(Yicai Global) Aug. 31 -- Chinese video platform Bilibili has picked its first TV and movie producer to invest in, resulting in a stock price rally of Huanxi Media Group, known for its comedy film Lost in Russia.

Huanxi Media's equity price [HKG:1003] jumped over 22 percent this morning and was 3.95 percent up at HKD1.58 (20 US cents) by noon.

Bilibili will pay HKD513 million (USD66.3 million) for a nearly 10 percent stake in Huanxi Media to gain exclusive broadcasting rights beyond the producer's own platform, the Hong Kong-based target firm said in a statement this morning.

Huanxi Media will spend HKD412 million of the proceeds in film and TV copyrights and use the remaining HKD100 million as working capital, it added.

The first content to be aired under the partnership is a drama series, solely funded by Huanxi Media, which should premiere on the producer's platform and Bilibili in the third quarter. The pair will seek more cooperation opportunities in films, TV shows, and other areas.

In January, TikTok's parent ByteDance Technology bought the right to show Lost in Russia in a deal worth about HKD700 million as the movie's cinema premiere was scrapped.

Editor: Emmi Laine