Digital Domain (00547.HK) announced that its subsidiary, Digital Domain Gaming Media, has signed a distribution agreement with Taiwan-listed memory module and flash memory company ADATA. It is reported that Digital Domain Gaming Media will serve as the exclusive distributor of ADATA's comprehensive gaming brand 'XPG' products in Greater China and the Americas regions.

To conduct its distribution business, Digital Domain Gaming Media will purchase 'XPG' products from ADATA for exclusive distribution rights from November 11, 2024 to December 31, 2026, to sell and distribute to third-party customers in the distribution areas. The products include all existing and future products under the 'XPG' brand, such as computer memory, storage devices, computer and gaming peripherals and accessories, and must pay ADATA an annual licensing fee of 0.5 million US dollars.

According to the agreement between both parties, the total purchase amount and licensing fees for the period from the effective date until December 31, 2024, amount to a total of 13.58 million US dollars; the total annual fees for the year ending on December 31, 2025, amount to 76.5 million US dollars; and the total annual fees for the year ending on December 31, 2026, amount to 0.135 billion US dollars. (js/w)

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