Pengo (HKG:1865) entered into a letter of intent to cooperate with Guangju Zhongsheng Holdings (Hainan), according to a Monday Hong Kong bourse filing.

The parties will jointly develop film and television works based on the Chinese animation hero IP "Bajie", as well as invest in emerging interactive entertainment and digital content.

The company will also facilitate the application of virtual reality and augmented reality technologies to boost the interactivity and appeal of the products.

In general, the cooperation will include product development, business consultancy services, marketing, and technological innovation.

The parties are yet to enter into a formal agreement for the cooperation, the construction engineering company said.