Great Wall Film and Television twice acquired 100% equity of Zhejiang Zhongying and became the sole shareholder

On the evening of July 12, Great Wall Film and Television announced that Dongyang Great Wall, a wholly-owned subsidiary of the company, signed an "Equity Transfer Agreement" with shareholders of Zhejiang Zhongying Culture Development Co., Ltd.(hereinafter referred to as "Zhejiang Zhongying"). Dongyang Great Wall plans to use self-raised funds of no more than 170 million yuan to acquire a 49% stake in Zhejiang Zhongying. Before this acquisition, Dongyang Great Wall held 51% equity of Zhejiang Zhongying; after the completion of this acquisition, Dongyang Great Wall will hold 100% equity of Zhejiang Zhongying, and Zhejiang Zhongying will become a wholly-owned subsidiary of Dongyang Great Wall.

Original title: Great Wall Film and Television plans to acquire 49% equity in Zhejiang Zhongying

. On the evening of July 12, Great Wall Film and Television announced that Dongyang Great Wall, a wholly-owned subsidiary of the company, had signed an "Equity Transfer Agreement" with shareholders of Zhejiang Zhongying Culture Development Co., Ltd.(hereinafter referred to as "Zhejiang Zhongying"), and Dongyang Great Wall plans to use self-raised funds of no more than 170 million yuan to acquire 49% equity in Zhejiang Zhongying. Before this acquisition, Dongyang Great Wall held 51% equity of Zhejiang Zhongying; after the completion of this acquisition, Dongyang Great Wall will hold 100% equity of Zhejiang Zhongying, and Zhejiang Zhongying will become a wholly-owned subsidiary of Dongyang Great Wall.

The announcement shows that Zhejiang China Film is a comprehensive advertising company specializing in full-case advertising services and all-media advertising operations such as TV, Internet, radio, outdoor, and magazines. Media resources cover TV, radio, newspapers, magazines, video networks, and outdoor light boxes. and other diversified communication channels. In 2016 and January to May 2017, Zhejiang China Film achieved operating income of 104 million yuan and 36.7161 million yuan respectively, and net profit of 27.6897 million yuan and 7.4294 million yuan respectively. For this acquisition, Zhejiang Zhongying also made performance commitments for 2017 and 2018, and achieved net profits of no less than 33.12 million yuan and 35.76 million yuan respectively.

Great Wall Film and Television said that this transaction will help further expand the derivative channels of film and television content and improve liquidity. The company will further extend the industrial chain, continue to make full use of the synergy between film and television business and advertising service business, promote the development of film and television and advertising business, and comply with the comprehensive development trend of the entertainment media industry. This transaction can improve the listed company's continued profitability. After the completion of this transaction, the listed company's shareholding ratio in the target company will further increase, which will help optimize the layout of the company's advertising sector business.

At the same time, Great Wall Film and Television also disclosed the main risks in this transaction. First, after the equity transfer, the company put forward higher operating performance requirements for the target company. With the rapid development of the brand content marketing market, market competition has also brought Uncertainty in business, and there is uncertainty whether the target company's operating performance can achieve the expected profit target; In addition, after the completion of this transaction, if a large number of core personnel leave the target company, it may affect the normal development of its business and its profitability, and there is a certain risk of brain drain.

Editor: Mary