Songcheng Performing Arts subsidiary extends mobile games and live broadcasts and plans to acquire Smart Time for 380 million yuan

Songcheng Performing Arts announced on the evening of March 7 that Beijing Liujianfang Technology Co., Ltd.(hereinafter referred to as Liujianfang), a wholly-owned subsidiary of the company, plans to acquire Beijing Lingdong Spacetime Technology Co., Ltd.(hereinafter referred to as Lingdong Spacetime) by paying cash. % equity. The total consideration for this acquisition is RMB 380 million.

Songcheng Performing Arts announced on the evening of March 7 that Beijing Liujianfang Technology Co., Ltd.(hereinafter referred to as Liujianfang), a wholly-owned subsidiary of the company, plans to acquire Beijing Lingdong Spacetime Technology Co., Ltd.(hereinafter referred to as Lingdong Spacetime) by paying cash. % equity. The total consideration for this acquisition is RMB 380 million.

The consideration is paid in four installments.

Public information shows that Smart Time was established on October 10, 2013 with a registered capital of 1.5 million yuan. It is mainly a mobile online game company integrating research and operation. It has a leading market position in the research and development fields of medium games in China, especially ARPG, MOARPG, etc. As its core product,"Sword of the Soul" has been widely loved by players. The number of users, monthly turnover and total turnover are among the products in the same period. Ranked at the forefront. In addition, Smart Time's team has developed nearly 300 products since the era of stand-alone mobile games, covering multiple categories such as action, role-playing, competitive sports, chess and cards, and leisure. In 2016, the company's net assets were 14.909 million yuan, operating income was 52.9358 million yuan, and net profit attributable to owners of the parent company was 20.1726 million yuan.

The announcement shows that the consideration for this transaction is 380 million yuan to be paid in four installments. First, 51%, or 193.8 million yuan, will be paid within ten working days from the date of completion of the industrial and commercial change registration of equity transfer; the remaining three times will be paid within ten working days after the issuance of the 2017 - 2019 "Audit Report" of Smart Time, 16.17%, 16.66%, and the payment amounts are 61.446 million yuan, 61.446 million yuan, and 63.308 million yuan respectively.

In addition, Smart Space has also made performance commitments and performance compensation to Liujianfang, promising net profits of 40 million yuan, 52 million yuan and 65 million yuan respectively from 2017 to 2019. The reporter noted that the total commitment performance in the three years was 157 million yuan. At the same time, Smart Space also stated that if the company's net profit for any year during the commitment period is lower than the above-mentioned committed net profit, cash compensation will be made to Liujianfang.

Songcheng Performing Arts still relies on Liujianfang

reporters to review Songcheng Performing Arts '2016 annual report and found that the company's operating income in 2016 was 2.644 billion yuan, a year-on-year increase of 56.05%; it achieved a net profit attributable to shareholders of listed companies of 902 million yuan, a year-on-year increase of 43.1%. Among them, Liujianfang achieved revenue of 1.09 billion yuan in 2016, a year-on-year increase of 1.95 times, and net profit of 235 million yuan, a year-on-year increase of 1.52 times, contributing 41% and 26% of the company's revenue and net profit respectively.

Guohai Securities Research reported that Liujianfang has become one of the important sources of income and profits for Songcheng's performing arts. In terms of operations, Liujianfang has more than 50 million registered users, and the average monthly visitors reach 43.5 million. Among them, the average monthly increase of 23% on the web side, and the average monthly visitors on the mobile side increased by 248% year-on-year, reflecting a strong growth momentum. In addition, Liujianfang and the company's funds jointly launched the Mizhi APP, choosing to enter the secondary field in the direction of seiyu, and its future development deserves attention.

Songcheng Performing Arts said that this transaction is an important measure for Liujianfang, a wholly-owned subsidiary of the company, to promote the "live broadcast + mobile games" strategy after a long period of research. The addition of Smart Time and Space will supplement Liujianfang's genes in the field of mobile games and extend Liujianfang's business in the field of mobile game research and development and live broadcast.

As of the close on March 7, Songcheng Performing Arts closed at 22.07 yuan, up 2.75%.

Editor: yvette