On December 9, 2015, the Board of Silverman Holdings Limited (Stock Code: 1616.HK, hereinafter referred to “Silverman”) announced that the Company (as the Purchaser) has entered into a sales and purchase agreement in relation to the Disposal (equivalent to the entire issued share capital of the target company) with the vendorAim Right. Solid Will Limited, the target company of Silverman in the Disposal is an investment holding company incorporated in accordance with the law of British Virgin Islands and mainly engaged in TV drama series production and distribution through its wholly-owned subsidiaries and contractual arrangements. The operator of the company is Beijing Huasheng Taitong Media Investment Company Limited (hereinafter referred to as “Huasheng Media”).
According to the sales and purchase agreement, Silverman should pay off HK$555,000,000 for this successful acquisition, HK$200,000,000 of which should be paid by issuing acceptance bills while the rest HK$355,000,000 should be paid to the vendor (or its nominee) by the allotmentand issuance of 157,644,656 consideration shares based on HK$2.2519 per consideration share. After the acquisition, the target company would become a wholly-owned subsidiary of the Company.
The Board of Silverman upholds that the Chinese media industry will expand rapidly and grow remarkably by virtue of the Internet-dominated, mutually reinforcing and sound development of traditional and emerging media. The media industry will have extensive development opportunities in the Internet era. This acquisition will provide a good opportunity for the group to enter the media industry and bring about diversified incomes to the group in a long run.
The main businesses of Huasheng Media and Huasheng Television Media, 40% of the interests of which are owned by Huasheng Media, are television drama series production and post-promotion and distribution and making investment in film and television projects. Above-said companies have the whole-process operational capacity from early-stage investment and production to late-stage promotion and distribution. The above-mentioned companies are also capable of producing more than 100 television drama series and have been continuously increasing their investment in shooting television dramas. Their fine repertoires previously produced, created and issued were based on extensive themes and have made great success. These repertoires include Qiao’s Grand Courtyard, TiandiMinxin, Destiny, The Wild Duck, Blood Oath and the Legend of a Hong’an General, etc. Several of their representative works have been awarded the “Flying Goddess Award” by the State Administration of Press, Publication, Radio, Film and Television of the People’s Republic of China (SAPPRFT).
Among which, Qiao's Grand Courtyard received high praise after hitting CCTV-1 during prime time and clinched “Best Television Series Award” at theSeoul International Drama Awards 2016, “the outstanding drama series award” at the 23rd China TV Golden Eagle Awards in 2006, “the first prize of Best Feature Picture” and “excellent director award” atthe 26th “the Flying Goddess Award” in 2007, among other domestic and international awards. Mr. Meng Fanyao, member of the core management has over 30 years of industry experience. As a famous Chinese film producer, Mr. Meng Fanyao has won the national second award for “Top Ten Excellent Producers”, national second award for “Top 100 TV Art Workers” and the sixth and seventh national awards for “Top Ten Excellent Producers”. He is the only outstanding contributor who has ever won the national award for “Top Ten Excellent Producers” for three times. In 2010, Meng Fanyao was given the first award for “The National Most Influential Producers”.
Under the leadership of Mr. Meng, Beijing Huasheng has attracted industry excellent scriptwriters and directors to take part in its film and drama shooting by virtue of its film and TV experience and good brand image formed over the years. The target company has maintained a good partnership with well-known directors including Zhang Shaolin, Kang Honglei, Cheng Hao, Hu Mei, Shao Jinghui, Yu Chun, Gu Jing, Li Xiaoping and Lu Qi, etc. and renowned scriptwriters like Zhu Sujin, Jiang Xiaoqin, Chen Ping, Ran Ping, Zhu Xiuhai, Tian Yougang and Ma Lianlun, etc.
In the drama industry, one of the major ways to measure the quality of a TV drama is whether it can bebroadcastedduring primetime of a satellite station. When it was just founded, Huasheng Media had established the strategic idea of “fine production”. Hubei Changjiang Broadcasting and TV Media Group Limited (holding 60% of the equity of Huasheng Television Media) as a shareholder of Huasheng Television Media is a wholly-owned subsidiary of Hubei Radio and Television Station and enjoys a strong production and resource advantage. The target company has maintained a good partnership with domestic famous distribution platforms. Since the foundation of the target company, all the dramas invested and shot by it were broadcasted on CCTV and national top 10 leading satellite TV stations during primetime, which is far higher than the industry average level.
Silverman has entered the Chinese film and television cultural industry by acquiring Huasheng Media
Huasheng Media also boasts relatively richer IP resources, and has completed the preparation of a number of reserved fine repertoires, including the sequel 3 and 4 of Qiao’s Grand Courtyard with independent IP, well-known martial arts novelists Mr. Liang Yusheng’s last novel Wudang Yijian and March in River City.
Mr. Liu Dong, President of Silverman Holdings Limited said, “Given the promising development prospect of China’s domestic film and television cultural industry and the past performance, current operating conditions and repertoire reserves as well as future development plan of Huasheng Media, we are optimistic about the future performance of Huasheng Media. At the same time, we believe that we will increase the income from investment through investing more in our own film and television products and there will be a large space for Huasheng Media to improve its profitability. Besides, the company’s two new independent non-executive directors, namely Mr. Pan Hongye and Mr. Gao Gordon Xia have rich related experience. Mr. Pan Hongye has more than 50 years of experience in the cultural industry, which enables the company to deepen its existing superiorities in the film and television industry. Mr. Gao Gordon Xia has rich experience in the Internet industry, which will help the company to expand its media business in China. We believe the joining of the two independent non-executive directors will facilitate the company’s business expansion, increase the company’s income and profits and better reward the company’s shareholders.”
