PHANCY (06682): Termination of Subscription for New Shares of HUANXI MEDIA

PHANCY (06682) announced that the completion of the subscription was subject to a series of conditions precedent. As of the date of this announcement, because certain conditions precedent to the subscription were not fulfilled or waived, and the parties were also unable to agree to further extend the long-stop date, the subscription agreement has been terminated in accordance with its terms, and the subscription will not proceed. Following the termination of the subscription agreement, the parties shall no longer bear their respective obligations under the subscription agreement. At the same time as entering into the subscription agreement, the Company and HUANXI MEDIA also entered into a strategic cooperation and joint venture framework agreement and a large model API service framework agreement (collectively, the agreements). As of the date of this announcement, the cooperation and transactions contemplated under the agreements are still under discussion, and HUANXI MEDIA has not yet made any payment to the Group in respect of the agreements. The Company expects that if the agreements and the transactions thereunder are terminated, it will not have a material adverse effect on the existing business and financial condition of the Group.