PRESS RELEASE
(25 Jan 2017 – Hong Kong) Nan Hai Corporation Limited (“Nan Hai Corporation” or the “Company”; stock code on Hong Kong Stock Exchange: 00680.HK) announced today it will acquire all the cinema business in the PRC under Orange Sky Golden Harvest Entertainment (Holdings) Limited (“Orange Sky Golden Harvest” ; stock code on Hong Kong Stock Exchange: 01132.HK) with a valuation of approximately RMB 3.387 billion.
As a diversified investment holding group company, Nan Hai Corporation focuses on three major business segments – culture and media, property development and corporate IT application services. The cinema business under culture and media segment develops rapidly. Since established in 2006, the company has relied on its own investment and development. As of the end of 2016, 350 cinemas have been opened in the PRC with 1911 screens, and box office reached RMB 2.237 billion, ranking NO.2 over the whole country.
The target company which is one of the major cinema investment and operation companies, operates and manages 76 cinemas with a total of 531 screens in the PRC. The Company aims to strengthen its cinema business layout through this large-scale acquisition for the first time. The number of cinema and the screen will increase to 426 and 2442 respectively, further enhance its position NO.2 in the national market.
Yu Xin, the General Manager of Dadi Cinema Group, said the layout of Orange Sky Golden Harvest focuses on the first-tier and second-tier cities, and it is a productive supplement to Dadi Cinema’s current national network from second -tier, third-tier to fourth-tier cities. The acquisition not only improved the national layout of Dadi Cinema Group, but also maximized the efficiency by its resource integration.
The transaction will obviously offer a lot of synergy and integration efficiency for the core competence and quality resources of Dadi Cinema, to benefit the long-term customer-oriented strategy in the future, and to lay a better foundation for its “Movie+” Strategy at the same time.
Share this post