KIDZTECH (06918) has announced that on July 14, 2026, a non-wholly owned subsidiary of the company, Hoping Capital Management Limited (Hoping), entered into a non-legally binding memorandum of understanding with Fano Labs Limited.
The memorandum outlines a potential collaboration to establish a long-term strategic partnership for the joint development of artificial intelligence (AI) models and agent application solutions.
The cooperation aims to build dedicated financial services AI models and agent application solutions, while utilizing data-driven precision marketing to support and enhance applicable business operations.
Under the terms of the strategic cooperation, Hoping will leverage its mature compliance framework to ensure the compliant execution and smooth commercial implementation of the collaborative projects.
Hoping will contribute its core resources, including compliant financial business operation scenarios and industry-specific data, as well as established market channels, brand assets, professional operations, and business support.
Concurrently, Fano Labs will provide the foundational technical backbone required for the project's practical implementation and will be primarily responsible for technical research and development, model iteration, systems engineering, and regular technical upgrades.
To support these initiatives, Fano Labs will provide core resources, including its dedicated AI research and development team along with proprietary model technology, algorithmic capabilities, and computing power resources.
Given the accelerating pace of global digital transformation and increasingly stringent financial regulatory requirements, demand for compliant and efficient financial AI solutions is steadily growing.
The board of directors believes that expanding into the financial services sector, driven by fintech and digital financial innovation, presents a significant growth opportunity for the group.
By integrating Hoping's deep financial industry expertise with Fano Labs' leading AI technology, the collaboration aims to achieve a deep fusion of technology and industry practice.
This move is expected to drive business innovation, enhance operational efficiency, cultivate new growth momentum, and strengthen the group's overall technological capabilities.
The cooperation will promote synergistic effects across the group's various business divisions.
Beyond fintech, the dedicated AI technology will also be used to upgrade core traditional operations through precision marketing and enhanced consumer targeting.
These AI solutions will initially be deployed for internal use to optimize the company's business lines and may subsequently be extended to external parties.
Ultimately, this collaboration will help the group broaden its revenue streams, revitalize existing businesses, and achieve sustainable business growth.
Therefore, the board considers the execution of the memorandum of understanding to be in the overall interests of the company and its shareholders.
The company has newly commenced insurance brokerage services through Hoping, having completed the acquisition of a 70% equity stake on April 30, 2026, and will continue to operate its existing smart toy, electronic product, and electronic components businesses.
The potential business expansion initiatives are designed to explore growth opportunities in higher-margin emerging industries, while injecting technological innovation into core business units, thereby enhancing the group's sustainable development capabilities and creating greater overall value for the company's shareholders.
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