Dongfang Network purchased the remaining 33% stake in Shuimu Animation for 176 million yuan

Oriental Network announced today that its subsidiary Guilin Oriental Times Investment Co., Ltd.(referred to as "Oriental Investment") plans to acquire 33.33% equity of Shuimu Animation Co., Ltd.(referred to as "Shuimu Animation") held by Shi Xiangdong with its own and self-raised funds of 176 million yuan. After the transaction is completed, Orient Investment holds 100% equity of Shuimu Animation.

Oriental Network announced today that its subsidiary Guilin Oriental Times Investment Co., Ltd.(referred to as "Oriental Investment") plans to acquire 33.33% equity of Shuimu Animation Co., Ltd.(referred to as "Shuimu Animation") held by Shi Xiangdong with its own and self-raised funds of 176 million yuan. After the transaction is completed, Orient Investment holds 100% equity of Shuimu Animation.

Shuimu Animation was established in 2006. Its business scope includes animation design, comic design, art design, animation software development, computer software and hardware development, creative industry consulting, corporate image planning, exhibition and display services, photography services, various types of advertising design and production, design and sales of craft gifts and toys.

According to surveys, in 2015, Shuimu Animation completed nearly 30,000 minutes of intellectual cartoons with independent intellectual property rights. The annual animation output ranked first in the country. The animation copyright ownership was 170,000 minutes, and the copyright ownership ranked first in the country. In 2015, Shuimu Animation signed the "Sanya Tourism Virtual Reality (VR) Cooperation Development Framework Cooperation Agreement" with the Sanya City Tourism Development Committee, which will build a comprehensive VR sensory system for Sanya tourism in Sanya; it reached a "Container Town" cooperation agreement with Changzhou Zhenglu Town Government "Project", and jointly invested and established Jiangsu Huanyu Container Entertainment Town Co., Ltd. with Changzhou City Shunxi Tourism Management Co., Ltd.; A cooperation agreement has been signed with Guizhou. In 2016, we will jointly develop science fiction theme parks, big data and VR industrial applications, industrial applications and other projects in Guizhou.

Shi Xiangdong promised that Shuimu Animation's net profit for 2015-2017 will not be less than 40 million yuan, 44 million yuan, and 52.8 million yuan respectively.

Dongfang Network introduced that in 2016, Shuimu Animation will continue to be based on animation research and development, rely on strong content resources and advertising resources, and rely on the cooperation model with local governments to strive to promote the construction of children's theme parks and the commercialization of VR technology. In the future, the company will effectively integrate animation resources, accelerate the construction of content sectors, comprehensively carry out cultural layout, extend the cultural industry chain, and increase the profit growth points of listed companies, which will have a positive impact on the company's operations and financial situation.

At the same time, Orient Investment acquired the 24% stake in Guoguang Star held by Guoguang Holdings for a bank loan of 32.4 million yuan.

Guoguang Star's main business is the development and operation of mobile TVs. Currently, its main product is the mobile App "Mobile TV". Since its launch, the cumulative global downloads of this product have reached 170 million times, and the number of daily active users has reached 2 million. The cumulative number of download users and daily active users rank first among similar products. At present, business income mainly comes from the diversion business and advertising business within "mobile TV".

Dongfang Network said that after the transaction is completed, the company's resource sharing and cooperation with Guoguang Star will be conducive to the company's business expansion in the field of mobile TV. By opening up the connection between TV and mobile phones, users can be quickly acquired and the company's deep deployment of mobile The video business has a positive impact.

In addition, Orient Network plans to jointly initiate the establishment of Shenzhen Dongyuan Delta Investment Fund Partnership (tentative name) with Orient Investment. The company will contribute 499 million yuan as a limited partner, and Orient Investment will contribute 1 million yuan as a general partner. The partnership company focuses on the cultural industry, mainly film and television, VR, cultural tourism, and new media.

Dongfang Network released its first quarter report for 2016. During the reporting period, the company achieved operating income of 112 million yuan, a year-on-year increase of 97.63%, and achieved net profit of 3.23 million yuan, a year-on-year increase of 485%.

Editor: vian