Phancy Group (HKG:6682) terminated its agreement to subscribe for new shares in Huanxi Media Group (HKG:1003), ending plans to build a 14.30% stake in the film and television company, according to a Thursday Hong Kong bourse filing.

Phancy had agreed to subscribe for 731.3 million Huanxi shares at HK$0.275 each as part of broader strategic cooperation to explore using AI technology in the film and television sectors.

The share subscription was terminated after certain conditions were not fulfilled or waived, and the parties did not agree to extend the long-stop date.

Phancy said the separate cooperation and API agreements remain under negotiation, and the group has made no payments so far.

Shares of Phancy were down nearly 5% in Friday morning trade, while Huanxi Media was down nearly 6%.