BEIJING, Dec. 29, 2021 /PRNewswire/ -- Scienjoy Holding
Corporation ("Scienjoy", the "Company", or "We") (Nasdaq: SJ), a
leading live entertainment mobile streaming platform in China,
today announced that it has entered into an equity acquisition
framework agreement (the "Agreement") to acquire 100% equity
interest in Beijing Weiliantong Tech Co., Ltd ("Weiliantong"),
which holds Hongle.tv, and 100% equity interest in Golden Shield
Enterprises Limited ("Golden
Shield"), which holds the NFT business for a total
consideration of RMB280 million
(approximately US$43.8 million). The
objective of the Agreement is to support the Company's strategic
growth initiative of acquiring the top-tier online live streaming
platform Hongle.tv and expanding NFT business scope.
Launched in 2016, Hongle.tv is a mobile phone live
streaming platform focusing on younger generation at the age of 18
to 25 years old. As of September 30,
2021, the cumulative number of broadcasters and users was
93,729 and over 42 million respectively. According to Analysys's
data, Hongle.tv ranked second in terms of talent show category
in the third quarter of 2021.
Pursuant to the Agreement, the aggregate consideration is
RMB280 million (approximately
US$43.8 million), including
RMB180 million (approximately
US$28.2 million) in the Company's
Class A ordinary shares and RMB100
million (approximately US$15.6
million) in cash. The Class A ordinary share
consideration payments are subject to certain performance
conditions and requirements for the two years of 2022 and 2023. As
part of the transaction, Junpeng
Guo, one of the shareholders of Tianjin Yieryi Technology
Co., Ltd. ("Tianjin Yieryi"), will pay Zhihui Qiyuan (Hainan) Investment Co., Ltd., a variable
interest entity of the Company, RMB30
million (approximately US$4.7
million) to purchase the 12% equity interest of Tianjin
Yieryi held by Zhihui Qiyuan
(Hainan) Investment Co., Ltd.. The
description of the transaction contained herein is only a summary
and is qualified in its entirety by reference to the definitive
agreements relating to the transaction, a copy of which will be
furnished by the Company with the SEC as an exhibit to a Current
Report on Form 6-K.
As the transaction proceeds, the Company will publicly disclose
required information either through press releases or SEC filings,
as appropriate.
Mr. Victor He, Chairman and Chief
Executive Officer of Scienjoy, commented, "We are very excited
about the acquisition of Hongle.tv that will complement our
existing living streaming platforms in terms of users, products,
and functions as it marks our strategic consolidation in the talent
show live streaming category. The acquisition will generate
significant synergy and enhance the competitive advantages of
Scienjoy in the industry. In addition, the acquisition of NFT
business will help Scienjoy to continue developing a live streaming
Metaverse. Upon completing the acquisition, we believe we are well
positioned as a leader in the talent show live streaming to drive
further expansion and growth in both live streaming platforms and
Metaverse. The Company will further expand its content product
offerings to provide users with an enhanced digital community and
create more values for stakeholders."
About Hongle.tv
As a mobile live broadcast platform, Hongle.tv creates free
lifestyle live streaming platform for people, which integrates
asynchronous social interaction and synchronous real-time video
interaction in an entertainment dating mode, and provides users
with 7 days and 24 hours entertainment dating services. Hongle.tv's
business scope covers new entertainment and new brokerage across
the upstream and downstream industries, it integrates traditional
entertainment film and television and brokerage business with the
mobile Internet to create an entertainment O2O model with mobile
Internet characteristics. Hongle.tv widely adopts AI technology,
machine learning, and AR technology to serve the live streaming
business, provides broadcasters with beauty and makeup functions
and other live room optimization effects. Real-time AI special
effects based on face recognition, gesture recognition and other
technologies, adding a variety of live interactive gameplay.
Hongle.tv's NFT-based business of virtual items records the status
and achievements of the broadcasters and users in the game, saves
the list of items they obtain in the game, such as skins and
characters. It can also ensure that records cannot be tampered with
and can be transferred seamlessly, which guarantees the ownership,
authenticity, and uniqueness of virtual items.
About Scienjoy Holding Corporation
Founded in 2011, Scienjoy is a leading mobile livestreaming
platform in China, and its core
mission is to build a livestreaming service ecosystem to delight
and entertain users. With approximately 250 million registered
users, Scienjoy currently operates four livestreaming platform
brands, including Showself, Lehai, Haixiu, and BeeLive, which
features both the Mifeng Chinese version and BeeLive International
version. Scienjoy uniquely combines a gamified business approach to
livestreaming, in-depth knowledge of the livestreaming industry,
and cutting-edge technologies such as blockchain, augmented reality
(AR), virtual reality (VR), and big data, to create a unique user
experience. Scienjoy is devoted to building a livestreaming
Metaverse to provide users with the ultimate immersive experience,
a social media network that transcends time and space, a digital
community that spans virtual and physical reality, and a
content-rich ecosystem. For more information, please visit
http://ir.scienjoy.com/.
Safe Harbor Statement
Certain statements made in this release are "forward looking
statements" within the meaning of the "safe harbor" provisions of
the United States Private Securities Litigation Reform Act of 1995.
When used in this press release, the words "estimates,"
"projected," "expects," "anticipates," "forecasts," "plans,"
"intends," "believes," "seeks," "may," "will," "should," "future,"
"propose" and variations of these words or similar expressions (or
the negative versions of such words or expressions) are intended to
identify forward-looking statements. These forward-looking
statements include, without limitation, Company's expectations with
respect to future performance and anticipated financial impacts of
the acquisition, the satisfaction of the closing conditions to the
acquisition and the timing of the completion of the acquisition.
These forward-looking statements involve significant risks and
uncertainties that could cause actual results to differ materially
from expected results. Most of these factors are outside the
control of the Company and are difficult to predict. Factors that
may cause such differences include, but are not limited to: (1) the
occurrence of any event, change or other circumstances that could
give rise to the termination of the Agreement relating to the
acquisition; (2) the inability to complete the acquisition,
including due to failure to satisfy conditions to closing in the
Agreement; (3) delays in obtaining or the inability to obtain
necessary regulatory approvals required to complete the
transactions contemplated by the Agreement; (4) the risk that the
acquisition disrupts current plans and operations as a result of
the announcement and consummation of the acquisition; (5) the
ability to recognize the anticipated benefits of the acquisition;
(6) costs related to the acquisition; (7) changes in applicable
laws or regulations; and (8) the possibility that Weiliantong or
Golden Shield or the Company may be
adversely affected by other economic, business, and/or competitive
factors. These forward -looking statements are subject to the
filings with the Securities and Exchange Commission ("SEC") made by
the Company. Company cautions that the foregoing list of factors is
not exclusive and cautions readers not to place undue reliance upon
any forward-looking statements, which speak only as of the date
made. Company does not undertake or accept any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements to reflect any change in its
expectations or any change in events, conditions or circumstances
on which any such statement is based, subject to applicable law.
The information contained in any website referenced herein is not,
and shall not be deemed to be, part of or incorporated into this
press release.
Investor Relations Contacts
Ray Chen
VP, Investor relations
Scienjoy Holding Corporation
+86-010-64428188
ray.chen@scienjoy.com
Tina Xiao
Ascent Investor Relations
+1 (917) 609-0333
tina.xiao@ascent-ir.com
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SOURCE Scienjoy Holding Corporation
