Sino-Entertainment Tech says licence fees, royalties under IP deal treated as expenses, not acquisition

• Sino-Entertainment Technology issued a supplemental clarification on its 15 July 2026 connected Licence Agreement for IP assets tied to a “Character.”
• Strategy centers on integrating the Character into PRC casual mobile games, targeting launches in Q4 2026 with an expected three-month development cycle.
• Revenue plan combines in-app purchases with IP commercialization via merchandise and sublicensing; licence fees set at 20% of sublicense income.
• Royalty fees set at 35% to 50% of relevant sales revenue; physical manufacturing outsourced while the group runs design, operations, and distribution.
• Auditor confirmed fees are expensed as incurred, not capitalized; agreement reclassified as not an acquisition under Chapter 14 but a Chapter 14A continuing connected transaction.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Sino-Entertainment Technology Holdings Ltd. published the original content used to generate this news brief via IIS, the regulatory disclosure system operated by the Hong Kong Stock Exchange (HKex) (Ref. ID: HKEX-EPS-20260812-12280928), on August 12, 2026, and is solely responsible for the information contained therein.