Canxing Culture received a capital increase of 300 million yuan from Zhejiang Fu Holdings, accounting for 6.07% of the shares

Zhefu Holdings announced on March 31 that Xizang Yuanhe, a wholly-owned subsidiary of the company, increased its capital by 300 million yuan to Shanghai Canxing Culture at a premium. After the capital increase was completed, the registered capital of Xizang Culture increased to 4.5673 million yuan. Tibet Yuanhe's capital contribution accounted for 6.07%.

Zhefu Holdings announced on March 31 that Xizang Yuanhe Investment Management Co., Ltd.(hereinafter referred to as "Xizang Yuanhe"), a wholly-owned subsidiary of the Company, increased the capital of Shanghai Canxing Culture Communication Co., Ltd.(hereinafter referred to as "Canxing Culture") by RMB 300 million yuan at a premium, of which RMB 277,000 yuan was included in the newly added registered capital of Canxing Culture, and RMB 299.7 million yuan of premium was included in the capital reserve fund of Canxing Culture. After the capital increase was completed, the registered capital of Canxing Culture increased to 4.5673 million yuan, and the proportion of Xizang Yuanhe's contribution to the registered capital was 6.07%.

Canxing Culture is mainly engaged in TV program production business and is the producer of TV programs including "The Good Voice of China","Good Songs of China","Outstanding China","King of Masked Singers","Great Challenge","Golden Star Show", and "Good Dance of China".

In September last year, the company signed a framework agreement of intent with Canxing Culture. The company plans to subscribe in cash for 6%-10% of the equity of Canxing Culture after the capital increase is completed. Mengxiang Qiangyin Culture Communication (Shanghai) Co., Ltd.(referred to as "Mengxiang Qiangyin") is a company related to brand management, development and operation, artist brokerage, derivative product development, live performances, and audio content production and/or operation of film and television programs exclusively authorized by Canxing Culture. It was originally a downstream company of Canxing Culture; currently, Canxing Culture has integrated Mengxiang Qiangyin into its subsidiary and become its controlling subsidiary.

Zhefu Holdings stated that the company's previous withdrawal from Dream Sound and Capital Increase in Canxing Culture was a positive adjustment made by the company based on the integration of investment targets and changes in the securitization path, which will help further enhance the liquidity of the company's future investment income.

At the same time, the announcement on the same day showed that the company actively practiced the development strategy of "investment in emerging fields such as large energy + Internet," and increased 600 million yuan to Xizang Yuanhe Investment Management Co., Ltd.(hereinafter referred to as "Xizang Yuanhe"), a wholly-owned subsidiary of the company, with its own funds.

Zhefu Holdings said that this capital increase not only enhances the financial strength of Xizang Yuanhe, but also enriches the company's service functions of industrial mergers and acquisitions and integrated investment, which will have a positive impact on the company's future financial status and operating results.

[Original Announcement]

Zhefu Holdings: Announcement on Capital Increase in Shanghai Canxing Cultural Communication Co., Ltd.

Editor: vian