Kaiying Network: Subsidiary signs settlement agreement with legendary IP, expected to increase profits by about 200 million.

Kaiying Network announced that on February 10, its wholly-owned subsidiary Shanghai Kaiying signed a "Settlement Agreement" with Legendary IP Co., Ltd. Previously, Legendary IP had initiated arbitration and litigation regarding related disputes, and Shanghai Kaiying had also been awarded 2.245 billion yuan in arbitration. The settlement agreement stipulates that after Shanghai Kaiying pays 1.986 billion yuan to Legendary IP, both parties' debts will be considered fulfilled. If Shanghai Kaiying fails to make the payment, Legendary IP can terminate the agreement and continue to enforce the judgment. This signing is helpful in lifting the asset freeze, improving liquidity, and is expected to have a positive impact of approximately 2 billion yuan on this period's profits.