[Today's focus]

Reading Group (00772.HK) plans to acquire app platform assets and animation projects from Tencent for 600 million yuan to further improve the efficiency of IP from incubation to visualization and commercialization

Yue Wen Group (00772.HK) announced that on December 11, 2023, the buyer (Shanghai Hongwen, Shanghai Yueting and Shanghai Reading) entered into an asset transfer agreement with the seller (Tencent Computer, Tencent Animation, Tencent Technology, Tencent Shanghai, Tencent, Tencent Pictures and Guangxi Tencent). According to this, the buyer conditionally agreed to the acquisition, and the seller conditionally agreed to sell the assets at a cost of RMB 600 million (subject to reduction).

The assets to be acquired by the buyer under the asset transfer agreement include (i) app platform assets, (ii) animation projects, (iii) film and television projects, and (iv) 90% shares in Mi Orange.

Rice Orange is a company founded in China that is mainly engaged in animation creation. As of the date of this announcement, Guangxi Tencent and an independent third party held 90% and 10% interests respectively. Subsequent transfers of 90% of the shares of Rice Orange purchased by the buyer are subject to approval from another 10% of shareholders.

App platform assets refer to the intellectual property and related rights of works published on the Tencent Animation App Platform or that have obtained legal authorization from intellectual property rights or intellectual property rights holders (including but not limited to comics, animation, novels, etc., and their constituent elements), external licensing and online paid reading rights, business contracts with such rights and rights, and other assets and elements relating to such works and the operation of the Tencent Animation App platform (including but not limited to app clients and applets, social media accounts, computer software copyright, domain names, trademarks, data, etc.) 。

Through this acquisition, Tencent Animation's high-quality IP will be added to the Reading Text content ecosystem, further enriching Reading's premium content matrix. Reading Text is also currently Tencent Animation's largest content provider. About 50% of Tencent Animation's top 30 best-selling comic works are adapted from literary works based on Reading Text, reflecting the similarity and overlapping nature of the user base of comics and literary works. The acquisition is expected to unleash the strong synergy between Reading and Tencent Animation, and further enrich users' product experiences and consumption scenarios.

The company will strive to integrate creator resources, explore, cultivate and assist more creators in the IP industry, strengthen healthy interaction between the platform and the upstream of the industry chain, and further promote the healthy development of the content ecosystem.

Among Tencent Animation's top ten grossing comics in the past three years, there are five novels adapted from reading, of which three are mid-rise novels adapted from reading text. Tencent Animation helps to further tap the potential of the company's literary works (especially mid-waist works) to enhance the overall value of the company's various literary works.

This acquisition is expected to accelerate the visualization process of the company's online literary works. The company plans to use AI in the future to improve the efficiency of animation adaptations of literary works, and further expand the value of its literary works through batch adaptation. The company has a professional elite team and development capabilities for the entire IP industry chain, which can empower the IP assets brought about by this acquisition and enhance the influence and value of such IP assets. At the same time, the company can develop downstream services in the IP market such as comics, animation, film and television, games, derivatives, etc. based on online literature, and promote the integrated development and operation of the entire value chain of leading IP in a reasonable and orderly manner, thus further improving the efficiency and success rate of IP from incubation to visualization and commercialization.

[Important matters]

Dream World (01119.HK) and Baichuan Intelligence signed a strategic cooperation agreement to develop a major language model cooperation for pan-entertainment

Legend of Superstar (06683.HK) plans to join hands with Hangzhou Xingshuo to jointly invest in Jay Chou's 2024 Carnival World Tour in Hangzhou

Zijin Mining (02899.HK): Full resumption of production at the Pogra Gold Mine in Papua New Guinea

Aidi Palace (00286.HK): Non-staying combined mother and child confinement service starts operation to achieve comprehensive coverage from staying to non-staying customers

Manulife Financial-S (00945.HK) and Global Atlantic reached a $13 billion reinsurance deal involving $6 billion in long-term care insurance business

Beiqing Media (01000.HK) was granted exclusive rights to use and operate the main advertising resources of Beijing Metro Line 4 and Daxing Line operated by the Beijing-Hong Kong MTR

[Financial results]

Medium-term earnings of Betterley Holdings (06909.HK) were about 5.36 billion yuan, up about 17.1% year on year

CEC INT'L HOLD (00759.HK) expects a medium-term profit of approximately HK$100,000 to approximately HK$500,000

International Home Retail (01373.HK) Profit Warning: Net profit is expected to decrease by 32% to 38% in the medium term

[Operational data]

China Life Insurance (02628.HK): The cumulative premium income from January to November was 614.6 billion yuan, up 3.9% year on year

