Enlight Media plans to sell 50.8% stake in Blue Arc Culture for 240 million yuan

Enlight Media stated that this transaction is conducive to the further optimization of the asset structure, improving the liquidity of the company's assets, optimizing the company's overall resource allocation, and improving the efficiency of capital use, which is in line with the company's investment strategy and development strategy.

On the evening of December 14, Enlight Media issued an announcement stating that on December 12, 2016, the company had established a joint venture with Guangzhou Haihui Investment Management Co., Ltd.(hereinafter referred to as "Haihui Investment"), Shenzhen Qianhai Rance Cultural and Creative Partnership (Limited Partnership)(hereinafter referred to as "Qianhai Run Ce"), Guangzhou City Huanpin Enterprise Management Consulting Partnership (Limited Partnership)(hereinafter referred to as "Guangzhou Halpin") signed the "Equity Transfer Agreement". Haihui Investment, Qianhai Runce and Guangzhou Halpin respectively plan to use cash to purchase 50.8% of the equity of Guangzhou Blue Arc Culture Communication Co., Ltd.(hereinafter referred to as "Blue Arc Culture") held by the company, with a transaction price of 240 million yuan. After the transaction is completed, Enlight Media will no longer hold equity in Blue Arc Culture.

Blue Arc Culture was established in 2007 with a registered capital of 12.4 million yuan. Its main business is the development, production and distribution of animated film and television works. Currently, Blue Arc Culture has launched the three-dimensional short films "Jelly Baby","The Three Jelly Musketeers", and "Guobao Special Attack" launched in cooperation with beverage companies; the full three-dimensional original animation "Changing Machine Beast"(52 episodes in total) launched in cooperation with Guangzhou Xingjie Toys Co., Ltd.; and the full three-dimensional production of fairytale detective animation "Dibi Dog" launched in cooperation with Future Code of Finland. In 2015, Blue Arc Culture's revenue was approximately 46.377 million yuan, operating profit was 22.458 million yuan, and net profit was 24.903 million yuan. However, in the first nine months of 2016, the company's revenue was only 13.62 million yuan, operating profit was-11.89 million yuan, and net profit was 333,000 yuan. Its performance dropped significantly compared with last year.

Enlight Media stated that this transaction is conducive to the further optimization of the asset structure, improving the liquidity of the company's assets, optimizing the company's overall resource allocation, and improving the efficiency of capital use, which is in line with the company's investment strategy and development strategy. After the completion of this transaction, the consolidation scope of Enlight Media's financial statements will change, and Blue Arc Culture will no longer fall within the scope of the company's consolidated statements.

Editor: Nancy