(Yicai Global) Aug. 23 -- Chinese state-owned news provider People.Cn Co. [SHA:603000] plans to buy USD1 million worth of shares in Beijing Tiexue Technology Co., which is listed on China's National Equities Exchange and Quotations system, the buyer said on Aug. 22.

The media outlet will subscribe to 913,3000 unrestricted tradable shares at CNY7.89 (USD1.18) a share to take a 1.5 percent stake in the firm. The price comes at a 27 percent discount from its current CNY10.83.

The two companies will then enter a content censorship agreement and the new shareholder will provide paid censorship services for Tiexue Technology, the dotcom and e-commerce startup that serves military enthusiasts in China.

Tiexue's core assets at the Tiexue Community and Tiexue Forum, which it has developed alongside its military culture brand for 15 years. The strategic partnership will help the pair tap into their strengths and boost their long-term development by sharing and integrating complementary resources.

The latest financial reports for Tiexue show it earned CNY85 million (USD12.8 million) in operating income in the first half, up 8.97 on the year. Advertising and technical service revenues rose 10.2 percent to CNY33 million while military product sales grew 8.2 percent to CNY5.9 million. During the period, the firm swung from losses last year to a CNY190,200 (USD28,553) net profit attributable to shareholders.