Perfect World Pictures Co Ltd (SZSE:002624) agreed to acquire all the assets of Shanghai Perfect World Network Technology Co., Ltd. from Perfect World Digital and Shihezi Junyang Investment for CNY 12 billion on January 7, 2016. Perfect World Pictures will issue a total of 614 million shares valued at CNY 19.53 per share. Perfect World Pictures will raise up to CNY 5 billion in supporting funds by issuing up to 212.2 million shares, valued at CNY 23.56 per share, to four select investors. Perfect World Network Technology has committed to achieving annual profits of not less than CYN 755 million, CYN 988 million, and CYN 1.198 billion in 2016-2018 as terms of the acquisition agreement.

On January 6, 2016 the Board of Directors of Perfect World Co. approved the transaction and on February 1, 2016 the shareholders of Perfect World Co. approved it. On April 19, 2016 Perfect World Co. received approval from CSRC. On January 5, 2016 the shareholders of Shanghai Perfect World Network Technology Co., Ltd. approved the transaction. Guosen Securities Co., Ltd. acted as Financial Advisor, Zhong Lun Law Firm acted as Legal Advisor and BDO China Shu Lun Pan Certified Public Accountants to Perfect World Co.

As of period end date September 30, 2016, the financials of Shanghai Perfect World Network Technology Co., Ltd are CNY 0.19 million as total assets, CNY 0.18 million as total liabilities. Perfect World Pictures Co., Ltd reported revenue of CNY 0.29 million, total Loss of CNY 0.025 for the year ending December 31, 2015