Xinshi Cultural Investment was established in 2013. It mainly engages in the following business: granting permission to broadcast TV shows; investing in TV shows as a non-executive producer; and acting as a distribution agent for TV shows. The Group's clients include television packages, including its operating entities, companies involved in the television distribution business, executive producers of TV shows, and copyright holders. Since the establishment of the group and up to December 2019, it has produced more than 15 TV shows covering multiple genres and granted related permits. TV shows are broadcast on well-known television stations such as China Central Television, Tianjin Radio and Television, Shandong Radio and Television and Anhui Radio and Television, as well as online video platforms such as iQicraft, Tencent Video, Fengxing.com, and PP Video. The Group aims to strengthen its position and expand revenue sources by implementing the following business strategies:

Continue to strengthen and expand the licensing business for TV shows; develop business relationships with online video platforms to expand business; and further expand internal teams and capabilities to meet future business opportunities.

Competitive advantage

The customer network is mature and diversified

We have established long-term good relationships with many reliable suppliers

Risk Factors

Pay attention to customer preferences and expectations and produce high quality TV shows; it's easy to lose customer support

Online video platforms have limited cooperation experience, and may not be able to smoothly implement strategies related to their business development

Use of proceeds

Approximately 86.9% was used to produce TV dramas;

Approximately 13.1% is used to purchase copyright (or broadcasting rights) related to TV shows.