Combining the two would create a circuit with 662 complexes, overtaking the Dadi group which is currently the second-largest behind Wanda Cinema.
Hengdian Entertainment, a listed company that straddles film and television production and cinema operation in China, has made an indicative offer of CNY 3 billion (USD 446 million) to buy the Shanghai Xingyi Cinema Management firm. Hengdian Entertainment made the indicative offer in a regulatory filing to the Shanghai Stock Exchange. Seazen Group, the parent of Xingyi Cinema, confirmed the basic deal terms in its own filing to the Hong Kong Stock Exchange. The two companies set Oct. 8, 2022, as a deadline for completing the deal. If the deal goes through, Hengdian Entertainment would become the second-largest cinema operator in China.
Xingyi Cinema was formed in January 2015. By the end of 2021, it operated and managed a total of 128 cinemas, making it China's seventh-largest circuit. Hengdian has 434 venues. Combining the two would create a circuit with 662 complexes, overtaking the Dadi group which is currently the second-largest behind Wanda Cinema.
In both 2020 and 2021, China was the world's largest box office market, albeit with gross revenues below 2019 levels, and the number of cinemas in operation increased. The national government last year also called for further cinema building as part of its five-year plan for the film industry's development. A weak supply of local and international films exacerbated the difficulties in the second quarter of the year. About 40 films will be lined up for debuts in the July-August period which is often designated as a 'blackout period' or 'national film support' period and when major Hollywood releases are rare.