Feiyu Technology Signs 2026-28 Game Cooperation Framework with Tencent; Annual Payables Cap at RMB 615.22 Million

Bulletin Express04-02 18:07

Feiyu Technology International Company Ltd. (Feiyu) disclosed that its indirect wholly-owned unit Xiamen Feiyu entered into a Game Business Cooperation Framework Agreement with Shenzhen Tencent Computer Systems on 2 April 2026. The framework covers game development, operations, payment services and advertising from 2 April 2026 to 31 December 2028.

Key commercial terms 1. Pricing for commissioned development, revenue sharing, payment-channel services and advertising will be negotiated at arm’s length against prevailing market levels and benchmarked with at least one independent third party. 2. Payment schedules will vary by transaction category, ranging from monthly settlements to milestone payments, and will be detailed in individual definitive agreements.

Historical dealings (RMB) • Amounts received by Feiyu from Tencent: 18.73 million (2023), 20.85 million (2024), 19.30 million (2025). • Amounts paid by Feiyu to Tencent: 0 (2023), 23.34 million (2024), 78.68 million (2025).

Annual transaction caps (RMB) Receivable Caps: 76.33 million (2026), 61.24 million (2027), 25.67 million (2028). Payable Caps: 508.03 million (2026), 615.22 million (2027), 221.06 million (2028).

Regulatory implications Tencent indirectly holds 14.97 % of Feiyu’s issued share capital, rendering the agreement a continuing connected transaction under Hong Kong Listing Rule 14A. As the highest applicable percentage ratio exceeds 5 %, the deal requires reporting, announcement, annual review and independent shareholders’ approval.

Corporate actions • An Independent Board Committee comprising all independent non-executive directors has been formed. • Rainbow Capital (HK) Limited has been appointed as the independent financial adviser. • A circular with full details and notice of an extraordinary general meeting is expected on or before 31 May 2026.

Strategic rationale Management views Tencent as a pivotal partner for Feiyu’s mini-game expansion, citing Tencent’s user base, industry resources and operational strength. The framework agreement is intended to streamline ongoing collaboration and support Feiyu’s long-term development in China’s gaming market.

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