Core Viewpoint - Longyun Co., Ltd. plans to acquire 58% of Xinjiang Yuheng Film and Television Group Co., Ltd., which will become a wholly-owned subsidiary after the transaction [1][2]. Group 1: Transaction Details - The transaction is expected to constitute a major asset restructuring and related party transaction, leading to a suspension of Longyun's stock starting January 26, 2026, for no more than 10 trading days [2][4]. - Longyun has previously invested in Yuheng, acquiring 10% of its shares in January 2019 and increasing its stake to 42% by September 2019 through additional investments [6]. Group 2: Financial Performance - Longyun reported a total revenue of 373 million yuan for the first three quarters of 2025, a year-on-year increase of 26.42%. However, the company's net profit attributable to shareholders was -65.06 million yuan, a decline from a profit of 2.63 million yuan in the same period last year [5]. - The basic earnings per share for Longyun were -0.71 yuan during the reporting period [5]. Group 3: Yuheng Film and Television Group Overview - Yuheng is a comprehensive film and television group involved in the investment, production, promotion, and distribution of high-quality TV dramas, variety shows, and online films. Its extended business includes short videos, live streaming, artist management, and entertainment marketing [5]. - Notable works from Yuheng include TV dramas such as "Zhong Kui: Catching Monsters" and "This World Doesn't Look at Faces," as well as participation in the production of variety shows like "Super Surprise" [5].
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