Huayi Jiaxin plans to subscribe for 12.62% equity of South Korean entertainment listed company for 118 million yuan

Huayi Jiaxin announced on the 25th that the company has signed a "New Share Subscription Agreement" with South Korea Corporation SIGNAL Entertainment Group. The company plans to use its own funds of 21.45 billion won (approximately RMB 117.97 million) to subscribe for 10 million new shares issued by SIGNAL Entertainment and obtain 12.62% of its equity.

Huayi Jiaxin announced on the 25th that the company has signed a "New Share Subscription Agreement" with South Korea Corporation SIGNAL Entertainment Group (hereinafter referred to as "SIGNAL Entertainment"). The company plans to use its own funds of 21.45 billion won (approximately RMB 117.97 million) to subscribe for 10 million new shares issued by SIGNAL Entertainment (Korea KOSDAQ Stock Code: 099830) and obtain a 12.62% stake in it. The announcement shows that if the transaction is successfully completed, Huayi Jiaxin will become the largest shareholder of SIGNAL Entertainment.

SIGNAL, the investment target of this time, is a representative comprehensive entertainment company in South Korea, mainly engaged in actor brokerage management, singer (K-Pop) brokerage management, variety show production, film and television drama production, etc. The company brings together a whole group of professionals with experience in managing and producing high-quality film and television entertainment projects.

Mr. Chai Jian (right), chief financial officer of Huayi Jiaxin, and Mr. Jin Tingxiang, chairman of SIGNAL Entertainment, shook hands and exchanged wishes for

the successful signing of the contract. The company stated that after investing in the target company, Huayi Jiaxin will make full use of Signal's experience and resources in the Korean market, combine the capital strength, brand influence and resource integration capabilities of listed companies, carry out artist economic undertakings, create an entertainment product production system based on film and television dramas, column production, and music content, and further upgrade to content marketing and internationalization.

Cross-border investment by marketing listed companies in entertainment listed companies is the first case in the history of capital operations in China and South Korea. Liu Wei, Chairman of Huayi Jiaxin, said: SIGNAL was chosen because its entertainment attributes are in line with the company's "big content, big data" development strategy, and also comprehensively considers the company's global strategic layout. In Huayi Jiaxin's strategic system,"big content" refers to the content product itself, content creation capabilities and content marketing capabilities, and "entertainment" is included in "big content". Its relationship with "big data" is simply to find marketing goals through big data, and then to spread interesting "content" to it, ultimately generating value. By investing in content-creation organizations such as SIGNAL and adhering to the concept of "collaborative value-added", Huayi Jiaxin will gradually complete the transformation from a service-oriented enterprise to a resource-based enterprise.

Qu Wei, chief entertainment officer of Huayi Jiaxin, further explained that the company's development strategic plan for SIGNAL is "the commercialization of the Korean entertainment industry in China." Through Huayi Jiaxin's more than 1000 brand cooperation resources, whether Korean artists who are already well-known in China or "potential" groups who are not yet well-known, can reflect their commercial value, and increase exposure through cooperation and gain a larger market. Once the transaction is successfully completed, the two parties will also establish a joint venture company to conduct joint content production between China and South Korea, and launch an artist brokerage business to help Korean artists and film and television dramas and related entertainment products created in the form of Korean entertainment production lines quickly implement in China. There is still more room for imagination in related businesses. SIGNAL Entertainment also expressed that through its cooperation with Huayi Jiaxin, it is believed that SIGNAL Entertainment will become the third largest entertainment company in South Korea after SM and YG Entertainment. In China, SIGNAL Entertainment will be committed to producing content that is popular among China audiences, and will gradually become a model for China-South Korea cooperative entertainment companies.

It is reported that SIGNAL Entertainment is a comprehensive entertainment group in South Korea, with business segments including artist brokerage, music business, variety show production, film and television drama production, etc. SIGNAL Entertainment's management team has rich experience and impressive achievements in the industry.

In terms of film production, Chairman Kim Jung-sang has served as CEO of 20th Century Fox in South Korea and has been responsible for investment, production and distribution of more than 60 films including "The King's Man","Silmido","My Sassy Girlfriend", and "If Love Is Provident". Jin Jingya, general manager of film and television entertainment, also served as CEO of CJ Entertainment, responsible for the investment, production and distribution of more than 40 films, including "Haeundae" and "Sunshine Sisters" that are familiar to Chinese people.

In terms of TV dramas, Yin Xuanpu, deputy general manager of the content business department, has experience in producing a large number of popular Korean dramas such as "You from the Stars". In terms of variety show production, Deputy General Manager Park Yun-hyuk, as the first generation leader in South Korea's entertainment production, has produced many popular programs such as "Voice of Korea","Hear Your Voice","Scout", and "Please the Refrigerator".

In the music industry, South Korean gold-medal composer and music producer Fang Si-hyuk, as the general manager of SIGNAL's recording business, has created many artists such as 2AM, 8eight, Jane Miyeon, Lim Chung Hee, and the Bulletproof Youth League. The One, who is well known to China audiences for participating in "I Am a Singer" twice, is also a registered executive of SIGNAL.

In terms of artist management, SIGNAL and its subsidiaries have Sung Heon, who starred in "Blue Love" and was recently called "Asia's Most Beautiful Couple" due to the exposure of his relationship with Liu Yifei, and Lee Mi-yeon, the "Queen of Mingsung". At the end of last year, Kim Hyun-ju, who has just won the South Korean SBS Acting Award for Best Actress in a Long Series, has starred in "Tai Chi Flag Flying" and "Everything I Love" and other Korean first-line actors. SIGNAL has also invested in BIG HIT Entertainment, the agency of the Idol Men's Group Bulletproof Youth Group, and is promoting the acquisition of LN HOLDINGS, a key agency with more than 30 actors.

Public information shows that Huayi Jiaxin was listed on the GEM of the Shenzhen Stock Exchange in 2010 (stock code: 300071). It owns many industry leading companies such as Huayi Xinbang, Desi Media, and Haoye Group. Recently, it is conducting capital increase and holding of Beijing Kaiming Fashion Network Technology Co., Ltd.(referred to as "YOKA"). In accordance with the group's development strategy, Huayi Jiaxin will be supported by new media, content and big data in the future to form a value marketing service provider focusing on brand planning, public relations advertising, experience marketing, digital marketing, O2O marketing, content marketing, entertainment marketing, big data marketing and cross-domain business, thereby achieving harmony and win-win results among customers, shareholders, employees and society.

At the beginning of its listing, Huayi Jiaxin aimed at business collaboration and adopted mergers and acquisitions and integration methods to create an industry chain, allowing new businesses to collaborate with existing businesses, forming advantages and resources for customers, business forms (online and offline), and supply chain systems. Complementary resources to achieve true value creation. Facts have proved that after completing the corresponding acquisitions, Huayi Jiaxin's business scale and profitability have been greatly improved, its business structure has become richer and more balanced, and its competitive advantages have become more solid.

[Original Announcement]

Huayi Jiaxin: Foreign Investment Announcement

Editor: vian