GHY Culture & Media's associate company in joint venture to ramp up production in China

GHY Culture & Media Holdings, through its indirect associated company Tianjin Changxin Film & Media Co, on Tuesday said it has established a joint venture (JV) in China with local partner Liu Shizhao.

The new JV company, Xiamen Jinzhao Film Culture & Media Co, has a registered capital of 10.21 million yuan (S$2.13 million) with Tianjin Changxin holding 51 per cent of the equity interest and Mr Liu holding the remaining 49 per cent, said GHY in a bourse filing.

The principal business activity of Xiamen Jinzhao is primarily television programme and film production including but not limited to the production of online short-form video series.

GHY said this investment will increase its overall production capacity, in line with its growth strategy and plans.

Xiamen Jinzhao has also entered into an online short-form video series collaboration agreement with Hong Kong-listed Beijing Kuaishou Technology Co - the developer of Kuaishou, a Chinese video-sharing mobile app.

Xiamen Jinzhao and Kuaishou will collaborate for one year, during which Xiamen Jinzhao will produce a collection of short-form video series, with each series to comprise at least 25 episodes of at least 120 seconds each, which will be uploaded on Kuaishou's mobile app.

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The JV contribution to be paid by Tianjin Changxin will be wholly satisfied in cash and funded by GHY's internal resources and, at present, is not expected to have any material impact on the earnings per share or net tangible assets per share of the group for the financial year ending Dec 31, 2021.

GHY shares fell two Singapore cents or 3.1 per cent to close at S$0.62 on Tuesday.