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Tofu Boy” Business Plan July 3Rd, 2010 Fromagic DUMPLING ENTERTAINMENT - Suite 22B, No

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Tofu Boy” Business Plan July 3Rd, 2010 Fromagic DUMPLING ENTERTAINMENT - Suite 22B, No ng “Tofu Boy” Business Plan July 3rd, 2010 froMAGIC DUMPLING ENTERTAINMENT - Suite 22B, No. 8, Waijiao N. Road, Chaoyang District, Beijing, 100020 - TEL:(86)(10)8561-1356 1 g CONFIDENTIALITY AGREEMENTGREEMENT IALIA ing The information contained in this business plan is confidentialtial and intended solsosolely for the considerationderation of qualifiedqualing prospective investors and business partners to whom it is transmitteded by MagicMagic DumplingDumplinDump Entertainmentment or its authorizedauthorize representatives.repr Any physical or digital reproduction of this document, inn whole or in part, oro the disclosuresure any of its contents witwiwithout the prior written consent of Magic Dumpling, is strictly prohibited.ed.d. Upon request, ENthisthi document iss to be immediatelymp returnedreturn to Magic Dumpling. This business plan is not an offering of securities. ProspeProspProspectiveDEN investorstors and businesssinessness partnersp ump are not to interpret the contents of this document as investment, legalegal or tax adviceIDEID frffrom either Magicc DumplingDumDu orrritDumplingDumpDuD its representatives.rep Each potential investor or business partner specificallyly understands and agrees that any estimates,estimates, projections,p ns revenue models, forecasts or assumptions are by definition uncertainertainrtain and thus posspossibly unreliable.ble. Accordingly,ccordingly, any pparty considering a transaction with Magic Dumpling agrees to conductt itsts own due diligence.diligencNFINF c The recipient herebyy understundersunderstandsONF and agreesgreesrees to all of the termstermic expexpressed above. CONFIDENTIACONCOC ISSUED TO: MagicMagM Contact: Name: Kevin Geiger, President Company:any: Magic Dumpling Entertainment Issuesue Date: [email protected] (+86)150-1100-9975 fromMAGIC DUMPLING ENTERTAINMENT - Suite 22B, No. 8, Waijiao N. Road, Chaoyang District, Beijing, 100020 - TEL:(86)(10)8561-1356 2 Table of Contents Section I: Executive Summary Pg. 4 Section II: Magic Dumpling OverviOverOverview Pg.g. 5 Section III: Tofuofu Boy Project Pg.g. 6 Section IV: Investment OOpportunitytyy Pg. 8 Section V: DistributDistribution Strategy Pg.g1 10 Sectiontionion VI: FinaFinancial Projectionsojectio DumplingPg. 119 Section VII: Productiontion Budget Pg. 33 Section VIIVVIII: Productionductiontion ScheduleSchedu Pg. 37 AppendixApA A: Companyompany ic Pg. 38 Appendixdix B: Core Team Pg. 39 CONFIDENTIALAppendixendixndix C: Advisory Board Pg. 42 Appendixndixdix D: InduIndustry Pg. 48 AAppendixixxMagic E: Markets Pg. 54 fromMAGIC DUMPLING ENTERTAINMENT - Suite 22B, No. 8, Waijiao N. Road, Chaoyang District, Beijing, 100020 - TEL:(86)(10)8561-1356 3 SECTION I: EXECUTIVE SUMMARY 5 Magic Dumpling Entertainment is an animation development company incorporated under the laws of tthe People’s Republic of Chinaa aand headquartered in Beijing, developing a compelling slate of animated feature films, TV shows andndd mobilemobile content for general Chinhinese andan international audiences, within established & emerging markets. 5 As a company, Magic Dumpling brings two core values to the table: the firstst is high-quality inintellectualt propertyropertyrty (IP) development,ent, encompassing story and design; the second is world-class production experience & guidaguidguidance, with animation in generalgenera and 3D stereoscopic feature films in particular. 5 Magic Dumpling is currently developing the animatededd 3D ffeatureeatureature DVDD Premieree “Tofuofu Boy”Boy”:: an 80-mi80-minute stereoscopic adventure/comedy co-production intended for generaleral family audiencesaudienceenc worldwide.de. 5 The market potential of stereoscopic theatricalicalcal exhibition and stereoscopicst TVV technologytechnology is compelling.compellco Stereoscopic television & DVD will soon become commonplace, and shshouldhould be a significantsignifican revenue streamst withinthinhin the next two years. Animation performs profitably in a collectible, toy-like manner on the DVD market. Dumpling 5 China is the fastest-growingwing animatianimationon markmarmarket in the world,rld, andnd one of the mommost profitable stereoscopic markets. 5 Our strategy is to regardegard the NortNorth Americann and Europeanropean marketsmark as fundamental to our success as the mainland Chinese and Asian markets: focusing onn DVD ssales & rentalstalss in the West, and concconcentrating on theatrical screenings in the East (with special attention to rural distribution on theCONFIDENTIAL Chinese mainland).nland). 