Guangzhou-based Jinyi Film and TV Investment Co has acquired a majority stake in Guangdong Zhujiang Cinema Circuit, creating a combined chain of 40 cinemas and 170 screens, mostly situated in southern Chinese provinces.

The new circuit has been named Guangzhou Jinyi Zhujiang Cinema Circuit.

As part of the Guangzhou-based real estate group, the Jiayu Group, Jinyi Film and TV Investment stepped into the exhibition business in 2005 and built 15 cinemas in major cities across China. Its cinemas in Beijing and Shenzhen were co-owned by Warner Brothers International Cinemas (WBIC) before it withdrew from the China market in 2006.

Guangdong Zhujiang Cinema Circuit is the sixth biggest among China's 34 cinema circuits, behind Stellar Megamedia, New Film Association, Shanghai United, Wanda and China Film Southern. In 2007, the total box office revenue of the circuit reached $25.7m (RMB180m).

The 15 Jinyi cinemas were all managed by the Guangdong Zhujiang Cinema Circuit before the merger. 'All personnel and management team of the circuit will remain the same while Jinyi will have major plans to expand the cinema circuit,' said Xu Binbiao, general manager of Guangdong Zhujiang Cinema Circuit.

According to Li Gengxiong, president of Jiayu Group, Jinyi plans to build 50 cinemas by 2010 and 100 cinemas by 2013.

With capital investment from Jinyi, the new circuit is expected to grow rapidly in terms of box office revenue. 'We hope to reach $71.4m (RMB500m) by 2010,' said Yi Hai, president of Zhujiang Cinema Circuit.

The new cinema circuit is also planning to distribute several Hong Kong films in the latter half of 2008.

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