Securities code: 300081 securities abbreviation: Hengxin Shambala Culture Co.Ltd(300081) Announcement No.: 2021-120 Hengxin Shambala Culture Co.Ltd(300081)
Reply announcement on issues of concern to investors
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Special tips:
1. In view of the recent market hot spots involved by the company that may cause fluctuations in the company’s share price, the company learned from the public media that the concept of “meta universe” has recently attracted extensive attention from investors. At present, the “meta universe” is still a grand concept in its early stage, and at present, the relevant industries are still in the early exploration stage and full of uncertainty all over the world. Please pay more attention to the company’s own business layout, do not blindly follow the trend of speculation, and beware of the investment risk contained in the overheated investment in the theme of “meta universe”.
2. Although the development process of VR industry has accelerated in recent years, the industry business model and VR consumption scenario are still gradually maturing. In addition, the labor cost, copyright and technology R & D cost of VR / CG industry outside Shanghai are high, The virtual reality company (hereinafter referred to as “VRC”), a joint-stock company of the company, has not yet achieved profitability. If the profitability is not continuously improved in the future, the long-term equity investment will face the risk of impairment and adversely affect the current profits and losses of the company. Please pay attention to the investment risk.
Recently Hengxin Shambala Culture Co.Ltd(300081) (hereinafter referred to as “the company”) received a prompt from Shenzhen Stock Exchange. In view of the recent concerns expressed by investors about VRC related issues of the company’s participating companies through interactive platform and reflection to the exchange, the specific situation is announced and explained as follows in response to regulatory requirements: I. Introduction to VRC related issues
In 2016, based on the consideration of long-term development strategy, in order to further enhance the company’s core competitiveness, the company invested in the virtual reality content creation enterprise VRC for the development of story driven VR content. The company held the 21st Meeting of the 5th board of directors on April 7, 2016, deliberated and adopted the proposal on the company’s participation in the virtual reality company (VRC) in the United States, and disclosed the proposal on participation in the virtual reality company (VRC) in the United States and signing with VRC on cninfo.com on April 8, 2016
Progress bulletin. Up to now, the company directly holds 17.5664% shares of VRC, and indirectly holds about 5.02% shares through follow-up investment of Beijing dream high investment cultural and creative industry partnership. The company has the right to appoint 2 of the 7 directors on the board of directors of VRC, and the directors dispatched by the company do not participate in the daily business activities of VRC. Since the shares held by the company have not reached 51% of the total shares of VRC company, according to the relevant provisions on the scope of consolidation in the accounting standards for Business Enterprises No. 33 – consolidated financial statements, the financial statements of VRC are not within the scope of consolidation of listed companies and belong to the company’s joint-stock company. Through in-depth cooperation with the company, the company can more participate in international project production, so as to learn, accumulate and learn from overseas VR creation experience and consolidate its ability in VR content production. These can be reflected in the VR content products independently produced by the company in recent years. The investment in VRC has improved the company’s urgently needed world view design ability and head IP acquisition ability in VR content, so that the company has the production ability of large-scale VR content. Although the development process of VR industry has accelerated in recent years, the industry business model and VR consumption scene are still gradually maturing. In addition, the labor cost, copyright and technology R & D cost of VR / CG industry outside Shanghai are high, and VRC has not yet realized profitability. If the future profitability cannot be continuously improved, it will lead to the risk of impairment of long-term equity investment and adversely affect the current profits and losses of the company. The magic journey of Lach is one of the representative works of story driven VR produced by VRC. The company currently has the distribution right of the magic journey of Lach in Greater China. There are three main sales modes of the film in China: first, it is directly authorized to customers; second, it is sold together with customized VR seats; in addition, it generates operating broadcasting revenue through operating VR seats. At that time, due to the immature development of VR industry outside China, the insufficient volume of VR hardware and user activity, coupled with the lack of formed business model, the overseas sales revenue of Lux’s magic journey was about US $11938, which was mainly obtained through IMAX VR cinema channel. The company’s revenue obtained through Lux’s magic journey in China included licensing revenue The total equipment sales revenue and operation revenue is about 650000 yuan. Based on the market judgment on the current development of VR industry, VRC is also adjusting the investment of some projects in time, and actively expanding financing channels to improve profitability.
2、 Risk tips
The company once again reminds investors that although the development process of VR industry has accelerated in recent years, the industry business model and VR consumption scene are still gradually maturing. In addition, the labor cost, copyright and technology R & D cost of VR / CG industry outside Shanghai are high, and VRC has not yet achieved profitability. If the profitability of VRC is not continuously improved, it will lead to the risk of impairment of long-term equity investment and have an adverse impact on the current profit and loss of the company. In addition, if the financing of VRC is not as expected, there may be risks such as project adjustment or stagnation, including Godzilla war Vajra VR. For the information related to the company’s participation in the company, the company will timely perform the obligation of information disclosure in strict accordance with relevant regulations. It is suggested that investors pay attention to the official information released by the company and the information reported by formal media channels. Please pay attention to the investment risks.
It is hereby announced.
Hengxin Shambala Culture Co.Ltd(300081) board of directors
December 14, 2001
