(Yicai Global) July 26 -- Chinese media firm Mango Excellent Media is acquiring the childrens’ content production house owned by its parent firm Mango Media for CNY835 million (USD116.7 million) in order to bring in new sources of revenue.

The purchase of Golden Eagle Cartoon, which produces media content for children and teenagers, is being made using Mango Excellent’s own funds, the company said. Once completed, Golden Eagle will be included in Mango Excellent’s consolidated statements to improve profitability.

Golden Eagle is guaranteed to rake in net profit of no less than CNY46.2 million (USD6.5 million) this year, CNY54.1 million next year and CNY59.6 million in 2025, Changsha, central Hunan province-based Mango Excellent said.

The projections are based on last year’s figures when Golden Eagle achieved net profit of CNY46.9 million (USD6.5 million) on revenue of CNY273 million (USD38 million).

It will be a much needed boost to Mango Excellent which posted a 13.6 percent plunge in net profit in 2022 from a year earlier to CNY1.8 billion (USD255 million), while revenue sank 10.7 percent to CNY13.7 billion (USD1.9 billion) in 2022.

Mango Excellent, in which Mango Media owns 56 percent equity, runs three main businesses, namely broadcasting videos on the internet, production of interactive entertainment content and sales of films and television programs

Editor: Kim Taylor