CEL’s New Economic Enterprise TMP Enters a Period of High Growth, CEL Joins Forces with TMP and Tencent Film to Form an Investment Cooperative Promoting Cultural Exchange between China and Foreign Countries

Business Related 09 Apr 2018

China Everbright Limited (“CEL”, stock code 165.HK) is pleased to announce that following the company’s earlier strategic investment in Tang Media Partners (“TMP”), the world’s leading entertainment media company, and becoming its second largest shareholder, it is now cooperating with TMP and Tencent Pictures to establish a joint venture platform. The consortium is committed to investing in high-quality copyrighted Hollywood and other foreign film and introducing them into China. It also aims to expand the influence of Chinese films to other parts of the world.

At the “TMP Global Strategy Press Conference”, Victor Ai , Managing Director of CEL, Kang Jie, President of TMP China, and Cheng Wu, Vice President of Tencent Group, formally signed an agreement to establish a joint venture platform. Attendees of the press conference included CEL’s Executive Director and Chief Executive Officer Mr. Chen Shuang JP, Chief Investment Officer of CEL Mr. Pan Ying, TMP Founder, Chairman and Chief Executive Officer Mr. Donald Tang, Sequoia Capital Founder Mr. Neil Shen, Tencent Group Vice President and Penguin Film Chief Executive Mr. Sun Zhonghuai and others.

Rooted in the flourishing soil of the pan-entertainment ecosystem, the recent domestic movie box office scale and growth rate have reached new heights in recent years. In response to the strong demand for consumption upgrade of entertainment, the silver screen dividends continue to be reaped, and market potential continues to be stimulated. According to the data released by the National Film Bureau, by the end of March 2018, there were 9,965 cinemas in mainland China, and the total number of screens reached 54,165. The total number of screens continues to rank first in the world, with nearly 10,000 more screens than those in the North American market.

Based on CEL’s investment strategy, it has always been optimistic about the pan-entertainment industry. CEL became a shareholder in TMP in 2017, and turned into its second largest shareholder. TMP was founded in 2015 by renowned Chinese-American entrepreneur Mr. Donald Tang. The company has long focused on the increasingly close intersection between the Chinese media industry and Hollywood, and on the creation of unique content for the global entertainment market. It is in a new generation of Hollywood-content companies dedicated to high-quality video content development, production, distribution, and investment and financing businesses.

Under the leadership of Mr. Donald Tang, TMP has a superb global marketing and distribution network, and it is a rare international company with the mature experience of Hollywood film and television distribution. At the same time, it is well versed in Chinese local culture and resources. With the United States and China as the core, the global strategy of growing into a multinational entertainment platform has brought unique advantages.

CEL’s Executive Director and Chief Executive Officer Chen Shuang JP comments: “In the past few years, CEL has been committed to becoming a part of China’s pan-entertainment ecosystem. We are very pleased that we have invested in TMP in parallel with Tencent Group to develop a joint venture platform. This investment relationship reflects the confidence and common vision of several parties in creating long-term value in the field of pan-entertainment. It also means that in the next step, we will be able to join hands with the most outstanding partners in the industry to provide high-quality film and television shows to the Chinese public. And with the help of the medium of film, the world’s ‘Chinese story’ will be told to the world.”

TMP Founder, Chairman and CEO Donald Tang says: “TMP is very familiar with the Hollywood movie market and has a profound acquaintance with the Chinese market and culture. As an important long-term strategic move, we will make full use of the unique opportunity for China and the United States to form a new content ecosystem and import world-class Hollywood content and creative modes into China.”

TMP has mature film and television production and distribution experience and resources in Hollywood. Tencent has a leading position and a wide user base in the Chinese Internet and digital entertainment market. CEL has great financial strength and rich industrial investment experience. This round of cooperation will fully highlight the advantages of all parties, use benign capital and innovative financial systems to promote two-way exchange of high-quality film and television cultural works, and become a unique force in China and the global film industry. This will be important to enhancing the full realization of the value of Chinese films.

Ever since 2016, CEL has made a strategic deployment of “industry plus finance” based on its good foundation of asset management. It has focused on the development of new industry investment represented by pan-entertainment and succeeded in acquiring iQiyi, Yixia Tech, Shanghai Film Academy, Bona Films, Shangxiang Entertainment and many other high-quality companies.

With the acquisition of TMP and the completion of the tripartite joint ventures, CEL pan-entertainment investment closed-loop will be more complete, and it will be able to expand the content distribution network and channels in the ecosystem to the global market. Without a doubt, CEL will further expand into the field of pan-entertainment investment, which represents another major strategic move in depth and globalization.