New Entertainment Technology Holdings (06933) signed an authorization agreement with Jiangsu Oriental to enter the IP-driven consumer products market

Zhitong Finance App News, Xinyu Technology Holdings (06933) issued an announcement. On July 15, 2026 (after the end of the trading period), Capybara Group (an indirect wholly-owned subsidiary of the company) and Jiangsu Dongfang (Jiangsu Dongfang Chaowan Technology Co., Ltd.) signed a licensing agreement. According to this, Jiangsu Oriental agreed to grant and Capybara Group agreed to obtain authorized IP assets for commercial use in China, from completion until December 31, 2028 (or other extension dates that the parties may agree in writing).

The Group is mainly engaged in mobile game distribution, development and sales of customized software and mobile games, and blockchain technology business. In view of the increasingly competitive environment and changes in the regulatory environment in the game industry, the Board of Directors decided to add growth impetus to the Group and enter the trendy brand industry incorporating IP, including but not limited to IP and/or other industries for mobile game characters.

The role under the license agreement is a mature and marketable IP, which currently has brand recognition and is popular in the market. Mr Tsui Ming Chun (Mr Tsui) is the creator of the character and has also created other cartoon characters. In preparation for entering into licensing agreements, the Group acquired several companies in June 2026, including Capybara Group (collectively, “such new companies”). These new companies have company names similar to the names of the characters and another cartoon character. Mr. Xu is the ultimate beneficial owner of these new companies and has prompted the sellers of these new companies (all independent third parties holding the interests of Mr. Xu in trust) to transfer all of the shares in these new companies to the Group. These new companies were used to secure intellectual property rights to the names of the cartoon characters and did not conduct business at the time of the acquisition. The Group's cost is USD 20,000 (equivalent to the face value of fully paid share capital).

Acquire these new companies. These acquisitions do not constitute publicizable transactions under Chapter 14 of the Listing Rules, and therefore no announcement has been published. The directors believe that entering into a licensing agreement will enable the Group to use a mature IP portfolio to enter the growing IP-driven consumer products market. It is expected to shorten the commercialization cycle and reduce the risk that the Group faces when its IP business enters the market. The company will also consider cooperation when finding suitable mobile game character IP rights.

In addition to granting IP rights, Jiangsu Oriental will provide a number of comprehensive support services, including product design, supply chain coordination, quality control management, marketing support and logistics. It is expected that such comprehensive support will enhance operating efficiency and facilitate the Group's expansion into new business segments.

In addition, Jiangsu Oriental will be responsible for the continuous maintenance, protection and enforcement of IP assets, as well as continuous development content, so that the Group can benefit from the continuous enhancement of brand value while reducing the need for extensive upfront and continuous investment in IP development and security.