VIRTUAL MIND (01520) announced that on January 14, 2026, the company entered into a memorandum of cooperation with HUA RUI Entertainment Limited. According to the memorandum, the company intends to invest in HUA RUI Entertainment through a capital increase, targeting a 10% equity stake in HUA RUI Entertainment. The specific equity percentage to be held in HUA RUI Entertainment will be determined based on the final investment amount and the valuation of HUA RUI Entertainment as confirmed by both parties. The company has the right to conduct legal, financial, business, and tax due diligence on HUA RUI Entertainment, and the specific terms of the investment will be decided by the company based on the results of this due diligence.

HUA RUI Entertainment is a limited company incorporated in Hong Kong and is wholly owned by Mr. Zhang Bo. HUA RUI Entertainment is a company in China focused on the operation of internationally top-tier sports IP. Since 2019, HUA RUI Entertainment has established a strategic partnership with England's Manchester United Football Club, successfully creating the "Theatre of Dreams" in Beijing and Chengdu, which integrates a museum, interactive experiences, retail, and dining. In 2025, HUA RUI Entertainment obtained the exclusive authorization for Manchester United's e-commerce business and supply chain in the Chinese market, marking an upgrade from an offline experience operator to an "IP brand value integrator" and establishing a full ecological business loop encompassing "offline experiences + online e-commerce + supply chain management."

The Group has been actively seeking to expand its existing business and possesses extensive expertise in AI and Web3 technologies, aiming to build a smart new consumption ecosystem covering sports, cultural tourism, and entertainment. The Board believes that HUA RUI Entertainment holds relevant authorizations for the Manchester United IP, and this investment will help the Group further expand its sports and smart new consumption business.

This investment represents a significant milestone for the company in the field of new consumption IP, effectively enhancing the Group's expansion in consumer-grade IP, boosting the company's overall competitiveness, and is expected to bring new growth drivers for the company, positively impacting its future development.