ZX INC officially signed an investment agreement with an AI company and a three-year memorandum of cooperation for game products

According to the announcement from ZX INC (09890), the company refers to its voluntary announcement dated February 26, 2025. Its indirect wholly-owned subsidiary, Hong Kong Yuanda Future Limited (Yuanda Future), has signed a memorandum of cooperation with the subsidiary of KINGNET, Hangzhou Kaixing Network Technology Co., Ltd. (Hangzhou Kaixing), to jointly invest in Hangzhou Jiyi Artificial Intelligence Technology Co., Ltd. (Jiyi Artificial Intelligence) and promote the development of AI large model technology in the gaming field. On May 16, 2025, Yuanda Future officially entered into an investment agreement with Hangzhou Jishang Innovation Enterprise Management Partnership (Limited Partnership) and Hangzhou Kaixing to jointly invest in Hangzhou Jiyi, with a total consideration of RMB 10 million (AI company investment agreement). Upon completion of the above investment, Yuanda Future will become a shareholder of Jiyi Artificial Intelligence. On May 16, 2025, the Group signed a three-year (2025 to 2027) game product cooperation memorandum with KINGNET (game product cooperation memorandum). The IP and game products covered by this product cooperation memorandum include not only new games developed based on classic IPs, such as: "Dragon Legend," "King of Legends 2," "Tiger Guardian God," and other "Legend" IP games, "New Moon Continent," "Code: HD," and other "Miracle" IP games, "Blood and Tears: Awakening," and other "Blood and Tears" IP games, as well as large open-world 3D games like "Douluo Continent: Legend of Exorcism" and other "Douluo Continent" IP games, but also include "The Smiling, Proud Wanderer" and "The Legend of the Condor Heroes" trilogy ("The Legend of the Condor Heroes," "The Return of the Condor Heroes," "The Heaven Sword and Dragon Saber") within the "Jin Yong Martial Arts" IP. The Board of Directors of the company believes that the signing of the AI company investment agreement is another "strong alliance" between the Group and KINGNET following their successful cooperation in joint development of game products, IP operation, and global distribution. The aim is to further deepen resource integration, achieve complementary advantages, and build a more solid long-term win-win ecosystem. The signing of the AI company investment agreement will also help promote the company's diversified product matrix strategy and the core industrial layout of the "AI+" strategy, aligning with the company's development strategy and direction, which is beneficial for enhancing the Group's core competitiveness and profitability, achieving sustained, stable, and healthy development. The Group has always regarded KINGNET as a long-term strategic partner. One of our Chinese operating entities, Jiangxi Tanwan Information Technology Co., Ltd., operates the gaming platform "Tanwan Games," which has consistently adhered to the "R&D + Distribution" collaborative development model with Zhejiang Shenghe Network Technology Co., Ltd., a core R&D subsidiary of KINGNET, achieving significant results in classic IP value excavation and global layout. From the beginning of the cooperation, both parties focused on the R&D, distribution, and market promotion of classic IPs such as "Legend," "Miracle," and "Blood and Tears," successfully creating several phenomenal games such as "Original Legend," "All People Jianghu," and "Divine Weapon Miracle." We continuously expand the diverse forms of classic IPs (such as H5 games, mini-program games, etc.) to extend the game lifecycle. Meanwhile, in advancing the globalization strategy, both parties adopt a "dual-track parallel" layout strategy, deeply cultivating emerging markets in Southeast Asia and the Middle East while breaking through barriers in mature markets such as Europe, America, Japan, and South Korea Among them, "Original Legend" (South Korea), "Blood and Fire" (South Korea), "All People Jianghu" (China Hong Kong, Macau, Taiwan, South Korea, Thailand, Vietnam), and "Miracle of Weapons" (Europe, America, Brazil, Thailand, Vietnam) have successively topped and maintained their positions on the local mobile game bestseller lists, fully validating the local operational capabilities and global adaptability of the IP between the Group and KINGNET, achieving continuous breakthroughs in global layout. Based on several years of cooperation on the aforementioned classic IPs, the Group and KINGNET have signed a three-year (2025 to 2027) memorandum of cooperation for game products. This strategic upgrade marks a shift from single project cooperation to ecological co-construction, jointly exploring the refined and diversified development paths of game products, and creating a continuously evolving entertainment experience for global players