BIGAO GROUP (08220) signs a joint shareholder agreement with China Cultural Industry Group

According to Zhitong Finance App, Bigao Group (08220) announced that on July 29, 2026, the Company and China National Cultural Industry Group Co., Ltd. (China Cultural Industry Group) entered into a joint shareholder agreement (joint venture agreement) to establish a joint venture in Hong Kong through joint investment. According to the joint venture agreement, the Company and China Cultural Industry Group intend to hold 40% and 60% of the interests in the joint venture through their respective affiliates or designated entities, respectively. A joint venture agreement only reflects the intention of the contracting parties to cooperate, and its terms are legally binding on the contracting parties, and they are required to further negotiate and confirm the details of the cooperation after entering into the joint venture agreement, including the specific amount of investment and the establishment of a joint venture. Once agreement has been reached on the details of cooperation, the contracting parties are required to further enter into corresponding supplementary agreements.

China Cultural Industry Group is a limited company incorporated in the Cayman Islands. Its issued shares are listed on the main board of the Stock Exchange (stock code: 745). It mainly engages in (a) providing design services and advertising through mobile devices; (b) e-commerce selling products through the Internet; and (c) film trading and production and providing other film-related services.

Reasons and benefits of setting up a joint venture

a. Strategic Vision and Infrastructure Growth The Board attaches great importance to “AI+IP” as a strategically important business segment with huge market potential. The Board believes that the establishment of a dedicated joint venture (“the Joint Venture”) to drive the digital infrastructure and operational growth of this division is essential to maintaining the Group's long-term competitive advantage.

b. Cost optimization and regulatory compliance Based on the initial cooperation between the Group and ByteDance's cloud and AI service platform “Volcano Engine” on the “AI+IP” model, the establishment of this joint venture is expected to greatly reduce the Group's direct financial burden, optimize operating costs, and comply with the relevant regulatory and compliance framework in China.

c. Expanding financing channels for AI digital copyright This joint venture aims to establish a potential financing channel to enhance capital resources. This financial infrastructure will actively support the Group and help the Group further acquire more high-quality intellectual property (“IP”) and artist collaborations, thereby expanding its AI digital copyright portfolio.