Zhejiang Guangsha plans to participate in the establishment of a film and television project fund with 20 million yuan

The total scale of the fund is 121 million yuan, of which subsidiary Guangsha Media contributed 20 million yuan, accounting for 16.53% of the fund's share. Cooperation matters such as the establishment of film and television fund companies, fund raising, and project investment will be promoted in the future.

Zhejiang Guangsha announced on the evening of May 17 that Guangsha Media Co., Ltd., a wholly-owned subsidiary of Zhejiang Guangsha, plans to jointly initiate the establishment of "Jiaxing Guangsha Shenghuan Investment Partnership (Limited Partnership)"(tentative name, hereinafter referred to as the "Fund") with Shanghai Shenglu Investment Management Co., Ltd.

The total size of the fund is 121 million yuan, of which subsidiary Guangsha Media contributed 20 million yuan, accounting for 16.53% of the fund's share. As a general partner, Shanghai Shenglu subscribed a capital contribution of 1 million yuan, accounting for 0.83%; as a limited partner, Xizang Shengshijing subscribed a capital contribution of 100 million yuan, accounting for 82.64%(this part of the capital contribution will be adjusted accordingly according to the actual investor situation). The capital contribution of each investor comes from its own funds or self-raised funds. The purpose of the partnership is to engage in investment and seek investment returns for the partners; the scope of the partnership is industrial investment and investment management; the partnership term is 10 years, which can be extended with the consent of all partners.

The announcement stated that the two parties will further agree in the form of a supplementary agreement on the fund's decision-making mechanism, management fees or performance remuneration and specific profit distribution arrangements, investment projects and plans, profit models and post-investment exit mechanism, and the listed company will perform information disclosure obligations in a timely manner after the signing of the supplementary agreement.

The announcement stated that the signing of the partnership agreement and the plan to jointly initiate the establishment of the film and television fund is a progress of the strategic cooperation framework agreement signed between the listed company and Sheng Shijing in the early stage. This partnership agreement will be used as a basis to promote the establishment of the film and television fund company, fund raising, and project investment and other cooperation matters.

A research report released by Guangfa Securities in the early stage stated that since Zhejiang Guangsha entered the cultural industry in 2014, its main business has concentrated on the production and distribution of TV dramas and films. With the acceleration of transformation and development, the company will continue to expand the film and television cultural industry in the future, including expanding upstream and downstream assets in the industrial chain related to the existing film and television business, such as various directors, screenwriters, actor studios, actor agencies, post-production, film and television drama promotion and online marketing, animation and game production of film and television works content, and various film and television drama derivative industries. The company's development layout in the future deserves attention. Industry insiders analyzed that the plan of Zhejiang Guangsha's wholly-owned subsidiary to participate in the establishment of a film and television project fund shows that the company is using the promotion of the establishment of this fund as a starting point to promote the company's strategic transformation, seize development opportunities in film and television culture and other industries, and accelerate industry mergers and acquisitions., expand influence and gain rewards. (Wang Weibo)

Editor: vian