Film studio forms joint venture with distribution
Mandarin Entertainment (Holding), a movie studio controlled by local comedy producer Wong Pak-ming, has agreed to form a joint venture to expand its media production and distribution network on the mainland.
[Hong Kong Standard]
by Eli Lau
Mandarin Entertainment (Holding), a movie studio controlled by local comedy producer Wong Pak-ming, has agreed to form a joint venture to expand its media production and distribution network on the mainland.
The locally listed company announced on Monday that, through its indirect wholly owned subsidiary, it would inject HK$72 million worth of film library into the joint venture with the mainland-based Future Port Investments.
Mandarin Entertainment will hold a 40 per cent stake in the venture, while Future Port will own the remaining 60 per cent.
The venture, City Glory Media Holdings, would be engaged mainly in the production of film, television series and concerts as well as the establishment of an artist agency service and the design and production of advertisements on the mainland and in Hong Kong.
Mandarin Entertainment’s film library was valued at HK$72 million in June 2001 when it had 74 films. Future Port will provide a 100 million yuan (HK$94.3 million) site which would be used as the venture’s mainland production centre.
The Future Port, incorporated on January 2, is an investment holding company whose shareholders and directors have substantial experience in the film and television production industry in China. “Both boards believe that there is an increasing demand on the mainland for film and television entertainment,” Wong said.
“This would bring about a lot of business opportunities in the production and distribution of films and television series as well as various special projects and commercials, and will also enable local artists to be properly represented.”
Future Port will be responsible for providing the entire working capital for the development and operation of the joint venture, while Mandarin Entertainment would handle systems for effective management and strategic planning operations. The joint venture will produce at least 80 episodes of serial television a year.
“We believe the formation of the joint venture will enable the company to capitalise on the emerging market in China, and this will benefit the long-term business development of both companies,” Wong said.
Shares of Mandarin Entertainment, which resumed trading after being suspended since July 29, rose 2.02 per cent to close at HK$1.01 on Monday.
News Source: Hong Kong Standard.
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