Panax notoginseng mutual entertainment buys aurora network has developed a popular mobile game "Eternal era"

On the evening of September 4, it was announced that it planned to acquire the remaining 20% equity of Jiangsu Aurora Network Technology Co., Ltd. (hereinafter referred to as Aurora network) with 1.4 billion yuan in cash to achieve wholly-owned holdings

during the release period of the interim report, Sanqi mutual entertainment, which became "the most profitable game company in a shares", once again stepped up its main business. It announced on the evening of September 4 that it planned to purchase the remaining 20% equity of Jiangsu Aurora Network Technology Co., Ltd. (hereinafter referred to as Aurora network) with 1.4 billion yuan in cash to achieve a wholly-owned holding. As of the announcement date, the acquisition of the remaining 20% equity of Aurora network has been reviewed and approved by the board of directors of Sanqi mutual entertainment. This transaction also needs to be reviewed and approved by the general meeting of shareholders and the CSRC

< strong > Aurora network is the R & D team of the eternal era < / strong >

Aurora network, founded in October 2013, is a research and development subsidiary of Sanqi mutual entertainment. In June, 2014, the first self-developed product, the sword of archangels, broke many records in the web game industry and became the representative work of high-quality web games. In December, 2014, it launched the representative work legend overlord, and in October, 2015, it created the anger of the Warring States period, which is regarded as the most successful R & D team in the web game industry

after transforming the research and development of mobile games, Aurora network launched the mobile game "eternal era" in 2016, which has become the most successful mobile game product of Sanqi mutual entertainment so far. As of June 30, 2017, the cumulative global flow exceeded 3.15 billion, making a hit in the mobile game industry

in the second half of 2017, Aurora network plans to launch works including the mobile game" legendary overlord "and the micro mobile game" Archangel sword ". According to an insider of Sanqi entertainment, the data performance of the micro mobile game" Archangel sword "in the product testing stage is" very bright " , which is very likely to become popular

the three-year committed net profit was 2.175 billion

the data showed that as of the end of June 2017, the total assets of Jiangsu Aurora network were 667 million yuan, and the net assets were 365 million yuan. In the first half of this year, the company achieved an operating revenue of 503 million yuan, an increase of 66.56% compared with 302 million yuan in the same period last year; In the first half of the year, the net profit was 348million yuan, an increase of 89.13% compared with 184million yuan in the same period last year

the announcement shows that after the completion of this transaction, Aurora network will become a wholly-owned subsidiary of Sanqi mutual entertainment. Hu Yuhang, the counterparty and shareholder of Aurora network, promised that the net profits attributable to the parent company after deduction of Non Profits of Jiangsu Aurora network in 2017-2019 would not be less than 580 million yuan, 725 million yuan and 870 million yuan respectively, that is, the cumulative committed net profits for three years would be 2.175 billion yuan

according to the announcement, the valuation of this acquisition for Aurora network is about 7billion. Calculated by deducting 580million non net profit from the performance commitment in 2017, the static P / E ratio is about 12 times, which is at a low level compared with the acquisition target of the game company. If this acquisition is successfully implemented, Aurora network will become a wholly-owned subsidiary of the listed company, which will help increase the performance of the listed company

executives promised to increase their holdings for a lock-in period of up to 36 months

the announcement shows that Hu Yuhang, the counterparty, promised to increase the holdings of Panax notoginseng mutual entertainment shares with the funds corresponding to 50% of the transaction consideration agreed in the agreement within 6 months after obtaining the transaction consideration agreed in the agreement, and shall not be sold within 12 months from the date when the latter share was registered in Hu Yuhang's name. The increased shares will be unlocked in three phases, and it will take at least 36 months to complete the unlocking.

the announcement also said that both parties signed at the same time According to the profit compensation agreement, if Aurora network fails to fulfill its commitment by deducting non net profits after consolidation at the end of any accounting year within the profit compensation period, Hu Yuhang will be responsible for compensating Sanqi mutual entertainment. The two sides also agreed that the profits generated by the operation of Aurora network during the period of profit and loss attribution shall be enjoyed by Sanqi mutual entertainment, and 20% of the losses generated by the operation shall be borne by Hu Yuhang; During the period of profit and loss attribution, Aurora network will no longer implement dividends, and the accumulated undistributed profits of Aurora network on the base date will be enjoyed by Sanqi mutual entertainment after the equity delivery date

editor: Mary