Accounting under U.S. GAAP will use equity-method treatment, granting Jinxin a proportional share of the Target's profits and losses and potentially boosting profit metrics and collaborative effects across domestic strength and overseas growth.

The arrangement aims to evolve Jinxin from a digital-education provider into a comprehensive AI-digital-enterprise spanning R&D, AIGC video creation, cross-scenario operations, and two-way content distribution, potentially strengthening the industry moat and market capitalization.

Domestic synergies include integrating Jinxin’s digital tools with the counterparty’s omnichannel network, leveraging influencer partnerships, intelligent recommendations, and monetization avenues like joint memberships, government/enterprise content services, and scenario-based advertising to drive domestic revenue growth.

After the close, Jinxin outlines rapid growth plans to expand global active-user reach through partner channels, test paid and ad-supported monetization, and deploy tiered, targeted content delivery to boost monetization efficiency, while developing interactive AI micro-dramas and expanding AI-assisted production.

Leveraging its multimodal large model and end-to-end AIGC video pipeline, Jinxin will participate in growing domestic and overseas AI micro-drama markets, pursuing monetization across diversified channels with multilingual localization.

Jinxin announces an agreement to acquire 40% economic interests in the Target Company's equity in exchange for 284,372,086 ordinary Jinxin shares, while the legal title and control of the Target Company remain with the current owners.

Company leadership stresses this as a strategic milestone, underscoring collaboration across AI-automated film production, multimodal content creation, omnichannel operations, and global distribution to unlock long-term corporate value.

From a capital-market standpoint, the deal provides near-term earnings visibility via equity-method accounting and long-term upside from expanding global AI short-form video and paid micro-drama sectors, with monetization through enhanced access rights and industry-wide growth.

The arrangement is positioned to advance into AIGC video production for short-form content and AI micro-dramas, supporting a potential two-way flywheel linking in-house AI technology, industrialized content production, and global distribution.

The counterparty brings an established new-media footprint with broad distribution across online platforms, smart devices, and offline settings, capable of producing multilingual AI micro-dramas and owning distribution channels, enabling collaboration to fill gaps in domestic distribution and localization.

Jinxin, headquartered in Shanghai, provides AI-enabled digital content and interactive education services through Namibox, with investor relations contact details available.

Overseas growth will focus on exporting Chinese-origin AI content through standardized channels, rolling out multilingual AIGC micro-dramas on platforms like TikTok and YouTube, and building a reciprocal framework to adapt overseas tech for domestic deployment and global content export.