(Yicai Global) Oct. 13 -- Zhejiang-based Hengdian Entertainment Co. [SHA:603103], or HG Entertainment, has officially listed on the Shanghai Stock Exchange and will now focus on its plans for third-tier and fourth-tier cities, the company disclosed in its investor prospectus.
Controlling shareholder Hengdian Group Holding Co. now has five listed subsidiaries on the A-share market, with assets worth nearly CNY70 billion (USD10.65 billion).
Hengdian is home to the world's largest outdoor film studio and has earned itself a nickname as the Oriental Hollywood. The firm is mainly engaged in film distribution, production and related derivatives.
The company plans to build 210 movie theaters across the country by 2019, with a total of 1,331 new screens and total investment worth USD359.42 million.
Rapid improvements in living standards in third and fourth-tier city residents will drive growth in Chinese cinema revenues, especially among younger consumers.
Recent Chinese box office hit Wolf Warriors 2 raked in USD25.25 million in its first days of showing, of which 80 percent was derived from second- and lower-tier cities.