Profit Cultural & Creative Group Co.Ltd(300640) : demonstration and analysis report of issuing shares to specific objects in 2022 through simple procedures

Stock abbreviation: Profit Cultural & Creative Group Co.Ltd(300640) Stock Code: Profit Cultural & Creative Group Co.Ltd(300640) Profit Cultural & Creative Group Co.Ltd(300640)

Profit Cultural & Creative Group Co., Ltd.

In 2022, shares were issued to specific objects through summary procedures

Demonstration and analysis report of the scheme

March, 2002

Profit Cultural & Creative Group Co.Ltd(300640) (hereinafter referred to as the “company” and ” Profit Cultural & Creative Group Co.Ltd(300640) “) is a company listed on the gem of Shenzhen Stock Exchange. In order to meet the capital needs of the implementation of the company’s business strategy and business development, further enhance the company’s capital strength, optimize the capital structure and improve profitability, in accordance with the provisions of relevant laws, regulations and normative documents such as the company law of the people’s Republic of China, the securities law of the people’s Republic of China, the articles of association and the measures for the administration of securities issuance and registration of companies listed on GEM (for Trial Implementation), The company plans to issue shares (hereinafter referred to as “this issuance”) to specific objects through simple procedures in 2022. The number of shares to be issued this time shall not exceed 856095 million shares (inclusive), and the raised funds shall not exceed 134617200 yuan (inclusive). The net amount of the raised funds after deducting the issuance expenses shall be used for the following items:

Unit: 10000 yuan

No. project name total investment of the project to be invested in raised funds

1 new media operation and digital exhibition center construction project 10961721096172

2. Supplementary working capital 25 Shenzhen Tellus Holding Co.Ltd(000025) 0000

Total 1346172

Before the funds raised in this offering are in place, the company can raise its own funds and bank loans for early investment according to the actual situation such as project progress and capital demand, and replace the early investment according to the procedures specified in relevant laws and regulations after the raised funds are in place. If the net amount of funds actually raised in this offering is insufficient to pay the above-mentioned amount, the company will solve the insufficient part through self raised funds.

(unless otherwise specified in this report, relevant terms have the same meaning as that in the plan for issuing shares to specific objects through summary procedures in Profit Cultural & Creative Group Co.Ltd(300640) 2022).

1、 Background and purpose of this offering

(I) background of this issuance

1. The state has provided policy support for the long-term development of cultural and creative industries

According to the classification of culture and related industries (2018) issued by the National Bureau of statistics, the company belongs to “professional design services” in “creative design services”. Therefore, it can not only promote the development of regional and cultural industries, but also promote the integration of national economy and culture. The report of the 19th CPC National Congress has clearly pointed out that “we should strengthen cultural self-confidence and promote the prosperity of socialist culture”. To this end, the state has launched a series of policies to support the long-term development of cultural and creative industries.

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We will continue to drive the development of the cultural industry with innovation, implement the digital strategy of the cultural industry, promote the cultural industry to “use numbers to enrich wisdom”, promote the Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integration, promote the comprehensive transformation and upgrading of the cultural industry, and improve the quality and efficiency and the core competitiveness of cultural products in the 14th five year plan.

The industry development plan in May 2021 emphasizes that in line with the development trend of digital industrialization and industry digitization, 5g, big data, cloud computing, artificial intelligence, ultra-high definition, Internet of things, virtual reality, augmented reality and other technologies should be deeply applied to promote the high-quality development of digital culture industry, cultivate and expand online broadcasting, digital creativity Digital art, digital entertainment, immersive experience and other new cultural formats.

Focusing on the implementation of the digitization strategy of the cultural industry, we will enhance the capacity of cultural production and content construction through scientific and technological innovation, and improve the digitization, networking and The level of cultural and energy development in the 14th Five Year Plan Period – carry out research on the key technologies of cloud exhibition, cloud entertainment, online broadcasting, content generation and customized consumption of emerging formats such as tourism science and technology innovation regulation, digital art and immersive experience in April 2021, intelligent service and co governance management, Support the development of key technologies and tools for new forms of digital art, and cultivate new formats of digital culture industry.

We will implement the digitization strategy for the cultural industry, accelerate the development of new cultural enterprises, the industrialization of the people’s Republic of China, and cultural consumption patterns, and expand industries such as digital creativity, online audio-visual, digital economic and social publishing, digital entertainment, and online broadcasting. We will promote applications such as immersive video and cloud broadcasting for the 14th five year plan in March 2021.

