MAOYAN ENT (01896.HK): Enters IP Business Cooperation Framework Agreement with China Literature Group
NewTimeSpace News: On 20 August 2026, Maoyan Entertainment (01896.HK) announced that the company entered into the 2026 IP business cooperation framework agreement with Shanghai Yueting (on behalf of China Literature Group), for a term from 20 August 2026 to 31 December 2027. The forms of cooperation include: China Literature Group granting licences to the group to develop TV series, animations, comics, anime, games and IP derivative products, with related production, sales and/or sub-licensing; joint investment by the group and China Literature Group in the above products; and other reasonable and feasible forms of cooperation.
Under the pricing policy, when the group develops IP licensed by China Literature Group, it will pay licence fees by way of a fixed amount, an agreed percentage based on sales revenue, or an agreed percentage based on development/production costs; for jointly invested IP, revenue will be allocated based on respective investment amounts and/or agreed percentages. Historical amounts show no past IP business cooperation transactions between the parties in the three financial years ended 31 December 2025 and the period thereafter up to the announcement date. Under the annual caps, the aggregate fees payable by the group to China Literature Group for developing licensed IP are RMB 10 million and RMB 30 million for 2026 and 2027 respectively, with aggregate joint investment of RMB 15 million and RMB 80 million respectively.
As Tencent holds more than 10% of the company's total issued shares through its wholly-owned subsidiary and more than 30% of China Literature, and Shanghai Yueting is an indirect wholly-owned subsidiary of China Literature, Shanghai Yueting is a connected person of the company, and the transactions constitute continuing connected transactions of the company; as the highest applicable percentage ratio for the annual caps exceeded 0.1% but was below 5%, the transactions are subject to reporting, announcement and annual review requirements but exempt from independent shareholders' approval. The directors consider that the cooperation enables the group to leverage China Literature Group's mature IP library to enrich its content library and extend its revenue mix beyond ticketing, and that the terms are fair and reasonable and in the interests of the company and its shareholders as a whole.
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