EASOU TECH (ASX: 02550) has issued a public announcement regarding a pair of proposed acquisition deals. On June 3, 2026, the company and its wholly-owned subsidiary, EASOU Technology Co., Ltd., acting as the buyer, entered into a sale and purchase agreement with an independent third-party seller, Yingke Internet Ltd. (Seller I), concerning the acquisition of Mengzhixing. Under the terms of this agreement, Seller I has consented to sell, and the buyer has consented to purchase, the sales shares, representing the entire issued share capital of the target company, Yingke Internet (Hong Kong), for a total consideration of HK$123 million. This payment will be settled by the allotment and issuance of 68 million fully paid consideration shares by the company to Seller I (or its nominee) at an issue price of HK$1.804 per share on the completion date for the Mengzhixing acquisition. Upon finalization of this transaction, the first target company will become a wholly-owned subsidiary of EASOU TECH, and its financial results will be consolidated into the group's financial statements.
Separately, after trading hours on the same day, June 3, 2026, EASOU TECH and its wholly-owned subsidiary, again as the buyer, entered into a second sale and purchase agreement with another independent third-party seller, Fortune Tiger LPF (Seller II), for the acquisition of Yunlang. This agreement stipulates that Seller II will sell, and the buyer will purchase, the sales shares II, equivalent to the entire issued share capital of the second target company, Yunlang Technology (Hong Kong), for a consideration of HK$39.688 million. The payment for this acquisition will be made via the allotment and issuance of 22 million fully paid consideration shares by the company to Seller II (or its nominee) at the same issue price of HK$1.804 per share on the Yunlang completion date. Following the closure of the Yunlang acquisition, this second target company will also become a fully-owned subsidiary of EASOU TECH, with its financial performance integrated into the group's consolidated accounts.
Strategic Rationale for the First Acquisition
Mengzhixing operates as a mobile game publisher, specializing in game operation and promotion, including optimizing the operation of high-quality mobile games and expanding game traffic. The EASOU TECH group has been actively evaluating potential investment opportunities that align closely with its core business in artificial intelligence (AI) applications. The board of directors views the Mengzhixing acquisition as a strategic opportunity that directly supports the group's growth objectives. By integrating Mengzhixing into the corporate structure, the board anticipates that the acquisition will enable the group to scale its existing business operations. Furthermore, Mengzhixing's proven expertise and capabilities within the gaming industry are expected to significantly bolster the group's ongoing efforts to develop strategic growth plans. This move is aimed at broadening the group's revenue base and enhancing profitability by improving operational efficiency across the mobile game publishing value chain.
The directors also believe that combining the Mengzhixing acquisition with the group's existing projects is expected to drive sustainable, medium- to long-term value growth. It is projected to accelerate the group's organic growth, expand its business scope, enable it to keep pace with market developments, and enhance its competitiveness within the evolving digital and AI industry landscape.
Strategic Rationale for the Second Acquisition
Yunlang possesses technological capabilities to deploy its AI-driven recommendation engine on the group's streaming platforms operated on TikTok and Douyin, thereby providing personalized product recommendations to end-users. The board of directors considers these AI technologies to be highly complementary to the group's existing portfolio of AI applications, which spans digital reading, digital marketing, online game publishing, and other digital content services. Specifically, integrating Yunlang's AI technology is expected to assist the group in entering the live-streaming e-commerce sector, an area the group has identified as a strategic expansion target with promising commercial prospects. The board believes that by applying Yunlang's technology to the group's existing and planned live-streaming business, the group will be able to recommend products to users instantly and effectively, thereby creating new revenue streams and enhancing user engagement.
Additionally, the Yunlang acquisition is anticipated to accelerate the group's organic growth, extend its business reach beyond current service lines, and allow it to keep up with rapid market developments in the AI and digital retail sectors. It is also expected to strengthen the group's competitiveness in the digital and AI industry by enhancing technological differentiation and diversifying revenue sources. Yunlang is a company primarily operating in the software and information technology services sector, possessing proprietary AI technology. The board of directors judges that this technology aligns with the group's business strategy and its intention to invest in AI-generated content technologies.
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