China Literature Group has announced a significant investment in an animation production company.

The company's primary operating entity in China has entered into an agreement to purchase approximately 28.22% of the equity in Wuhan Yihua Kaitian Culture Communication Co., Ltd. for a total consideration of 401 million yuan.

CHINA LIT (HKEX: 00772)

Upon completion of this transaction, the group's total shareholding in the target animation studio will increase to approximately 59.70%.

This move is described as a strategic alignment that leverages complementary strengths within the intellectual property value chain.

The group maintains a leading position through its vertically integrated IP ecosystem, which operates across various formats including online literature, comics, animation, television series, films, online games, and merchandise.

The target company contributes to this ecosystem with its expertise in high-end, long-form animation production and a proprietary, next-generation animation workflow platform.

This platform combines traditional production advantages with a comprehensive development process and a dedicated team focused on creating large-scale narrative games.

The collaboration is expected to enhance the group's full-spectrum IP operational capabilities, covering stages from incubation and visualization to commercialization.

By strengthening this strategic partnership, the group aims to solidify its competitive edge in building a leading IP industry value chain.

Furthermore, the group plans to utilize its resource advantages to explore deeper cooperation opportunities with the target company's high-quality IP portfolio.

A key objective is to develop properties such as "Ling Long" and other original IPs into globally recognized science fiction franchises, thereby maximizing their overall value.

This strategic initiative aligns with the group's commitment to reinforcing its leadership within the IP ecosystem and driving sustainable growth through cross-industry innovation.