New Culture plans to invest 1.04 billion yuan in PDAL, a film and television company owned by Stephen Chow

On the evening of January 3, New Culture announced that the company's wholly-owned subsidiary, New Culture Media Hong Kong Co., Ltd.(hereinafter referred to as "New Culture Hong Kong") and Young&Young International Corporation plan to jointly invest in Stephen Chow's holding of PREMIUM DATA ASSOCIATESLIMITED.

Original title: New Culture plans to invest in Stephen Chow's company

On the evening of January 3, New Culture announced that the company's wholly-owned subsidiary New Culture Media Hong Kong Co., Ltd.(hereinafter referred to as "New Culture Hong Kong") and Young&Young International Corporation (hereinafter referred to as "Young& Young") intend to jointly invest in Stephen Chow's holding PREMIUM DATA ASSOCIATESLIMITED (hereinafter referred to as "PDAL"). Among them, New Culture Hong Kong plans to purchase a 40% stake in PDAL at a consideration equivalent to HK$1.04 billion.

PDAL was incorporated in BVI in February 2002 and registered in Hong Kong in May 2003 under the Hong Kong Companies Ordinance. According to the announcement, PDAL and its subsidiaries are mainly engaged in related services such as investment, development, production/distribution of film and film and television entertainment content, and production/distribution of TV dramas. Data shows that in 2015, PDAL's operating income was 1.1737 million yuan and net profit was 348,400 yuan. From January to September 2016, PDAL's operating income was 81.1751 million yuan and net profit was 64.185 million yuan. After this equity investment, Stephen Chow accounted for 49% of PDAL's issued share capital, New Culture Hong Kong accounted for 40% of PDAL's issued share capital, and Young & Young accounted for 11% of PDAL's issued share capital.

At the same time, PDAL also made a performance commitment. The original shareholders promised that PDAL would achieve a total net profit of 1.04 billion yuan in the four fiscal years under Hong Kong Accounting Standards, of which the net profit targets achieved in 2016-2019 were no less than 170 million yuan respectively., 221 million yuan, 287.3 million yuan and 361.7 million yuan. If the actual net profit is less than the net profit commitment, the original shareholders will make cash compensation and repurchase.

New Culture Hong Kong stated that Stephen Chow's works have strong vitality and liquidity, and he is also a scarce brand in the Chinese film market. The company will further deepen its cooperation with Stephen Chow himself and his team through this investment. In the future, Stephen Chow's high-quality IP will be stored and developed in multiple dimensions. In addition, the company will further improve the industrial chain layout through this investment, achieve synergy with existing businesses, enhance the investment and production capabilities of film and television dramas, and extend the industrial chain by accumulating high-quality IP resources to create an industrial closed loop that integrates the upper and lower levels.

Editor: yvette