Xinhua Insurance (01336HK): The original premium income from January to November was 159.738 billion yuan, up 2% year on year

China Resources Land (01109.HK)'s total contract sales amount in November was about 24.12 billion yuan

Hong Kong Dragon China Real Estate (06968.HK): Achieved a total contract sales amount of $11,555 billion from January to November

Xuhui Holding Group (00884.HK)'s November contract sales amount is about 3.83 billion yuan

COFCO Jiajiakang (01610.HK) Operation Report: 421,000 pigs were released in November

Baosheng International (03813.HK): The net comprehensive operating income for November was 1,402 billion yuan, up 19.2% year on year

Morning News Technology (02000.HK): Revenue of HK$474 million for the first 11 months fell 16.8% year on year

Yuyuan Group (00551.HK): November net comprehensive operating income of US$634 million fell 3.6% year on year

Ryersdam (00738.HK): Total self-operated retail sales fell 1.9% and same-store sales increased 13.3% in the third quarter

[Pharmaceutical Innovation]

Kangfeng Bio-B (06922.HK): One-off use of cardiac cryoablation systems with intracardiac standard catheters and adjustable bending guide tubes obtained approval from the State Drug Administration

Guichuang Tongqiao-B (02190.HK): State Drug Administration Approves Launch of ZENFLOWT18 Peripheral Balloon Expansion Catheter

[Acquisition and sale]

Xinwei Medical-B (06609.HK) plans to sell all of Shenji Medical's shares for 9 million yuan

[Equity Incentives]

Budweiser Asia Pacific (01876.HK) granted a total of 29.811,000 restricted share units to companies

Hengwan Technology (01523.HK) granted 3.3 million share options

Pigeon Interactive (01980.HK) granted a total of 500,000 restricted share units

[Increase or decrease holdings]

Yadi Holdings (01585.HK) received a total increase of 424,000 shares from the controlling shareholder

[Repurchase Cancellation]

Reading Group (00772.HK) proposes to carry out a share repurchase plan in the market

Tencent Holdings (00700.HK) spent HK$403 million to repurchase 1.33 million shares on December 11

AIA (01299.HK) spent HK$135 million to repurchase 2,0154 million shares on December 11

HSBC Holdings (00005.HK) spent HK$123 million to repurchase 2,049,600 shares on December 8

Xiaomi Group-W (01810.HK) spent HK$46.37 million to repurchase 3.2 million shares on December 11

China Petroleum & Chemical Co., Ltd. (00386.HK) spent HK$40 million to repurchase 10.46 million shares on December 11

Kuaishou-W (01024.HK) spent HK$36.71 million to repurchase 700,000 shares on December 11

Dongfeng Group Shares (00489.HK) spent HK$30.2623 million to repurchase 7.806 million shares on December 11

ESR (01821.HK) spent HK$28.98 million to repurchase 3 million shares on December 11

Sunshine Paper (02002.HK) spent HK$18.292,200 to repurchase 5.91 million shares on December 11

COSCO Marine Control (01919.HK) spent HK$11.137,800 to repurchase 1,6105 million shares on December 11

China Wangwang (00151.HK) spent HK$9.021,200 to repurchase 2 million shares on December 11

Conch Cement (00914.HK) spent 8.934 million yuan to repurchase 412,600 A-shares on December 11

Shoucheng Holdings (00697.HK) spent HK$7.2 million to repurchase 5.4 million shares on December 11

Chow Tai ?$#@$ (01929.HK) spent HK$6.339 million to repurchase 620,800 shares on December 11

Zhongyu Energy (03633.HK) spent HK$5.41 million to repurchase 1 million shares on December 11

Fosun International (00656.HK) spent HK$5.18 million to repurchase 1,245 million shares on December 11

Wanwuyun (02602.HK) spent HK$4.923 million to repurchase 200,000 shares on December 11

Taikoo Corporation A (00019.HK) spent HK$4.4865 million to repurchase 77,500 shares on December 11

Skyworth Group (00751.HK) spent HK$4.2304 million to repurchase 1,464,000 shares on December 11

Fufeng Group (00546.HK) spent HK$4.22 million to repurchase 1,015,000 shares on December 11

Weishijiajie (00856.HK) spent HK$3.362 million to repurchase 880,000 shares on December 11

Taikoo Corporation B (00087.HK) spent HK$3.2479 million to repurchase 357,500 shares on December 11

Bairongyun-W (06608.HK) spent HK$3.03 million to repurchase 234,000 shares on December 11

Shoujia Technology (00103.HK) cancelled 2.132,000 shares to repurchase shares on December 11