Dadi Cinema Group's asset securitization products listed and raised 1.13 billion yuan to help cinema terminal expansion

On February 1, 2016, Nanhai Holdings, the parent company of Dadi Cinema Group, announced that its two indirect wholly-owned subsidiaries, Dadi Cinema Development Co., Ltd. and Guangdong Dadi Cinema Construction Co., Ltd., would pledge part of the future box office revenue of its 80 cinemas to issue asset securitization products, which were listed on the Shenzhen Stock Exchange on February 1, with a total financing amount of 1.13 billion yuan to develop its cinema construction-related businesses.

On February 1, 2016, Nanhai Holdings (Stock Exchange of Hong Kong Stock Exchange: 00680), the parent company of Dadi Cinema Group, announced that its two indirect wholly-owned subsidiaries, Dadi Cinema Development Co., Ltd. and Guangdong Dadi Cinema Construction Co., Ltd.(hereinafter collectively referred to as Dadi Cinema Group), usingpart of the future box office revenue of its 80 cinemas a pledge to issue asset securitization products, was listed on the Shenzhen Stock Exchange on February 1, with a total financing amount of RMB 1.13 billion to develop its cinema construction-related businesses.

In 2015, Dadi Cinema Group reached 71 million movie-goers, with box office revenue of 2.2 billion yuan, a year-on-year increase of 47%, ranking second among the national cinema investment management companies. As of the end of 2015, Dadi Cinema Group had 286 theaters across the country, with a total of 1481 screens. Its terminals covered 28 provinces and 140 cities across the country, and the number of theaters that had been contracted and not opened exceeded 300. This financing will further accelerate the expansion of its terminals. In response, Dadi Cinema Group stated that it plans to become the leader of China cinema investment management companies at a growth rate of no less than 100 newly opened cinemas per year.

At present, China's film industry is still in a breakthrough growth stage, as can be seen from the 2015 box office data. In 2015, the total box office of movies nationwide was 44.069 billion yuan, a year-on-year increase of 48.7%. Throughout the year, 8035 screens were added to theaters, bringing the total number of screens to 31627. The number of people watching movies in urban theaters was 1.26 billion, a year-on-year increase of 51.08%. Yu Xin, general manager of Dadi Cinema Group, is optimistic about the development prospects of China's film industry. In his view, China's film box office ranks second in the world, second only to the United States, but China's film market is still in its infancy. In terms of average annual movie-goers, China only has 1.6 times, which is still far behind the level of developed countries in the world. It is also expected that the number of screens in China's cinema industry will double again.

In addition to being optimistic about the prospects of China's film market, Yu Xin, general manager of Dadi Cinema Group, also has sufficient confidence in the funding source problem faced by rapid expansion. She said that currently benefiting from the state's support for the development of the cultural industry and the rapid development of the film industry, capital is constantly concentrated. Nanhai Holdings, the parent company of Dadi Cinema Group, is a highly forward-looking diversified business investment company, always optimistic about the development prospects of the cinema business and will provide multi-faceted resource support for its development. At the same time, Dadi Cinema Group has well-known informatization and standardization management capabilities in the industry, and already has strong financing capabilities. In the future, it will accelerate its layout expansion through self-construction and mergers and acquisitions, and will continue to try various innovative financing models. Continuously improve its capital structure. The development of asset securitization business is a successful development and attempt of Dadi Cinema Group to diversify financing.

Editor: vian