BRIEF: China Literature hikes stake in Wuhan YHKT to majority

Online literature platform China Literature Ltd. (0772.HK) said on Tuesday that it will acquire an additional 28.22% of Wuhan YHKT Entertainment Co. Ltd. from Tencent for 400 million yuan ($59.26 million), raising its holdings to a majority 59.7%.

Wuhan YHKT develops and operates animation and gaming content, and owns the core intellectual property for “Ling Long,” an animated series that has amassed over 10 billion cumulative views across various platforms since its premier in 2019.

China Literature said that Wuhan YHKT will bolster its IP capabilities across all stages, from incubation and visual adaptation to commercialization. The company emphasized that the partnership will enhance its competitive edge and provide it with valuable IP.

Shares of China Literature opened up 1.3% at HK$25.96 on Wednesday. The stock is down over 40% from its 52-week high.

By Lau Chi Hang

To subscribe to Bamboo Works weekly free newsletter, click here