HK Stock Market Move | CHINA RUYI (00136) rose more than 7%, reportedly planning to revise the revenue ceiling for the next two years in cooperation with Tencent.

CHINA RUYI (00136) rose over 7%, as of the time of writing, up 7.77% to HKD 2.08, with a trading volume of HKD 1.78 billion. On the news front, recent market reports have suggested that based on the expected revenue exceeding expectations from its gaming cooperation with Tencent, CHINA RUYI plans to increase its annual accounts receivable cap for 2024 and 2025 from RMB 700 million to RMB 1,300 million. This growth in revenue mainly stems from an increase in cooperative products. The proposal requires approval from independent shareholders, and a special general meeting of shareholders is planned to vote on this matter. In the continuous related party transaction agreement signed on February 22, 2023, both parties agreed to cooperate in the gaming sector between Tencent on behalf of the company and CHINA RUYI Holdings Limited, including distribution cooperation and joint operation cooperation. In addition, Tencent on behalf of the company agreed to authorize CHINA RUYI Holdings Limited as the exclusive distributor or distributor for certain platforms to distribute and operate cooperative products. CHINA RUYI Holdings Limited will directly receive income from the final users of cooperative products and pay Tencent on behalf of the company intellectual property licensing fees, content update and maintenance fees, etc.