China South Publishing & Media extends competition resolution, invests in bookstore upgrade

China South Publishing & Media Group announced an extension for its controlling shareholder, Hunan Publishing Investment Holding Group Co., Ltd., to resolve horizontal competition with three affiliated companies: Hunan Education Newspaper Group Co., Ltd., Hunan Education Audio-Visual Electronic Publishing Co., Ltd., and Hunan Map Publishing Co., Ltd. The original commitment to inject these companies by December 8, 2025, is now extended by five years to December 8, 2030, citing challenges in digital transformation and profitability. During this period, China South Publishing & Media will continue to manage the three entities under an entrusted operation agreement, receiving an annual management fee of 1 million yuan for Hunan Education Newspaper Group and 100,000 yuan each for Hunan Education Audio-Visual Electronic Publishing and Hunan Map Publishing.

Concurrently, the company will invest 48 million yuan in the "Hunan Book City Upgrade and Renovation Project," a new initiative to transform its flagship bookstore. The project, with a 20-month construction period, aims to enhance the bookstore's functionality, upgrade its interior and exterior, and target younger demographics, with profitability projected from the fourth year of operation. The board also approved the acquisition of Hunan Publishing Investment Holding Group Co., Ltd. Pure Rui Industrial Co., Ltd. for 37.4987 million yuan to consolidate assets and improve operational efficiency.

Furthermore, the board approved the appointment of Mr. Yu Hongshan as an independent director, whose biography highlights extensive experience in artificial intelligence and robotics. These actions demonstrate the company's strategic adjustments in operations, asset management, and governance.