Announcement No. 1 of 2026, Investment Management Committee
Announcement date: January 14, 2026
Hongxiang Shangdao (Nanjing) Technology Development Co., Ltd. (the Company) announces a new external investment as part of its investment management and commitment to accurate, complete disclosure and the protection of all parties' lawful interests.
1. Investment overview
To support its strategic plans and business cooperation, the Company intends to invest its own funds in Nanjing Linxi Zhijue Technology Co., Ltd. (the Investee). On completion, the Company will hold a 10% equity interest.
The principal terms are as follows:
Investee: Nanjing Linxi Zhijue Technology Co., Ltd.
Investment method: acquisition of an equity interest in the Investee
Investment amount: RMB 500,000.00
Equity interest: 10%
Completion: the investment will be completed in a single transaction together with business registration.
2. About the Investee
The Investee intends to operate primarily in media and livestreaming and related businesses. Its registered business scope is subject to approval by the market regulation authority.
The Investee's unified social credit code, registered address, legal representative, registered capital and other registration details are subject to its latest official records. The investment agreement will specify governance, shareholder rights and obligations, disclosure and compliance requirements.
3. Purpose and rationale
As a professional investment institution, the Company follows prudent, compliant and verifiable investment principles. The principal objectives are:
Strategic development: establish a position in media and livestreaming value chains and explore potential growth opportunities.
Resource cooperation: use the equity relationship to connect markets, distribution channels, content production and commercialization capabilities.
Investment returns: seek reasonable capital returns after assessing the business model, team, compliance and risk-return profile.
The Company will monitor the Investee's operations, finances and compliance through the investment agreement, articles of association, governance arrangements and post-investment management.
4. Impact on the Company
The investment amounts to RMB 500,000. Its impact on assets and cash flow will be assessed against the Company's financial position. Based on current information, it forms part of normal operations and investment arrangements and is not expected to materially affect daily business adversely.
5. Risks and responses
Media and livestreaming businesses face uncertainty relating to market conditions, regulation, platform rules and technological change. The Company has assessed the investment prudently and established measures to address the following risks.
Market and operating risks include rapidly changing competition, dependence on platform distribution, fluctuating user preferences and traffic, and uncertain commercialization timelines. The Company will support measurable operating milestones and key metrics, with regular reviews to test business assumptions and adjust execution.
Compliance requirements cover advertising, content, intellectual property, data and privacy, minors, platform rules and tax. Failures may lead to regulatory action, platform restrictions or civil disputes, affecting continuity and reputation. The Company intends to establish compliance commitments, major-event reporting, remediation and responsibility mechanisms in the investment and governance documents, using external legal support where necessary.
The Investee is developing its business and may experience cash-flow fluctuations or budget deviations. The Company will define permitted uses of funds and budget requirements, strengthen approval and disclosure for major expenditures, and retain reasonable access to key financial information.
As a minority investor, the Company faces information asymmetry, governance limitations and execution risks. The investment agreement will address information and review rights, reporting frequency and scope, and voting arrangements or protective provisions for major matters where applicable.
The Company will follow internal approval procedures, fulfill its post-investment responsibilities, monitor operations, finances and compliance, and respond to risks as necessary.
6. Decisions and procedures
The investment has completed internal assessment and approval under the Company's policies. Subsequent steps include signing agreements, paying the contribution, establishing governance terms and completing registration changes in accordance with applicable requirements. Final terms are subject to signed documents and registration results.
7. Additional information
The Company makes this disclosure based on the information available and confirms that it is true, accurate and complete, with no false statements, misleading representations or material omissions.
This investment announcement does not constitute investment advice or a promise of returns to any party.
This announcement takes effect on its publication date.
Hongxiang Shangdao (Nanjing) Technology Development Co., Ltd.
January 14, 2025
