780 million mergers and acquisitions of new Chinese culture

Lehman shares announced on the evening of the 15th that the company plans to acquire 100% equity of Shenzhen Huashi New Culture Media Co., Ltd. for 780 million yuan. Lehman and CTS New Culture will use different channels of media resources to provide comprehensive advertising to customers. The service will extend the sports media resource customers to the metro television resources, and the metro television resource customers will promote to the sports media resources to achieve market synergy.

According to the disclosure, before the transaction, China Vision Media Group Co., Ltd. and Shenzhen High-Definition Digital TV Industry Investment Co., Ltd. held 100% equity of China Vision New Culture Media Co., Ltd., which is a subsidiary of China Vision Media Holdings. The main business is to provide metro TV media advertising services to advertisers nationwide. CTS New Culture promised net profits after deducting non-recurring gains and losses of 2016, 2017, and 2018 shall not be less than RMB 60 million, RMB 80 million and RMB 100 million, respectively.

Up to now, China Vision Media has detached its metro TV media advertising business as a whole and injected it into its holding subsidiary, China Vision Culture. The acquisition of China Vision Culture can help Lehman Sports to break through the development bottleneck and rapidly expand market share. The rich cultural resources of CTS can provide strong support for Lehman to seize and operate all kinds of sports resources, realize rapid growth through the rapid sales of resources, and achieve a virtuous circle of development.

Lehman shares introduced that at present, the company is implementing the dual-primary strategy of high-tech LED and sports industry to develop together. On the one hand, the competition for brands and channels in the LED industry has intensified, and the industry's competitive environment has gradually intensified. The company continues to optimize and integrate its LED business. Enhance brand building, and further enhance the company's competitiveness in the LED industry through integration with capital operations. On the other hand, the company also actively increased the development and marketing of sports media resources and promoted the growth of sports industry income.

Lehman has been a strategic partner of the Chinese Football Association since 2011 and is an official sponsor of the China Football Association Football League. Since the beginning of 2013, China Vision Media has become the only mobile TV strategic partner in the China Super League. Lehman Co., Ltd., and China Vision and China Super League have all cooperated. Both parties have accumulated good resources and are familiar with the operation of the league. They share a common understanding of the huge commercial value of Chinese football. The reorganization is an important arrangement for Lehman’s shares in promoting the development of the sports industry. Through the integration and collaboration of both parties, Lehman’s shares in the football industry chain will form an interconnected value chain, and the future development space will have unlimited possibilities. .

For this acquisition, Lehman said that the company can target high-quality users through subway advertising and open up B2C business space. Subway advertisements cover the middle-class cities of the first-tier cities in North Guangzhou, Shenzhen and Shenzhen, and hundreds of millions of urban centers in the second-tier core cities on a daily basis. This is the core power of consumption in China. Through the nearly 100,000 subway screen terminals of China Vision's new culture, Lehman shares can push its 12th people and other Internet products to the audience, and quickly acquire a large number of high-quality users. In the future, the MRT network will also become a push platform for Lehman sports products and services. Combined with mobile Internet products, it will become a powerful promoter of Lehman's B2C business.

In addition, Lehman shares also said that the acquisition of China Vision Culture will likely lead the company to enter the upstream of the media industry chain - the content production area, in order to obtain its own IP. Metro commuters are also the largest audiences of sports content. While mastering the subway network, Lehman does not rule out the integration of domestic and international soccer game resources and produces sports-related program content for subway audiences. Through content production, Lehman Sports will have its own IP and carry out in-depth development.

Analysts pointed out that the acquisition of China Watch’s new culture is another major capital operation of Lehman Group following the previous series of sports layouts, which provides synergy for the development of the company’s sports industry and closely matches the strategy of Lehman’s development of the sports industry. The layout will rapidly increase the income and profit level of the company's sports media business, and it will have far-reaching strategic significance for the in-depth development of the company's future.