Lugang Culture plans to buy 45% of Tianyi Film and Television for 395 million yuan.

after the acquisition of the remaining 45% of Tianyi Movie by listed companies is completed, the company's film and television business will be further strengthened. It is helpful to improve the scale of film and television business of listed companies and enhance the sustainable profitability of listed companies.

Lugang Culture Company signed an equity transfer agreement with Xinyu Shangshan Ruoshui Asset Management Co., Ltd. (hereinafter referred to as "Xinyu Shangshan Ruoshui") and Wu Yi. Xinyu Shangruoshui transferred 45% of its shares in Zhejiang Tianyi Film and Television Co., Ltd. (hereinafter referred to as "Tianyi Film and Television") to the company for 395 million yuan. After the completion of the acquisition, the company will hold 96% of Tianyi Pictures' shares and remain its largest shareholder and actual controller. The other party promised that the audited net profit of Tianyi Film and Television in 2017, 2018 and 2019 would not be less than 100 million yuan, 120 million yuan and 150 million yuan respectively.

according to the announcement, Tianyi Film and Television's main business is: special topics, columns, variety shows, cartoons, radio dramas, TV dramas, network drama production, distribution, film production, distribution, and so on. From January to September 2017, the operating income was 152.2722 million yuan and the net profit was 6.8323 million yuan.

the announcement said that the company's film and television business will be further strengthened after the listed company's acquisition of the remaining 45% stake in Tianyi Film and Television is completed. It is helpful to improve the scale of film and television business of listed companies and enhance the sustainable profitability of listed companies.

according to industry insiders, Lugang Culture Company is mainly engaged in textile and film and television business. In recent years, the overall development of China's textile industry is stable. In this context, the company has achieved steady revenue growth in its textile business by expanding its product line and expanding overseas markets. In 2014, the company acquired 100% of Century Dragon by issuing shares and paying cash, and began to dabble in the film and television industry. Century Changlong is a comprehensive media company specializing in film and TV drama planning, production, distribution and investment. In July 2015, 51% of Tianyi Film and Television was acquired by way of equity transfer and capital increase, and the film and television business of listed companies was further strengthened. Tianyi Film and Television has a strong production strength with a core creative team composed of senior film and television producers, famous directors, famous screenwriters and marketing experts. His major works in 2017 include "the good Life" and "Flowers bloom like a Dream", and filming of "Cao Cao" will begin in early 2018. "Flowers like a Dream" and "the good Life" are expected to make a lot of money when revenue is confirmed in the second half of this year, while "Cao Cao" will be released next year and has 80 episodes. A number of boutique dramas will effectively ensure the performance growth of listed companies this year and next year.

Edit: xiongwei