Smart Finance APP News, Bingo Group (08220) announced that on August 31, 2024, iQIYI, the company, and Zholing Culture Media entered into a strategic cooperation framework agreement (strategic cooperation framework agreement) to specify strategic cooperation matters, with a validity period from August 31, 2024 to July 31, 2029 (cooperation period).

For the purpose of strategic cooperation, within 3 months after the date of the strategic cooperation framework agreement, iQIYI will be eligible to select up to 4 designated IPs from the list of intellectual properties (IPs) that the company is able to provide, and carry out various types of development and production.

In addition, iQIYI will have the exclusive cooperation rights for those designated IPs during the cooperation period. If iQIYI fails to complete the selection of up to 4 designated IPs within 3 months after the date of the strategic cooperation framework agreement, the company will be eligible to negotiate business cooperation with other business partners for the unselected IPs and other business.

Upon confirmation by the company and Mr. Stephen Chow, the company will sign a final agreement with iQIYI for each project (final project) or any other exclusive project (original project) arising from the designated IPs during the cooperation period. The final agreement will set out (but not limited to) the types of project production, cooperation methods, distribution of cooperation profits, investment amount and payment terms, scope and duration of IP authorization, ownership of intellectual property rights, and major cooperation matters voting arrangements.

During the cooperation period, the strategic cooperation for the designated IPs and final projects shall be exclusive. When iQIYI, the company, and Zholing Culture Media reach an agreement on the final project, and the initial investment of the final project has been settled, the strategic cooperation for the corresponding designated IPs will be extended until July 31, 2032.

By July 31, 2025, strategic business partners and the company must complete at least one pre-production of a final project, including script development, budget and production planning, styling and prop preparation, casting, on-site surveys, set construction, equipment procurement, technology acquisition, and other necessary pre-production work.

The board of directors of the company believes that reaching a strategic cooperation through a strategic cooperation framework agreement will be beneficial for the group to continue expanding the cultural and media market in mainland China, expanding the company's business. With the mature development of strategic business partners, a large customer base, a well-known network resources, and rich experience in local marketing services, the company will be able to improve its business performance, thereby bringing long-term returns to the company and its shareholders.