HUANXI MEDIA (01003) announced that on May 19, 2026, the company entered into a subscription agreement with Phancy International Limited, a wholly-owned subsidiary of PHANCY (06682). Under the agreement, the subscriber has conditionally agreed to subscribe, and the company has conditionally agreed to allot and issue 731 million subscription shares at a price of HK$0.275 per share. On the same date, HUANXI MEDIA and PHANCY entered into a strategic cooperation and joint venture framework agreement. The parties intend to establish a strategic partnership by forming a joint venture platform, combining HUANXI MEDIA's industrial advantages in the film and television sector with PHANCY's professional capabilities in artificial intelligence (AI). The collaboration will focus on areas including film and television creation, interactive entertainment, game development, and intellectual property derivative products. Potential areas of cooperation include: (i) Data Collaboration: HUANXI MEDIA will provide relevant data for AI solutions and model training in the film and television field; (ii) Model and Agent R&D: Advancing the research and development of large models and agents for the film and television industry; (iii) Scenario Collaboration: Exploring the implementation of AI solutions in new entertainment fields; (iv) Co-production and Development: Utilizing AI technology for joint production of film and television content, derivative development of related intellectual property, and development of digital human actors, actor brokerage, AI-simulated human series, and interactive film-games; (v) Resource Collaboration: Exploring the establishment of resource cooperation; and (vi) Large Model API Services: HUANXI MEDIA intends to use the licensing rights for large model APIs on PHANCY's platform and will pay fees to PHANCY based on Token consumption. Within three years of the framework agreement's effective date, the total target service amount payable to PHANCY based on Token consumption is expected to be no less than US$200 million. Specific terms will be detailed in a separate binding "Large Model API Service Framework Agreement" to be signed by both parties. On May 19, 2026, the company entered into the first service agreement with Phancy International Limited regarding large model API services. The service provider will offer various large model API services to the group for a total price of US$20 million (approximately HK$157 million), billed based on the Token consumption incurred by the group's application of AI in film and television production. The agreement is valid for two years. This agreement represents the first formal procurement cooperation agreement between the parties. Subsequently, based on the actual scale of Token consumption and business progress, the parties will negotiate and enter into follow-up procurement agreements as appropriate.