CDIB Capital Invests in VHQ Digital Media, China's Leading Post-Production and VFX PlayerHong Kong, April 25, 2019
CDIB Capital is pleased to announce that it has closed on an investment in VHQ Digital Media Limited (“VHQ China” or the “Company”), a leading vertically integrated post-production and special effects (or “VFX”) service provider in China.
VHQ China is one of the largest players by scale in the Chinese post-production services market mainly focused on domestic Chinese domestic films and dramas. The Company leverages on its over 32 years of experience in post-production project management in the Asia region, as well as a strong understanding of the Chinese film production culture, to deliver high-quality products for its clients while maintaining competitive pricing and compelling margins. In 2018, China surpassed the US to emerge as the largest box office globally, yet movie views per capita still remains below global benchmarks. At the same time, the rise in consumption of media and entertainment by an increasingly sophisticated Chinese audience creates new demand and opportunities in various genres of domestic films with heavy special-effects, local TV dramas, and more recently, original web drama series. As an established and reputable partner, VHQ China is well-positioned to grow alongside the China entertainment industry and emerge as one of the leaders in its field.
“CDIB Capital is a valuable partner to us.” said Low Kok Wah, Chairman and CEO of VHQ China, “As we plan for organic and inorganic expansion opportunities in China, we are pleased to bring CDIB Capital in as the right partner to provide both strategic and capital markets insights leveraging on its years of experience in the region. We are glad to have their team onboard with us during this very exciting time.”
Hamilton Tang, Managing Director at CDIB Capital said, “We are familiar with the Chinese movie and entertainment space, having had both entrepreneurial and operational experience before, and spent time exploring the value chain. We are impressed by the achievements of the management team thus far by successfully bringing together experience from Hollywood VFX and local knowledge in China, and we believe more can be achieved in the coming years. We also see this as a window to capture growth in China’s highly regulated media and entertainment industry with strict controls on foreign participation. VHQ China, as a pure-play post-production and VFX service provider, fits nicely as a proxy for the industry’s overall growth thesis.”
Lionel de Saint-Exupéry, Chairman and CEO of CDIB Capital, added “We are excited to be investing in VHQ China, a subsidiary of VHQ Media Holdings (GTSM: 4803) listed on the Taipei Stock Exchange. This new investment in China entertainment plays to our strengths in our home market and once again clearly demonstrates the power of CDIB Capital’s ‘China-Plus’ strategy. As a member of the board, we will be working closely with VHQ exceptional management team to explore various capital markets and M&A strategies that, we believe, will unlock further value for all shareholders.”
About VHQ China and VHQ Media Holdings (GTSM: 4803)
Established in 1987, VHQ Media Holdings (“VHQ Media”) has 32 years of experience in post-production and special effects (VFX) for movies, dramas, and TV commercials. VHQ Media first started as a small boutique post-production facility in Singapore and expanded into China in 2013. VHQ China, the China branch of VHQ Media, is now one of the largest special effects/VFX companies by scale with more than 400 employees. VHQ China’s recent movie portfolio includes I-Apartments (2018), Hidden Man (2018), Forever Young (2018), Once Upon A Time (2017). VHQ Media Holdings is a listed company on the Taipei Stock Exchange under the ticker GTSM: 4803.
About CDIB Capital International
CDIB Capital International is a leading pan-Asian private equity investor focused on middle market growth capital transactions. We typically invest in compelling growth-oriented companies in consumer/retail, value added manufacturing, and new services, seeking to capitalize on cross market opportunities in the Asia-Pacific region. We are an affiliate of China Development Financial (“CDF”), one of the largest and most established merchant banking groups in Greater China with approximately US$90 billion in assets.
CDIB Capital International is headquartered in Hong Kong and has offices in Taipei, Shanghai, Seoul and New York. For more information, please visit our website at www.cdibcapital.com.