5 Magic Dumpling is seekingeekingg $$5 millionliononMagic USD (a(approximately 34 million RMB) in equity investment to fund development and production of “TofuTofu Boy”. UsUsingU conservativeonse revenue assumptions and standard industry projections, Magic Dumpling estimates a minimummum net investorinves profit of $2.45 million USD on “Tofu Boy” after capital recovery (an approximately 50% ROI over a 6-18-18 month period of primary return after film completion). fromMAGIC DUMPLING ENTERTAINMENT - Suite 22B, No. 8, Waijiao N. Road, Chaoyang District, Beijing, 100020 - TEL:(86)(10)8561-1356 4 SECTION II: MAGIC DUMPLING OVERVIEW Magic Dumpling’s Role L ng As a company, Magic Dumplingmpling brings twotw core valueses to thehe table: the firstfir is high-qualityh intellectual property (IP) development, encompassing story and design; the secondond is worwworld-class productionoductionduction experience & guidguidance, with animation in general and 3D stereoscopic feature films in particular. Magic Dumpling’ssdCONFCOC developmentntt propertiespropertiesperties are sourced to qualified Chinese animation studios, providing flexible and scalable production capacity with low overhead. Artistst training,g technicaltechagi consultation and production guidance is provided by Magic Dumpling as needed in order to ensure the best possibleble ququality fromomm our producpproduction partners. The result is a profitable return to our investors. MagicMagMMa m fromMAGIC DUMPLING ENTERTAINMENT - Suite 22B, No. 8, Waijiao N. Road, Chaoyang District, Beijing, 100020 - TEL:(86)(10)8561-1356 5 SECTION III: TOFU BOY PROJECT Tofu Boy Genre: Adventure comedy Format: 80 minute, stereoscopic 3D-animated feature film Target Audience: General family Production Budget: $5,000,000 USD Production Schedule: 18 months ng Story Synopsis: Pinocchio meets Chinese cuisine as Old Wang, eccentric owner off the failing “Tofu King”KingKin shop, carvesrves a little figure out of the tofu he cannot sell: a sad representationn of the son he nevenenever had. Takingking notice during a game of chess, the Lord of Hell and the Kitchen God make a bet ono fate versuss dreams,eams, and Tofu Boy is brought to life! Wobbly, but eager for the joys of existence, Tofu Boy runs off into the colorfulul cchaos of modern ShanghShanghai on mission to find the perfect recipe and saveave his “father” fromfro eviction. On thehe ccity streetstssheDum he makmakes two unusual friends: Ally, a carefree straytray dog living for thet moment, who dreams onlyo of herer next n meal… and Jirou, a tasteless old chickenen stuck in the past, wwho dreamss of beingbeing someone’someone next meal. Obstructed and aided by the competingcompeting interventionin of the Lord of Hell andan the Kitchen God, it’s all the hopeful bean boy can do too stiffen hihiss resolve (andnd hiss body) in preparatipreparationprepar on for the city’s biggest cooking competition. But can an insecureecure block of tofufu measureeasure up to a man yeayearning for a son? CONFIDENTIALC Will fate rule, or can dreams come true? Magic fromMAGIC DUMPLING ENTERTAINMENT - Suite 22B, No. 8, Waijiao N. Road, Chaoyang District, Beijing, 100020 - TEL:(86)(10)8561-1356 6 SECTION III: TOFU BOY PROJECT Animation Medium 2D animation has a decades-long history, made viable as a medium for feature filmmakingmakingaking by Walt DisneyDisne with his groundbreakingroundbreakingroundbreak “Snow WhitWhite and the Seven Dwarves”. Although much younger than its 2D uncle, 3D animationationon has made greatgrea strides sincence Pixar broke similarsim groundgro in 1995 with the first animated 3D feature film, “Toy Story”. Since then, 3D animationnimationimation has explodedexplode into a goldd rushh between the good, tthe bad and the ugly. The renaissance in 3D stereoscopic technology has fueled ann evevenen greater demademand for animatedmated 3D feature films.films To date, the biggest 3D titles have all been animation or special effects pictures. Whilee the North AmericanAmerica animationn industryustry has seen the diminisdim hment of 2D as a medium for feature films, 2D feature animation continues inn thethe hands of mastersmas such as Hiyaoao Miyasaki, and throughthrt recent films such as Disney’s “The Princess & The Frog”. When making the decision of whether to produceoduce an animated fefeature in 2D or 3D, variousous factorsfac mumust be considered. Although 2D films retain artistic respect, the demand for animatedatedted 3D films – once thought to be a fad – is clearlyrlyDumpling here to stay. We live in a 3D world, and audiences respond to the familiar visual cuess of 3D animation. TheThT colors, textures,extures,xtures, dynamicsdynamic and subtletiesb make for a rich viewing experience in the right hands, even on low-budget productionsproductions.. StereoStereoscopic 3D technologyology accentuaaccentuatesaccentuates the entertainment value of the medium, and provides an incredibly profitable revenuenueue streamstream.. DreamDreaDreamworks’ “Monstersnsterss vs. Aliens” clearlycle dedemonstrated
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