Huayi Brothers approved to list on GEM

Published: 05 Oct 2009 18:09:39 PST

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Oct. 6, 2009 (China Knowledge) - Huayi Brothers Media Group, the largest movie studio in China, has secured approval from the China Securities Regulatory Commission to list on the Growth Enterprise Market, a trading board of smaller companies expected to launch later this year, sources reported.

The company said it plans to sell a 25% stake to raise RMB 620 million through an initial public offering in Shenzhen. The proceeds will be used to fund movie and TV productions.

Founded in 1994, Huayi Brothers has become one of the country's most successful entertainment companies. In the first six months this year, the company reported a net profit of US$4.6 million. Movies accounted for about 28% of its total revenue in the period. Its net profit tripled from US$3.5 million in 2006 to US$10 million in 2008.

Huayi Brothers aims to build 15 multiplexes over the next five years.