EHGO Acquired D&K Asset Management and Worked with Liuli Ball Culture to Draw a New Blueprint for Tencent's Business Ecosystem
Rhea-AI Summary
Eshallgo (NASDAQ: EHGO) announced the acquisition of D&K Asset Management (Hong Kong) and established a strategic partnership with Beijing Liuliuqiu Cultural Development. The deal includes two major cooperation agreements with Tencent Technology: a Cloud Gaming Console Product Cooperation Agreement for developing gaming consoles and a Cross-Industry Cooperation Agency Agreement for joint marketing activities.
EHGO also signed a sales agreement for 1,000 cloud gaming consoles with Liuliuqiu Cultural Development. The company will develop consoles supporting multiple cloud gaming services, including Migu Quick Gaming, Tencent START, Microsoft Xcloud, and GeForce Now. EHGO operates with over 20 provincial subsidiaries, 150 service units, and 1,500 technical service personnel, serving more than 20,000 enterprise customers through its Yixiuge platform.
Positive
- Strategic acquisition providing entry into Tencent's business ecosystem
- Secured agreement for 1,000 cloud gaming console sales
- Access to multiple cloud gaming platforms including Microsoft Xcloud and GeForce Now
- Extensive service network with 20 provincial subsidiaries and 1,500 technical staff
- Established customer base of 20,000 enterprise clients
Negative
- Financial terms of the acquisition not disclosed
- Integration costs and timeline not specified
- Potential execution risks in entering new gaming market segment
News Market Reaction
On the day this news was published, EHGO declined 33.27%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
The highlights of this acquisition lie in the two significant cooperation agreements signed by Shenzhen Qianhai Huiying Technology Power Co., Ltd., a subsidiary of D&K Asset Management (
On the same day, ESHALLGO also signed a sales agreement for one thousand cloud gaming consoles with Beijing Liuliuqiu Cultural Development Co., Ltd. Leveraging Tencent's resource advantages, the two parties will collaborate to develop cloud gaming console products that support multiple cloud gaming services. This console will achieve perfect integration of hardware and network resources, leading to the thriving development of the cloud gaming ecosystem and enabling players to enjoy AAA games anytime, anywhere. At the same time, the cooperative product will closely collaborate with cloud gaming ecosystems such as Migu Quick Gaming,
The remarkable achievements of ESHALLGO in the fields of office integration services and cloud gaming are attributed to the company's profound accumulation and exceptional capabilities in each respective area. As a Nasdaq-listed company, ESHALLGO has set an industry benchmark in the sales and service of office equipment and peripheral products in
The cooperation with Tencent and Beijing Liuliuqiu Cultural Development represents another significant milestone in ESHALLGO's business expansion. As an internationally renowned internet company, Tencent will provide solid support to ESHALLGO with its powerful resources and technological advantages. Meanwhile, Beijing Liuliuqiu Cultural Development's extensive experience and innovation capabilities in the cloud gaming field will inject new vitality and possibilities into the collaboration between the two parties.
Regarding this acquisition and cooperation, ESHALLGO CEO Miao Qiwei stated, "As a Nasdaq-listed company, we are extremely honored to forge ahead together with Tencent and Beijing Liuliuqiu Cultural Development. Through our in-depth cooperation, we will jointly promote the development of the integrated office and cloud gaming sectors, and delivering more convenient, efficient, and diversified service experiences for customers. We believe that this acquisition and cooperation will open up broader market opportunities for both parties and generate considerable commercial value."
Beijing Liuliuqiu Cultural Development also expressed high expectations for this cooperation: "Partnering with ESHALLGO is a crucial step in our layout of the cloud gaming and office service sectors. ESHALLGO's extensive experience and capabilities in office integration services will provide us with strong support and after-sales service guarantees. At the same time, through ESHALLGO's collaboration with Tencent, we will also benefit from Tencent's powerful resources. We look forward to working hand in hand with ESHALLGO to create an even brighter future together."
Looking ahead, ESHALLGO will continue to uphold the development philosophy of innovation and pragmatism, working alongside partners such as Tencent and Beijing Liuliuqiu Cultural Development to jointly promote the prosperity and development of the cloud gaming and office integration service sectors, opening a more brilliant chapter.
About Eshallgo Inc
Eshallgo Inc is one of the leading office solution providers in China with a global vision. We specialize in two distinct market sectors: office supply sale and leasing, and after-sale maintenance & repair. We have created an extensive geographical presence, which expands throughout 20 provinces in China. Our mission is to become an office integrator and service provider, offer competitive overall office solutions and services, expand our service market beyond office equipment, and continue to create maximum value for customers. For more information, visit the Company's website at http://ir.eshallgo.com/.
Forward-Looking Statements
All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and in its other filings with the SEC.
For more information, please contact:
Investor Relations:
Sherry Zheng
Weitian Group LLC
Phone: 718-213-7386
Email: shunyu.zheng@weitian-ir.com
View original content:https://www.prnewswire.com/news-releases/ehgo-acquired-dk-asset-management-and-worked-with-liuli-ball-culture-to-draw-a-new-blueprint-for-tencents-business-ecosystem-302336309.html
SOURCE Eshallgo Inc
FAQ
What companies did EHGO acquire in December 2024?
How many cloud gaming consoles did EHGO agree to sell to Liuliuqiu Cultural Development?
Which cloud gaming platforms will EHGO's consoles support?
How many enterprise customers does EHGO currently serve?
What are the two major agreements EHGO signed with Tencent?
