VIRTUAL MIND (01520) plans to invest in Huarui Entertainment through capital increase to further expand the sports smart new consumption business.

Virtual Mind (01520) announced that on January 14, 2026, the company signed a memorandum of cooperation with Huarui Entertainment Co., Ltd. According to the memorandum, the company intends to invest in Huarui Entertainment through capital increase, aiming to hold 10% equity of Huarui Entertainment. The specific proportion of equity in Huarui Entertainment will be based on the final investment amount and the valuation of Huarui Entertainment confirmed by both parties. The company has the right to conduct due diligence on legal, financial, business, and tax aspects of Huarui Entertainment, and will determine the specific terms of the investment based on the results of the due diligence. Huarui Entertainment is a limited company registered in Hong Kong, fully owned by Mr. Zhang Bo. Huarui Entertainment is a Chinese company that focuses on operating top international sports IP. Since 2019, Huarui Entertainment has established a strategic partnership with the English Manchester United Football Club, successfully creating the "Man United Dream Theatre" in Beijing and Chengdu, integrating museums, interactive experiences, retail, and dining. In 2025, Huarui Entertainment obtained the exclusive authorization for Manchester United's e-commerce business and supply chain in the Chinese market, upgrading from an offline experience operator to an "IP brand value integration operator," building a full ecological commercial loop of "offline experience + online e-commerce + supply chain management." The Group has been actively seeking to expand its existing business and has rich AI and Web3 technology to create an intelligent new consumer ecology covering sports, culture, tourism, entertainment, and other areas. The Board believes that Huarui Entertainment holding the Manchester United IP-related authorization will help the Group further expand its sports intelligent new consumer business through this investment. This investment is an important milestone for the company in the new consumer IP field, effectively enhancing the Group's expansion in consumer-level IP and improving the overall competitiveness of the company. It is expected to bring new business growth points to the company and have a positive impact on the company's future development.