HONG KONG, May 18, 2015 /PRNewswire/ -- SMI Holdings Group Limited ("SMI" or the "Company" and its subsidiaries, collectively the "Group", HKEx: 198), one of the largest movie theater operators in China, announced that the Company has entered into an agreement with Baidu Online Network Technology (Beijing) Company Limited (''Baidu'') to launch "SMI Baidu Co-branded Card" ("Co-branded Card").
The new cooperation adopts the "Online top-up, office purchase" business model. It aims to reach 20,000,000 members with 5,000,000 of them being the first batch of registered members. Each Co-branded Card has a value of RMB200 and a recharge subsidy of RMB36. These cards can be used in all SMI movie theatres and SMI community stores. Co-branded card revolutionizes the traditional movie theatre membership card, and will provide different financial services through the Baidu technical platform, including but not limited to online top-up services.
SMI and Baidu will work together and play to their strengths to realize comprehensive and close contact of O2O strategic partnership. Through Baidu's strength in technical platform, the Company will develop new business and research new products. Co-branded Card has broken the existing traditional model, and has provided members with more value-added services and thereby has derived more jointly-developed new products through the mobile internet.
Co-branded Card will greatly reduce the settlement cycle between movie theatres and O2O living service platform, and will also provide both movie theatres and O2O platforms with a reasonable profit margin. It will encourage movie theatres to offer more benefits to members of the Co-branded Card, and stimulate their spending power. The ultimate target is to connect the customers, O2O platform and movie theatres closely together in order to provide a high-quality viewing experience for the customers as well as to create a brand new business model.
Baidu enjoys a high hit rate in the PRC, which is complementary to SMI's competitive channels, quality members and customer resources. In 2012, SMI launched its movie theatre O2O platform, which has attracted tremendous attention within the industry. With the rapid growth of 4G network users in the PRC, SMI has grasped the market opportunity to set its foothold in the mobile telecommunications industry, and has obtained virtual trial operator qualification. Through the respective commercial advantage of the Group and Baidu, the cooperation is expected benefit in the long run.
SMI will launch a whole new integrated services platform, "SMI Living", this year for its customers. SMI is now actively integrating its business and services channels to lay a solid foundation to launch the "One Comprehensive Card" strategy. Leveraging on the advantages of the Group's existing theatre network resources and online shopping platform in the PRC, the Group can provide its members with film culture and diversified consumption value-added services and thus be able to develop more cross-sales projects. Meanwhile the Group can also provide Baidu with more O2O cooperation and delivery platforms.
Mr. Cheng Chi Chung, Chief Executive Officer of SMI, said "With this cooperation, SMI's and Baidu's strengths will create synergy and thus improve our respective competitiveness. The 'SMI Baidu Co-branded Card' has opened up a new chapter of O2O new innovative cooperation The unique usage of Co-branded Card, new sales models, online consumption-friendly incentives, member's privilege, consumption-friendly incentives on movie theatres and top-up service of membership card will lead a new trend of membership development of movie theatres in the PRC."
About SMI Holdings Group Limited (0198.HK)
SMI Holdings Group Limited (0198.HK) is a company listed on the Main Board of the Stock Exchange of Hong Kong. The Company is principally engaged in the business of movie theater operating and new complementary business, such as Xingmeihui and advertising & promotion business. Under its strong management team and powerful business network, the number of SMI's movie theater has grown from 3 in 2009 to near 100 by the end of 2014.
