(Yicai Global) Feb. 8 -- Shares in Talent Television & Film hit the exchange-imposed limit of 20 percent today after the Chinese TV production house received a CNY360 million (USD55.8 million) commission from internet giant Tencent Holdings’ film and entertainment unit to make a 40-plus-episode TV series.

The firm’s stock price [SHE:300426] closed at CNY6.60 (USD1).

Tencent Penguin Pictures will pay Talent TV a fee of CNY25 million to create an original script and produce the drama, the TV production house said yesterday. The rest of the budget will go towards celebrity fees, crew and equipment hire and other expenses.

Talent TV, which is based in the ‘Chinese Hollywood’ of Hengdian in eastern Zhejiang province, will keep the distribution rights to the drama in traditional media on the mainland and is entitled to a 15 percent cut. Any remaining revenue after costs and fees have been deducted will be equally split between Tencent and Talent TV.

Talent TV will also have the traditional and new media rights to all overseas regions with the exception of Hong Kong, Macau and Taiwan and the 10 member states of the Association of Southeast Asian Nations, which belong to Tencent.

Shanghai-based Penguin Pictures will keep the intellectual property rights and Tencent Video has premiere rights, the firm added. The nature of the drama and the production schedule were not mentioned.

The project will hike Talent TV’s profitability and increase its ability to make high-quality films, thus improving its brand awareness and reputation in the film industry, the firm said.

Talent TV is currently filming another CNY45 million TV drama for Penguin Pictures.

Editor: Kim Taylor