AOM International Group (HKG:0381) said it has entered into a memorandum of understanding with Wang Fang to explore the potential acquisition of a 51% stake in Hainan Miaolian Technology, according to a Sept. 12 Hong Kong bourse filing.

Shares of the toys and gifts maker rose 25% in morning trade Monday.

Under the MOU, AOM will conduct due diligence during a two-month exclusivity period, with terms such as consideration and payment methods to be finalized in a definitive agreement.

The company said the potential deal is consistent with its investment strategy and could strengthen its revenue base by adding a new income stream.

Hainan Miaolian, founded in 2021 and wholly owned by Wang, provides enterprise digital solutions, including digital strategy planning, process optimization, machine learning, and big data services.