KUAISHOU-W(01024): Investors agree to increase investment in Kuaishou by 3 billion US dollars.

KUAISHOU-W (01024) announced that on July 2, 2026, Beijing Kelin (an indirect wholly-owned subsidiary of the Company, expected to hold Kuaishou Group Kelin AI-related assets and operations after the restructuring is completed), 21 independent investors, Party A and Party B (collectively, the "initial investors"), Beijing Kelin Group Company, Lucky Labs (directly and indirectly wholly-owned by Beijing Kualin Rui), and Beijing Kualin Rui, entered into a capital increase agreement, where the initial investors agreed to jointly inject RMB 13.824 billion (or USD 2.028 billion) in cash into Beijing Kelin, subject to conditions being met or waived. According to the capital increase agreement, after Beijing Kelin's agreement, additional investors may within 60 days from the date of signing (or a longer period approved by investors holding more than 50% of the subscription amount) join the agreement (joining agreement) to become parties to the capital increase agreement (additional investors), with the total capital increase under the agreement (including all joining agreements) not exceeding RMB 20.447 billion (or USD 3 billion) (accounting for approximately 16.67% of Beijing Kelin's expanded registered capital) (subscription limit). The joining agreement shall be part of the capital increase agreement. On the same day as the capital increase agreement, 15 additional investors (including 13 independent investors, Party C and Party D) separately entered into joining agreements with Beijing Kelin, becoming parties to the capital increase agreement, and collectively agreed to jointly inject RMB 5.2235 billion (or USD 7.66 billion) in cash into Beijing Kelin, subject to conditions being met or waived. Beijing Kelin may further enter into joining agreements with new additional investors within the subscription limit during the subscription period. It is known that Party A is a company fully owned by a limited partnership (with independent non-executive director Lu Rong as its general partner); Party B includes two companies controlled by Tencent (the Company's major shareholder); Party C is a company fully owned by independent non-executive director Zhang Fei; and Party D is a company controlled by the family of Yang Yuanxi, a director of Beijing Kuaishou Advertising (a subsidiary of the Company). On July 2, 2026 (after trading hours), the Board of Directors and shareholders' meeting of Beijing Kelin approved the adoption of the Beijing Kelin Equity Incentive Plan, the Beijing Kelin Stock Ownership Plan, and the Beijing Kelin Equity Acquisition Plan (collectively referred to as the "Subsidiary Equity Participation Plan"). The Subsidiary Equity Participation Plan aims to recognize contributions made or to be made by participants and provide them with equity ownership in Beijing Kelin to retain them for the ongoing operations and development of Beijing Kelin and attract suitable talent for its further development. Beijing Kelin is not a major subsidiary of the Company, so the Subsidiary Equity Participation Plan does not constitute a share plan under Chapter 17 of the Listing Rules. The total plan authorization limit of the Subsidiary Equity Participation Plan is jointly 15% of Beijing Kelin's registered capital after the completion of the subscription and implementation of the Subsidiary Equity Participation Plan (assuming the subscription limit and the plan authorization limit of the Subsidiary Equity Participation Plan are fully utilized). On July 2, 2026 (after trading hours), the shareholders' meeting and board of directors of Beijing Kelin approved the granting of a total of 7.1651 million share awards and options (equivalent to RMB 7.1651 million of Beijing Kelin's registered capital) to key personnel of Beijing Kelin under the Subsidiary Equity Participation Plan, accounting for approximately 7.45% of Beijing Kelin's registered capital after the expansion of the subscription and implementation of the Subsidiary Equity Participation Plan (assuming the subscription limit and the plan authorization limit of the Subsidiary Equity Participation Plan are fully utilized). In the initial grant, a total of 961,800 share awards (equivalent to RMB 961,800 of Beijing Kelin's registered capital, accounting for approximately 1.00% of Beijing Kelin's registered capital afte