Weihai shares acquired a 41.11% stake in film and television special effects company Focus Pictures

When it comes to Beijing Focus Picture Technology Co., Ltd.(hereinafter referred to as Focus Picture), you may not be familiar with it, but when it comes to movies such as "Wolf Totem","Taiping Wheel","Golden Age", and "The Rush Year", you must be impressed. Yes, Spotlight Pictures has participated in the production of special effects for these movies. Today, 41.11% of Focus Picture's shares will be captured by Weihai Shares.

Capital increase and shareholding to gain 41.11% equity On the evening of December 7, Weihai shares announced that today, Weihai Culture signed the "Equity Transfer" with Beijing Focus Picture Culture Center (Limited Partnership), Beijing Jade Bird Fund Management Co., Ltd., Zhao Shunliang, etc."and the Capital Increase Agreement", which plans to use its own funds and bank loans totaling 110 million yuan to increase capital to Focus Picture and transfer the equity of some shareholders. After the completion of this transaction, Weihai Culture will hold a 41.11% stake in Focus Pictures and become the largest shareholder.

The announcement stated that after evaluation and confirmation by the evaluation agency, the evaluation value of the entire equity of Focus Pictures shareholders was 255 million yuan. Weihai Culture plans to transfer the equity of multiple shareholders of Focus Pictures for 95.829 million yuan, and invest 15.3 million yuan to subscribe for its new registered capital of 638,300 yuan. The capital increase premium will be included in the capital reserve.

The announcement shows that the partnership controlled by the Weihai Culture Department Company, Weihai Co., Ltd. and its wholly-owned subsidiary Zhejiang Kuncheng Investment Management Co., Ltd. jointly hold 100% of the property of Weihai Culture.

The announcement also stated that on December 7, 2016, the 12th meeting of the fifth board of directors of Weihai Co., Ltd. reviewed and approved the "Proposal on the Acquisition of Equity in Beijing Focus Picture Technology Co., Ltd. and the Capital Increase of Its Capital." According to the Articles of Association, this foreign investment is within the approval authority of the board of directors and does not need to be submitted to the company's shareholders 'meeting for review and approval. This foreign investment does not constitute a related party transaction, nor does it constitute a major asset reorganization.

Data shows that Focus Pictures was established in March 2012 with a registered capital of 10.6383 million yuan. Its business scope covers sales of food, technology promotion services, computer animation design, software design, computer system services, literary and artistic creation, etc.

The purpose and impact of expanding the second main business industrial chain on increasing capital and transferring part of the equity of Focus Pictures, Weihai said that the transaction is conducive to the expansion of the company's second main business industrial chain, industrial integration and project resource reserve, and will accelerate the smooth implementation of the company's development strategy.

The reporter noticed that the announcement stated that Focus Pictures is the leading film and television special effects production company in China. It has a good reputation in the domestic and international film and television special effects industry and has won many film festival visual effects awards.

Focus Pictures maintains long-term close cooperation with many famous directors, producers and production companies at home and abroad. So far, it has completed more than 30 domestic and foreign theater films, including "Taking Tiger Mountain with Wisdom" directed by Tsui Hark and "The Dragon King of Di Renjie","Wolf Totem" by Oscar gold medal director Jean Jacques Arnold,"Wolf War" by Wu Jing,"Taiping Wheel" by Wu Yusen,"Golden Age" by Xu Anhua, and "Rush Year" by Zhang Yibai."Million Crocodile" directed by Lin Lisheng,"Troubles in Heaven" directed by Zheng Baorui,"Love on the Roof" directed by Jay Chou,"Chef and Actress Ruffian" directed by Guan Hu,"Golden Robbery" directed by Ning Hao, etc.

It is worth mentioning that the original shareholders of Spotlight Pictures have promised that Spotlight Pictures 'audited net profit attributable to all shareholders after deducting non-recurring gains and losses from 2016 to 2018 will be 17 million yuan, 23 million yuan and 31 million yuan respectively. At the end of each fiscal year during the three-year performance commitment period, if it is reviewed and confirmed by the audit institution responsible for the audit of the annual financial report of Waihai Culture that the cumulative net profit realized by Guangguang Pictures in the fiscal year fails to reach the committed net profit for the fiscal year, Zhao Shunliang, Beijing Guangguang Pictures Culture Center (Limited Partnership), Xu Fei, Gaoyuan, and Li Rui need to make cash compensation to Waihai Culture within three months after the annual audit report is issued.

Focus Picture's main financial data for the most recent year shows that in 2015 (audited), the company achieved operating income of 10.1985 million yuan and net profit of 10.122 million yuan. First 11 months of 2016 (unaudited). The company achieved operating income of 30.2089 million yuan and net profit of 6.6634 million yuan.

Editor: yvette