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| Develop Radio / Television Program and Film Production Businesses in China Achieve Synergy |
HONG KONG, Mar 8, 2019 - (ACN Newswire) - Leyou Technologies Holdings Limited ("Leyou Technologies", and its subsidiaries collectively "the Group"; stock code: 1089), announced that the Group has entered into an investment agreement ("Investment Agreement") with Chengyou (Shanghai) Development Company Limited ("Chengyou"), to develop radio / television program and film production businesses, broadening income source and bring synergies to its existing game development and publishing business of the Group.
According to the Investment Agreement, Famous Champion Limited ("Famous Champion"), an indirect wholly owned subsidiary of Leyou Technologies will subscribe for approximately 70% of the equity interests of Chengyou by way of capital injection as first consideration in the amount of RMB100,000,000; and subscribe Chengyou's equity interests (30% equity interests in Chengyou) upon the first completion ("First Completion"), free from encumbrances, at the second consideration of not exceeding RMB200,000,000 in any event.
Chengyou is principally engaged in investment holding business, and has effective control over the finance and operations of Xiangshan Dacheng Tianxia Culture Development Co., Ltd. ("Dacheng Tianxia"). Dacheng Tianxia is principally engaged in the business of radio / television program and film production. Dacheng Tianxia owns 51% of equity interests in Shanghai Nuoxin Culture Media Co., Ltd., 51% of equity interests in Beijing Zhongyuan Jixiang Culture Media Co., Ltd. ("Beijing Zhongyuan"), 51% of equity interests in Shanghai Rongshuo Culture Media Co., Ltd. ("Shanghai Rongshuo") and 35% of equity interests in Sina Film and Television Culture Development Co., Ltd.. Beijing Zhongyuan and Shanghai Rongshuo hold licences and permits that are essential to the operation of the radio / television program and film production in the PRC. As one of the conditions of the second completion ("Second Completion") under the Investment Agreement, Dacheng Tianxia will transfer the 35% of equity interests in Sina Film to a third party at or before the Second Completion. Upon the First Completion, Chengyou, Dacheng Tianxia and its subsidiaries will become an indirect non-wholly owned subsidiaries of Leyou Technologies; upon the Second Completion, Chengyou will become an indirect wholly-owned subsidiary of the Company, and Dacheng Tianxia and its subsidiaries will remain indirect non-wholly owned subsidiaries of Leyou Technologies.
In view of PRC regulations governing foreign investment in the operation of radio / television program and film production business, Leyou Technologies is able to enter and engage in the business of radio / television program and film production in the PRC indirectly through Dacheng Tianxia.
Leyou Technologies strives to propel business growth and diversify development, in particular to develop businesses which would bring synergies to its existing game development and publishing business, thereby increasing the Group's operating income. Subsequent to the establishment of strategic cooperation with Meitu, Inc ("Meitu") in February 2019, this Investment Agreement provides the Group with an opportunity to venture into the entertainment sector which will help enrich the contents and proposition that the Group can offer to the large base of loyal users of Meitu and its subsidiaries in the long run. The Group is confident of the growth potential of Dacheng Tianxia, and believes it will contribute towards the above strategic cooperation opportunity between the Group and Meitu.
About Leyou Technologies Holdings Limited
Leyou Technologies Holdings Limited (1089.HK) is principally engaged in the development and publishing of online multiplayer PC and console video games. It is a global market leader in the niche market of free-to-play online multiplayer games. Leyou Technologies owns multiple world renowned top AAA game development studios and branch organizations across the globe, including Digital Extremes and Splash Damage, and publishes several of the most successful free-to-play online multiplayer games worldwide. Five years since the flagship product "Warframe" has got online, it constantly maintains a top 5 ranking in all genres in terms of number of players and playtime on Steam, and has a positive review score of approximately 91% from players. In addition to the continual premium updates and improvements to its live games, Leyou Technologies also keeps on investing in the development of new products, such as "Civilization Online", "Transformers Online" which is jointly developed by Leyou Technologies and Certain Affinity after Leyou Technologies becoming its shareholder, and a free online game developed with the license granted by "The Lord of the Rings".
For more information, please visit: http://leyoutech.com.hk/
About Xiangshan Dacheng Tianxia Culture Development Co., Ltd.
Dacheng Tianxia is principally engaged in the business of radio / television program and film production. Dacheng Tianxia has participated in five television program and film production, among which "The Legend of Exorcism" (a fantasy and comedy film), and "Guardians of The Tomb" (a horror and science fiction movie), were released in 17 November 2017 and 19 January 2018 respectively. In addition, certain members of Dacheng Tianxia including Beijing Zhongyuan and Shanghai Rongshuo, hold licences and permits that are essential to the operation of the radio/television program and film production in the PRC, such as the "Radio and Television Program Production and Operation Permit".
Media enquiries:
Anli Financial Communications Limited
Phoebe Li 852-3956 1640 phoebe.li@anli.com.hk
Joanne Ho 852-3956 1641 joanne.ho@anli.com.hk
Topic: Press release summary
Source: Leyou Technologies Holdings Limited
Sectors: Daily Finance, Cloud & Enterprise, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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