On the evening of the 3rd, China Literature Group issued an announcement stating that it would acquire the remaining 28.22% stake in Yihua Kaitian from its major shareholder, Tencent, for 400.78 million yuan.Upon completion of the transaction, China Literature’s stake will increase from 31.48% to 59.70%, making it the largest shareholder, while Tencent will completely exit the shareholder roster of Yihua Kaitian.
Last year, China Literature acquired a 26.67% stake in Yihua Kaitian for 325 million yuan from its management team and a fund affiliated with Bilibili, increasing its ownership stake from 5.17% to 31.48%.
Although Yuewen is already the largest shareholder of Yihua Kaitian, Yuewen has stated that it does not seek to control the board of directors. As a result, Yihua Kaitian will continue to operate independently and will not be consolidated into Yuewen’s financial statements.
Tencent Exits at a Loss
In this transaction, Yihua Kaitian’s overall valuation stands at 1.31 billion yuan, representing a slight increase of 3.15% compared to last year’s valuation (1.27 billion yuan).
Based on the announcement, Tencent’s investment in Yihua Kaitian was a losing proposition.Tencent originally invested 489 million yuan in Yihua Kaitian and has now exited the investment for 400.78 million yuan, resulting in a paper loss of 88 million yuan. However, considering that Tencent sold its stake in Yihua Kaitian to its subsidiary, China Literature, this amounts to a transfer within the same group, so it is difficult to say whether it constitutes a loss.
However, this is also related to Tencent’s strategy in recent years of gradually divesting non-core assets.
The announcement also revealed that Yihua Kaitian posted a loss of 246 million yuan last year, with net assets of -51 million yuan.
Bilibili also holds a 14% stake
Following the completion of this transaction, Bilibili will continue to hold approximately 14.02% of the company’s shares. This means that Bilibili’s content partnership with Yihua Kaitian will continue. In last year’s transaction, Bilibili sold a portion of its shares to raise capital.
In addition, the management equity platform and the employee equity platform hold 14.16% and 12.13% of the shares in Yihua Kaitian, respectively.
The game *Fan Ying* is a highlight of Yihua Kaitian
Yuewen stated that games represent the future direction for Yihua Kaitian, and *Fan Ying* embodies the strategic vision for Yihua Kaitian’s transition from an animation studio to a “content + games” dual-engine model. The announcement noted that Yihua Kaitian possesses “a forward-looking, self-developed animation workflow platform, as well as a fully-fledged production team capable of developing large-scale narrative games.”
Last October, Moji Games, a brand under Yihua Kaitian, released a new promotional video for *Fan Ying*. The game features a completely revamped gameplay system, and its visual style has been widely praised. The game underwent a closed beta test last November.
原创文章，作者：gallonwang，禁止转载：https://youxichaguan.com/en/archives/198174
