YH ENT (02306.HK): Buys Remaining 46.55% of Yuhuatongxing for RMB 4mn; Ends Shenzhen Yiqi Pact

NewTimeSpace News: On 24 September 2026, YH Entertainment Group (the "Company") announced that 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 its aggregate approximately 46.55% equity interest in Yuhuatongxing for a consideration of RMB 4 million, payable in cash by Tianjin Yihua on or before completion using the Group's internal resources. As of the date of the announcement, Yuhuatongxing was owned as to 53.45% by Tianjin Yihua; upon completion, Tianjin Yihua will hold the entire equity interest of Yuhuatongxing, which will become an indirect wholly-owned subsidiary of the Company.

The announcement disclosed that Yuhuatongxing, established in China on 31 December 2024 and principally engaged in organising cultural and artistic exchange activities, has built a well-developed business in the design, manufacturing and marketing of trendy toys and related products since its business cooperation with Shenzhen Yiqi was formed; its unaudited net assets were approximately RMB 5.6 million as of 31 August 2026, with unaudited pre-tax profit of about RMB 6.5 million and net profit of about RMB 4.5 million for the year ended 31 December 2025. Shenzhen Yiqi, an indirect wholly-owned subsidiary of Here Group Ltd (Nasdaq-listed, ticker: HERE), is a connected person of the Company at the subsidiary level as a major shareholder of Yuhuatongxing; as the highest applicable percentage ratio of the acquisition is below 1%, it is fully exempted from the reporting, announcement and independent shareholders' approval requirements under Chapter 14A.

The Company stated that, as the trendy toy business launched in 2025 has gained satisfactory market popularity and feedback, the board considers that the acquisition will allow the Company to hold Yuhuatongxing as an indirect wholly-owned subsidiary, streamlining internal decision-making, integrating resources and enhancing synergies with other business segments such as artist management and IP operation; upon completion Shenzhen Yiqi will cease to be a connected person at the subsidiary level. On the same day, Tianjin Yihua, Shenzhen Yiqi and Yuhuatongxing entered into a termination agreement terminating the strategic cooperation with Shenzhen Yiqi (referring to the Company's announcements dated 17 April 2026 and 5 June 2026), with no payment payable by any party; the parties will remain responsible for outstanding orders, inventories and other transition matters.

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