Huanxi Media raises capital, partners with Stepfun AI for entertainment expansion

Huanxi Media Group plans to raise capital by subscribing 548,470,854 new shares at HK$0.30 per share, a 22.08% discount to the closing price on November 11, 2025. This move aims to raise gross proceeds of approximately HK$164.54 million. Additionally, the company will issue 1,889,000,000 warrants at HK$0.01 per warrant, exercisable at HK$0.44 per share, anticipating gross proceeds of about HK$831.16 million upon full exercise. The net proceeds, totaling approximately HK$182.8 million from the subscription and initial warrant issuance, will fund AI technology investments in film and TV production (HK$100 million), film and TV programme rights (HK$50 million), and general working capital (HK$32.8 million).

These capital raising efforts are inter-conditional with a new framework agreement for strategic cooperation with Shanghai Stepfun Intelligent Technology Co., Ltd. (Stepfun). This partnership focuses on leveraging AI and large-model technologies in film and television production, interactive entertainment, game development, and intellectual property-related derivative products. The collaboration includes data sharing, joint R&D, scenario collaboration, and co-production of content, with plans to establish a joint venture.

The subscriber and warrant subscriber, C River Co., whose ultimate beneficial owner is Mr. Rong Chen, are independent third parties. Both the share subscription and warrant issuance are subject to shareholder approval at a special general meeting and listing committee approvals from the stock exchange.