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Chinese Confucian intention 2Baccaratwizardofoz.5.9 billion acquisition of 100% stake in game company Youai Mutual EntertainmentBaccaratwizardofozThe latter is a "command & conquer：red alert ol" game developer who has worked with Tencent. After the completion of the acquisition, China Ruyi will explore film and tourism linkage and expand film and television and game business cooperation.

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[China Ruyi plans to acquire Youai Mutual Entertainment to further expand the game business]

Chinese Confucianism (00136)Baccaratwizardofoz(HK) announced that its Beijing Ruyi plans to buy a 100% stake in Beijing Youai Mutual Entertainment Technology Co., Ltd., with a consideration of 259 million yuan, up to a maximum of 350 million yuan. Youai Mutual Entertainment is a comprehensive mobile game company that focuses on two-dimensional RPG and strategy games, and has launched the well-known game "place Girl".

This acquisition marks the intention of Chinese Confucianism in the game field.BaccaratwizardofozThe further expansion of. Revenue from the company's game business surged sevenfold in 2023, thanks to the launch of new games and support from Tencent. The core asset of Youai Mutual Entertainment is "command & conquer：red alert ol" game research and development, which comes from Electronic Arts's well-known IP Red Alert and has a deep market foundation.

Despite its mediocre financial performance in recent years, China's Ruyi is still optimistic about its future earnings. Youai Mutual has changed ownership twice before, the most recent of which was a byte jump to sell it during a business adjustment in 2023. The acquisition of China Ruyi could mean that the relationship between Youyi and Tencent will be repaired, as the second largest shareholder behind China Ruyi is Tencent.

China Ruyi has previously entered the gaming and film industries through the acquisition of Wanda films and the establishment of the Jingxiu brand. In 2023, the company's game business revenue reached 446 million yuan, an increase of 70.3%. Chairman Ke Liming predicts that the company's game business revenue and profits will continue to grow significantly in 2024.

China Ruyi also plans to explore the linkage of film and tourism, combining the game business with the film and television business. Ke Liming said in the financial report that the company will use AI technology to create content and launch narrative interactive video game products that combine live-action film and television, so as to realize the collaborative creation of games, film industry and artificial intelligence.