Taipei, 18 December 2017
Taipei, 18 December 2017
VHQ Media Holdings Ltd has announced that it will acquire a substantial majority and controlling stake in China Jupiter Media at the conclusion of its board meeting on 15th December 2017.
China Jupiter Media is a leading film-and-television-production company in China, helmed by a 25-year industry veteran in the media business. Revenues for VHQ Media Holdings Ltd will get a substantial boost from the recognition of Jupiter Media’s revenue generated by production management of dramas. In addition, all post production and visual effects generated from such productions would be retained in-house, affording VHQ better upstream and downstream integration of its business and further strengthening VHQ’s leading position in its sector in the China market.
VHQ China worked on 2 internet drama projects in 2017. With this acquisition, VHQ expects to do more. Its toehold in the booming internet and television segment will grow to become firm traction. It’s involvement in these sectors is expected to generate substantial revenues and very healthy margins, with tremendous growth opportunities over the next 5 to 10 years.
Vertical integration of up and downstream activities will allow VHQ to become a one-stop shop for content producers, equipped with creative and execution know-how, from pre-production to production to post production and visual effects. It expects to win new businesses from an enlarged client base.
According to statistics provided by China’s State Administration of Radio, Film and Television (SARFT), China’s online video streaming market saw explosive growth from 9 billion yuan in 2012 to 60.9 billion yuan in 2016. Over the past 5 years, the number of consumers of internet content increased by 61% to 565 million people. The upsurge in simultaneous broadcasts of Chinese drama series over television and the internet has led to a 10-fold increase in production budgets of drama series. This has created tremendous demand for post-production and special effects services.
With the company’s acquisition of China Jupiter Media targeted to be completed by early 2018, the company is extremely optimistic about its growth in the post-production business. VHQ currently has a 450-strong team of visual effects specialists in Beijing. Headcount is expected to grow to 600 by end 2018, eventually to 1000-strong team by 2020. The Company is concurrently building a base of reliable business partners to outsource some of its labour intensive work whilst retaining higher value-added work in-house. It is growing in size, in high-value skill sets and in overall throughput capacity. In the Chinese market, VHQ aims to continue to be in a prime position to meet industry demands, scale up its operations, increase its revenues and its profitability in a sustained manner. VHQ’s strategy will help to cement the company’s position as China’s leading post-production and visual effects company.
VHQ was established in Singapore in 1987 as a post-production studio. In 2001, its then Managing Director lead an MBO exercise and recapitalised the company operates a network covering Asean. In 2013, VHQ China was launched to service the ever increasing volume of work, mainly feature films, which originated from China. In 2014, VHQ Media Holdings Ltd was incorporated and was listed in December 2015 on the Taipei Exchange (Ticker – VHQ-KY 4803). VHQ’s core business is in the production of visual effects, animation, motion graphics and post production services for commercials & feature films.
VHQ celebrates its 30th anniversary in 2017 with thriving facilities in Singapore, Malaysia, Indonesia, Taiwan and China.
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