On the evening of June 16, the Broadcasting Network announced a plan for a private placement. The company intends to issue no more than 52.4437 million shares at a price of 18.21 yuan per share, raising a total of no more than 955 million yuan, which will be used for the next-generation broadcasting and television network project (Phase I) and to repay bank loans.
Bai Shi Tong and Tongfang Co., Ltd. will participate in this private placement of the Broadcasting Network with their own funds of 355 million yuan and 300 million yuan, respectively. According to the Broadcasting Network's plan for the private placement, after this issuance, Bai Shi Tong and Tongfang Co., Ltd. will hold approximately 3.17% and 2.67% of the shares of the Broadcasting Network, making them the second and third largest shareholders.
Developing the Next Generation Broadcasting and Television Network
Of the funds raised, 693 million yuan is intended for the construction of the next-generation broadcasting and television network. This network is based on the overall digital transformation of the cable television network and the achievements of mobile multimedia broadcasting and television, supported by the core technology of an independently innovated "high-performance broadband information network." It aims to build a next-generation broadcasting and television network that is suitable for China's national conditions, integrating cable and wireless, and covering the entire process and network. The specific implementation areas include 11 cities and districts across Shaanxi Province, involving platform upgrades, urban network improvements and renovations, as well as terminal upgrades and development work.
According to the company's plan, it intends to deploy an open business platform based on the existing cable television network; on the basis of the original management and control of broadcasting services, it will integrate broadcasting, multicast, unicast, and user interaction into a comprehensive transmission model through an open platform and interface design. This will reference mature internet business development systems to further lower the technical barriers for third parties to develop high-quality applications based on the broadcasting and television platform. By utilizing technologies such as proxy gateways of the business platform, it will achieve interconnectivity and peer-to-peer cross-domain operations between platforms, forming a new generation of integrated broadcasting and television network system that connects related services with telecommunications networks and the internet. By enhancing the transmission capacity, bearing capacity, and access capacity of the basic network, it will ensure reliable support for large-scale streaming media applications. Through the informatization of the operational support system, it will automate business management processes and ensure reliable management. By developing and promoting terminal products based on TVOS, it will unify application standards in the broadcasting industry and facilitate the cross-network integration of internet business models and application models.
The company stated that it aims to build a new generation of integrated broadcasting and television network in Shaanxi, providing richer intelligent applications for urban users across the province. By deploying smart terminal gateways on the user end on a large scale, it will lay the foundation for the company's comprehensive business development, cloud platform business development, smart terminal application development, promotion of HD and 4K video products, improvement of service quality, and enhancement of competitive capabilities. The implementation of this project is beneficial for strengthening the company's traditional advantages in high-quality video in the cable television network and its competitiveness in the development of smart homes, smart communities, and smart cities.
Collaboration with Bai Shi Tong
The participants in this private placement include Bai Shi Tong, Tongfang Co., Ltd., Dongfang Dianshi Investment Management Co., Ltd. - Dongfang Dianzuan - Dongxing Bopu No. 3 Investment Fund, Shanghai Guotai Junan Securities Asset Management Co., Ltd. - Guotai Junan Junxiang New Issue Collective Asset Management Plan, and Tibet Kangsheng Investment Management Co., Ltd., totaling five specific entities.
After the completion of this issuance, the Broadcasting Group will hold 33.00% of the company's shares, remaining the controlling shareholder.
According to the strategic cooperation agreement signed between Bai Shi Tong and the Broadcasting Network, in addition to the aforementioned capital cooperation, both parties will also integrate their respective advantageous resources in copyright cooperation, engaging in deep collaboration in areas such as digital pay channels, interactive on-demand cable television, internet television, and DVB+OTT. In terms of platform cooperation, they will promote deep collaboration in DVB+OTT based on their respective advantageous resources. In the areas of channel implementation and interactive on-demand business cooperation, they will actively deepen collaboration in the implementation of digital pay channels and interactive on-demand cable television.
Reprinted from: China Securities Network