Hengdian Film and Television acquires film and television technology equity for free, plans to establish a new IP integrated operation platform

Source: Securities Times Online Author: Huang Xiang

On the evening of April 1, Hengdian Film and Television (603103) released an announcement stating that the company and its wholly owned subsidiary plan to acquire 49% of the equity in Zhejiang Hengdian Film and Television Technology Co., Ltd. (hereinafter referred to as “Film and Television Technology”) from a related party at a price of 0 yuan. At the same time, they plan to use their own funds to invest externally and establish a wholly owned subsidiary. Both measures are aimed at optimizing the company’s business structure and integrating industrial resources.

According to the announcement, Hengdian Film and Television and its wholly owned subsidiary, Zhejiang Hengdian Film and Television Investment Co., Ltd. (hereinafter referred to as “Hengdian Film and Television Investment”), plan to acquire 39% and 10% of Film and Television Technology, respectively, from Zhejiang Hengdian Film and Television City Co., Ltd., an associated party of the controlling shareholder that holds the equity. The transfer price for both equity transfers is 0 yuan, for a total acquisition of 49% of the equity. As of the date of the announcement disclosure, Film and Television Technology has not yet carried out actual business operations, and there are no relevant assets or liabilities. After completion of this transaction, Hengdian Film and Television’s shareholding ratio in Film and Television Technology will increase from 51% to 90%. The subsidiary Hengdian Film and Television Investment will hold the remaining 10% equity. Film and Television Technology will remain a controlling subsidiary of the company, and the scope of the consolidated financial statements will not change.

Hengdian Film and Television said that the purpose of acquiring minority equity interests in Film and Television Technology is to integrate related resources of the target company, focus on technology-based businesses such as film and television AI and blockchain, strengthen the synergistic effect between technology business and the company’s main business, and further enhance the company’s operational and innovation capabilities in the field of film and television technology.

On the same day, Hengdian Film and Television disclosed an announcement regarding the establishment of a controlling subsidiary for external investment. It said that the company is upgrading and transforming from its existing “channels + content” business model to an “IP-centered full-chain operational model,” building an “IP + content + technology + derivatives + scenarios” full industrial-chain ecosystem. To implement this strategy, Hengdian Film and Television plans to jointly contribute with its wholly owned subsidiary, Hengdian Film and Television Investment, to set up Hengyou Culture Operations (Zhejiang) Co., Ltd. (the final name is subject to approval by the market regulatory authority), as the company’s comprehensive IP operations platform.

This controlling subsidiary is planned to have a registered capital of 50 million yuan. Of this, Hengdian Film and Television will subscribe for 45 million yuan, representing a 90% shareholding ratio; Hengdian Film and Television Investment will subscribe for 5 million yuan, representing a 10% shareholding ratio. Hengdian Film and Television stated that the newly established platform will mainly engage in businesses such as IP copyright investment and acquisition, incubation, content development, authorization management, derivatives development, and commercial operation. This is beneficial for the company to concentrate resources to develop comprehensive IP operations, broaden revenue sources, improve its full industrial-chain layout, and enhance core competitiveness. The funding for this investment comes from the company and its subsidiaries’ own funds. Contributions will be made in installments according to the agreement, which will not affect the company’s normal production and operations, and will not have any material adverse impact on the company’s financial condition or operating results.

Since last year, China’s film theater line industry has maintained a recovery trend, with overall industry operating data improving steadily. Multiple brokerage research institutions have published research reports stating that in 2025 the film and television industry will show characteristics of volatile repair and differentiated industry structure. Cinema scale will grow steadily, and efficiency will gradually rebound. In 2026, the industry is expected to undergo a paradigm shift. High-quality content supply and technological innovation will become the core factors driving industry development.