Dadi Cinema Capital joins hands with Alibaba Pictures to upgrade its film + Internet strategy

On the evening of May 9, an announcement stated that Ali had subscribed for RMB 1 billion in convertible bonds through its subsidiaries. According to the subscription agreement, Alibaba Pictures can convert the bond principal into equity investment in Dadi Cinema within the agreed time limit.

On May 9, 2016, Nanhai Holdings, the parent company of Dadi Cinema, announced that Dadi Cinema (Hong Kong) Co., Ltd. plans to issue a total amount of RMB 1 billion to a wholly-owned subsidiary of Alibaba Pictures (SAC Finance Company Limited). Convertible bonds, the subscription funds will be used for theater operations, investment and mergers and acquisitions, and can also be used to repay bank loans.

According to the announcement, SACFinance can convert 1 billion yuan of bond principal into equity investment in Dadi Cinema (Hong Kong) Co., Ltd. or its wholly-owned subsidiaries within the agreed time limit. According to the preliminary conversion price agreed by both parties, SAC Finance will Achieve a 4.76% equity investment in the construction of Dadi Cinema Hong Kong or Guangdong Dadi Cinema.

Previously, Dadi Cinema Group has launched all-round strategic cooperation with Alibaba Pictures in online ticket sales, film joint marketing and self-service ticket vending machines. Talking about this capital cooperation, Yu Xin, general manager of Dadi Cinema Group, said,"Against the background of continuous innovation and breakthroughs in China's film industry, the capital marriage will help promote the two parties 'cooperation in film distribution, film marketing, and joint membership operations. In-depth cooperation in big data construction and other aspects to jointly promote the overall development of the industry. In the future, the cooperation between the two parties will also extend to product online retail, cloud technology and financial services. In the future, Dadi will continue to uphold an open and cooperative attitude and actively explore in-depth cooperation with more excellent strategic partners."

Zhang Qiang, CEO of Alibaba Pictures, said that cinema is not only one of the most important consumption scenarios in the entertainment industry, but also the core application scenario of the Internet in the film industry. It is an indispensable part of the entire industry chain entertainment platform that Alibaba Pictures is committed to building."We hope that based on our own Internet capabilities and resources, we can join hands with excellent partners such as Dadi Cinema to explore richer business models and promote the development of the entire film industry."

Alibaba Pictures 'subscription of convertible bonds issued by Dadi Cinema is also optimistic about Dadi Cinema's offline high-quality resources and future development momentum. Since its establishment, Dadi Cinema has been committed to becoming a leader in China's cinema industry. 2016 is the year when Dadi Cinema Group's "Film +" strategy is fully implemented. Dadi Cinema continues to optimize the terminal layout, focus on users, extend upstream through big data analysis, and form alliances in different industries. It adheres to the path of platform and creates an experiential cinema ecosystem operated by multiple formats such as "movie + creative Internet","movie + creative catering", and "movie + creative Retail".

Looking back on 2015, Dadi Cinema Group reached 71.58 million movie-goers, with tax-inclusive box office revenue of 2.2 billion yuan, a year-on-year increase of 47%, ranking second among national cinema investment management companies. As of April 30, 2016, Dadi Cinema has 313 cinemas across the country, with a total of 1662 cinemas. Its terminals cover 28 provinces and 150 cities across the country. The number of cinemas that have been contracted and not opened exceeds 310.

As the flagship of Alibaba Group's culture, film and television entertainment business, Alibaba Pictures 'cooperation with Dadi Cinema, which has high-quality offline resources, will jointly promote the in-depth upgrade of film + Internet and bring new benefits to China's film industry. Business development model.

Editor: vian