On April 22, Ge Longhui Group (08220.HK) announced that the company has entered into a non-legally binding memorandum of understanding with Beijing iQiyi Technology Co., Ltd. (“Beijing iQiyi”) and Zhouling Culture Media (Shanghai) Co., Ltd. (Zhouling Culture Media) regarding potential cooperation in the co-production of original classic movies, animations, TV series, reality shows and musical sequels.
The proposed cooperation is expected to last for five years (“Proposed Cooperation Period”). The initial idea is to develop potential collaborations to co-produce original classic movies, anime, TV series, reality shows, and musical sequels.
Since the Group is mainly engaged in cinema investment and management, film production, licensing and derivative rights, cross-border marketing and provision of interactive content, the directors believe that the company can integrate its business with proposed strategic cooperation to achieve better synergy effects. With the investment capital, network resources and customer base of potential partners, the directors believe that this strategy provides the Group with an opportunity to enhance its industry competitiveness, promote the company's flexible operation, and ultimately broaden its revenue streams, which is in line with the overall interests of the company and shareholders.