Company introduction

Huaxia is involved in a variety of business activities in the anime related industry, including the trade and licensing of anime derivative products that made up the core business during the track record period, and the establishment and operation of animation amusement parks and multimedia entertainment in the operating room of constituent companies in the extension of the core business of the Dongman-related industry. Among them, trade in Dongman derivatives accounted for the main part of the company's revenue during the record period. In the year ending March 2014, this business accounted for 72.4% of the total revenue for the period. Most of the company's customers are Japanese companies, and they also hire third party suppliers in China to manufacture products derived from the company's Dynamon derivatives. In addition, the company also has a number of proprietary intellectual property rights for anime through acquisition or independent development. In the year ending March 2014, revenue from awarding anime character permits accounted for 21.7% of total revenue for the period. For the year ended 2012, 2013, March 31, 2014, and the five months ending August 31, 2014, the group's revenue breakdown was approximately $292.30 million, $283.49 million, $338.74 million, and $186.83 million; over the same period, net profit was approximately $82.03 million, $85.21 million, $130.60 million, and $39.70 million.

Assumed use of proceeds

Assuming that the over-allotment rights were not exercised, the net proceeds from the sale of shares were estimated to be approximately HK$364.7 million based on the median sale price of HK$4.10 per share.