INKEVERSE (03700) has announced that on October 9, 2026 (after trading hours), the parties entered into an equity transfer agreement under which the seller, INKEVERSE (Hainan) Technology Co., Ltd. (an indirectly wholly-owned subsidiary of the company), has conditionally agreed to sell, and the buyer, Guangzhou 1846 Technology Co., Ltd. (a connected person of the company at the subsidiary level), has agreed to purchase the sale shares for a consideration of RMB 80 million.

As of the date of this announcement, the group indirectly held a 40% equity interest in the target company, Guangzhou Kuaichuang Network Technology Co., Ltd. Upon completion of the disposal, the group will no longer hold any equity interest in the target company. Accordingly, the target company will cease to be a subsidiary of the company, and its financial results will no longer be consolidated into the group's consolidated financial statements.

The directors believe that in an increasingly competitive and rapidly changing market, coupled with the target group's volatile profitability and uncertain recovery prospects, continuing to invest in the target group's traditional micro-short drama production business would expose the group to rising costs and uncertain returns. Through the disposal, the group can mitigate the uncertainty of obtaining investment returns from the target group. At the same time, the disposal will enable the group to reallocate its financial and management resources to its core businesses and other strategic opportunities that can provide more sustainable returns.

The board intends to use the net proceeds of approximately RMB 72.8 million from the disposal (after deducting estimated tax expenses and transaction costs of approximately RMB 7.2 million) to strengthen the group's core businesses and support its strategic AI transformation. This includes allocating approximately RMB 54.6 million for the continued optimization of the group's underlying AI computing infrastructure and research and development of multimodal AI applications, thereby empowering the expansion of the group's overseas innovative businesses; and allocating approximately RMB 18.2 million as general working capital for the group and for daily administrative expenses of its overseas teams.