Zhitong Finance App News, Bigao Group (08220) announced that on April 22, 2024, the company has signed a non-legally binding memorandum of understanding with Beijing iQiyi Technology Co., Ltd. and Zhouling Culture Media (Shanghai) Co., Ltd., regarding potential cooperation in co-production of original classic movies, animations, TV series, reality shows and musical sequels. The proposed cooperation is expected to last for five years. The total investment budget for production during the cooperation period is estimated to be no less than RMB 1.5 billion (approximately HK$1.65 billion).
According to the memorandum of understanding, the group will be mainly responsible for providing relevant intellectual property rights and inviting Mr. Chow Sing-chi to star, direct or act as executive producer of the proposed product. Beijing iQiyi will be mainly responsible for the distribution of related products and the proposed cooperative financing. Zhouling Culture Media will be responsible for production, funding and coordination.
According to the announcement, with the investment capital, network resources and customer base of potential partners, the directors believe that the strategy provides the Group with an opportunity to enhance its industry competitiveness, promote the company's flexible operation, and ultimately broaden its revenue sources, which is in line with the overall interests of the company and shareholders.