The Board of Directors of iDreamSky Technology Holdings Limited and Tencent Technology (Shenzhen) Company Limited (Tencent Technology) entered into the Licensing Cooperation Contract for PUPU ALIENS Images on January 17, 2022, which is under the 2021 IP Cooperation Framework Agreement. Pursuant to the Licensing Cooperation Contract for PUPU ALIENS Images, Tencent Technology has authorized the Company to use the art materials of the PUPU ALIENS Images, which are designed by Tencent Technology, and the Company is responsible for the production, promotion and sales of licensed products relating to the PUPU ALIENS Images. The relevant product categories can cover all kinds of products.

Sales channels include omni-channels such as physical stores, online e-commerce and live streaming, etc. in Mainland China. The Group is committed to enriching the reserve of high-quality IPs, promoting the development of the designer toy business and gaining market share.

Shenzhen iDreamSky Entertainment is a PRC consolidated affiliated entity of the Group, which has developed "WePlay", the first experimental entertainment retail block in China, together with Tencent, Nintendo and Sony, the world-renowned gaming companies. Tencent Technology is a subsidiary of Tencent. Tencent, as a leading Internet value-added service provider in China, owns PUPU ALIENS Images which have a broad fan base.

It is expected that Tencent Group and the Group can leverage the competitive advantages of resources and products of both sides to help the Group deeply cultivate the designer toy market, enrich the IP reserve, diversify the categories and sales channels of designer toy, and enhance the market popularity and share of offline business, and at the same time, enhance the brand value, increase the brand loyalty of users to "WePlay", thus gradually expanding the new business model of designer toy with high-quality IP as the core, and leading the new consumption trend. The Directors of the Company believe that the Licensing Cooperation Contract for PUPU ALIENS Images with Tencent Technology was entered into in the normal business course of the Group on terms that are fair and reasonable, on general commercial terms or better, and in line with the overall interest of the Company and its shareholders. The Group is a leading digital entertainment platform in China.

With online gaming business, SaaS business and regular chain stores of "WePlay" offering offline entertainment experience and designer toy retail as its main business, it has created an "24/7 online & offline entertainment life circle". Shenzhen iDreamSky Entertainment is a PRC consolidated affiliated entity of the Company, mainly engaged in the provision of console game experience, designer toy retail and other relevant services. Tencent mainly provides value-added services, online advertising, financial technology and corporate services to users in China through its subsidiaries.

As a subsidiary of Tencent, Tencent Technology is mainly engaged in providing value-added services in China.