Great Wall Movie and Television Co., Ltd. (002071.SZ) recently announced that its fully-owned subsidiary Dongyang Changcheng plans to acquire the remaining 49% stake in Zhejiang Zhongying Culture Development Co. for RMB 171 million, as reported by Cnstock.
Prior to this deal, Dongyang Changcheng owned 51% of Zhejiang Zhongying. After the deal, Dongyang Changcheng will hold 100% of Zhejiang Zhongying.
Why It Matters:
- Zhejiang Zhongying has promised to generate net profits of RMB 33.12 million and RMB 35.76 million respectively for 2017 and 2018.
- Zhejiang Zhongying is mainly engaged in advertising businesses, including television, internet, broadcast, magazine, and outdoor advertisements. Zhejiang Zhongying posted a net profit of RMB 7.43 million and revenue of RMB 36.72 million for the first five months of 2017.
- Great Wall Movie and Television is a China-based company principally engaged in the investment, production, and distribution of movies and TV dramas, as well as the advertising business and the operation of movie and TV production studios. Great Wall Movie and Television believes that the deal will help the company enrich its film content and boost its advertising business.