Shares of CHINA LIT (00772) rose nearly 3% in morning trading, gaining 2.62% to reach HK$23.5 with a turnover of approximately HK$46.07 million.

The increase follows the company's announcement of a planned acquisition. On June 2, 2026, Shanghai Hongwen, the company's operating entity in China, entered into a share transfer agreement with Linzhi Lichuang to purchase approximately 28.22% of the equity in Wuhan Yihuakatian Culture Communication Co., Ltd. for a consideration of RMB 401 million.

The company stated that the strategic synergy between the target company and the group is reflected in their vertically complementary capabilities within the IP value chain. Furthermore, the group intends to leverage its resource advantages to explore deeper collaborative opportunities with the target company's high-quality intellectual properties.

This effort aims to develop original IPs, including "Spirit Cage," into globally recognized science fiction franchises, thereby maximizing their IP value. This strategic move aligns with the group's commitment to strengthening its leadership position in the IP ecosystem and driving sustainable growth through cross-industry innovation.