Shares of the main Hong Kong television broadcaster soared following the announcement that it plans to establish a joint venture with an affiliate of Gaw Capital Partners to develop a subscription-based artificial intelligence computing business, as part of its strategy to diversify and expand revenue sources.
After rising as much as 10 percent in the morning, the stock closed up 5.4 percent at HKD 2.72 (about 35 cents USD) per share in Hong Kong, although it has declined roughly 33 percent over the past year. The company has signed a non-binding agreement with Triton Square to create the joint venture, which will offer AI computing services to its member companies and third parties. A formal agreement is expected later this year.
This initiative is part of a comprehensive strategic overhaul, following a return to profitability last year after seven consecutive years of losses. The company is shifting focus from traditional broadcasting to becoming a diversified digital media enterprise. It has already embarked on AI-related content projects, including a collaboration with ByteDance’s Volcano Engine in June, covering AI-assisted film and TV production, short dramas, intellectual property commercialization, and cloud infrastructure. The new computing venture extends its AI strategy into technological infrastructure.
The company plans to hold a 51 percent stake in the joint venture, with Raw Capital, which will invest up to HKD 2 billion (approximately USD 255 million), owning the remainder. The initial phase of the project, which is expected to be operational in the final quarter of next year, will feature about 10,000 petaflops of computing power.
The joint venture is already targeting potential clients. In July, the company and Gaw Capital signed a letter of intent with a “leading global technology group”—whose identity has not been disclosed. Negotiations are ongoing regarding technical and commercial terms, as well as exploring options for procuring and financing the necessary computing equipment to deliver the service.