Xinke Materials 'asset reorganization plans to acquire 80% of Hollywood Film and Television Company's investment interests with RMB 2.388 billion

Xinke material announced in the evening that it plans to acquire Midnight Investments L.P, an independent Hollywood film and television production company, for about 2.388 billion yuan in cash. 80% of the equity is contributed, and the value-added rate of the underlying valuation is as high as 627.89%.

original title: Xinke material plans to acquire 2.388 billion of the equity contributed by Hollywood Film and Television Company

Xinke material's major asset restructuring object, which was finally unveiled yesterday night. The company announced in the evening that it plans to use its subsidiary company, Wotaiji Capital, set up in Hong Kong, as the main body of the acquisition, and plans to acquire the target company Midnight Investments L.P for about 2.388 billion yuan in cash. 80% of the equity is contributed, and the value-added rate of the underlying valuation is as high as 627.89%.

the announcement said that since the net assets of the underlying company in 2015 accounted for 71.79% of Xinke's net assets in 2015, the acquisition constituted a major asset restructuring, but did not lead to changes in the controlling shareholders and actual controllers of the listed company. does not constitute a backdoor listing.

it is reported that the target of this acquisition is an independent Hollywood film and television production company in the United States, which is in line with the strategic plan of listed companies to vigorously develop the film and television industry. This acquisition will help listed companies to add overseas film and television business on the basis of the original domestic film and television business, help to learn from and absorb the advanced experience of Hollywood film and television, and help the industrial upgrading of film and television business of listed companies. The main financial data of the simulation merger show that in 2014, 2015 and the first half of 2016, the operating income of the target enterprise was 165 million yuan, 394 million yuan and 207 million yuan respectively, and the net profit attributed to the parent company was 93.6221 million yuan, 174 million yuan and 113 million yuan respectively.

the announcement shows that the target company is an independent Hollywood film and television production company, which flexibly undertakes one or more roles such as investment, production, and sales in different film and television projects. So far, the target enterprise selfie, co-production, agent sales of more than 200 film and television works, of which the selfie has won nine Oscars and two Golden Globes.

Public data show that in recent years, in order to get rid of the dilemma of weak profitability caused by fierce competition in the traditional copper processing industry, Xinke Materials has developed new businesses while developing traditional main businesses, and injected film and television assets into Xi'an Mengzhou, a film and television culture enterprise, through a non-public offering in 2015. According to the 2016 semi-annual report of Xinke Materials, in the two main businesses of processing manufacturing and film and television production, the operating income of films and TV dramas accounts for about 0.6% of its total income.

Xinke material said that after the completion of this transaction, listed companies will take the target enterprises as the entry point to distribute overseas film and television business, which will significantly enhance and enhance the film and television business capabilities of listed companies. Listed companies will have the world's leading film and television investment, production resources, as well as a mature global sales system, bringing together experienced teams and professional film and television talents in the industry to lay the foundation for the efficient creation and sale of more international film and television works. The film and television business at home and abroad will achieve the sharing of high-quality resources and complementary advantages; the scale of film and television business of listed companies will be significantly expanded, their profitability will be significantly improved, and the dual main business pattern of "copper processing and manufacturing + film and television business" of listed companies will be further strengthened.