China 3D Digital Forms Strategic Alliance with AID Partners and Acquires 81.63% of HMV at a Consideration of HK$408 Million

China 3D Digital Forms Strategic Alliance with AID Partners and Acquires 81.63% of HMV at a Consideration of HK$408 Million

Making AID Partners the Single Largest Shareholder of China 3D Digital

To Demonstrate a Strong Vertical Integration Synergy with HMV Relying on Strengthened Cooperative Ties

HONG KONG, March 15, 2016 /PRNewswire/ --

Transaction Details

China 3D Digital Entertainment Limited ("China 3D Digital", Stock Code: 8078.HK) and AID Partners Capital Holdings Limited ("AID Partners", Stock Code: 8088.HK) jointly announced that the two companies have entered into a Sale and Purchase Agreement, pursuant to which China 3D Digital agreed to acquire the sale shares which represent approximately 81.63% of the issued capital of HMV M&E Limited, a subsidiary of AID Partners, at an aggregate consideration of HK$408 million to be satisfied by the issue of an aggregate of 1,118,219,178 consideration shares at completion, representing approximately 22.59% of the enlarged issued share capital of China 3D Digital.

Upon completion, AID Partners will become the single largest shareholder of China 3D Digital and recognize an estimated gain of approximately HK$224 million before tax and transaction costs. Subsequently, Mr. Kelvin Wu, Executive Director and Chief Executive Officer of AID Partners, and Mr. Gilbert Ho, Executive Director and Chief Investment Officer of AID Partners, shall be appointed as Non-Executive Director of China 3D Digital and Executive Director of China 3D Digital, respectively. Besides, China 3D Digital intends to appoint Ms. Li Mau, Chairwoman of HMV Asia Limited and the spouse of Mr. Wu, as the Executive Director and Co-Chairman of China 3D Digital.

Mr. Stephen Shiu, Chairman of China 3D Digital said, "Following the transaction, HMV will become our subsidiary. HMV is an international brand which has been rooted in Hong Kong for the past 22 years. It has become an integral part of the collective memory of Hong Kong people. Over the past few years, we have been committed to the development of film and television program production and distribution, artiste management, music production and complementary role in extending our upstream entertainment business, further enhance our goodwill in the China market and build up customer confidence. In the Hong Kong market alone, HMV has accumulated a large crowd of stable and loyal customers. China 3D Digital is keeping a close eye on any possible business initiatives to capitalize the high-end international entertainment platform of HMV. For example, we may utilize the physical HMV stores and online channels to promote our film and television program or dispatch our artists' updates. These synergies are immense and beyond imagination."

Mr. Shiu added, "Besides, we believe that the extensive international network, profound industry knowledge and investment experience of AID Partners will not only bring in professional investors but valuable intellectual property assets and technologies from the overseas market, which will further accelerate our expansion into the PRC."

Mr. Kelvin Wu, Executive Director and CEO of AID Partners said, "China 3D Digital is a pioneer in the media and entertainment industry in Hong Kong and the PRC. Relying on their extensive experience and affluent resources in the entertainment industry of its management team, together with its leading market sense, China 3D Digital shall further accelerate the vertical integration process of HMV and grow into one of the very few entertainment platforms, which has the combined characteristics of local culture and international perspective; thus maximizing its overall profitability."

"From the investment perspective, we have successfully repositioned the brand and expanded the operations of HMV within a short period of time from its verge of bankruptcy. Holding major stake of China 3D Digital allows AID Partners to further involve in the media and entertainment universe and to continue to enjoy the investment returns from HMV. Also, this transaction has reflected the true market value of HMV and will post an estimated gain of approximately HK$224 million for AID Partners, demonstrating the success of our "Project Investment + Active Management" investment strategy."

HMV M&E Limited is principally engaged in the entertainment and media business, which includes but not limited to the five physical retail stores in Hong Kong under the brand "HMV", and the exclusive, irrevocable, royalty-free and perpetual licence to use the name "HMV", the HMV licensed marks and the HMV domain names for the purposes of conducting retail business of "HMV" in the PRC, Hong Kong and Singapore.

About China 3D Digital Entertainment Limited (Stock Code: 8078.HK)

China 3D Digital Entertainment Limited is a listed company on the Growth Enterprise Market (GEM) of The Hong Kong Stock Exchange. The Company is principally engaged in the entertainment business, including film productions, local distribution, cinema operation and artiste management. The company has been expanding its theatre business in China to tap into the growing demand. The company currently engages in several cinema projects in Guangzhou, Xiamen, Quanzhou and Chongqing.

For more details on China 3D Digital, please visit the company website and Facebook:

http://www.china3d8078.com/eng/index.php

https://www.facebook.com/china3ddigital

About AID Partners Capital Holdings Limited (Stock code: 8088.HK)

AID Partners Capital Holdings Limited is an international asset management group listed in Hong Kong. The company is primarily engaged in strategic investment and asset management. Through participating in its portfolio companies with an active management role, AID Partners is poised to identify businesses with promising growth and unlock their investment values. Its major strategic investment portfolio includes "HMV"( www.hmv.com.hk ), a music, entertainment and lifestyle brand; "Star Girl" ( www.stargirl.animoca.com ), a popular and award-winning online mobile game application; and "VSOYOU" ( www.vsoyou.com ), an enterprise engaged in the mobile game application development, distribution and operations, "Brave Entertainment" ( www.bravesound.com ), a leading South Korean entertainment company engaged in music production and artist management, and "Stay Japan" ( https://stayjapan.com ), the first legitimated online booking platform for private lodging in Japan. Meanwhile, the company is also committed to the development of asset management and offering a full range of integrated financial services.

For more details on AID Partners, please visit the company website: www.aid8088.com

For enquiries on China 3D Digital, please contact:

PR ASIA Consultants Limited
Ms. Lorraine Lam +852 3183 0230 lorraine.lam@prasia.net
Ms. Winnie Chan +852 3183 0257 winnie.chan@prasia.net

For enquiries on AID Partners, please contact:

Investor Connect Advisory Limited
Ms. Janice Wong +852 3953 3223 janice.wong@ICAdvisory.com.hk
Ms. Sandy Lam +852 3953 3229 sandy.lam@ICAdvisory.com.hk

SOURCE China 3D Digital

China 3D Digital


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