ST Songliao plans to invest 150 million yuan in lithography era and join hands with Yaolai to invest in Feng Xiaogang's new film

ST Songliao announced on the 12th that the company's board of directors reviewed and passed a resolution, agreeing to use a wholly-owned subsidiary Jiangsu Yaolai Studios to increase its 2.19% stake in lithography era with a quota of no more than 150 million yuan. Yaolai Cultural Industry Co., Ltd., the company's second largest shareholder, has increased its shareholding in the company with a total of 8.8967 million yuan. He will also jointly invest in Feng Xiaogang's new film "My Name is Li Xuelian" with Huayi Brothers and Ferris Wheel.

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*ST Songliao announced on the 12th that the company's board of directors reviewed and passed a resolution, agreeing that its wholly-owned subsidiary Jiangsu Yaolai Studios Management Co., Ltd.(hereinafter referred to as Jiangsu Yaolai Studios) will use a quota of no more than 150 million yuan to increase capital in Beijing Microfilm Times Technology Co., Ltd.(hereinafter referred to as Microfilm Times). 2.19% equity.

Speaking of this era of lithography, readers who often buy movie tickets through the WeChat platform must know very well.

Data shows that in May 2014, Lin Ning established Microfilm Times Technology Co., Ltd. and began to independently operate the "micro-ticket" business. The one most familiar to most people is WeChat movie tickets, or according to the lithography era, it is called the "WeChat entrance to movie ticket business." According to the announcement, relying on 650 million WeChat users and 860 million QQ users, and leveraging the advantages of active mobile social networking, Microfilm Times's microticket platform helps movies, performances, events and other pan-entertainment products reach a large number of mobile Internet users, and Achieve fast and convenient consumption conversion.

In addition, the lithography era currently covers more than 4500 theaters and 90% of the movie-watching audience, and has stationed in more than 1200 theaters, stadiums and exhibition halls. In the film market, the Microfilm Era is deeply involved in the entire industry chain through IP development, investment and production, mobile marketing, Internet distribution, etc.: it not only has huge channel resources as the exclusive agent of entertainment advertising in the Microfilm Circle of Friends, but also has 9 Tencent's major film IP, strategic cooperation with 24 film companies, and has helped films such as "The Return of the Great Sage" achieve excellent market performance.

In fact, the reporter noticed that previously, *ST Songliao related party Beijing City Cultural and Creative Industry Investment Fund had continuously invested in the lithography era. The fund's sub-fund, Cultural Capital China Film and Television Culture Investment Fund, followed the B Series of Investment in the Microfilm Era, led the C Series of Financing in the Microfilm Era in November 2015, holding a 10.26% stake after the completion of the Series C financing.

In this transaction, Jiangsu Yaolai Studios plans to subscribe for 528,600 shares of Microfilm Times and hold a 2.19% stake in the company after capital increase.

In addition, Jiangsu Yaolai Studios also plans to improve its film distribution business with the lithography era. The two parties will jointly establish a film distribution company. The registered capital of the new company is 10 million yuan, with Jiangsu Yaolai Studios and Microfilm Times holding 51% and 49% respectively. The two sides will rely on the new company to carry out in-depth cooperation in online and offline film and television distribution, marketing and content. It is reported that Microlithography Era has 300 Shanghai Beauty Film Factory IP and other rich high-quality content resources. Microlithography Capital, a subsidiary of Microlithography Era, has participated in investing in many companies with high-quality online literature copyrights and online drama development capabilities, such as Great God Circle, Shell Culture, and Dream for Horse.

The announcement on the same day also disclosed that from December 2, 2015 to December 10, 2015, Yaolai Cultural Industry Co., Ltd., the company's second largest shareholder, plans to increase its holdings of the company's shares through the centralized bidding method of the Shanghai Stock Exchange trading system. A total of 2,467,297 shares, accounting for 0.2992% of the company's total share capital, the cumulative increase amount is 88,966,269 yuan, and the average increase price is 36.0582 yuan/share. As of December 10, 2015, Yaolai Culture held 143,573,297 shares of the company, with a shareholding ratio of 17.41%, of which 141,106,000 shares are restricted for sale and 2,467,297 shares are outstanding. Yaolai Culture promises that the above-mentioned increased shares will not transfer the increased shares of the company within 6 months (i.e. until May 9, 2016).

At the same time, the announcement shows that Jiangsu Yaolai Studios, a wholly-owned subsidiary of the company, is a wholly-owned holding company of Yaolai Film and Television Culture and Beijing Yaolai Film and Television. Yaolai Film and Television Culture and Beijing Yaolai Film and Television intend to cooperate with Huayi Brothers Media Co., Ltd. and Beijing Ferris Wheel Culture Media Co., Ltd. jointly signed the "Film Joint Investment Agreement" to invest in the filming of the film "My Name is Li Xuelian"(tentative name). It is reported that the film is adapted from Liu Zhenyun's work "I am Not Pan Jinlian". The film is directed by Feng Xiaogang. The other main creators of the film are jointly determined by the investors. The joint investment amount of Yaolai Film and Television Culture and Beijing Yaolai Film and Television is 14.175 million yuan.

The agreement stipulates that if the box office is less than 500 million yuan, Yaolai Film and Television will pay the film investor a net box office revenue of 200 million yuan based on the total box office revenue of the film of 500 million yuan; the net box office revenue of 500 million to 800 million yuan will be exclusive to the issuer Yaolai Film and Television Culture; if the box office exceeds 800 million yuan, the issuer Yaolai Film and Television Culture will receive 50% of the net box office revenue.

[Original announcement]

*ST Songliao's announcement that its wholly-owned subsidiary Jiangsu Yaolai Studios plans to invest in Beijing Microfilm Times Technology Co., Ltd.

* ST Songliao's announcement that the second largest shareholder will increase its shareholding in the company

*ST Songliao's announcement that a subsidiary of the wholly-owned subsidiary Jiangsu Yaolai Studios plans to invest in the film "My Name is Li Xuelian"

*ST Songliao's announcement that a subsidiary of the wholly-owned subsidiary Jiangsu Yaolai Studios plans to sign a major contract

This article is based on the report and public information compiled and released based on the "Daily Economic News", with slight changes in the original text

Editor: vian