On October 12, China Literature Limited (00772.HK) announced that its indirectly wholly-owned subsidiary Shanghai Yueting and Tencent's wholly-owned subsidiary Tencent Computer have entered into two supplemental agreements to revise the annual caps for continuing connected transactions between the two parties from 2026 to 2028.
Regarding the promotion cooperation, the annual cap for promotion service fees payable by the group to the remaining Tencent group was revised from the original RMB 100 million, RMB 100 million, and RMB 110 million to RMB 230 million, RMB 340 million, and RMB 350 million, respectively. For the nine months ended September 30, 2026, the historical transaction amount for these promotion service fees was approximately RMB 83.1 million, and the utilization rate of the existing annual cap has already exceeded 83%. This revision has been exempted from independent shareholders' approval.
Regarding the advertising cooperation, the annual cap for commissions payable by the remaining Tencent group to the group was revised from the original RMB 850 million, RMB 1,010 million, and RMB 1,080 million to RMB 1,100 million, RMB 1,900 million, and RMB 2,200 million, respectively. For the nine months ended September 30, 2026, the historical transaction amount for these commissions was approximately RMB 566.3 million. As the maximum applicable percentage ratio for this revision exceeds 5%, it is subject to reporting, announcement, annual review, and independent shareholders' approval requirements. The company has appointed Newbillion Finance Limited (08439.HK) as the independent financial adviser, and the relevant circular will be dispatched to shareholders on or before November 19, 2026. Apart from the revision of the annual caps, all other terms and conditions of the two original framework agreements remain unchanged.
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