A subsidiary of Longsheng Group Holdings (06829) signed a blockchain agency agreement with a comprehensive blockchain service provider

Zhitong Finance App News, Longsheng Group Holdings (06829) announced that on August 27, 2026, DRNE Next Mobility Investment Limited (DRNE Next Mobility), a wholly-owned subsidiary of the company, signed a blockchain agency agreement with a comprehensive blockchain service provider to cooperate in issuing private tokenized limited recourse notes backed by physical assets on the Ethereum (Ethereum) and Solana (Solana) blockchains ( physical asset items).

Under the blockchain agency agreement, DRNE Next Mobility has agreed to appoint a blockchain service provider as a token registry for tokenized notes that guarantee a total return with limited recourse. Blockchain service providers are responsible for maintaining token registers, minting and issuing tokenized notes, recording ownership transfers in the register, and carrying out all other administrative and operational matters relating to tokenized note expiration events.

The blockchain service provider is a limited company established in Hong Kong, China, and its parent company is a global wealth technology provider powered by artificial intelligence.

The physical asset project was structured through DRNE Next Mobility as the issuer, and the company provided a guarantee for the issuance of tokenized notes. Its reserved quota was equivalent to HK$100 million, while the initial issuance limit was HK$30 million. Tokenized notes are secured by fleets of exchangeable electric taxis and actual revenue sources generated by the electricity exchange infrastructure, and will be converted into standardized, fragmented, and traceable digital assets on the blockchain. More batches may be issued in the future as market conditions and investor demand evolves.

These assets will use blockchain infrastructure from blockchain service providers to be compatible and tokenized on the blockchain in accordance with applicable regulations. A number of earned tokenized asset plans are distributed to qualified professional investors in a compliant manner to facilitate issuance and subscription matters, and the Group will continue to closely monitor regulatory developments relating to the issuance of tokenized securities and physical assets in Hong Kong.

According to current regulatory requirements, investors based in Hong Kong must qualify as “professional investors” as defined in the Securities and Futures Ordinance (Chapter 571) to participate. The minimum subscription amount is HK$400,000. The real asset project provides investors with a two-year lock-up period. The target yield includes a fixed interest portion of 4% per year and a performance-linked interest portion of up to 6% per year, while the company provided a full guarantee of principal and fixed interest for the first batch of tokenized notes to enhance investor protection.

The board of directors believes that tokenizing income-generating assets such as electrified taxis fleets can solve several structural challenges existing in traditional infrastructure financing, including limited liquidity, asymmetric information, and high entry barriers. Fragmented ownership enables professional investors to participate in asset classes with insufficient liquidity in the past with a lower entry threshold, while recording operating data with blockchain provides investors with better visibility and auditability of cash flow, while reducing information asymmetry. The tokenized structure, which has the potential for future stablecoin integration, not only simplifies cross-border settlement, but also reduces currency exchange barriers.

Furthermore, by securitizing future revenue sources through this physical asset framework, the Group can recycle capital more efficiently and accelerate the deployment of more electric commercial vehicles and electricity exchange infrastructure, thereby achieving scalable asset-light expansion. The move further strengthens the Group's commitment to sustainable transportation and carbon reduction goals, and is compatible with the Group's broader strategy to establish and promote an electric commercial vehicle electricity exchange ecosystem.

The Group will also continue to cooperate with more industry partners to establish an open, compliant and mutually beneficial tokenization model to help strengthen the resilience of the physical industry and create sustainable value for investors in Hong Kong and around the world through digital technology. The Board is convinced that this move will not only enhance the Group's financial flexibility, but will also set standards for tokenizing green infrastructure assets and provide investors with secure, transparent, and promising digital asset opportunities.