Chinese Online proposes RMB 2.833B placement for copyright and AI projects, drawing exchange scrutiny
The AMW Read
The proposed financing incrementally updates a generative-media company's investment plans, with consequences concentrated on its content assets, AI platforms, and shareholders.
Chinese Online proposes RMB 2.833B placement for copyright and AI projects, drawing exchange scrutiny
Chinese Online disclosed a proposed private placement on September 30 to raise up to RMB 2.833 billion from no more than 35 investors. The plan allocates RMB 864 million to original literary copyrights, RMB 575 million to IP derivatives, RMB 479 million to upgrading its Xiaoyao AI model, RMB 339 million to a multimodal AIGC platform, RMB 176 million to an intelligent middleware platform, and RMB 400 million to working capital. On October 2, the Shenzhen Stock Exchange issued an inquiry letter questioning the financing scale, project feasibility, and expected returns. Shareholder approval, exchange review, and securities regulator registration remain outstanding.
The proposal places Chinese Online within generative media's competition over content rights and production platforms. Copyright purchases are the largest allocation, while model and multimodal platform upgrades would support its AI-related content business. That combination makes the commercial use of acquired IP as important as model development. The exchange specifically questioned copyright pricing and idle-asset risk, along with AI development cost estimates and intellectual property ownership. The company has not disclosed detailed project economic-benefit figures, leaving the expected return on this combined content-and-technology investment difficult to assess.
For investors, the immediate diligence question is whether the proposed spending matches operating capacity and a credible path to returns. The raise exceeds ten times attributable net assets of approximately RMB 263 million at June 30, while the company reported a first-half attributable net loss of approximately RMB 43 million. Its placement calculations assume future profits, but those assumptions are not earnings forecasts. The exchange's requested response should clarify project economics and how this financing relates to the company's pending Hong Kong IPO application.