Great Wall Film and Television: It has acquired Jiuming Advertising three times and obtained a total of 100% equity

Great Wall Film and Television acquired 51% and 25% equity of Jiuming Advertising in June 2015 and March 2016 respectively. After the completion of this acquisition, Dongyang Great Wall will hold 100% equity of Jiuming Advertising.

Recently, Great Wall Film and Television announced that its wholly-owned subsidiary Dongyang Great Wall Film and Television Media Co., Ltd.(hereinafter referred to as: Dongyang Great Wall) plans to sign an "Equity Transfer Agreement" with shareholders of Shanghai Jiuming Advertising Co., Ltd.(hereinafter referred to as: Jiuming Advertising).

The announcement shows that Dongyang Great Wall plans to use self-raised funds of no more than RMB 171 million to acquire the 24% equity of Jiuming Advertising held by Lingwei Investment and Cui Zhigang, and adjust the purchase consideration based on the net profits realized by Jiuming Advertising in 2017 and 2018 respectively and cumulatively.

Prior to this, Great Wall Film and Television had acquired 51% and 25% equity of Jiuming Advertising in June 2015 and March 2016 respectively. After the completion of this acquisition, Dongyang Great Wall will hold 100% equity of Jiuming Advertising.

It is worth noting that Jiuming Advertising is mainly engaged in advertising agency business, most of which are TV advertising agency business. Its core backbones are all senior TV media people. It has established a complete TV media resource analysis system, which can provide customers with information. Quickly find the best integration point among the massive TV content resources, and construct an implementation plan for win-win coexistence between media and advertisers.

This transaction will help further expand the derivative channels of film and television content and improve liquidity. Great Wall Film and Television 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.

Great Wall Film and Television said that this acquisition of Jiuming Advertising's equity will allow the company's high-quality drama advantages to synergize with Jiuming Advertising's TV advertising business, thereby enhancing the company's overall profitability. At the same time, by deploying in the field of TV advertising agencies, the investment risks brought by the TV drama production industry can be effectively reduced. In addition, this transaction can improve the continued profitability of the listed company and fully protect the interests of the company's shareholders, especially minority shareholders.

In addition, Great Wall Film and Television's acquisition of Jiuming Advertising's equity will enable the company's TV drama advertising and integrated marketing business to operate more quickly and effectively on a scale and systematic basis, further actively integrate channel marketing resources for the company and form a business ecosystem with synergistic effects. It is an important step for Great Wall Film and Television to build a comprehensive film and television media group strategy of "full content, full industry chain".

Great Wall Film and Television is the first film and television cultural enterprise in China to be listed on the main board of A-shares. It is one of the largest film and television media organizations in the country. The company focuses on derivative businesses such as TV drama investment, production, distribution and advertising. It is a "National Key Cultural Products Export Enterprise" named by six ministries and commissions including the Ministry of Commerce, the Ministry of Culture, the State Administration of Radio, Film and Television, and the General Administration of Press and Publication.

Editor: Xiongwei