Gelonghui, March 6, 丨 Guanglian Engineering Holdings (01413.HK) announced that on March 6, 2024, Xiamen Guanglian Dongbao Culture Co., Ltd. (a wholly-owned subsidiary of the company) and Hunan Mango Yunbo Culture Media Co., Ltd. (target company) signed a non-legally binding memorandum of understanding. According to this, the company plans to subscribe for the target company's registered share capital of RMB 6,000,000, and will eventually own 60% of the target company's registered share capital.
The target company, Hunan Mango Yunbo Culture Media Co., Ltd., is a company established in China and is not engaged in any business. The target company plans to produce short video programs, advertisements, marketing planning services, and plan and organize cultural, sports and entertainment activities. The target company plans to produce a short film via social media in China.
The short film industry in China has developed rapidly over the past few years, and users are spending more and more time watching and producing short video content. Short films have become the main marketing tool for commercial brands to expand their market share and target Chinese audiences. The company is aware of the potential of the short film market, so it hopes to seize relevant opportunities and enter the Chinese market.
The directors believe that the conclusion of the Memorandum of Understanding is in the overall interest of the Group and its shareholders, as once the proposed transaction under the MOU is completed, it is expected that the Group will expand its revenue stream by entering the Chinese media industry. Therefore, the Board believes that the conclusion of the Memorandum of Understanding is in the overall interest of the Group and shareholders.