Closer Online Entertainment (08172) subsidiary signed a memorandum of understanding with Kunming Zhenxiang Investment to continue suspending trading

According to Zhitong Finance App, Closer Entertainment (08172) issued an announcement. On January 8, 2026 (after the trading period), the subsidiary of the Company, Beijing LaJin Zhongbo Technology Co., Ltd. (target company) and Kunming Zhenxiang Investment Co., Ltd. (subscriber) signed a non-legally binding memorandum of understanding. The subscribing party intends to subscribe for 10.00% of the diluted shares of the target company (potential subscription matters).

The target company is a company registered under Chinese law, mainly engaged in technology promotion and application services. The subscribing party is a company incorporated under Chinese law, mainly engaged in business services.

The potential subscription involves the sale of 10.00% of the diluted shares in the target company, which will enable the Group to realise cash proceeds and enhance its cash flow position. The directors believe that the transaction will enhance the Group's financial flexibility and enable the Group to allocate resources to potential investments and future business opportunities. The directors believe that implementation of potential subscriptions will expand the Group's ability to seek growth, support sustainable development, and enhance the Group's overall competitiveness.

Furthermore, trading of the company's shares continues to be suspended.