SINO-ENTERTAIN (06933) subsidiary signs authorization agreement with Jiangsu Dongfang to enter the IP-driven consumer products market.

SINO-ENTERTAIN (06933) announced that on July 15, 2026 (after trading hours), Capybara Group (an indirect wholly-owned subsidiary) entered into an authorization agreement with Jiangsu Dong Fang (Jiangsu Dong Fang Chao Wan Technology Co., Ltd.), whereby Jiangsu Dong Fang agreed to grant, and Capybara Group agreed to acquire, authorization to use IP assets in China for commercial purposes from the date of completion until December 31, 2028 (or any other extension date as agreed in writing by both parties). The Group is mainly engaged in the distribution of mobile games, development and sales of customized software and mobile games, and blockchain technology business. Given the increasingly competitive gaming industry environment and regulatory changes, the board of directors has decided to add growth momentum to the Group and enter the trend of combining IP with branded industries, including but not limited to the IP of mobile game characters and/or other industries. Under the authorization agreement, the characters are mature, marketable IPs with brand recognition and market appeal. Mr. Xu Mingjun (Mr. Xu) is the creator of the characters and has also created other cartoon characters. In preparation for entering into the authorization agreement, the Group acquired several companies in June 2026, including Capybara Group (referred to as "such new companies"). These new companies have names similar to the characters and another cartoon character. Mr. Xu is the ultimate beneficial owner of these new companies and prompted the sellers of these new companies (all independent third parties holding the equity of these new companies on behalf of Mr. Xu in trust) to transfer all the shares of these new companies to the Group. These new companies were used to ensure intellectual property rights related to the names of the cartoon characters and did not conduct any business at the time of the acquisition. The Group acquired them at a cost of $20,000 (equivalent to the par value of the share capital). The acquisition of these new companies. The acquisition does not constitute a disclosable transaction under Chapter 14 of the Listing Rules and therefore no announcement was made. The directors believe that entering into the authorization agreement will allow the Group to leverage a mature IP portfolio and enter the growing market of IP-driven consumer products, expecting to shorten the commercialization cycle and reduce the risks faced by the Group when introducing its IP business into the market. The company will also consider partnerships when identifying suitable mobile game character IP rights. In addition to granting IP rights, Jiangsu Dong Fang will provide various comprehensive support services, including product design, supply chain coordination, quality control management, marketing support, and logistics. It is expected that this comprehensive support will enhance operational efficiency and promote the expansion of new business segments for the Group. Furthermore, Jiangsu Dong Fang will be responsible for the ongoing maintenance, protection, enforcement of IP assets, and continuous content development, allowing the Group to benefit from continuously increasing brand value while reducing the need for significant initial and ongoing investment in IP development and protection.