Perfect World invested 500 million yuan to acquire 10% shares of Jiaxing Media to jointly promote the pan-entertainment strategy

On March 24, Perfect World announced that its funds planned to invest RMB 500 million to invest in Jiaxing Media. After the transaction is completed, it will obtain a total of 10% shares of Jiaxing Media. After Perfect World shares in Jiaxing Media, the two parties will cooperate in all aspects to jointly promote the integrated development of film, television and games, and jointly promote the pan-entertainment strategy.

On the evening of March 23, Jiaxing Media issued an announcement stating that Perfect World subscribed for 1 million shares of Jiaxing Media through its subsidiary Shihezi City Junyi Yunyang Equity Investment Company for 250 million yuan. After the subscription is completed, Perfect World will become Jiaxing Media's 5% shareholder. On March 24, Perfect World officially announced that its funds plan to invest RMB 500 million to invest in Jiaxing Media. After the transaction is completed, it will obtain a total of 10% shares of Jiaxing Media. After Perfect World shares in Jiaxing Media, the two parties will cooperate in all aspects to jointly promote the integrated development of film, television and games, and jointly promote the pan-entertainment strategy.

Regarding the difference of 250 million yuan in investment amounts between the two announcements, Perfect World responded that the 250 million yuan investment mentioned by Jiaxing Media in the announcement on the evening of the 23rd is part of Perfect World's overall investment to subscribe for newly issued shares. In addition, the shares of existing shareholders will be transferred, and both parties will gradually announce the detailed part of the 500 million yuan investment.

As the largest movie and game complex in China, Perfect World has a profound Internet, cultural and entertainment heritage, and has many years of experience and strong strength in diversified IP development and operation. It has launched "Perfect World","Immortal Xian","Smiling","The Condor Heroes","Magic Baby","Neverwinter OL","Deep Sea Trek" and many other popular products covering end games, mobile games, console games, and VR games. It also represents world-class e-sports masterpieces "DOTA2" and "CS:GO"(Counter-Strike: Global Offensive). In 2016, Perfect World's game business achieved revenue of 4.704 billion yuan, an increase of 24.97% over 15 years. At the same time, in terms of film and television production and development, the film and television company has established cooperative relationships with well-known directors, producers such as Zhao Baogang, Ding Xin, Teng Huatao, Liu Jiang, Guo Jingyu, He Jing, Wu Yujiang and many other outstanding creative teams since its inception. It has successively produced high-quality TV series such as "Beijing Youth","Old People Have Depends","Dog Stick","Let's Fall in Love","Soul Ferry" series,"God Dog Xiao Qi" series, and "Legend of the Condor Heroes", which continue to boost the company's performance. In 2016, the Perfect World film and television business segment achieved revenue of 1.455 billion yuan, an increase of 28.85% over 15 years. Among them, revenue from the TV drama sector was 1.102 billion yuan, with a performance increase of 19.3%.

At the same time, the company has also created films with high reputation such as "Thirty-Three Days of Lovelorn","Piano of Steel" and "Waiting for the Wind"; and has invested in Universal Pictures, one of the six major Hollywood companies, in the next five years. 50 film works, enjoying the global revenue distribution of the film. In addition, the company has further expanded to invest in the production of high-quality variety shows such as "Extreme Challenge","Cross-Border Singer","Cross-Border Comedy King","The Life I Yearn for" and "Happy China People". In 2016,"King of Cross-Border Songs" won the Golden Angel Award of the "Best TV Variety Show" at the 12th China-US Film Festival, making the first overseas hit for domestic variety shows; in 2017,"Happy China" and "The Dream of Life" were popular, achieving national network ratings of 1.6 and 1.7 respectively.

Established in 2014, Jiaxing Media identified three major business segments at the beginning of its establishment, with artist brokerage as the core, film and television production as the carrier, and the development of the entire industry chain. Within less than a year after its establishment, the company quickly borrowed a shell and landed on the new third board, and obtained an investment of 300 million yuan from Shangshi Films, with a valuation of 1.5 billion yuan. With Yang Mi as the core, Jiaxing Media has successfully created a business of "Jiaxing participates in the production + Jiaxing artists contract the venue". It has high-quality film and television production, distribution and marketing capabilities, as well as rich artist resources and strong artist training capabilities. At present, Jiaxing Media has signed more than 20 artists including Yang Mi, Liu Kaiwei, Dilijeba, Zhang Binbin and Zhang Yunlong, and 15 artists have already broadcast their works.