Implement the cultural brand strategy and build a number of influential cultural brands that are planned and representative of the 2035 vision. We will actively develop foreign cultural trade, expand the cultural market of the outline of overseas standards, encourage excellent traditional cultural products and digital cultural products such as film and television dramas and games to “go global”, and strengthen the construction of national cultural export bases

Comply with the development trend of digital industrialization and industrial digitization, implement the digital strategy of cultural industry, accelerate the development of new cultural enterprises, cultural formats and cultural consumption patterns, transform and improve traditional formats, improve quality, efficiency and core competitiveness, and improve the modern cultural industry system.

Deeply grasp the content attributes of digital culture, strengthen the construction of originality, Create “the Ministry of culture and tourism to focus more on promoting digital culture to produce digital cultural products that can not only meet people’s cultural needs, but also enhance people’s spiritual strength. Cultivate and shape a number of original IP with distinctive Chinese cultural characteristics and high-quality development in November 2020, strengthen IP development and transformation, and make full use of animation games, see” online literature, online music Online performance, online video, digital art, creative design and other industrial forms promote the creative transformation and innovative development of Chinese excellent traditional culture, inherit revolutionary culture, develop advanced socialist culture, and create more digital culture brands with wide influence.

Support the construction of digital infrastructure such as data center and cloud platform to meet the general needs of the industry, improve the “cloud, network and end” infrastructure of the cultural industry, and open up the digital chain of “digital collection, networked transmission and intelligent computing”.

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The general office of the State Council will guide entity enterprises to develop more digital products and services, and encourage entity enterprises to open new models such as “cloud shopping” through live e-commerce and social marketing in September 2020, leading the acceleration of new consumption

Opinions on Development

The state has incorporated the promotion of the development of the cultural industry into the national economic and social development plan, formulated special plans to promote the development of the cultural industry, issued a guiding catalogue for the development of the cultural industry, and promoted the structural adjustment and layout optimization of the cultural industry. The state of the people’s Republic of China encourages the integration of cultural industry with science and technology and other industries related to the national economy. In December 2019, cultural industry promotes the development of legal cooperation, expands the breadth and depth of the development of cultural industry, and gives full play to the important role of cultural industry (Draft for approval) in national economic and social development.

The state actively promotes the development of creative design service industry, enriches the cultural connotation of creative design, promotes the trading and achievement transformation of creative design products, and improves the cultural content and added value of manufacturing industry and modern service industry.

Industrial structure adjustment refers to cultural and creative design services and industrial design, which are listed as encouraged projects of “Guiding Catalogue for economic and social development in November 2019 (which plays an important role in promoting people’s needs for a better life and promoting high-quality development in 2019)”

Customs of the general office of the State Council

In order to further stimulate culture, encourage the development and operation of cultural and creative products, broaden the display and sales channels of cultural and creative products, and the road of tourism consumption potential in August 2019. Guide cultural enterprises and tourism enterprises to innovate business models and marketing opinions (issued by the State Council Office).

[2019] No. 41)

“Opinions on cultivating and developing producer services, focusing on scientific and technological research and development, industrial design, financial services, cultural creativity, the guiding exhibition of the Business Council in February 2019, and promoting the deep integration of service industry and manufacturing industry” (development and reform planning, forming an industrial structure dominated by modern service economy, and promoting the high-end development of industry in central cities [2019] No. 328).

2. The state strongly supports the integrated development of enterprises with digital technology in product design, marketing and other links

China has always placed scientific and technological innovation in an important position of development, actively promoted the construction of a scientific and technological power, and issued a series of policies to support enterprises to integrate with digital technologies such as virtual reality, augmented reality and digital twins in product R & D, design and marketing, so as to promote the efficient development of enterprises.

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During the 14th five year plan, digital technology will deepen the integration of artificial intelligence, virtual reality, 8K HD video and other technologies, and the economic development plan in January 2022 will expand the application in social networking, shopping, entertainment, exhibition and other fields, so as to promote the upgrading of the quality of life and consumption

Basic electronic components guide China National Software And Service Company Limited(600536) enterprises to develop simulation design software for various electronic components, which will be produced in January 2021

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