On November 24th, 002739.SZ announced that the company held the 24th meeting of the Fifth session of the Board of Directors and the 22nd meeting of the Fifth session of the Supervisory Committee on November 24th, 2021, and examined and adopted the "Bill on changing partially raised Investment projects". It is agreed that the company will change some cinema construction projects according to the actual progress of the 2020 non-public offering stock fund-raising investment project "New Cinema Project" and the company's cinema construction and development plan from 2022 to 2023. This change does not constitute a related party transaction and needs to be submitted to the general meeting of shareholders of the company for consideration.
The sudden outbreak of the COVID-19 epidemic in 2020 had a great impact on the whole film industry, especially the projection end of the cinema line was seriously affected. Cinemas across the country were closed, some cinemas were closed, and the speed of cinema construction further slowed down. In order to cope with the short-term operating pressure brought by the epidemic, after careful evaluation, the company adjusted some cinema construction and development plans, and 52 cinema projects in the original non-public offering stock fund-raising investment project "New Cinema Project" were not implemented. At the same time, under the epidemic, the company has strengthened cost control, and the construction cost of new cinemas has been reduced, so the rest of the original "new cinema project" is expected to raise funds.
In order to improve the efficiency of the use of the raised funds, ensure the steady expansion of the company's cinema scale, and constantly improve its market share and competitiveness, according to the company's business and development plan from 2022 to 2023, the company plans to invest the remaining funds raised from the original "New Cinema Project" into the construction of the "2022-2023 Cinema Construction Project".
According to the feasibility study report of cinema construction project of Wanda Film Co., Ltd. 2022-2023, the cinema construction project of 2022-2023 has a total investment of 763.5 million yuan and is planned to build 50 cinemas in Shanghai, Guangzhou, Shenzhen, Tianjin, Chengdu and other cities from 2022 to 2023. The new project plans to use the raised funds of 638.2345 million yuan, which is insufficient for some companies to use their own funds for investment. The details are as follows: