Realord Group (HKG:1196) said it was exploring a partnership with iDreamsky Technology co-founder Jeffrey Lyndon Ko to enter the mobile gaming business, according to a Hong Kong bourse filing Friday.

Shares of the environmental protection firm fell nearly 9% in morning trade Monday.

The firm said the cooperation will help the business expand into the mobile game sector in China.

Under the proposal, Ko will set up an offshore entity that will handle the overall business strategy, game distribution roadmap and capital requirements for mobile games

The firm then plans to acquire the entity once certain conditions necessary for the business to operate are met.

Realord said it plans to issue 60 million new shares to Ko in consideration for the gaming veteran agreeing to a profit target requirement of at least HK$600 million during the three years after it acquires the offshore business.

Both sides have until Dec. 5 to negotiate a definitive agreement covering the partnership.