshi Group held 100% of its equity.

Huangshi Group announced that the company plans to invest 134.91 million yuan in cash capital increase and equity transfer to invest in Beijing Yilian Video Technology Co., Ltd. to obtain 30% of its equity. Trading in the company's shares resumed on May 24.

Yilian Video was established in December 2015 and has not yet carried out specific business activities. After this acquisition, its main business comes from its holding subsidiaries Yunjuhui and Yishiyun. Yunjuhui is committed to the following industries: pan-entertainment, office, social networking, payment, education and medical care, providing complete video services and better virtual reality interactive services. Yishi Cloud will build an integrated SAAS service, focusing on providing corporate customers and mobile application developers with new one-stop mobile video solutions, providing professional live video on demand services, VR interactive video cloud and other services.

Huangshi Group stated that the "Easy Live Broadcast" and video cloud SAAS services developed by the target company meet the needs of the company's cultural industry development layout. The company intends to use the target company's business platform, domestic leading technological advantages and top operation management and technical team to make full use of the company's current cultural resources such as film and television drama content, animation, and preschool education to superimpose with the target company's products to actively create the overall layout of Huangshi's cultural industry.

It is worth noting that Huangshi Group also announced that night that after the company invested 180 million yuan to acquire a 60% stake in Zhejiang Perfect Online Network Technology Co., Ltd.(referred to as: Perfect Online), the company signed an equity transfer agreement with Yang Hongjun, Dong Xichun and Perfect Online on the same day. Huangshi Group invested 156 million yuan in cash to acquire the remaining 40% stake in Perfect Online. After the acquisition was completed, Perfect Online became a wholly-owned subsidiary of Huangshi Group, and Huangshi Group held 100% of its equity.

Perfect Online's net profit after deducting non-recurring gains and losses in 2015 was 19.6676 million yuan. In 2016, 2017, and 2018, it is expected to achieve net profits after deducting non-recurring gains and losses of 26 million yuan, 33.8 million yuan, and 43.9 million yuan respectively.

Huangshi Group said that since the company took control of Perfect Online in August 2015, it has achieved good results in the integration of business, operation management and personnel, which is in line with the company's expectations. While maintaining a balanced and rapid growth of its original business, Perfect Online has invested in the research and development of a new generation of multi-function shopping POS machines and will be launched soon. This POS machine can be connected to e-commerce platforms and financial platforms, helping the company find new ideas and new channels for Internet finance. "According to forecasts, Perfect Online's average annual performance growth in the next three years will reach 30%. This acquisition will help improve the company's profitability and further enhance the company's voice in the field of Internet finance."

[Original Announcement]

Huangshi Group: Announcement on Implementing Equity Investment in Beijing Yilian Video Technology Co., Ltd.

Huangshi Group: Announcement on Implementing Equity Investment in Zhejiang Perfect Online Network Technology Co., Ltd.

Editor: vian