Longyuan Periodical Network "sold" listed companies The valuation of the parent company exceeded 450 million Poet Tang Chao cashed out and retreated

Beijing News Express (reporter Zhao Yibo) listed company Guangyi Technology announced on December 10 that the company intends to acquire 51% of the equity of Longyuan Digital Media in cash, and start the acquisition of the remaining 49% of the equity if the relevant conditions are met. Longyuan Digital Media owns Longyuan Periodicals Network, which is the world's largest Chinese magazine platform, founded by poet Tang Chao.

Specifically, Long Changming, the actual controller of Guangyi Technology, and Tang Chao, the actual controller of Longyuan Digital Media, signed a "Memorandum of Cooperation" to acquire 51% of the equity of Longyuan Digital Media in cash, and the initial negotiation of the value of 100% equity of Longyuan Digital Media is not less than 450 million yuan.

According to the official website, Longyuan is a digital media group for global services, headquartered in Beijing, China, founded in 1998, and listed on the New Third Board in July 2016. Longyuan's main business sections include Longyuan Periodicals Network, Longyuan Digital Library, Longyuan Party and Government Reading, Longyuan International Business, Longyuan Digital Education, Longyuan Mobile Phone Reading, APP+ Magazine Brand Application Business, etc., of which Longyuan Periodicals Network is known as the first network of Chinese periodicals, bringing together more than 4,000 kinds of comprehensive humanistic public periodicals, hundreds of thousands of books, audio and video and other content.

As the founder of Longyuan, Tang Chao is a doctor of philosophy, a poet, a translator, a university teacher and a businessman, and his experience is not lacking in legend. He was first a teacher of English and American literature and history at Beijing Normal University, went to Hainan in the 1990s to invest in real estate, and was known as a successful businessman who made more than 100 million yuan in more than eight months, and later founded Longyuan and became a well-known figure in the digital publishing industry.

At present, Tang Chao holds 15,197,975 shares of Longyuan Digital Media, with a shareholding ratio of 54.28%; His spouse Mu Guangju holds 1.8 million shares of Longyuan Digital Media, with a shareholding ratio of 6.43%.

Guangyi Technology said that Guangyi Technology and Longyuan Digital Media have strong synergy in resources and business. Through this cooperation, it will help the company to quickly grasp a large number of copyright resources and mature digital content resources with the help of Longyuan Digital Media, quickly obtain a large number of public cultural customer channels such as public libraries and school customers, and provide content protection and distribution platform for copyright cloud projects.

For Guangyi Technology, the acquisition of 51% of the equity of Longyuan Digital Media is not the end.

According to the profit commitment in the agreement, the audited after-tax net profit of Longyuan Digital Media from 2018 to 2021 for four consecutive years is not less than 25 million yuan, 35 million yuan, 45 million yuan and 45 million yuan respectively.

According to the agreement, Tang Chao, the actual controller of Longyuan Digital Media, guaranteed that 25% of the initial equity transfer (after tax) would be used to purchase the shares of Guangyi Technology, and the purchase would be completed in the designated account within three months from the date of arrival of the equity transfer.

At the same time, Long Changming, the actual controller of Guangyi Technology, also guarantees that at any appropriate point in time after Longyuan Digital Media completes the audit of the 2018 annual report, if the actual net profit of Longyuan Digital Media in the current period is not less than the promised net profit of the current period, it can start the acquisition of the remaining 49% equity of Longyuan Digital Media by Guangyi Technology.