Recently,"Sansheng III Ten Miles Peach Blossom", which was exclusively produced and invested in by Jiaxing Media, has a hit screen, with more than 30 billion online views. It not only created a phenomenal high-quality TV work for the beginning of 2017, but also made the popularity of 10 artists under the show, including Yang Mi, Di Lieba, Gao Weiguang, Zhang Binbin, Wang Xiao, Huang Mengying, Zhu Xudan, Lai Yi, Liu Ruilin, and Daisi, soared. This mainly benefits from Jiaxing's core philosophy and mature artist training system;"Beautiful Li Huizhen" became the dark horse at the beginning of 2017, breaking the record of 15 months of weekly drama broadcast on national satellite TV.

Jiaxing Media's unique echelon-style artist training method combines with the different drama series and character resources of a senior agent team, and applies a precise marketing model. It has a series of growth-through processes of evaluation, training, and market feedback. It is extremely unique and similar to the Internet thinking operation model. Starting from Internet games, in the perfect world where the film and television industry is constantly making efforts, what is most important is the consistency of this concept and the infinite possibilities brought by the integration of movies and games.

It is understood that after completing this round of financing, Jiaxing Media will focus on developing diversified businesses. On the one hand, when entering into child star management, Jiaxing will copy its artist training experience into child star training; on the other hand, Jiaxing Media will also develop fan economy around the fans of more than 20 Jiaxing artists, including derivatives development and live interaction modules.

With funds and partners, Jiaxing Media will also focus on increasing the proportion of games and derivatives development, bringing more room for revenue growth to the company. In 2017, Jiaxing Media's projects include "Fire Like Song" and "Sword of the Sky". Among them,"Sword of the Sky" will cooperate with game manufacturers to carry out closer joint development of video games, and "Fire Like Song" will also try the entire industry chain development, including TV dramas, online dramas, movies, games and derivatives. Based on this development plan, Jiaxing Media has predicted its future operating income. It is estimated that revenue from 2016 to 2018 will be approximately 300 million yuan, 500 million yuan and 800 million yuan respectively, with an average growth rate of more than 60%.

Perfect World said that this cooperation was reached through long-term communication and consideration between the company and Jiaxing Media. This is also another measure taken by Perfect World to deepen the layout of film and television and promote its pan-entertainment strategy. Through cooperation, the two parties will achieve the greatest degree of integration of concepts and complementary resources, from IP to production, to artist brokerage, to work distribution and movie and game linkage, forming a mature operation system on a scale, and continuously expanding the themes and quality of film and television dramas. At the same time, the influence of the products will be further enhanced. At the same time, the strong combination of the two will also provide a broader space for the business development of both parties. At the same time, Perfect World highly recognizes Jiaxing Media's professional and successful operating model and believes that through close cooperation between the two parties, Jiaxing Media will grow into a leading company in the cultural and entertainment industry.

Regarding this cooperation, Lian Jian, chairman of Perfect World Film and Television, said: "Jiaxing is an industry leader in the field of artist brokerage and film and television production. Perfect is also the industry flagship that has established a leading position with 'boutique dramas'. Both parties have similar DNA and extensive cooperation space. With this investment in Jiaxing Media, Perfect World not only further expanded its own film and television business, but also once again accelerated the pace of integration of film, video and entertainment. After the cooperation, the two parties will jointly carry out film and television production and game development for a series of works such as "Fire Like a Song"." Integrity also said that he very much agrees with Jiaxing's development philosophy and operating model and is full of confidence in the prospects of cooperation between the two parties.

Zeng Jia, chairman of Jiaxing Media, said: "Since its establishment, Jiaxing Media has been committed to exploring the younger market, continuously providing high-quality film and television dramas and launching excellent idol artists, and adhering to high-quality talent training and high-quality product strategies. We are very happy to encounter the same concept as ours. Perfect World, and jointly promote the film and television adaptation and production of its popular game IP. We believe that through our cooperation, we can maximize the complementarity of resources and make the movie-game linkage more effective and in-depth. Work together to create more high-quality cultural and entertainment products." At the same time, Zhao Ruoyao, vice chairman of Jiaxing Media, said: "Jiaxing Media's cooperation with Perfect World is in-depth and implemented. At present, the two sides have reached more specific cooperation plans on multiple projects, and will announce cooperation projects soon." News."

As far as both parties are concerned, promoting the integration of the movie and video industry and creating more high-quality and happy entertainment experiences for the public is the common goal and responsibility of both parties. Complementing each other's advantages, jointly cultivating multi-level three-dimensional movie-game linkage products, and promoting the pan-entertainment strategy will also bring greater development to both parties.

Editor: Nancy