China Ruyi plans to acquire 30% equity of Beijing Yonghang Technology for 825 million yuan.

CHINA RUYI (00136) announced that on January 13, 2025, the group entered into a share transfer agreement to acquire 30% equity of the target company Beijing Yonghang Technology Co., Ltd. held by an affiliate company of the main shareholder TENCENT. The core assets of the target company include games such as "QQ Dance," "QQ Dance 2," and "QQ Dance Mobile," with a total consideration of RMB 825 million, including (i) RMB 742.5 million in cash, and (ii) the company issuing approximately 36.667 million consideration shares to Hong Kong Tencent or its designated party at a price of HKD 2.432 per share. Upon completion of the share transfer, Tencent Digital, Beijing Jingxiu, and Virtual Cinema Entertainment will hold 70%, approximately 17.1720%, and approximately 12.8280% equity of the target company, respectively. As of the date of this announcement, Beijing Jingxiu is the controlled entity that holds 100% of the actual equity of the company. Virtual Cinema Entertainment is an indirect wholly-owned subsidiary of the company, primarily engaged in investment holdings. The announcement stated that the group has vigorously developed its game business in recent years, achieving remarkable results. It has successfully launched six games, demonstrating a strong IP resource reserve and strategic operational capabilities. More than ten games are planned to be released in the coming years, showing a rich project pipeline. The group aims to acquire more attractive IP and games through investment and business development, building a diversified product matrix. The target company has had outstanding performance in the past, creating the national-level classic IP "QQ Dance," which has accumulated billions of registered users with a wide player base and strong influence. The target company will continue to develop existing games and advance research and development of new games based on the QQ Dance IP. The completion of the transaction under the share transfer agreement will supplement the group's strategic operational experience in the gaming sector, helping to deepen the group's gaming business and enhance its overall competitiveness and market influence. The group will leverage its resources in the film and television industry, using rich celebrity resources and cinema resources to promote games. As a leading domestic film and television production company with a full industry chain layout, the group will explore the film-game linkage model with the target company, striving to make QQ Dance a globally renowned comprehensive entertainment IP, maximizing the value of IP, and driving innovation and growth in business.