PHOENITRON HOLD(08066): Completed the acquisition of 100% equity stake in Hainan Dongchuang.

PHOENITRON HOLD (08066) announced that the group intends to diversify its business portfolio in order to seize the growing opportunities in the digital economy and artificial intelligence applications. To facilitate business expansion, the group has completed the acquisition of 100% equity in Hainan Dongchuang Digital Entertainment Technology Group Co., Ltd. (Hainan Dongchuang) through its indirect wholly-owned subsidiary, Beijing Desheng Wanli Shi Printing Technology Co., Ltd., by December 31, 2024. Additionally, a market operation team with extensive experience and strong customer resources has been introduced to take over the management and operation of Hainan Dongchuang. As previously announced, it is expected that Hainan Dongchuang will operate an entertainment digital ecosystem and membership e-commerce platform - Dongchuang E-commerce APP service platform. The platform has begun trial operation, mainly providing entertainment e-commerce with private traffic, including digital products and services (digital platform business). The headquarters of the digital platform business will be located in Haikou, Hainan Province, China. To promote the development of the group's digital economy business and to strengthen management, the company will appoint (i) Mr. Guo Rongxiang, Executive Director, as Chairman of the group's digital economy business and Hainan Dongchuang, (ii) Mr. Zhang Jiawei as General Manager of the group's digital economy business in Greater China and Hainan Dongchuang. Mr. Zhang Jiawei has over 10 years of experience in membership-based e-commerce marketing and has served as a product director and operation director in multiple e-commerce companies in Hangzhou. He will be mainly responsible for the innovative business model design, market marketing, e-commerce supply chain management, overall platform operation, and technical support of Hainan Dongchuang E-commerce and social platform integration. The board believes that with Mr. Zhang's experience and connections, Hainan Dongchuang will gain greater visibility and expand its business footprint in the digital economy industry. The group has been actively seeking suitable investment opportunities. Given the rapid development and wide acceptance of new businesses in the digital economy and artificial intelligence applications, as well as the significant growth in related industries in recent years, it is expected that the digital economy business will continue to expand in the short term. The group's digital economy business group will continue to expand the types of digital economy services and markets, starting with the e-commerce service based on this acquisition; the group will gradually promote mobile games and develop digital entertainment services. Furthermore, despite the group's intention to develop digital economy business, the group's existing core business will remain the focus. The board believes that this acquisition and involvement in digital platform business will further diversify the group's business, investment portfolio, and revenue streams, allowing the group to explore more business opportunities, thereby benefiting the company and its shareholders as a whole.