SHENZHEN, China, July 20, 2020 /PRNewswire/ -- ATIF Holdings Limited (Nasdaq: ATIF, the "Company"), a company providing business consulting services and multimedia services in Asia, today announced that cinemas of its majority-owned subsidiary, Leaping Group Co., Ltd.("LGC"), a leading multimedia and advertising firm in Northeast China, is ready to resume operation of its cinemas and LGC expects a strong post-pandemic rebound from its cinema business as China allows theaters to gradually resume operations from July 20, 2020.
LGC runs a cinema chain with four movie theaters. Shenyang is one of the cities where most of LGC's theaters are based. Cinemas in the city are waiting for an official document from regulators as well as for the new films to be released and distributed to the local theaters in order to fully operate as normal. LGC is also the exclusive advertising agency for China's leading cinema chain operator Wanda Cinema in the Northeastern region. Its advertising network covers over 100 movie theaters that span across 22 cities with over 1,000 screens. In addition, LGC controls advertising resources at over 100 local supermarkets in Liaoning province, which work to connect and efficiently target different groups of consumers.
Mr. Bo Jiang, Chairman of LGC, commented, "We are enthusiastic about resuming operations of our cinemas and partnering with ATIF to continue accelerating the growth of LGC to begin the next chapter for rapid expansion. LGC is expecting to increase another eight new theaters by the end of this year, which together are estimated to yield a box office of over RMB80 million in total. LGC is the strongest brand in pre-movie advertising in China's Heilongjiang, Jilin and Liaoning provinces and our revenue during the 2019 fiscal year has reached over US$11 million, with 90% of which generated from advertising-related business. Most of LGC's previous clients have extended their collaborations with us even before the theaters are back to operate in full swing. About 65% of our advertising slots are pre-booked because our clients are very confident about cinema advertising."
"By acquiring a controlling 51.2% stake of LGC in April this year, ATIF aims to leverage LGC's expertise in multi-channel advertising, event planning and execution, as well as in film and television program production to significantly boost growth of its multimedia business, which is one of ATIF's new strategic initiatives to help drive shareholder values. We will expand our capacity to meet increasing market demand for multimedia and diversify our portfolios," said Mr. Jun Liu, CEO and Director of ATIF.
Over the years since 2017 to today, ATIF has successfully advised over 20 clients that were either planning to seek an initial public offering or have made their debuts in the US markets. These consulting services also contributed to the majority of ATIF's revenues in the past three years, which amounted to over US$3 million for the fiscal year ended July 31, 2019. Since the marriage between ATIF and LGC, LGC has secured contracts worth US$2.3 million for multiple clients to launch live streaming and short video production. LGC will provide exclusive team service and one-stop service for the clients' video production.
About ATIF Holdings Limited
Headquartered in Shenzhen, China, ATIF Holdings Limited ("ATIF") is a company providing business consulting services to small and medium-sized enterprises in Asia, including going public consulting services, international business planning and consulting services, and financial media services. ATIF has advised several enterprises in China in their plans to become publicly listed in the U.S. Through its majority-owned subsidiary, Leaping Group Co., Ltd., ATIF also provides multimedia services and is engaged in three major businesses including multi-channel advertising, event planning and execution, film and TV program production and movie theater operations. ATIF operates the largest pre-movie advertising network in Heilongjiang Province and Liaoning Province of China and also provides advertising services in elevators and supermarkets. ATIF is often hired to plan both online and offline advertising campaigns and produce related advertising materials. In addition, ATIF invests in films and TV programs and distributes them in movie theaters or through online platforms. For more information, please visit https://ir.atifchina.com/.
Forward-Looking Statements
Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: future financial and operating results, including revenues, income, expenditures, cash balances and other financial items; ability to manage growth and expansion; current and future economic and political conditions; ability to compete in an industry with low barriers to entry; ability to continue to operate through our VIE structure; ability to obtain additional financing in the future to fund capital expenditures; ability to attract new clients, and further enhance brand recognition; ability to hire and retain qualified management personnel and key employees; trends and competition in the financial consulting services industry; a pandemic or epidemic; and other factors listed in the Company's annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions you that actual results may differ materially from the anticipated results expressed or implied by the forward-looking statements we make. You should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent our management's beliefs and assumptions only as of the date such statements are made. These forward-looking statements are made as of the date of this news release.
For more information, please contact Investor Relations at:
EverGreen Consulting Inc.
Janice Wang
+86-13811768559
+1-908-510-2351
IR@changqingconsulting.com
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