Immature strategic cooperation? Sunshine lifes stake in Huayi Brothers

category:Finance
 Immature strategic cooperation? Sunshine lifes stake in Huayi Brothers


In April 29th, Huayi Brothers issued a notice that the proposed private offering would not exceed 824 million shares, and the total amount raised would not exceed 2 billion 290 million yuan. The total amount of raised funds was used to supplement liquidity and repay loans after deducting the issuance cost. The target companies were nine companies, such as Ali pictures, Tencent computers, Sun Life Insurance, Xiangshan Dacheng world, and Yu Garden shares.

It is generally believed that the 2.29 billion yuan is very important for Huayi Brothers today. In 2019, the total revenue of Huayi Brothers decreased by 43%, and the annual revenue was only 2.2 billion yuan; in 2019, the net profit was 3.96 billion yuan, and Huayi Brothers needed to recover with capital strength.

According to the A-share subscription agreement of non public Development Bank signed by sunshine life and Huayi Brothers, sunshine life intends to subscribe no more than 89.9281 million shares issued by Huayi Brothers with no more than 250 million yuan. After the issuance, sunshine life will hold no more than 2.49% of the shares of the listed company in total.

According to the announcement, the strategic cooperation framework agreement signed by Huayi Brothers and sunshine life involves a number of cooperation contents. Sunshine life will establish a comprehensive and in-depth strategic cooperation relationship with Huayi Brothers in the fields of short video content, knowledge platform, artist endorsement, film and television works business, insurance business, industrial investment, management experience sharing, employee insurance service and public welfare.

Specifically, in terms of artist endorsement cooperation, Huayi Brothers recommends its well-known artists or cooperative well-known artists as the global image spokesmen of insurance companies. During the term of cooperation, the product / brand spokesmen of sunshine life give priority to Huayi Brothers contracted artists or cooperative artists recommended by Huayi Brothers. In terms of insurance business cooperation, Huayi Brothers cinemas, live entertainment and other consumer places develop services for insurance customers; insurance companies develop and recommend insurance products that meet the characteristics of the film and television industry, such as accidental injury insurance in the production of film and television plays, based on Huayi Brothers main business characteristics. With the resolution of the annual general meeting of shareholders on the participation of sunshine life in fixed increase and strategic cooperation being rejected, the cooperation between sunshine life and Huayi Brothers also failed. It is worth noting that Huayi Brothers stressed in the announcement of the resolution of the general meeting of shareholders that up to now, the total amount of funds to be raised through the non-public offering of shares is not more than 2.29 billion yuan, and all matters are steadily being implemented, and the overall progress is smooth. Source: Securities Times Author: Kang Yin editor in charge: Wang Xiaowu_ NF

Specifically, in terms of artist endorsement cooperation, Huayi Brothers recommends its well-known artists or cooperative well-known artists as the global image spokesmen of insurance companies. During the term of cooperation, the product / brand spokesmen of sunshine life give priority to Huayi Brothers contracted artists or cooperative artists recommended by Huayi Brothers.

In terms of insurance business cooperation, Huayi Brothers cinemas, live entertainment and other consumer places develop services for insurance customers; insurance companies develop and recommend insurance products that meet the characteristics of the film and television industry, such as accidental injury insurance in the production of film and television plays, based on Huayi Brothers main business characteristics.