Molin shares 50 million yuan to acquire 5% equity of Yidong Entertainment, optimistic about Short Video social networking

Molin shares issued an announcement stating that the company plans to pay 50 million yuan to transfer the 5% equity of Fujian Yidong Entertainment Co., Ltd. held by Zhangshu City People's Investment Management Center.

On the 19th, Molin issued an announcement stating that the company plans to pay 50 million yuan to transfer the 5% equity of Fujian Yidong Entertainment Co., Ltd. held by Zhangshu City People's Investment Management Center.

The announcement stated that the reason for acquiring the equity of Yidong Entertainment was to be optimistic about the Short Video social software iFchat it operates, as well as Yidong Entertainment's strong management and technical team and rich experience in the Internet and mobile Internet fields in China. Molin believes that social Short Video have good development prospects in China. This investment will help improve the company's comprehensive strength and has positive significance for the company's future strategic layout.

Molin Co., Ltd. was listed on the New Third Board on December 23, 2015. Its main business is the research and development and authorized operation of online games. Its main products include "Great Wall" and "Unparalleled". According to the company's 2016 semi-annual report, the company's revenue in the first half of the year was 127 million yuan, a year-on-year decrease of 17.93%, and its net profit was 281 million yuan, a year-on-year increase of 449.29%.

Prior to this acquisition of Yidong Entertainment's equity, Wolong Real Estate issued a "Purchase Plan" in July 2016, planning to acquire 97.7% equity from Molin, with an initial price of 4.409 billion yuan. At the same time, the two companies also signed a gambling clause, stipulating that the target party will have a net profit of no less than 360 million, 450 million, and 560 million for the three years from 2016 to 2018. The announcement stated that after obtaining resources in the social field of Short Video through the acquisition, Molin will deploy multiple points outside the game business, broaden revenue channels, and improve the business ecosystem.

Editor: Nancy