YH ENT (02306) intends to acquire approximately 46.55% equity of Yu Hua Tong Xing for RMB 4 million and terminate the strategic cooperation with Shenzhen Yiqi.

YH ENT (02306) announced that on September 24, 2026, Tianjin Yihua (a wholly-owned subsidiary of the Company) entered into a share transfer agreement with Shenzhen Yiqi, pursuant to which Shenzhen Yiqi agreed to transfer to Tianjin Yihua an aggregate of approximately 46.55% equity interest held by Shenzhen Yiqi in Yu Hua Tong Xing, for a consideration of RMB 4 million, which will be paid in cash by Tianjin Yihua to Shenzhen Yiqi on or before completion. As at the date of this announcement, Yu Hua Tong Xing is owned as to 53.45% by Tianjin Yihua and is therefore an indirectly majority-owned subsidiary of the Company. Upon completion, Tianjin Yihua will hold all the equity interest in Yu Hua Tong Xing and Yu Hua Tong Xing will become an indirect wholly-owned subsidiary of the Company. Yu Hua Tong Xing is currently an indirect non-wholly-owned subsidiary of the Company. Since the formation of business cooperation with Shenzhen Yiqi, it has established a well-developed business in the design, manufacturing and marketing of trendy toys and related products. Since 2025, the launch of the trendy toy business has received satisfactory market popularity and feedback, enabling the Company to better utilize its existing internal resources and the market response obtained to further develop its trendy toy business. The Board believes that through the acquisition, the Company will be able to hold Yu Hua Tong Xing as an indirect wholly-owned subsidiary, thereby making the internal decision-making process smoother, integrating resources, and enabling the Company to continue developing its trendy toy business with full operational control and greater efficiency. At the same time, the acquisition will enable the Company to more effectively integrate and optimize intercompany resources within the Group, and strengthen synergies between Yu Hua Tong Xing and the Company's other business segments (such as its artist management and IP operation businesses). In addition, upon completion, Shenzhen Yiqi will cease to be a connected person of the Company at the subsidiary level, which is expected to reduce the scope of future connected transactions and administrative costs between the two parties. In addition, regarding, among other things, the strategic cooperation framework agreement with Shenzhen Yiqi and the transactions contemplated thereunder. On September 24, 2026, Tianjin Yihua, Shenzhen Yiqi and Yu Hua Tong Xing entered into a termination agreement, pursuant to which the strategic cooperation with Shenzhen Yiqi was terminated.