Boost market confidence, focus on the core IP track, China Literature completes share repurchase of nearly HK$9.18 million
On June 4, 2026, China Literature Limited (00772.HK), a leading listed entertainment company in Hong Kong, announced a share repurchase. The company completed a new round of share repurchases on the same day, increasing its holdings using its own funds, demonstrating its firm confidence in its long-term value and core business development.
According to the next-day disclosure report published by the Hong Kong Stock Exchange, China Literature repurchased a total of 400,000 shares today, with a repurchase price range of HK$22.62 to HK$23.22 per share. The total repurchase cost was approximately HK$9.1787 million, or nearly HK$9.18 million. All shares repurchased in this round will be cancelled. After the share cancellation, the company's total share capital will be further reduced, effectively increasing earnings per share, optimizing the shareholder equity structure, and tangibly rewarding investors.
This share repurchase is not a one-off short-term operation but an important reflection of China Literature's normalized value management and stable operations. Previously, the company completed a repurchase of 200,000 shares on June 2, continuously stabilizing secondary market expectations through compliant repurchase measures. Public information shows that China Literature has previously been approved for a share repurchase fund quota of up to 1.2 billion yuan, laying a solid foundation for subsequent normalized repurchases and a long-term shareholder return mechanism, fully demonstrating the company's ample cash flow reserves and sound financial condition.
From a capital market perspective, the implementation of this repurchase sends a signal to the market of the management's high recognition of the company's fundamentals and long-term development prospects. Currently, the online literature IP industry is continuously evolving, with AI empowering the cultural and creative industry becoming a core development trend. As a leading domestic online literature company, China Literature possesses a vast reserve of high-quality IPs, a mature creator ecosystem, and a comprehensive IP full-industry-chain development system, continuously strengthening its core competitive moat. Relying on the core "IP+AI" strategy, the company continues to advance content creation innovation and the full-chain development of IPs into films, animations, and games, constantly expanding the value boundaries of the cultural and creative industry.
Recently, China Literature's industrial layout initiatives have been continuously implemented. In addition to stabilizing the capital market through normalized share repurchases, the company is also accelerating its industrial investments and business expansion. Recently, China Literature announced plans to strategically invest 400 million yuan in Yihua Kaitian, acquiring a 28.22% equity stake, deeply entering the animation track, addressing shortcomings in IP visualization development, further improving the IP full-industry-chain ecosystem, opening up new scenarios for IP commercialization, and continuously releasing the commercial value of content.
Industry analysts stated that normalized share repurchases by leading internet entertainment companies are an important signal of the industry's mature development. China Literature's current repurchase can effectively boost market sentiment, repair secondary market valuation expectations, and protect the rights and interests of small and medium investors. On the other hand, supported by its stable financials, the company is simultaneously advancing capital value management and industrial strategic layout, forming a virtuous development pattern of "capital stabilization, business revenue growth, and ecosystem expansion."
In the future, China Literature will continue to adhere to the core logic of content as the foundation, rely on AI technology to empower content creation and IP operations, continuously deepen its full-industry-chain layout, and simultaneously improve the investor return system through the normalized repurchase mechanism. With a stable operational posture and continuous innovation breakthroughs, the company will consolidate its leading industry position and create long-term value for the capital market and industrial development.
$CHINA LIT(00772.HK)
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