Yuanxiang Group (08401) signed a media service agreement with a new partner

Zhitong Finance App News, Yuanxiang Group (08401) announced that on December 19, 2025, the company signed a media service agreement (media service agreement) with the new partner. The new partner agreed to continue to carry and display media content (media content) provided by the company through smart displays (displays) attached to IoT devices (including water machines) within the agreed area to provide media services (smart IoT advertising projects) within the agreed area.

A media service agreement is effective from the date of the media service agreement (effective date) for a period of one year (initial term), unless terminated early in accordance with its terms. If the Company gives written notice at least 3 months before the expiration of the initial period, the Company shall have priority over the other party's right to renew the contract.

According to the media service agreement, in view of the fees payable by the company, the new partner must ensure that media content is displayed on the display screen only in the manner specified by the company, and that all functions of the display are fully used to maintain its good operating state according to the specifications of the agreement, that no interference affects visibility, that no more than 10% of the display fails or cannot operate at any time, and that any defects are repaired within 5 business days. New partners can install new displays or remove existing displays, provided they maintain the minimum number of operating screens agreed in the agreement.

The directors believe that the media service agreement marks an important step forward and continuation of the Group's strategic initiatives under the Memorandum of Understanding and helps to strengthen its position in the evolving media and advertising industry in China. By obtaining exclusive rights from new partners to display dynamic media content on established display networks in communities and urban areas, the Group can make full use of the new partner's expertise in omni-channel new media operations, KOL/KOC resources and digital platforms to expand advertising coverage in China and potential overseas markets. This move enables independent operation and management of exclusive advertising resources, and promotes innovative forms such as interactive content, data-driven targeting, and refined consumer behavior insights, thereby increasing brand exposure, promoting deep interaction, and supporting integrated online and offline marketing activities.

The media service agreement combines appropriate risk mitigation measures at a fixed and predictable cost, enabling the Group's digital advertising portfolio to diversify beyond traditional online channels, gain additional exposure in promising everyday scenarios, attract new brand customers, and create potential new revenue streams. The directors believe that this transaction is in line with the Group's long-term goals of innovating in a dynamic media environment, grasping the trend towards digital and outdoor ecosystems, driving growth through synergy and data analysis, and creating long-term value for shareholders, and conforms to the overall interests of the Company and its shareholders.

The Board of Directors recommended changing the company's English name from “Stream Ideas Group Limited” to “Hua Xia Water Group Limited” and changing the company's Chinese double foreign language name from “Yuanxiang Group Co., Ltd.” to “Huaxia Water Group Co., Ltd.”