Huace Film and Television invested 40 million yuan in two game companies to enhance the layout of movie and game linkage

On the evening of August 10, it was announced that the company plans to use its own funds to increase capital by 20 million yuan to Lewei Digital and Yidong Feifan respectively, hold 12.5% and 10% of their equity respectively, and become its important strategic shareholder. The company stated that this investment is an important strategic layout for the company in the game field. Using equity participation to lock in high-quality game IP will help the company further strengthen its SIP reserves.

Huace Film and Television announced on the evening of August 10 that the company recently signed a capital increase agreement with Guangzhou Lewei Digital Technology Co., Ltd. and its original shareholder Su Yu. The company plans to increase capital to Lewei Digital with its own funds of RMB 20 million. After the capital increase was completed, the company held 12.5% equity of Lewei Digital and became its important strategic shareholder.

The company announced on the same day that the company recently signed a capital increase agreement with Suzhou Yidong Feifan Network Technology Co., Ltd. and its original shareholder Pan Wei. The company plans to increase capital to Yidong Feifan with its own funds of RMB 20 million. After the completion of this capital increase, the company holds a 10% stake in Yidong Feifan and becomes its important strategic shareholder.

The announcement shows that Lewei Digital was established in 2014 and is an emerging online game developer and operator in China. It is committed to independent research and development of high-quality online games, and regards becoming a first-class digital entertainment manufacturer in the industry as its long-term development goal. Its CEO Suning has 15 years of experience in online game R & D and operation. He has successively served as the planning director of Jinshan Software, the vice president of Game Snail, and the deputy general manager of Huanju Times. He has led and participated in the product design and development of Jinshan Xishanju's "Swordsman Love Online Edition"; has been in charge of the domestic research and transportation business of game snails, leading and successfully operating many products such as "Mecha Century","Imperial Civilization" and "Jiuyin Zhenjing"; has been responsible for the cooperation and introduction of games on YY platform, and has rich industry resources. At the same time, Lewei Digital has also begun to develop VR games. The two sides will give full play to their industry-leading advantages in their respective fields, jointly carry out market development, open up the industrial chains of the two major sectors of film, television and games, and achieve "movie and game linkage".

According to the announcement, Yidong Feifan was established in Suzhou in March 2013. Since its establishment, Yidong Feifan has been committed to the research and development of music and dance game games. Its founding R & D team has been engaged in research and development in the online game industry for many years and has rich experience in R & D in the game industry, has participated in the program development of many large-scale games, and has strong technical research and project management capabilities. Its development team has experience in developing end-games and mobile games. It has developed and operated "Dance Street","Dance Team"(end-games) and "Music and Dance OL"(mobile games). The main game "Music and Dance OL" has stable flowing income. It is reported that in this transaction, Yidong Feifan and its founding shareholders promised that for the game developed by Yidong Feifan,Huace will enjoy the right of first refusal to purchase the film and television adaptation rights of the gameunder the same conditions. At present, Huace has signed the "Cooperation Agreement on Game Adaptation of" Beautiful Girl Tiantuan "(tentative name)" with Yidong Feifan.

In 2015, the revenue scale of the mobile game industry continued to grow steadily, with annual revenue reaching 41.5 billion yuan. It is expected that the scale of China's mobile game market will be close to 70 billion yuan by 2018. In 2015, the cumulative number of mobile games users in China reached nearly 500 million. At present, the online game industry has become one of the most profitable market segments in the domestic Internet industry, and has become one of the important cultural and entertainment industries that keep pace with film, television, music, etc. At the same time, as more capital enters, the speed of technology and product updates is accelerating, and increasingly fierce market competition will divert the original user base of Yidang Extraordinary and Le Weili Digital. Yidong Feixian focuses on music games, while music games have fixed gameplay and it is difficult to set up payment points. Domestic content IP and avatars have limited improvement in music games. This investment in the two game companies also risks that the profits will not meet expectations.

Huace Film and Television said that this investment is an important strategic layout for the company in the game field. Using equity participation to lock in high-quality game IP will help the company further strengthen its SIP reserves. At the same time, by establishing a long-term and stable cooperative relationship with the game R & D team, the two parties will deepen cooperation in the future and jointly develop SIP works with the potential to be adapted into games, which will help deeply explore the value of SIP and broaden SIP monetization channels.

[Original Announcement]

Huace Film and Television: Announcement on Investing in Guangzhou Lewei Digital Technology Co., Ltd.

Huace Film and Television: Announcement on Investing in Suzhou Yidong Feifan Network Technology Co., Ltd.

Editor: vian