China National Cultural Industry (00745) plans to establish a joint venture with Bigao Group to jointly build an AI intellectual property management platform

According to the Zhitong Finance App, China National Cultural Industry (00745) announced that on July 29, 2026, the company and BIGAO Group Holdings Limited (BIGAO) entered into a joint venture shareholder agreement to jointly fund the establishment of a joint venture in Hong Kong. According to the joint venture agreement, the company and Bigao intend to hold 60% and 40% of the shares in the joint venture through their respective related parties or designated entities. The joint venture agreement only reflects the intention of the two parties to cooperate, and its terms are legally binding on both parties. The two parties will conduct further negotiations and confirm the details of the cooperation (including details such as the specific investment amount and establishment of the joint venture) after the joint venture agreement is signed. After the two sides agree on the details of the cooperation, a corresponding supplementary agreement will be signed separately.

The joint venture is committed to providing the digital entertainment industry with next-generation AI-driven infrastructure, covering intellectual property management, content compliance, intelligent settlement and copyright enforcement.

The main direction of the Group's business development will be promoted within its existing film trade and production and film-related services segments through the adoption and application of AI-generated content (AIGC) technology. Specifically, the Group plans to apply AIGC tools and workflows to produce skits, short films and AI to generate music, and develop relevant AIGC distribution and platform capabilities as part of the Group's existing film trade and production and film-related service divisions, as well as modernize and upgrade this division. The application of AIGC technology aims to enhance the content creation capabilities, production efficiency and revenue potential of this existing division.

The directors believe that the following synergy effects work and provide support within the Group's existing film trade and production and film-related services divisions, as well as within the existing advertising division:

(i) Mr. Chow Sing-chi and Mr. Wang Peng have a public track record in producing audiovisual content for audiences in Greater China and are expected to provide creative and editorial advice for the Group's AIGC skits and short films;

(ii) Bingo Group's intellectual property portfolio may provide reference material for AIGC adaptations in the form of short derivative works or derivative content in accordance with fair negotiation terms and after separate negotiations; and

(iii) Experience in new media development (digital licensing and online distribution) and its collaboration with Volcano Engine will help the Group establish the distribution capacity of its AIGC works.

This cooperation is a strategic choice for complementary advantages and collaborative development between the two parties. Relying on their respective core resources, the two sides will work together to build a market-leading AI intellectual property management platform to set new industry standards for the monetization, compliance and protection of digital rights.