Changes in Hong Kong stocks | Jiayao Holdings (01626) fell more than 25% at the end of the session and plans to spend HK$430 million to acquire 90,000 Li Technology, the latter's profit for FY25 was only $310,000

The Zhitong Finance App learned that Jiayao Holdings (01626) fell more than 25% at the end of the session. As of press release, it had a decrease of 19.16% to HK$20.84, with a turnover of HK$16.2897 million.

According to the news, Jia Yao Holdings recently announced that it plans to acquire 80% of the shares in the AI game company Hong Kong 90,000 Li Technology for up to HK$430 million. According to public information, Jiayao Holdings's main business is e-cigarettes, while 90,000 Mile Technology focuses on AI games, and its most successful product is “Idol Empire,” a casual simulation game with the theme of idol development.

According to the announcement, the net profit for the 2025 fiscal year of Jiuwanli Technology was only RMB 310,000. Based on an 80% share acquisition of HK$430 million, the overall valuation was about HK$540 million, corresponding to a price-earnings ratio of over 1,700 times. Notably, the seller promised a net profit of not less than HK$50 million in 2026. If the actual profit falls short of the target, the amount of compensation shares that the seller can eventually obtain will be reduced accordingly.