JIUFANG DIGITAL (08238) plans to establish a northern regional center in Zhengzhou City.

JIUFANG DIGITAL (08238) announces that on July 29, 2026, the Group completed the acquisition of Henan Zhihui Shenghe Digital Communication Co., Ltd. (Zhihui Shenghe). All applicable percentage ratios in respect of this acquisition are below 5%, and it does not constitute a transaction requiring disclosure by the Company under Chapter 19 of the GEM Listing Rules of The Stock Exchange of Hong Kong Limited. Following the completion of the acquisition of Zhihui Shenghe, the Group will strategically establish a new regional center (the Northern Regional Center) in Zhengzhou City, Henan Province, China. The Group has already established a business presence in Shenzhen to serve customers in South China. Its AI and omnimedia precision marketing business has developed rapidly, generating revenue of approximately HK$80.6 million for the six months ended June 30, 2026, thereby validating the commercial viability of the Group's AI-driven omnimedia precision marketing service model. With the rapid development of AI technology and the widespread adoption of digital transformation, demand for AI and omnimedia precision marketing services in northern China is growing increasingly. Zhihui Shenghe has been deeply rooted in Henan and surrounding provinces and cities for many years and has established a stable local customer network and media resource channels, with deep understanding of the market environment, customer needs, and industry trends in the northern region. Through this acquisition, the Group can directly acquire Zhihui Shenghe's local business foundation, significantly shortening the preparation time and cost required to start a business from scratch in the northern market. At the same time, the Group can empower Zhihui Shenghe's existing customer base with the AI technical capabilities and omnimedia precision marketing solutions already validated by its Shenzhen business, thereby achieving synergies between technology output and customer monetization. Leveraging the above advantages, the Northern Regional Center will serve as the Group's core hub radiating into the northern China market, aiming to better serve existing local customers, develop potential customer resources, and replicate the successful experience of the Shenzhen business in the broader northern market. The Northern Regional Center will be committed to: 1. deepening the application of AI technology in the field of precision marketing to provide customers with more efficient and intelligent omnimedia marketing solutions; 2. seizing the enormous business opportunities in the northern China market to expand the Group's market share and brand influence; and 3. leveraging the synergies brought by the acquisition of Zhihui Shenghe to optimize resource allocation, with the aim of enhancing the Group's overall profitability. The Board believes that the establishment of the Northern Regional Center is in line with the Group's core strategy of deepening its presence in digital marketing and AI technology applications. The Group plans to invest appropriate funds and resources, focusing on the operational team building, technology empowerment, and market expansion of the Northern Regional Center, and actively developing customer resources in northern China, thereby broadening the Group's business footprint and expected to create long-term value for the Company and its shareholders.