HONG KONG--(BUSINESS WIRE)--SMI Holdings Group Limited (“SMI” or the “Company” and its subsidiaries, collectively the “Group”, HKEx: 198) is pleased to announce that, on 31 May 2016, SMI International Cinemas Limited, an indirect wholly-owned subsidiary of the Group, entered into sale and purchase agreements with Taixing Hengyuan Property Development Company Limited, an indirect wholly-owned subsidiary of Jiayuan International Group Limited (“Jiayuan International”, Stock Code: 2768), and Zhejiang Jiayuan Property Group Limited, a related company to Jiayuan International respectively, for the acquisition of a total of 6 properties with movie theatre operations in Jiangsu Province, the People’s Republic of China (the “PRC”) at consideration of approximately RMB150 million.
Meanwhile, the Group entered into a MOU, in relation to acquire the entire issued share capital of Loyal Coach Limited (“Loyal Coach”), at consideration of RMB1.50 billion, of which RMB1 billion and RMB500 million will be satisfied by cash and way of allotment and issue of the Consideration Shares respectively. Loyal Coach holds the entire issued share capital of Beijing Huaxia CMTS Urban Ticketing System Technology Company Limited (“Huaxia CMTS”). Upon completion of the Possible Acquisition, the group will in turns hold the entire issued share capital of Huaxia CMTS, which specializes and engages in the development, application and system integration of cinema computer ticketing system and provision of application solutions for mobile cinema ticketing system. Huaxia CMTS has a leading market share in the national cinema computer ticketing system and number of cinema users. It has a vertical coverage on the national movie data centre system, 24 provincial movie data centre systems and more than 2,200 cinema ticketing systems. It is currently expected that the number of cinemas using Huaxia CMTS’s cinema ticketing system will reach 3,000 in the coming two years.
Pursuant to the MOU, the Loyal Coach undertake to the Group that the aggregate Guaranteed Profit for the Profit Guarantee Period for the three financial years ending 31 December 2018 of Huaxia CMTS shall be RMB380 million.
Mr. Cheng Chi Chung, Chief Executive Officer of SMI said, “The Acquisition of properties with movie theatre operations in Jiangsu Province is in line with the Group’s intention to expand its portfolio of cinemas and allows the Group to capitalise in the growth of the cinema market in the PRC. Apart from the Acquisition, the Group is continuing to expand its cinema portfolio across the first-tier cities in the PRC. We also believe that the business of the Group will benefit from the synergising effect to be brought by the Possible Acquisition of Huaxia CMTS, as well as boost up the revenue of the Group’s movie theater operations and further broaden the client base of the Group.”
About SMI Holdings Group Limited (0198.HK)
SMI Holdings Group Limited (0198.HK) is a company listed on the Main Board of the Stock Exchange of Hong Kong. The Company is principally engaged in the business of movie theater operating and new complementary business, such as Xingmeihui and advertising & promotion business. Under its strong management team and powerful business network, the number of SMI’s movie theater has grown from 3 in 2009 to 200 by the end of 2015.