Fuyu Culture acquires 25% equity of Shencheng Film and Television for 10 million yuan to promote the layout of the cultural and entertainment industry

Fuying Culture, a company listed on the New Third Board, announced on April 13 that the company plans to spend 10 million yuan to purchase a 25% stake in Shanghai Shencheng Film and Television Media Co., Ltd. held by Beijing Bona Xingyi Performing Arts Agency Co., Ltd. The company said that this investment will effectively promote the company's strategic layout in the field of culture and entertainment, and has positive significance for the company's continued and stable development and growth of operating performance in the future.

The announcement shows that Beijing Bona Star Art Performing Arts Agency Co., Ltd. is a wholly-owned subsidiary of Bona Film Group Co., Ltd., and Fosun International controlled by the company's actual controller Guo Guangchang is an important shareholder of Bona Film Group and has a significant impact on Bona Film Group. Therefore, this transaction constitutes a connected transaction.

According to the announcement, Evergrande Culture holds a 25% stake in Shencheng Film and Television. Shencheng Film and Television's total unaudited assets in 2015 were 22.5351 million yuan, net assets were 22.3914 million yuan, and operating income was 3.1126 million yuan. The net profit was-1.9734 million yuan. According to reports, after the completion of this acquisition, it is expected to have a positive impact on the company's future financial status and operating results in the following aspects: First, Shencheng Film and Television has good development prospects and has strong strength in the fields of film and television investment, performing arts brokerage, etc., the company expects that Shencheng Film and Television has reached the point where its performance will explode; second, it can use Shencheng Film and Television's high-quality resources, such as film and television IP, its contracted artists, etc., to promote the rapid development of the company's existing main business, thereby improving operating results. Therefore, the board of directors believes that investing in this project will effectively promote the company's strategic layout in the field of culture and entertainment, and has positive significance for the company's continued and stable development and growth of operating performance in the future.

It is reported that Shencheng Film and Television is a professional comprehensive film and television media company integrating film and television investment, cultural performances and brand marketing. The company is mainly committed to producing cultural and entertainment content that is oriented to public demand, and at the same time provides brand customers with the most accurate and efficient full-content integrated marketing solutions, including brand customization, brand naming, film and television implantation, element authorization, derivative product development and star business value development. The company has developed well in recent years. The board of directors believes that there is a strong synergy between Shencheng Film and Television and Fuentertainment Culture's existing businesses such as offline performances, entertainment, mobile games and other businesses. Participating in the company is conducive to the company's overall development strategy. It is conducive to optimizing the company's resource allocation, actively exploring new businesses, enhancing the company's comprehensive competitiveness, and improving the company's profitability.

[Original Announcement]

Restoration of Entertainment Culture: Announcement on Acquisition of Assets

Editor: vian