Hong Kong-listed Lumina Group Limited has formally terminated its major transaction with Fujian Yuanwang Culture and Technology Co. Ltd. following a favorable arbitration ruling, the company announced on 28 August 2026.

The aborted deal centered on the creation of a joint-venture company to produce and distribute an animation series adapted from Jin Yong’s novel “Ode to the Gallantry.” The project carried a budgeted production cost of RMB24.00 million. Under the original agreement, Yuanwang was responsible for securing at least 10% of the funding from external investors, while Lumina’s subsidiary, Cool Studio Limited, would cover the balance.

Prior to the dispute, Cool Studio had paid or prepaid a combined RMB2.68 million (RMB1.31 million for a teaser video and RMB1.37 million for animation work). Yuanwang’s delays and failures in meeting its obligations prompted Cool Studio to file for arbitration at the Shenzhen Court of International Arbitration (SCIA) on 28 February 2025.

On 25 August 2026, the SCIA ruled in favor of Cool Studio, confirming termination of the agreement, ordering Yuanwang to pay RMB0.79 million in compensation, and vesting ownership of the completed teaser video with Cool Studio.

Lumina’s board stated that the termination does not have a material adverse impact on the Group’s financial position or operations.